Dear Momentum Options Subscriber,

Futures were slightly higher ahead of the European market opening and stayed positive heading into this morning’s open here in the United States. This was a slightly bullish sign, as the bulls need a Monday win to keep their momentum and end a three-session Monday slide for the Dow.

The action has remained bullish but choppy heading into the second half of trading today. The week after December option expiration is usually bullish, as is the shortened Christmas Eve session.

Volatility seems relaxed, as the VIX is down 0.76, or nearly 5%, at 15.73. The politicians are away, but geopolitical risk remains, and oil, currency, and other commodities remain hot topics.

The shopping spree ahead of Christmas continues and will be good for current fourth-quarter earnings. Gas has dropped daily for three months straight. I said in October that this would be a bullish sign, and it has finally caught wind this month. Consumers are saving between $80 and $120 a month on continued declines at the pump, and this is fueling good times.

I mentioned that this could be a quiet week for traders, as the majority of the suit-and-ties start to take early vacations into the New Year. They have missed a lot of bullish setups over the past two years, and last week’s volatility was the action they shied away from.

Heading into the second half of trading, the Dow is up 116 points to 17,921, while the S&P 500 is advancing 3 points to 2,073. The Nasdaq is gaining 10 points to 4,775, and the Russell 2000 is popping a point higher to 1,197.

The current trades are holding up well, so let’s go check the tape.

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 1:30 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.

 

Juniper Networks (JNPR, $22.58, up $0.10)

JNPR January 23 calls (JNPR150117C00023000, $0.44, up $0.02)

Entry Price: $0.36 (12/19/2014)

Exit Target: $0.75

Return: 22%

Stop Target: None

 

JNPR April 24 calls (JNPR150417C00024000, $0.90, up $0.03)

Entry Price: $0.81 (12/19/2014)

Exit Target: $1.60

Return: 11%

Stop Target: None

Action: A close above $22.50 should get $23.25 and the 200-day moving average in play. Support is fresh at $22 and the 100-day moving average.

 

Boston Scientific (BSX, $13.00, down $0.15)

BSX February 14 calls (BSX150220C00014000, $0.43, down $0.04)

Entry Price: $0.45 (12/19/2014)

Exit Target: $0.90

Return: -4%

Stop Target: None

Action: Shares could make a run to $13.75 over the near term. A close above this level should lead to a run past $14 and fresh 52-week peaks.

Support is at $13, followed by $12.85-$12.80 and the 50- and 200-day moving averages.

The February call options expire in two months. This gives the trade plenty of time for a run past $15.

 

Fortinet (FTNT, $30.54, up $0.44)

FTNT March 32 calls (FTNT150320C00032000, $1.50, up $0.20)

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

Exit Target: $2.00

Return: 50%

Stop Target: None

Action: Shares have traded to another 52-week high of $30.90 today. Support is at $29.50-$28.

 

American Express (AXP, $93.14, up $0.24)

AXP January 95 calls (AXP150117C00095000, $1.10, flat)

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

Exit Target: $1.50 (Limit Order on Half)

Return: 83%

Stop Target: $0.90 (Stop Limit)

Action: Resistance is at $94-$95. Near-term support is at $92, followed by $90.

A “golden cross” is forming, with the 50-day moving average in route to clear the 200-day moving average. This is a bullish sign, which is why I feel shares could challenge $100 during the first quarter of 2015. A close below $88 would be bearish.

 

Marvell Technology (MRVL, $14.37, up $0.19)

MRVL January 15 calls (MRVL150117C00015000, $0.20, flat)

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

Exit Target: $0.70

Return: -43%

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: Shares haves tested a high of $14.43 today. 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-$13.75.

 

Pfizer (PFE, $31.93, down $0.02)

PFE February 33 calls (PFE150220C00033000, $0.45, flat)

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

Exit Target: $1.15

Return: -12%

Stop Target: None

 

PFE March 33 calls (PFE150320C00033000, $0.60, flat)

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

Exit Target: $1.40

Return: -12%

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 $31-$30.50. A close below $30-$29.50 would be bearish.

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, $119.20, up $0.30)

IWM January 121 calls (IWM150117C00121000, $1.13, up $0.03)

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

Exit Target: $1.80

Return: 26%

Stop Target: None

Action: Resistance at $118.85 was cleared for a run to $120 and the 52-week high of $121. Support is fresh at $118-$117.50.

 

PowerShares QQQ (QQQ, $104.51, up $0.19)

QQQ January 107 calls (QQQ150117C00107000, $0.60, up $0.05)

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

Exit Target: $2.00

Return: -39%

Stop Target: None

Action: Resistance is at $105, and continued higher closes above this level would be bullish. Support is at $103.50-$102. I will likely close the trade on a drop below $100-$99.50.

 

JDS Uniphase (JDSU, $13.97, up $0.04)

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: Shares have pushed a high of $14.02 today. The 52-week peak is at $14.99. Near-term support is at $13.75, and a drop below this level could lead to $13.50-$13.25.

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

 

Flextronics (FLEX, $11.13, up $0.11)

FLEX January 11 calls (FLEX150117C00011000, $0.40, up $0.05)

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

Exit Target: $1.25

Return: -40%

Stop Target: None

Action: Shares held $11 on Friday and are on track to challenge $11.25-$11.50 as long as this level holds. Support is at $10.75-$10.50. A close below $10.50 and the 100-day moving average could force me out of the trade.

 

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