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Buy Apple—the bulls will win this ‘war’: Trader

After three tough months for Apple, the tech giant is finally finding a bottom, according to one trader.

Apple shares are down more than 20 percent since November due to concerns about slowing iPhone sales and a difficult economic environment in China. But that selling makes this the ideal time to make a bullish play on the stock, according to Andrew Keene of AlphaShark.

Keene believes that new products will give Apple a much-needed boost. Keene also noted that the company is still holding plenty of cash.

"In the short term, we might get some volatility, ... [but] it is starting to consolidate here," Keene said Thursday on CNBC's "Trading Nation." "This is a tug of war between the bulls and the bears to see who wins."

And Keene says the bulls now have the edge.

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"By 2017, I think Apple can march its way back to up to the highs, just like Facebook did, up to that $115 level," he said.

To make a bullish trade, Keene is buying the January 2017 105-strike call and selling the January 115-strike call for a total cost of $2.50 per share, which is an options strategy known as a "bull call spread." Keene sees maximum profits if Apple rises to $115 by January expiration, but the trade is profitable if Apple shares rise to $107.50 by that time. Below that level, his losses are capped at the amount spent on the trade.

A jump to $107.50 would be a 12 percent move for Apple's stock, which traded around $96 on Friday morning.

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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.

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Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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