Chipmaker Intel reports earnings on Thursday, and that has Todd Gordon of TradingAnalysis.com betting on a breakout for the stock.

“Intel has been consolidating here in November, December and into 2018,” Gordon said Tuesday on CNBC’s “Trading Nation.” “I think it’s high time that Intel continues on up in the direction of the chips, and earnings could exactly be the catalyst we’re looking for.”

Intel has surged 6 percent in the last week, coming back after tanking to start the year on reports that its processors had a security bug. The recent rally has Gordon convinced that the chipmaker could break through the $46 upper range of the consolidation he sees on his chart.

As a result, Gordon wants to sell the Jan. 26 weekly 46-strike puts, and pair that with the purchase of the Jan. 26 weekly 44-strike puts, which gives him a credit of 73 cents, or around $73 per options spread.

The trader chose to sell a put spread heading into Intel earnings thanks to the increase in implied volatility, or the price of options, leading up to the event.

The trade has a breakeven point of around $45.22, above which Gordon would make money on the trade should Intel close above that point. If Intel closes above $46 on the Jan. 26 expiration, Gordon would make the $73 credit on the trade. But if Intel were to close below $44, he could face a maximum loss of $126.

Intel was trading at just above $46 on Tuesday, meaning that Gordon is in a prime position to earn the $73 credit on the trade should the stock remain above that key level.