Benzinga | Nov 13, 2020 07:35AM EST

Todd Gordon's Teladoc Options Trade

Todd Gordon of TradingAnalysis.com suggested on CNBC's "Trading Nation" a bullish options trade in Teladoc Health Inc (NYSE:TDOC). He is not concerned about the recent correction and he is looking to add the stock to his portfolio.

For traders who want to use options, Gordon recommended a purchase of the January $200/$220 call spread for $5.35. The trade breaks even at $205.35 or around 10% above the current stock price. If the stock jumps to $220 or higher, the trade is going to reach its maximal profit of $14.65. Gordon would close the position if the premium gets cut in half.