Shares of Microsoft have slipped since the tech giant's earnings beat, but that's not stopping one trader from betting that another rally is in store for the stock.
On a chart of Microsoft dating back to November last year, Gordon points out that while the stock has been trading in a range since the end of January, its performance against the market as a whole suggests a bounce is ahead for the tech company.
"As the Nasdaq was selling off, Microsoft held in extremely well," said Gordon on Thursday on CNBC's "Trading Nation." "So we're looking for a break through this upside range that should be able to carry us to about $68 and possibly $70 through the Fed meeting and into the end of March."
This means that Gordon sees Microsoft surging as much as 8 percent by the end of this month.
To prepare for a pop, Gordon wants to buy the April 7 weekly 65-strike calls and sell the April 7 weekly 67.5-strike calls for a total of 79 cents per share. In order to make money on his trade, Gordon would need Microsoft to close at $65.79 on April 7, which is less than 2 percent above current levels.
If Microsoft closes $67.50 on April 7, then Gordon will make his maximum profit of $2.50 per share. On the other hand, if the stock stays below $65, the entire amount he spent on the trade will be lost.
"With this trade, we're trying to hit a single or a double," rather than trying to swing for the fences, Gordon said.
Microsoft is currently up almost 4 percent year to date.
