Todd Gordon's Options Strategy In Apple

On CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com spoke about an options trading strategy in Apple Inc. AAPL.

Gordon thinks the stock is going to trade higher and he noticed that implied volatility in the name hasn't dropped after earnings as much as he expected. He wants to use options to make a bullish trade.

See Also: Kevin Kelly's Apple Trade

Specifically, he wants to sell the September 160/155 put spread for $2.12. If the stock stays above $160, Gordon is going to collect the whole premium. The trade starts to lose money below $157.88 and it can maximally lose $2.88. If the underlying drops to $156 price level, Gordon is going to close the position.