The stock has pulled back without having achieved the 15.85 rally target where we’d planned to lighten up. We still hold eight Dec 12.5-15.0 call spreads for an average CREDIT of 0.15., and I’ll suggest sitting with it for now. My expectation is to let the spread expire into stock, giving us an 800-share position with a cost basis of 12.35. One reason we shouldn’t be too eager to cover the short Dec 15 at the moment is that they are trading with an implied volatility of close to 60 — quite juicy. If we weren’t short them already, we’d be looking for a way to do so.
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