Smith & Wesson (SWHC) has a strong track record with regard to filling the gaps. Negative news caused the stock to gap down yesterday and we are expecting the most recent gap to fill. However, we want to make sure that the stock is on its way back up before we buy the calls. If the stock looks like it is going to close over the role reversal support (11.35), and the candle is green, then go ahead and buy the January 2016 10 Calls at the market.
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