April 2013 | Members

MomentumOptionsTrading.com New Trade Alerts (BGFV, ADT) for 4/30/2013

1:45pm (EST)

 

We have 2 NEW TRADES that will likely be short in nature as we plan to get in today and out at Wednesday or Thursday.

One stock is pushing 52-week highs and earnings are out after the bell.  The other company is reporting earnings on Wednesday.

 

MEMBERS AREA

 

Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades.  Please remember, ALL “Exit Targets” and “Stop Targets” are targets.  You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one.  We will send out a “Profit Alert” or “New Trade” if we want you to close a position OR if a new trade comes out.  Otherwise, follow instructions at all times in the 9am and 1pm updates.  Also, we will usually give you a heads-up if we think we are going to send an email outside of these time frames.  Closed Trades for 2013: 38-28, including the Weekly Wrap that is 12-1).

 

Big 5 Sporting Goods (BGFV, $16.76, up $0.40)

Buy to OPEN May 17.50 calls (BGFV130518C00017500, $0.55, up $0.10)

Action:  We like these options at double-nickels. 

 

ADT  (ADT, $43.82, up $0.18)

Buy to OPEN May 46 calls (ADT130518C00046000, $0.50, flat)

Action:  We like these options at current levels.

 

 

 

Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades.  Please remember, ALL “Exit Targets” and “Stop Targets” are targets.  You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one.  We will send out a “Profit Alert” or “New Trade” if we want you to close a position OR if a new trade comes out.  Otherwise, follow instructions at all times in the 9am and 1pm updates.  Also, we will usually give you a heads-up if we think we are going to send an email outside of these time frames.  Closed Trades for 2013: 38-28, including the Weekly Wrap that is 12-1).

12:30pm (EST)

Nasdaq OMX Group (NDAQ, $29.22, up $0.12)

June 30 calls (NDAQ130622C00030000, $0.85, up $0.10)

Entry Price:  $0.70 (4/29/13)
Exit Target:  $1.40
Return:  21%
Stop Target:  None

Action:  We have a near-term target of $32 and we liked yesterday’s close above $29.  Support is at $27.50.

 

Clorox (CLX, $86.31, up $0.04)

May 90 calls (CLX130518C00090000, $0.25, flat)

Entry Price:  $0.35 (4/29/13)
Exit Target:  $0.70
Return:  -29%
Stop Target:  None

Action:  Shares traded up to $87.59 but faded into the close.  There is support at $85 and the 50-day MA but a break below this level would be bearish.  Earnings are due out on Wednesday and these were cheap options to play on a possible bounce back to $90.

 

Solazyme (SZYM, $9.07, down $0.16)

June 10 calls (SZYM130622C00010000, $0.35, down $0.10)

Entry Price:  $0.35 (4/25/13)
Exit Target:  $0.70
Return:  0%
Stop Target:  None

Action:  Earnings are due out on May 8 and a close above $9.50 would be bullish heading into the event.  Short-term support is at $9.

 

SAIC (SAI, $14.90, flat)

June 15 calls (SAI130622C00015000, $0.50, flat)

Entry Price:  $0.25 (4/24/13)
Exit Target:  $0.75
Return:  100%
Stop Target:  None

August 15 calls (SAI130817C00015000, $0.65, flat)

Entry Price:  $0.40 (4/24/13)
Exit Target:  $1.20
Return:  63%
Stop Target:  None

Action:  A move above $15 would be bullish.  Resistance is choppy up to $17 on the longer-term chart but we only need a run to $16 to double and triple our money on these 2 trades.

 

Symantec (SYMC, $24.37, down $0.22)

May 25 calls (SYMC130518C00025000, $0.50, down $0.10)

Entry Price:  $0.60 (4/11/13)
Exit Target:  $1.20
Return:  -17%
Stop Target:  None

Action:  Resistance is at $25.  If cleared, the stock could run to $27-$28 by mid-May.  Support is at $24 and the 50-day MA followed by $23.50.

 

Keryx Biopharmaceuticals (KERX, $8.14, down $0.06)

June 10 calls (KERX130622C00010000, $0.40, flat)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -43%
Stop Target:  None

Action:  If shares close below $8 there is risk back down to $7.50.  A close above $8.50 should get $9 in play and a possible push to $10.

 

MGM Resorts International (MGM, $13.96, up $0.22)

June 15 calls (MGM130622C00015000, $0.40, up $0.10)

Entry Price:  $0.40 (1/2/13)
Exit Target:  $0.80
Return:  0%
Stop Target:  None

Action:  Shares are at fresh 52-week peaks and our patience is paying off.  Earnings are due out this week on Thursday and while we believe they will be better-than-expected, there is risk back to $12.50 and the 100-day MA on a miss.  The 52-week high could be challenged if all goes well and we have been calling for a run to $15 since the beginning of the year.

 

Other 2013 Portfolio OPEN positions (3):  These are trades that are still open in the portfolio but are down over 50%.  They have longer expiration dates and are on “hold” but are not worth mentioning until they turn around.  This means we would not open any new positions.  We are still keeping track of the trades and we will record the results, accordingly, when we close them or if the options expire.  Click on the 2013Portfolio link in the Members Area to view ALL open/ closed trades.

Ironwood Pharmaceuticals May 20 calls (from March 2013)

Spider S&P 500 May 150 puts (from April 2013)

PowersharesQQQ May 66 puts (from April 2013)

 

WATCH LIST SECTION

These trades are NOT recommendations.  They are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because we are waiting for better entry prices.  We try not to have more than 12-15 open trades at any one time which is why we created a Watch List.  We will not list entry prices because these stocks are on the verge of breaking out or they could sell off but these are the trades we are watching as new candidate.

We will update this section in the morning.

**************************

11:25am (EST) 

SolarCity (SCTY, $26.92, up $1.79)

May 30 calls (SCTY130518C00030000, $0.60, up $0.30)

Entry Price:  $0.25 (4/29/13)
Exit Target:  $0.75 (set limit orders to close at 75 cents GTC)
Return:  140%
Stop Target:  None

Action:  Close the trade at current levels and use limit orders to get the best fills.

****************************

9:00am (EST) continued…

The Dow jumped 106 points, or 0.7%, to finish at 14,818.  The blue-chips traded to a high of 14,844 and came within 43 points of hitting record highs.  A close above 14,900 will get the cheerleaders out for Dow 15,000 but we are rooting for 15,300.  Resistance at 14,800 will now try to hold as support with backup at 14,600.

The S&P 500 added 11 points, or 0.7%, to settle at 1,593.61.  The index set a new closing high after trading up to 1,596.65 and we mentioned if 1,595 were tagged then the chance of a run to 1,600-1,625 was good.  The all-time intraday high of 1,597.35 is all that stands in the way.  The bears will try to get the action back below 1,575 today but they have taken the last 15 Tuesday’s off.

The Nasdaq surged 28 points, or 0.9%, to close at 3,307 and a new 12-year peak.  Tech traded up to 3,315 and we mentioned another trip past 3,300 could signal 3,350-3,400 over the near-term.  Support is at 3,275 followed by 3,250.

The Russell 2000 gained 7 points, or 0.8%, to end at 942.  The close back above 940 was bullish but 950 would be better and is less than 1% away.  Meanwhile, the S&P 500 Volatility ($VIX, 13.71, up 0.10) traded down to 13.36 before testing 14 into the close.  This may look bearish but could be a good thing for the VIX as longs as 15 sticks.

Futures are slightly higher as we head to press and look like this:  Dow (x); S&P 500 (x); Nasdaq 100 (x).  We have a lot to cover with our current trades, including the 3 new ones we added yesterday.

 

MEMBERS AREA

Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades.  Please remember, ALL “Exit Targets” and “Stop Targets” are targets.  You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one.  We will send out a “Profit Alert” or “New Trade” if we want you to close a position OR if a new trade comes out.  Otherwise, follow instructions at all times in the 9am and 1pm updates.  Also, we will usually give you a heads-up if we think we are going to send an email outside of these time frames.  Closed Trades for 2013: 38-28, including the Weekly Wrap that is 12-1).

 

Nasdaq OMX Group (NDAQ, $29.10, up $0.19)

June 30 calls (NDAQ130622C00030000, $0.75, up $0.05)

Entry Price:  $0.70 (4/29/13)
Exit Target:  $1.40
Return:  7%
Stop Target:  None

Action:  We have a near-term target of $32 and we liked yesterday’s close above $29.  Support is at $27.50.  We went with the June calls to give this trade more time to work in our favor.

 

Clorox (CLX, $86.26, down $0.41)

May 90 calls (CLX130518C00090000, $0.25, down $0.10)

Entry Price:  $0.35 (4/29/13)
Exit Target:  $0.70
Return:  -29%
Stop Target:  None

Action:  Shares traded up to $87.59 but faded into the close.  There is support at $85 and the 50-day MA but a break below this level would be bearish.  Earnings are due out on Wednesday and these were cheap options to play on a possible bounce back to $90.

 

SolarCity (SCTY, $25.13, up $1.79)

May 30 calls (SCTY130518C00030000, $0.30, up $0.15)

Entry Price:  $0.25 (4/29/13)
Exit Target:  $0.75 (set limit orders to close at 75 cents GTC)
Return:  20%
Stop Target:  None

Action:  This is a risky trade but we like the momentum.  These were also cheap options and we are setting a limit exit target of 75 cents and make sure you enter a good-til-cancelled order.

 

Solazyme (SZYM, $9.23, down $0.02)

June 10 calls (SZYM130622C00010000, $0.40, down $0.05)

Entry Price:  $0.35 (4/25/13)
Exit Target:  $0.70
Return:  14%
Stop Target:  None

Action:  Earnings are due out on May 8 and a close above $9.50 would be bullish heading into the event.  Yesterday’s high was $9.50 on the nose.  Short-term support is at $9.

 

SAIC (SAI, $14.85, up $0.20)

June 15 calls (SAI130622C00015000, $0.50, up $0.10)

Entry Price:  $0.25 (4/24/13)
Exit Target:  $0.75
Return:  100%
Stop Target:  None

August 15 calls (SAI130817C00015000, $0.65, up $0.10)

Entry Price:  $0.40 (4/24/13)
Exit Target:  $1.20
Return:  63%
Stop Target:  None

Action:  A move above $15 would be bullish.  Resistance is choppy up to $17 on the longer-term chart but we only need a run to $16 to double and triple our money on these 2 trades.

 

Symantec (SYMC, $24.59, up $0.17)

May 25 calls (SYMC130518C00025000, $0.60, up $0.05)

Entry Price:  $0.60 (4/11/13)
Exit Target:  $1.20
Return:  0%
Stop Target:  None

Action:  Resistance is at $25.  If cleared, the stock could run to $27-$28 by mid-May.  Support is at $24 and the 50-day MA followed by $23.50.

 

Keryx Biopharmaceuticals (KERX, $8.20, up $0.05)

June 10 calls (KERX130622C00010000, $0.40, flat)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -43%
Stop Target:  None

Action:  If shares close below $8 there is risk back down to $7.50.  A close above $8.50 should get $9 in play and a possible push to $10.

 

MGM Resorts International (MGM, $13.74, up $0.22)

June 15 calls (MGM130622C00015000, $0.30, up $0.05)

Entry Price:  $0.40 (1/2/13)
Exit Target:  $0.80
Return:  -25%
Stop Target:  None

Action:  The 52-week high is at $13.78.  Earnings are due out this week on Thursday and while we believe they will be better-than-expected, there is risk back to $12.50 and the 100-day MA on a miss.  The 52-week high could be challenged if all goes well and we have been calling for a run to $15 since the beginning of the year.

 

Other 2013 Portfolio OPEN positions (3):  These are trades that are still open in the portfolio but are down over 50%.  They have longer expiration dates and are on “hold” but are not worth mentioning until they turn around.  This means we would not open any new positions.  We are still keeping track of the trades and we will record the results, accordingly, when we close them or if the options expire.  Click on the 2013Portfolio link in the Members Area to view ALL open/ closed trades.

Ironwood Pharmaceuticals May 20 calls (from March 2013)

Spider S&P 500 May 150 puts (from April 2013)

PowersharesQQQ May 66 puts (from April 2013)

 

WATCH LIST SECTION

These trades are NOT recommendations.  They are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because we are waiting for better entry prices.  We try not to have more than 12-15 open trades at any one time which is why we created a Watch List.  We will not list entry prices because these stocks are on the verge of breaking out or they could sell off but these are the trades we are watching as new candidate.

 

Walter Energy (WLT, $17.23, down $0.04)

June 25 calls (WLT130622C00025000, $0.45, down $0.05)

Thoughts:  It has been a rough 52-weeks for Walter Energy as shares have fallen from a 52-week high of $69.41 to a low of $16.24.   There is a chance shares hold current levels but here is risk down to $16, or worse, on continued weakness.  A close above $18 and then $20 would be super bullish.

 

Vertex Pharmaceuticals (VRTX, $78.33, down $0.69)

June 95 calls (VRTX130622C00095000, $0.65, down $0.30)

July 100 calls (VRTX130720C00100000, $0.65, down $0.20)

Action:  We believe shares are on their way to par which is Wall Street gibberish for $100.  Support is at $77.50 but a break below this level would be short-term bearish following the surge from $55.  We could go long on a move back above $85.

 

Sunpower (SPWR, $13.66, up $0.41)

June 14 calls (SPWR130622C00014000, $1.55, up $0.15)

Thoughts:  Support is at $11.50 and the 50-day MA.  A close above $14 would be very bullish and yesterday’s peak was $14.35.

 

Cyberonics (CYBX, $43.74, up $0.75)

May 40 puts (CYBX130518P00040000, $0.45, down $0.10)

June 40 puts (CYBX130622P00040000, $1.50, down, up $0.25)

Thoughts:  Resistance is at $45 and we are expecting a drop below $40 over the next month.

 

Bank of America (BAC, $12.38, down $0.04)

June 12 calls (BAC130622C00012000, $0.70, down $0.05)

Action:  Resistance is at $12.75.  Support is at $12.

 

ADT  (ADT, $43.64, down $0.27)

May 46 calls (ADT130518C00046000, $0.50, down $0.20)

Thoughts:  Shares reached a high of $44.80 before fading as the options reached 80 cents.  Earnings are out on Wednesday and we will see where these options are at in our midday update.