Todd Gordon's Facebook Trade

On CNBC's "Trading Nation", Todd Gordon recommended a bullish options strategy in Facebook Inc FB.

He said that the stock is currently trading sideways and he thinks that it could move higher after this period of consolidation. He also noticed that implied volatility is slightly elevated and he wants to sell a put spread to make a bullish trade. He wants to sell the October 167.50/165 put spread for a total credit of $0.92. If the stock stays above $167.50 at the October expiration, Gordon is going to collect the premium. The trade starts to lose money at $166.58 and it can maximally lose $1.58. If the stocks tests $162 price level, Gordon is going to close the position.