PayPal shares are about to pay up, said founder Todd Gordon, who believes the stock is headed for uncharted territory.

Shares of the mobile payment provider are up more than 8 percent to start the year and are within spitting distance of their all-time high.

“The stock’s been acting extremely well on a volatile tape here in the last several months, and it looks like we’re set to move above resistance,” he said Tuesday on CNBC’s“Trading Nation.”

On a weekly chart of PayPal, Gordon points out that he sees a “beautiful uptrend” in the stock, which has shown “amazing relative strength” amid a very volatile market. Shares are up nearly 20 percent since the markets bottomed out on Dec. 24.

And on a daily chart of PayPal, Gordon indicates that the stock is breaking through resistance at $89 and “should be able to continue higher into the $100 region.”

Given that the company is set to report earnings on Feb. 1, Gordon wants to sell a put spread going into the event, thanks to the heightened implied volatility, or the price of options, in the stock. Gordon suggests selling the Feb. 1 weekly 92-strike put and buying the Feb. 1 weekly 88-strike put for a $1.61 credit.

Since Gordon is taking in $1.61 on the put spread, if PayPal rallies and closes above $92 on Feb. 1 expiration, he would make the $161 credit on the trade. But if PayPal were to close below $88, then he would lose up to around $240 on the trade.

PayPal is currently 2 percent away from its all-time high.

Originally published at CNBC

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