Dear Momentum Options Subscriber,

Futures were showing a strong open after midnight and ahead of the start of trading in overseas markets. This was a very bullish sign, and it signaled that the “chase” was on as Wall Street starts to play catch-up. Despite the bullish start, the action is relatively flat as trading winds down for the week.

With December options expiring into the close, anything is still possible. The final hour of action will be crucial in getting a possible clue into how next week will play out. The S&P Volatility Index (VIX, 16.85, up $0.04) has been subdued and will be another important tell to watch into the close.

President Obama is stepping up to the podium as I go to press with his final press conference of the year ahead of an extended holiday break. His comments could sway market sentiment, but I think he will keep the peace and wish everyone a Merry Christmas.

The Dow is down 12 points to 17,765, while the S&P 500 is adding 2 points to 2,063. The Nasdaq is gaining 7 points to 4,755, and the Russell 2000 is off a point to 1,191.

This has been an incredible week to watch the market, and I hope that I have done well navigating this week’s volatility for you.

I could have an additional update into the close, but, if you don’t hear from me by 3:30 p.m. EST, we will roll with the bulls into next week. Until then, have a great weekend everyone! Do some shopping and buy someone you haven’t seen recently a gift.

Now let’s go check on the current trades.

Momentum Options Play List

Closed Momentum Options Trades for 2014: 97-61 (61%). 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 1:40 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.

 

Fortinet (FTNT, $30.02, up $0.39)

FTNT March 32 calls (FTNT150320C00032000, $1.30, up $0.15)

Entry Price: $1.00 (12/18/2014)

Exit Target: $2.00

Return: 30%

Stop Target: None

Action: I had a sneaking feeling shares would trip $30, and another 52-week high of $30.19 has triggered today.

My new price target is calling for shares to make a run at $33-$34 once $30 clears and holds. Support is at $28-$27.50 on a pullback.

 

American Express (AXP, $92.79, up $0.38)

AXP January 95 calls (AXP150117C00095000, $1.00, down $0.20)

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

Exit Target: $1.20, raise to $1.50 (Limit Order on Half)

Return: 67%

Stop Target: $0.80, raise to $0.90 (Stop Limit)

Action: Set Limit Orders to close half of the trade at $1.50. Also, raise the Stop Limit from $0.80 to $0.90.

I was trying to get $1.50 for half of the call position this morning, but they have only traded to a high of $1.41. The stock reached $93.91, and resistance is at $94-$95.

Near-term support is at $92, and shares have traded down to $92.35 today.

 

Marvell Technology (MRVL, $14.10, down $0.09)

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: -18%

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, $32.00, up $0.03)

PFE February 33 calls (PFE150220C00033000, $0.50, flat)

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

Exit Target: $1.15

Return: -12%

Stop Target: None

 

PFE March 33 calls (PFE150320C00033000, $0.65, flat)

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

Exit Target: $1.40

Return: -4%

Stop Target: None

Action: Shares have traded up to $32.06 today. 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, $118.83, up $0.20)

IWM January 121 calls (IWM150117C00121000, $1.20, up $0.05)

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

Exit Target: $1.80

Return: 33%

Stop Target: None

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

 

PowerShares QQQ (QQQ, $104.22, down $0.03)

QQQ January 107 calls (QQQ150117C00107000, $0.60, flat)

Entry Price: $0.98 (12/5/2014)

Exit Target: $2.00

Return: -39%

Stop Target: None

Action: A close above $105 today and continued higher closes into next week would be bullish. Support is at $103.50-$102.

 

JDS Uniphase (JDSU, $14.00, down $0.01)

JDSU March 14 calls (JDSU150320C00014000, $1.05, flat)

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

Exit Target: $1.40

Return: 50%

Stop Target: $0.80 (Stop Limit)

Action: Resistance at $14.25-$15.50. The 52-week high is at $14.99. Support is at $13.75-$13.50.

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

 

Flextronics (FLEX, $11.00, up $0.05)

FLEX January 11 calls (FLEX150117C00011000, $0.35, flat)

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

Exit Target: $1.25

Return: -48%

Stop Target: None

Action: A close above $11 would be bullish heading into next week. Support is at $10.75-$10.50.

 

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