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.

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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.

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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.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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