Todd Gordon's Bearish Boeing Trade

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