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Todd Gordon's Health Care SPDR ETF Trade

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On CNBC's Trading Nation, Todd Gordon recommended a bearish options strategy in Health Care SPDR (ETF) (NYSE: XLV). He said that the stock has been under performing lately and on Monday it broke below its trend line.

Gordon thinks that the stock should continue to trade lower to its June low of $68. When the stock was trading at $71.11, he suggested that traders should buy the November 70/68 put spread for $0.45. The trade breaks even at $69.55 and it can maximally make $1.55, if Health Care SPDR (ETF) trades to $68. He added that he would close the position, if the stock trades to $72.

Posted-In: CNBC Todd Gordon Trading NationOptions Markets Media

 

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