Trading Nation

This little-known stock has made a big comeback, and one trader sees even more gains

One little-known stock is about to bounce

With markets surging back on Tuesday, Todd Gordon of Ascent Wealth Partners is singling out one particular name in the sea of green for an even bigger bounce.

The Trade Desk, the marketer of a software platform used for digital ads, he said, could have even more upside ahead. The stock has risen 14% in the past week, including a 10% rally on Tuesday along with the rest of the market.

The fundamentals suggest even more upside for The Trade Desk, said Gordon, who revealed that his firm added the name to its portfolios amid all the "deeply discounted prices following this extreme volatility."

"Fundamentally, Trade Desk is well positioned to take advantage of the shift in digital advertising, especially on mobile devices," Gordon said Tuesday on CNBC's "Trading Nation."

He essentially believes that The Trade Desk has a "nice competitive advantage" thanks to its focus on programmatic advertising, which Gordon said is the fastest-growing segment in the U.S. digital advertising market.

But before he puts on a trade, Gordon wants to identify a key level for the stock. He points to $190, which he said has acted as support several times in the past for the name.

Since volatility and, as a result, the price of options, is very high, Gordon wants to sell puts instead of buying calls. 

He opts to sell the April 24 weekly 195-strike put and buy the April 24 weekly 190-strike put for a credit of around $2.10. This means that should the stock close above $195 on April 24 expiration, Gordon would make the $210 credit on the trade.

If the shares were to close below $190 on April 24 expiration, Gordon could lose up to $290.

The Trade Desk is currently down 25% this year, largely in line with the losses for the broader market.