Todd Gordon's Ulta Beauty Options Trade

On CNBC's "Trading Nation," Todd Gordon spoke about a bullish options trade in Ulta Beauty Inc ULTA. He expects the stock to break out on the upside and he wants to use options to initiate a long position.

Gordon wants to buy the July 350/365 calls spread for $4.75. The trade breaks even at $354.75 or 1.41 percent above the current stock price. If the stock jumps to $365 or higher, the trade is going to reach its maximal profit of $10.25. Gordon likes to use a stop loss for his trades. If the premium gets cut in half, he would close the position.