Todd Gordon's iShares Barclays 20+ Yr Treas.Bond ETF Trade

On CNBC's Trading Nation, Todd Gordon spoke about a bearish options trading idea in iShares Barclays 20+ Yr Treas.Bond (ETF) TLT.

He thinks the Fed is going to increase interest rates in March and that iShares Barclays 20+ Yr Treas.Bond (ETF) is going to trade lower. Gordon believes the ETF is trading at its resistance and he expects to see a pull back to $119 or $118. In order to make money on a potential move lower, he wants to buy the March 121/118 put spread for $0.99.

The trade breaks even at $120.01 or 1.5 percent lower. It can maximally make a profit of $2.01, if the stock drops to $118 or lower. Gordon added that he's going to place a stop loss at $0.50.