Tech stocks have lagged over the last month, but one chart watching trader is betting on a tech heavyweight heading into the new year.
Todd Gordon of TradingAnalysis.com likes Apple at its current trading levels, given its recent "strong uptrend," and anticipates it returning to highs seen in previous months.
"Apple is set up technically well, and it seems to be leading the Nasdaq just a touch here today," Gordon said Friday on CNBC's "Trading Nation."
Examining a chart of Apple shares, Gordon points to Apple's $7 November rise.
The trader sees a similar rally afoot, which would place the stock back around it October highs of about $118 per share—about 4 percent above its Friday close.
In order to play for such a move, Gordon is buying January 114-strike calls and selling January 118-strike calls for a total cost of $1.22 per share.
For Gordon to break even on this trade, Apple would have to close at or above $115.22 on January 20th. If Apple closes below $114 on that date, Gordon would lose the entire amount spent on the options trade.
However, if Apple rallies and closes at or above $118, he will see his maximum profit of $2.78.
If the trade loses half of its value, meaning that this "bull call spread" becomes worth just $0.61 per share, Gordon plans to exit the trade.
