The original idea of this trade was to take advantage of potential market uncertainty and still profit from a move sideways or up with the stock..hence a bull put spread was entered at 39/40 expiry Jan. It did net income which is beginning to look secure in light of where the stock is now. Despite you being new to trading, I think the price target for entry a this stage is fair although i would perhaps take it a little higher - a break over $44.67 looking like the next logical change in sentiment once it breaks the previous peak. (which is likely to be in the session coming up!). difficult to pick a target as we are at highs..$50 would be a psychological price point..depends on whether you are trading stock or options I would prefer the latter with a straight bought call with a relatively tight trail stop
Am fairly new to trading; my plan is to place an entry for $44.10 i.e. break out from the cup with handle pattern - above the close of the 31/12 candle (ref. weekly chart) and stop loss at $42.60 which is when it touches the bottom of the 31/12 candle. Feel free to comment Mike especially on a potential target price.