Market Overview

Todd Gordon's Alphabet Options Trade

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On CNBC's Trading Nation, Todd Gordon suggested that traders should consider a bullish options strategy in Alphabet Inc (NASDAQ: GOOGL).

He noticed a bullish trading pattern, called the inverse head and shoulder, on a daily chart of Alphabet and he wants to use options to set up a long position.

Gordon believes Alphabet is going to trade higher to $840 or $850 over the coming weeks and he wants to buy the December 820/825 call spread for $1.25. The trade breaks even at $821.35 or 4.50 percent above the closing price on Monday. It can maximally make a profit of $3.75. Gordon added that he would close the position if the premium drops to $0.625.

Posted-In: CNBC Todd Gordon Trading NationOptions Markets Media

 

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