Todd Gordon's Emerging Markets ETF Options Trade

Todd Gordon of TradingAnalysis.com spoke on CNBC's "Trading Nation" about an options trade in iShares MSCI Emerging Markets Index (ETF) EEM.

He expects the stock to break out on the upside and he thinks it could reach $50. To make a bullish trade, he wants to buy the February 48/50 call spread for $0.72. The trade breaks even at $48.72 or 1.48 percent above the current market price. Its maximal profit is $1.28 and it can be achieved if the stock jumps to $50 or higher. Gordon wants to place a stop loss at 50 percent of the premium value.