Trader sees a comeback for Apple to all-time highs

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Trader sees new all-time highs for Apple

Apple is about to make a comeback to hit record highs despite getting hit on coronavirus fears, Ascent Wealth Partners' Todd Gordon said.

The tech giant has fallen on analyst predictions that the outbreak of the virus could delay iPhone production and sales given that its suppliers' factories in China remain closed. But Gordon believes that with iPhone manufacturer Foxconn getting the green light Monday to reopen two of its Chinese factories, fundamental tail winds could carry Apple through a key technical trend that had formed.

"I believe once we are back to full operations here, [Apple] can break this recent consolidation that we've seen," he said Tuesday on CNBC's "Trading Nation," referring to a consolidation that Apple has undergone over the past month.

To play Apple for a rally, Gordon wants to buy the March monthly 325-strike call and sell the March monthly 335-strike call, paying about $4.10 for the trade.

This means that if Apple was to fall and close below $325 on March 20 expiration, then Gordon could lose the $410 he paid to put the trade on. But, if Apple were to close above $335 on the expiration date, then Gordon could make a maximum profit of about $592 on the trade.

Though closings of its iPhone plants in China have put pressure on the stock, Apple remains up almost 9% this year. The stock on Tuesday closed down less than 1% at $319.61.

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