Todd Gordon's Bearish Netflix Options Trade

Todd Gordon spoke on CNBC's "Trading Nation" about a bearish options trade in Netflix, Inc. (NASDAQ: NFLX) ahead of earnings.

The company is going to report earnings Oct. 16 and Gordon noticed on its chart it's facing a major technical resistance. He's also concerned because it relatively underperformed PowerShares QQQ Trust, Series 1 (NASDAQ: QQQ) recently.

To make a bearish bet, Gordon wants to sell the October 370 call and buy the October 375 call for a total credit of $2.30. The credit is his maximal profit and he can achieve it if the stock stays below $370 at the October 19 expiration. If the stock trades higher, above $375, he can maximally lose $2.70.