Todd Gordon recommended on CNBC's Trading Nation a bearish options strategy in iShares Russell 2000 Index (ETF) IWM.
He thinks that the stock is going to test its technical support at $128 and he wants to use options to make a bearish bet. Gordon wants to buy the April 132 put and sell the April 128 put for a total cost of $1.25. The trade breaks even at $130.75 and it can make a maximal profit of $2.75. If the premium drops to $0.62, Gordon is going to close the position.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in