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Todd Gordon's SMH Trade

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On CNBC's "Trading Nation," Todd Gordon of TradingAnalysis.com suggested that investors should consider a bullish options trade in VanEck Vectors Semiconductor ETF (NYSE: SMH). He analyzed the stock from a technical point of view and he concluded that it could break out above its resistance.

To make a bullish trade, Gordon wants to buy the November $122/$130 call spread for $2.48. The trade breaks even at $124.48 and it can maximally make a profit of $5.52 if the stock moves to $130 or higher at the November expiration. If the premium paid gets cut in half, Gordon is going to close the position.

 

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