A couple of more updates as indices attempt to find a morning range following the huge gap higher:

• Of the two trade ideas from yesterday's letter, we are only going to move forward with SPLK. SMH has gapped too sharply and the pennant has resolved before the trade has been initiated, so we will need to wait for a new setup on the ETF. The action area of the SPLK Jan20 $92.50 -$100 call spread will be shifted up to $3.00 - $3.50.
• The JNJ Dec30 $180 - $185 call spread roll-up will be closed into early strength this morning. The stock tested and failed to hold above 180 again, marking the third failed attempt to clear that level in two weeks. With time running low on the swing trade, it makes sense to book the position and wait for a new setup.