Todd Gordon's Bearish Apple Trade

On CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com suggested that traders should consider a bearish options strategy in Apple Inc. AAPL.

Gordon believes the stock is going to close the gap that occurred on August 2, by trading lower to $148. To make a bearish bet, he wants to buy the October 152.50/148 put spread for $1.54. The trade breaks even at $150.96 or 1.58 percent below the current market price. It is going to reach its maximal profit of $2.96, if the stock drops to $148. If the premium gets cut in half, Gordon is going to close the trade.