Todd Gordon of TradingAnalysis.com shared with the viewers of CNBC's "Trading Nation," his bullish options strategy in Advanced Micro Devices, Inc. AMD.
The stock broke its long-term resistance and Gordon believes it's going to continue to trade higher. He has also noticed a big open interest in the January 2021, $65 strike calls and he sees that as a bullish sign.
To make a bullish bet, Gordon wants to buy the February 2020, $40/$45 call spread for $1.85. The trade breaks even at $41.85 and it can maximally make a profit of $3.15. If the premium gets cut down to 92 cents, Gordon is going to close the trade.
Related Links:
Decoding AMD's Breathtaking 2-Year Rally
Bank Of America Likes AMD, Nvidia Ahead Of 2020 Gaming Market Recovery
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