Todd Gordon shared with the viewers of CNBC's "Trading Nation" his bearish trading idea in Apple Inc. AAPL.
He said that the stock underperformed PowerShares QQQ Trust, Series 1 (ETF) QQQ in the uptrend. Now that the uptrend is broken, Gordon expects Apple to lead the move lower on the downside. He thinks the stock could drop to $140.
To make a bearish bet, Gordon wants to buy the July 145/140 put spread for $1.86. The trade breaks even at $143.14 or 1.5 percent below the current stock price. It can make a maximal profit of $3.14. If the premium paid drops to 90 cents, Gordon would activate a stop loss and close the position.
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