Todd Gordon's PayPal Trade

On CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com suggested a bullish options strategy in Paypal Holdings Inc PYPL, ahead of earnings. He said the company is going to report earnings on Oct. 19 and the options market is pricing a 68 percent chance that the stock price is going to be between $65.39 and $70.57.

To make a bullish trade Gordon wants to sell the October 68 put and buy the October 65 put for a total credit of $1.09. If the stock stays above $68 at the October 20 expiration, Gordon is going to collect the premium. Below $66.91, the trade starts to lose money and it can maximally lose $1.91.