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My indicators are giving strong buy signals this week, a surprising upgrade from the bearish readings they were providing last week. With this week’s market action, I expected them to be sending sell signals once again, but the bullish readings tell me that there is a lot more strength in the market than I thought.

Today I feel comfortable making a contrarian bullish play on General Electric Company (NYSE:GE), albeit with a small position.

Everybody hates the stock, it’s dropped dramatically, they’re ready to hang the former CEO…and the problem has been that GE just was not generating enough cash. But now, my indications are that it is. So, here’s my recommendation:

Using a spread order, buy to open the GE Jan. (2019) $15 call and sell to open the GE Jan. (2019) $18 call for a net debit of about $0.90.

Note: There are multiple January expirations available for GE options. Be sure you are opening the monthly options that expire on Friday, Jan. 18, 2019.

GE is undervalued at this level; it has had a lot of problems, but that’s a situation that you want to take advantage of — catch these companies at desperate positions. Also, this debit spread has a lot of time…the stock could come down further and still pay off in the long run.

Now, if GE just keeps staying here (or goes down lower), this will not pay off. But the January expiration gives us almost a full year, if we need it. But once you do get profits with your debit spreads, you’ll want to take them quickly.

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Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.