One way to play the 5G iPhone rollout that isn't buying Apple

The flight to 5G is on.

With Apple rolling out its new 5G-enabled iPhones, traders are likely in search of ways to capitalize on the latest technological trend.

One way to do so in the near term could be through semiconductor chip manufacturer Qualcomm, TradingAnalysis.com founder Todd Gordon told CNBC's "Trading Nation" on Tuesday.

With Qualcomm's products in the latest iPhones and Apple signed on to continue buying its chips after a major royalty settlement last year, Qualcomm's stock has been in a position of strength, Gordon said.

"We have a very, very nice uptrend here in Qualcomm," he said, adding that the stock recently retested a key area of support around $125. "We should be able to move up."

Qualcomm shares traded over 3% lower midday Wednesday to just below $122

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Gordon also called attention to Qualcomm's performance relative to Apple. He noted that during recent declines, Apple's losses were more in line with the broader market's while Qualcomm's stock held strong and "created a little bit of a divergence."

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"We're actually seeing some relative strength in Qualcomm to Apple. I take that as a bullish sign here," Gordon said. "I will likely be adding Qualcomm. I haven't done it yet, but I likely will be adding to my portfolio."

One way investors could follow suit would be through the options market and trade Qualcomm ahead of its earnings report scheduled for Nov. 4, the technical analyst said.

"You could go out to the Nov. 6 options, which will cover those Nov. 4 earnings, and of course it'll be busy with the election, so, anything can happen. That's why I think it's a good idea to do this with risk-defined options," Gordon said.

He bought the $126 calls and sold the $130 calls, creating a spread for which he paid $1.78 at the time of the trade that represents a cautiously bullish bet on earnings.

"It's going to be an earnings trade, so, it's going to be really hard to manage risk if the earnings don't go well because it's after hours and the options markets are closed, so, position-size such that that full risk is acceptable to you," he said.

"I continue to be bullish on tech in general and chips. I'd like to add Qualcomm to the list and hopefully the little option trade helps. And as I said, I'll look to add this to my portfolio."

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