Facebook is going to $100: Trader

The information technology sector dragged on the S&P 500 on Tuesday as stocks struggled to hold onto gains. Within the group, Facebook was one of the worst performers, tumbling about 3 percent.

However, one options trader thinks the social media company could rally 15 percent in just one month.

"I'm making a stance, right here today on Sept. 29th, 2015, that Facebook will hit $100 by Nov. 1st," Andrew Keene of KeeneOnTheMarket.com said Tuesday on CNBC's "Trading Nation."

"The market is very weak, Facebook's been weak over the last couple of days," Keene acknowledged. But, "If the market can turn around, Facebook can move higher. If it reports strong earnings, Facebook can move higher," he said.

The company is expected to report third-quarter earnings at the end of October, which Keene said could give its stock price a boost. Facebook shares have seen substantial gains this year, but have fallen more than 6 percent in the last week.

Looking at the weekly chart, Keene said Facebook's upward trend is still intact.

He is buying a November 95/100 bull call spread for $1.25, which represents a bet that Facebook will reach $100 by November options expiration.

Read More No, Facebook is not going to charge users a privacy fee

As the broader market has sold off, Keene said, Facebook had managed to make higher highs and higher lows. It's only recently that the social media giant started to dip, he said.

Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com

Videos

Trades to Watch

Trader Bios

About

Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more

Connect