Why Nasdaq 100 may soon set record highs

The recent market rebound helped one group of stocks in particular—technology. And according to one trader, the rally isn't finished.

After a brief swoon, the has bounced back 1.8 percent in the past two days. But the ETF tracking the tech-heavy Nasdaq-100 (trading under the symbol QQQ) did a bit better, returning 2.2 percent during that time.

Todd Gordon, founder of TradingAnalysis.com, expects the QQQ to continue moving higher and wants to take on his second bullish put spread on the ETF in the past few days.

Earlier this week, he placed a bullish put spread where he sold the 109-strike puts while simultaneously buying the 108-strikes. Both options expire Friday. Since a put gives the purchaser the right to sell a stock at a specific price within a set time frame, that bullish put spread maximizes profits if shares reach the higher strike price. The QQQ opened at $109.85 on Thursday.

Scott Mlyn | CNBC

Based on his chart work, Gordon sees a two-month uptrend holding, even with the selloff earlier this week. He expects the QQQ to test resistance at $111.

"I believe we're going to break through that level and continue to the upside," said Gordon.

With that in mind, Gordon is once again placing a 108/109 bullish put spread. By selling the 109-strike puts higher than the purchase price of the 108-strike puts, Gordon is taking in 33 cents for each pair of put and calls or $33 per contract.

If Gordon is right, he will be able to keep that money by next Friday. Using Fibonacci ratios popular with technical analysts, he foresees a rally in the next few days.

"We could get up to just over $112 on the topside in the next five to 10 trading days," Gordon said.

The QQQ's record highs of $111.16 were set on April 27.

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