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Tech got wrecked, but chart analyst sees opportunity in Apple 

VIDEO5:0605:06
As tech tumbles, one technician sees opportunity in an industry leader

This week's tech wreck hasn't deterred TradingAnalysis.com founder Todd Gordon from his bullish bet on Apple.

"You don't see the decline in Apple that we've seen in the Nasdaq," Gordon said on CNBC's "Trading Nation " on Thursday. "You can see this shelf of support is really holding in Apple just around the $215 mark so I really like how Apple is behaving here."

Apple shares have dropped more than 2 percent this week, slightly better than the 4.5 percent decline in the Nasdaq 100.

For Apple to stay above trend, Gordon says the tech-heavy QQQ ETF has to avoid sustaining any further technical damage.

"We need the broader market to stabilize," he said. "If we break below $168 and we start approaching $163 that's when the warning signs are being fired."

The QQQ ETF dropped 5.5 percent over Wednesday and Thursday's sessions. On Friday, it remained a roughly 2 percent drop from $168. A decline to $163 would mark 5 percent sell-off from Thursday's close.  

To make money off Apple's expected advance, Gordon prefers to sell options premium, rather than buy it.

"If you're bullish in Apple, there's no sense in paying for very expensive calls because if you get the direction right and Apple bounces but the implied volatility drops you could actually lose money because the value of your calls are very pumped up, " he said.

Instead, Gordon is taking advantage of increased volatility heading into the company's Oct. 30 earnings report. He's selling the Nov. 2 $215 put and buying the Nov. 2 $205 put for a credit of $3.

"Let's go ahead and put an even $210 stop loss," he added. "If you start breaking $210, I'm afraid that the range no longer holds and we've got to get out and contain the risk."

Apple shares were up nearly 2 percent on Friday, trading at $218.30.