Todd Gordon's Oil ETF Trade

On CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com spoke about a bullish trading idea in United States Oil Fund LP (ETF) USO.

He believes the stock has bottomed because the RSI technical indicator didn't reach a new low when the stock dropped to its new low in June. He also thinks that USO is going to break out to the upside and reach $11.

To get a long exposure, he wants to buy the September 9.50/10.50 call spread for 38 cents. The trade breaks even at $9.88 or 0.71 percent above the current market price and it can make a maximal profit of 62 cents. If the stock jumps to $10.50, Gordon is planning to close the September 10.50 call and sell the September 11 call.