Todd Gordon's AMD Options Trade

On CNBC's "Trading Nation," Todd Gordon of TradingAnalysis.com suggested a bullish options strategy in Advanced Micro Devices, Inc. (NASDAQ: AMD).

Gordon thinks it's more expensive than NVIDIA Corporation (NASDAQ: NVDA) by forward price-to-earnings ratio, but he's looking ahead to the release of Zen 3 CPUs. The company is also gaining market share from Intel Corporation (NASDAQ: INTC).

Gordon owns the stock and he would add to the position on this pullback. He wants to buy the November $85/$100 call spread for $4.18. The trade breaks even at $89.18 or almost 10% above the closing price on Tuesday. If the stock jumps to $100 or higher, the trade is going to reach its maximal profit of $10.82.