I pay scant attention to head-and-shoulders patterns, since they tend to be everywhere you look for them. However, the shapeliness of the one that has been developing in this stock for the last five months (see inset) deserves at least a passing mention, since, if you go by the textbook, it would appear to put a lid on the ballistic rally from August’s 845 low.

My hunch is that the pattern will be aborted by a push above early August’s 909.71 peak, creating a powerfully bullish impulse leg on the daily chart. If so, bull spreads targeted on 1000 seem like a promising play. Accordingly, I’ll suggest entering a good-till-canceled spread order — four November 1000-1010 call spreads @ 0.60, contingent on the stock trading 895.00 or higher.  If you can leg it on for 0.20 or less you, raise the position size to 16. _______ UPDATE (September 25):  The head-and-shoulders pattern that I dissed earlier this month in the tout above has only grown more comely and compelling since. Even so, I still think the stock is bound for $1000. Accordingly, we’ll continue to bid for the spread, but paying less:   0.25 for sixteen of them, good till week’s end and contingent on GOOG trading 882 or higher.