Todd Gordon's Nvidia Options Trade

On CNBC's "Trading Nation", Todd Gordon suggested a bullish options strategy in NVIDIA Corporation (NASDAQ: NVDA).

He noticed the island reversal pattern, followed by a pull back into 50 percent retracement zone on its daily chart. Gordon sees this as a bullish sign and he wants to use options to make a bullish bet.

He wants to buy the December 212.50/220 call spread for $3.10. The trade breaks even at $215.60 or 1.89 percent above the current stock price. Gordon can maximally make $4.40 with the trade, if the stock jumps to $220 or higher. He is going to place a stop loss at 50 percent of the premium value.