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.
"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.