We hold eight December 40-45 call spreads risklessly, having legged into them for a cost of…zero. The stock has since traced out a gratuitous ‘vee’ on the hourly chart, but the important thing to note, technically speaking, is that the spiky peak that trapped bulls yesterday morning also generated a healthy bullish impulse leg when it exceeded the 40.28 peak recorded on September 21. Now, a pullback to at least 38.71 (see inset) would presumably set the stage for a fresh push into the low 40s.
