Todd Gordon's Skyworks Solutions Trade

On CNBC's "Trading Nation," Todd Gordon of Ascent Wealth Partners shared with the viewers his bullish options trade in Skyworks Solutions Inc SWKS.

He said the company builds multiple components for Apple Inc. AAPL and Samsung phones and it generated half of its revenue from Apple last year. Skyworks is now trying to diversify from mobile phones by investing in the internet of things and 5G, by connecting all of our devices to the internet and to each other.

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Gordon sees support for the stock at $135 and he thinks it would be a good idea to set up a long position, in case it pulls back to that price level. He owns shares in the name, but he recommends an options strategy for traders who prefer a more leveraged way to trade a potential move higher in the stock.

Specifically, he wants to buy the November $140/$160 call spread for $8.15. The trade breaks even at $148.15 or 5.89% above the closing price on Thursday. It can maximally make a profit of $11.45. Gordon wants to use a stop loss, which would be activated in case the premium drops to 50% of its initial value.