If you're hunting for a Cyber Monday deal that's worth your money, you may want to take a look at the stock of tech giant Alphabet.
That's according to Todd Gordon of TradingAnalysis.com, who spots three technical reasons why the company is "on sale" and headed higher after a tough month.
First, Gordon points out that he sees a "three-wave correction" on a daily chart of Alphabet that began at the end of October. Basically, since earnings, the stock has seen two trends lower that have sandwiched a short rally near the beginning of November.
The trader says that this pattern in Alphabet is "the signature look of a corrected move" that indicates the stock's recent rise will continue.
Second, Gordon sees an "inverse head and shoulders" in the charts, another bullish indicator that he says hints at a rally ahead for Alphabet. Pair this with Gordon's observation that Alphabet now has a new support at $785, which used to be the stock's level of resistance, and one spots why the tech giant could see a move higher.
To take advantage of an Alphabet rally, Gordon buys the December 820-strike calls and sells the December 825-strike calls for $1.25 per share, or $125 per options contract. Gordon is betting that Alphabet will close above $825 on Dec. 16, which would net him $500, for a profit of $375. In other words, Gordon could quadruple his money if Alphabet rises about 4 percent in the coming weeks.
Trader takeaway: Todd Gordon believes Alphabet shares are heading higher, and he is buying a bullish call spread in order to profit off of an expected 4 percent rise in the stock.