Todd Gordon's Bearish Tesla Trade

Speaking on CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com recommended a bearish options strategy in Tesla Inc TSLA.

The company is going to report earnings on Wednesday and Gordon believes it's going to trade lower after the earnings. He wants to make a bearish bet by selling the August 4th, 335/340 call spread for $1.23. The trade is going to make money if the stock stays below $335 at the August expiration. It starts to lose money above $336.23 or approximately 5 percent above the current market price. It can maximally lose $3.77, if the stock jumps to $340 or higher.