This tech stock is primed for a big move higher. How to trade it using options

The prolonged market dry spell we have endured since February is finally starting to show cracks, revealing some actionable setups as equities try to build a base. That said, with the Cboe Volatility Index still lingering in the 20s, this is not the time to go heavy. Trading volume and frequency must remain strictly controlled. Despite the elevated volatility, a few high-quality targets are beginning to surface. MongoDB is currently front and center on my radar. The chart is flashing a textbook mean-reversion setup, and I am zeroing in on two specific technical metrics to time this entry: Fast MACD (5, 13, 5): I rely on a tighter MACD configuration to spot directional changes before they become obvious to the broader market. This tuned indicator triggered a bullish crossover back on March 9. Since then, the momentum has held strong, with the blue MACD line maintaining a clear lead over the yellow signal line. RSI: MongoDB recently took a beating, pushing its RSI well below the critical 30 threshold into deep oversold territory. As a rule, I never buy simply because a stock is oversold — I wait for it to prove it can climb back out. I got that exact confirmation on March 4 when the RSI broke back above the 30 line, signaling that the buyers are regaining control. The trade setup: MongoDB 265-270 bull call spread To capitalize on this technical bounce, I am structuring a 265/270 bull call spread. In a jittery market, this is my preferred vehicle because it allows me to grab upside exposure while keeping a rigid ceiling on my risk. I get to play the reversal without committing excessive capital. Currently, this spread can be filled for around $2.50. That pricing makes scaling incredibly simple. If I decide to put on a 4-contract position, I am risking exactly $1,000 for the opportunity to pull in a matching $1,000 in profit. The beauty of this setup lies in its realistic expectations. I do not need MongoDB to stage a massive, market-leading breakout. If the stock just manages to drift above the $270 level by my expiration date, I lock in that full 100% return. It is simply about catching a very achievable technical bounce in an oversold name. On a quick side note: If manually tracking these setups isn’t your style, I’ve officially launched fully automated trading over on Maya. If you are interested in a 100% rules-based system that takes the emotion out of the equation and handles entries and exits on its own, you can check out the new auto-trading capabilities here . Here is my exact trade setup: Buy $265 call, April 10 expiry Sell $270 call, April 10 expiry Contracts: 1 Cost: $250 Potential profit: $250 — Nishant Pant Founder: Author: Mean Reversion Trading YouTube, Twitter: @TheMeanTrader DISCLOSURES: Pant has a MongoDB bull call spread expiring on April 10. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.