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Todd Gordon's Bearish Boeing Trade

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On CNBC's "Trading Nation," Todd Gordon of TradingAnalysis.com shared his bearish options trade in Boeing Co (NYSE: BA).

He sees bad news for the stock both on a fundamental side and a technical side. The company has just made an announcement that it is stepping back from the missile program with Pentagon. From a technical standpoint, the stock broke below its up trend line, which Gordon sees as bearish.

To make a bearish bet, Gordon wants to buy the October 340/320 put spread for $6.55. The trade breaks even at $333.45 or 4.21% below Thursday's closing price. If the stock drops below $320 at the October expiration, the trade is going to reach its maximal profit of $13.45.

Posted-In: CNBC Todd Gordon Trading NationShort Ideas Options Markets Media Trading Ideas

 

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