He explained that the stock has been trading sideways recently after a sharp move higher and he thinks that it could make another move higher after the earnings.
Implied volatility in the name is increasing because of earnings and Gordon wants to sell the November 100 put for $1.46 and buy the November 98 put for $0.96. The options structure is allowing him to generate a credit of $0.50, which is his maximal profit and he can maximally lose $1.50, if the stock drops to $98 or lower.
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