Todd Gordon's Emerging Markets ETF Trade

Todd Gordon of TradingAnalysis.com recommended on CNBC's "Trading Nation" an options trading strategy in iShares MSCI Emerging Markets Indx (ETF) EEM.

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He wants to buy the August 42 call for $1.53. The trade breaks even at $43.53 or 0.42 percent above the current strike price. The delta for the option is 0.74, which means that it is going to behave almost like the underlying stock. Gordon is going to activate the stop loss if the premium declines 50 percent.