Todd Gordon's Nike Options Trade

Todd Gordon of TradingAnalysis.com spoke on CNBC's "Trading Nation" about a bullish options trade in Nike Inc NKE. He said the stock has been consolidating recently, but he expects it to break out on the upside, above its recent highs.

Gordon is a buyer of Nike at the current price level, but he would place a stop loss at $75. He already owns Nike shares and is thinking about selling calls against his long stock position, going into earnings. He explained that implied volatility increases as earnings approach so he's waiting for the right moment to apply that strategy.

He also wants to use options to make a bullish bet on earnings, Gordon wants to buy the September 85/90 call spread for $1.28. The trade breaks even at $86.28 and it can maximally make a profit of $3.72.

Nike's stock traded higher by 1.8% to $83.50 per share at time of publication.

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Photo by Emily Elconin.