Todd Gordon of TradingAnalysis.com suggested on CNBC’s “Trading Nation” that traders should consider a bullish options strategy in Tesla Inc (NASDAQ:TSLA).
The company is getting some bad press recently as it recalled some vehicles. Investors also see a lot of correlation with Bitcoin, which is currently under pressure.
See Also: BofA Cuts Tesla Price Target By $200, Predicts Another Equity Offering
Gordon isn’t concerned because he noticed a bullish triangle formation in Tesla. He said these patterns generally have five swings before the prior trend resumes. He expects the stock to stay above $550 and he said it could double in the next 12 to 24 months.
To make a bullish trade, Gordon wants to buy the July $650/$700 call spread in Tesla for $11.20. The trade breaks even at $661.20 or around 15.5% above the closing price on Thursday.
