After Amazon cracks $2,000, one trader sees another leg higher by mid-September, says the stock is in 'breakout mode'

After Amazon cracks $2,000 for the first time, trader sees bigger breakout ahead

After Amazon cracked through the $2,000-per-share milestone for the first time, TradingAnalysis.com's Todd Gordon is betting on an even bigger rally in coming weeks.

"Amazon is in breakout mode here. I like the stock, it looks strong. I'll show you on the chart from a technical point of view that there is still room to run if you're not already involved in this big, big beast of a stock," Gordon said Thursday on CNBC's "Trading Nation. "

Earlier Thursday, Amazon broke $2,000 and closed the day at $2,002.38.

Gordon pointed out that Amazon is trading firmly in a bullish trend channel, suggesting more upside ahead.

"You can see that we are still very much midrange here in this channel. We have not yet touched the upper end, which would signify resistance. If you're looking over where that price might intersect, that's between $2,000 and $2,100, so we are looking at a possible move into $2,050. It's not unheard of for these stocks to push through the trend channel," Gordon said.

To capitalize on the move, Gordon plans to turn to the options market and execute a bullish call debit spread.

"We're going to be buying a higher call, selling an even higher call than that. That is going to result in a net debit to our account. I went out to the $2,050 strike; that is $50 above where we are right now. Those options are trading for about $13.75, or $1,300 per options contract," Gordon said.

To minimize that cost, he said he's going to sell a more expensive call — a $2,060 strike, selling for $11.80 — for a debit of about $2.28, or $228 per options spread. He's also utilizing a 50 percent stop-loss strategy.

A more granular analysis of where Amazon options are trading, Gordon said, shows options traders foresee a reasonable chance the stock could move as high as $2,090 per share.

"So we're shading that. We're going inside of that, just looking for the stock to move up toward around $2,060," he said.

"Be sure to use your stop-loss, be sure to position size according to the appropriate risk profile for your account," he said.