Dear Momentum Options Subscriber,

Lost in this week’s volatile action have been earnings from a number of high-profile companies. While I am looking ahead to January’s fireworks, FedEx (FDX, $171.85, up $4.07) and Oracle (ORCL, $44.53, up $3.37) both confessed to Wall Street this week.

FedEx missed the suit-and-ties’ estimates for a profit of $2.22 a share on revenue of $12 billion by $0.08 and nearly $100 million, respectively. Meanwhile, Oracle beat by a penny and topped revenue numbers.

Nike (NKE, $95.86, up $1.36) is on deck and will report earnings after the close, while BlackBerry (BBRY, $10.05) steps up to the plate ahead of Friday’s open and December expiration.

The option pits will be heavily traded, and what better way to wind down the week than with a heavyweight and Dow darling. Nike is 12th on the list of most heavily weighted blue-chip components of the Dow, so their results will have a meaningful impact on the index on Friday.

The bulls continue to add to Wednesday’s gains and are pushing the next layers of resistance.

Heading into the second half of trading, the Dow is up 292 points to 17,649, while the S&P 500 is higher by 33 points to 2,046. The Nasdaq is gaining 79 points to 4,723, and the Russell 2000 is advancing 12 points to 1,187.

I could have an additional update later this afternoon, but, for now, let’s check on the current trades.

Momentum Options Play List

Closed Momentum Options Trades for 2014: 97-60 (62%). All trades are dated and time stamped so new subscribers can look at the past history to see how the trades have played out.

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 I list one. I will send out a “Profit Alert” or “New Trade” if I want you to close a position or if a new trade comes out. Otherwise, follow instructions at all times in the 9 a.m. and 12 p.m. – 1 p.m. updates. Also, I will usually give you a heads-up if I think I’m going to send an email outside of these time frames.

All prices given in this update are current as of 1:10 p.m. EST.

Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.


American Express (AXP, $92.38, up $1.94)

AXP January 95 calls (AXP150117C00095000, $1.05, up $0.35)

Entry Price: $0.60 (12/15/2014)

Exit Target: $1.20

Return: 75%

Stop Target: None

Action: The next level of resistance lies at $92-$93. Support is at $90.


Marvell Technology (MRVL, $14.21, up $0.01)

MRVL January 15 calls (MRVL150117C00015000, $0.25, flat)

Entry Price: $0.35 (12/11/2014)

Exit Target: $0.70

Return: -29%

Stop Target: None


MRVL February 15 calls (MRVL150220C00015000, $0.45, flat)

Entry Price: $0.55 (12/11/2014)

Exit Target: $1.10

Return: -21%

Stop Target: None

Action: The next wave of resistance is at $14.50-$14.75, and a close above the latter would be super bullish. Support is at $14.


Pfizer (PFE, $31.69, up $0.56)

PFE February 33 calls (PFE150220C00033000, $0.45, up $0.10)

Entry Price: $0.57 (12/8/2014)

Exit Target: $1.15

Return: -21%

Stop Target: None


PFE March 33 calls (PFE150320C00033000, $0.55, up $0.10)

Entry Price: $0.68 (12/8/2014)

Exit Target: $1.40

Return: -19%

Stop Target: None

Action: A close above $32 should lead to a continued breakout to $33-$35. The 52-week high is at $32.96. Support is at $30.

You can view the chart work on PFE in the Dec. 9 Pre-Market Update. You can also read about PFE’s fundamentals in the Dec. 9 Mid-Market Update.


iShares Russell 2000 (IWM, $118.17, up $1.28)

IWM January 121 calls (IWM150117C00121000, $1.05, up $0.25)

Entry Price: $0.90 (12/5/2014)

Exit Target: $1.80

Return: 17%

Stop Target: None

Action: Resistance at $118 has been cleared, which sets up a run to $120. Support is fresh at $117.50.


JDS Uniphase (JDSU, $13.95, up $0.26)

JDSU March 14 calls (JDSU150320C00014000, $1.05, up $0.10)

Entry Price: $0.70 (12/3/2014)

Exit Target: $1.40

Return: 50%

Stop Target: $0.80 (Stop Limit)

Action: Resistance is at $14. The 52-week high is at $14.99. Support at $13.75-$13.50.

You can read my full update on JDSU in the Dec. 3 Alert.


Flextronics (FLEX, $10.87, up $0.19)

FLEX January 11 calls (FLEX150117C00011000, $0.30, up $0.05)

Entry Price: $0.68 (9/5/2014)

Exit Target: $1.25

Return: -55%

Stop Target: None

Action: Continue to hold.


Trades on Hold — other 2014 Portfolio Open positions (2): 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 I would not open any new positions. I’m still keeping track of the trades and will record the results accordingly when the trade closes or if the options expire. Click on the Open Trades and Closed Trades pages to see all open and closed positions.

Fortinet December 29 calls (from September 2014) — I may have an update an hour ahead of the close, as the trade is making a tremendous comeback — Continue to hold.

PowerShares QQQ January 107 calls (from December 2014) — Continue to hold.


Holiday Savings Event: The local stores have their holiday decorations up and I’m beginning to think about gifts, so today I wanted to invite you to join me for a special Holiday Savings Event that I’m throwing for a limited time only. Renew your Momentum Options service today and save $200. It doesn’t matter when your subscription expires because I’ll just extend your current membership. Click here now to take advantage of this savings opportunity!

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options