Todd Gordon's Apple Options Trade

Todd Gordon of TradingAnalysis.com recommended on CNBC's "Trading Nation" a bullish options trade in Apple Inc. AAPL.

He likes the stock because he expects a large iPhone upgrade cycle and he also noticed on its chart a bullish technical pattern, called inverse head and shoulders. He holds Apple in his portfolio and it's a big position so he is not planning to add more.

To make a bullish bet, Gordon wants to buy the November $122.50/$127.50 call spread for $2.05. The trade breaks even at $124.55 or around 2.5% from the current stock price. If the stock moves to $127.50 or higher, the trade is going to reach its maximal profit of $2.95.