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Todd Gordon's SPDR S&P 500 ETF Trust Trade

Craig Jones

On CNBC's "Trading Nation," Todd Gordon of TradingAnalysis.com spoke about a bullish options trading idea in SPDR S&P 500 ETF Trust (NYSE: SPY).

Based on prior corrections, Gordon calculated that current support is in a $288 to $285 range. To make a bullish bet, he wants to sell the June 290 put and buy the June 285 put for a total credit of $1.77. The trade breaks even at $288.23 and it can make a maximal loss of $3.23. If the stock drops $3, Gordon would close the position.

If the support at $285 doesn't hold, Gordon believes SPDR S&P 500 ETF Trust could test the lower trend line at $225.

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