Qualcomm is set to report in just over a week.
The chipmaker is soaring heading into its report. The stock has rallied more than 60% since its March lows. Todd Gordon, managing director of Ascent Wealth Partners, sees the stock breaking even higher into its earnings on July 30 and beyond.
"We like this name in the chip space. It's a particularly strong 5G play; they're well positioned to benefit as mobile networks evolve into 5G. Also, Apple is debuting their first 5G phone this fall and will be running all Qualcomm modems," Gordon said on CNBC's "Trading Nation" on Friday.
Gordon sees the potential for Qualcomm to break through $95, a level it has struggled to break firmly above since last year. It topped that level in January before tumbling to a low of $58 in March.
"If we can get finally a push through, it should be quite constructive to move up as, again, it is given a boost from the 5G presence," said Gordon.
Earnings should also be a catalyst for Qualcomm when they report on July 30, he adds. The stock also yields 2.8%, higher than the 1.3% yield for the SMH semiconductor ETF.
"If you want to go to the options market, you could do perhaps a call spread. So what you might look at doing is going out to these August options," said Gordon.
He is buying the 95 call option with Aug. 21 expiration and selling the 100 call. This is a bet that Qualcomm can break through $95, implying 2% upside.
Disclosure: Ascent Wealth Partners holds Qualcomm.