Todd Gordon's Exxon Mobil Options Trade

CNBC Trading Nation's Todd Gordon spoke on the show about Exxon Mobil Corporation XOM. He used technical analysis to analyze the stock and he concluded that it bounced off its support and it broke out to the upside.

Gordon thinks Exxon Mobil is going to continue to move higher and he sees the first resistance at $96. He believes that it would be a good idea to initiate a long position in the name and he suggested that the best way to do that is by purchasing the January 90/95 call spread for $2.02. The trade breaks even at $92.02 and it can maximally make $2.98. If the premium drops to $1, Gordon is going to close the trade.