Dear Momentum Options Subscriber,

Futures stayed steady throughout the night and were higher heading into this morning’s open. This, along with the follow-through on Monday, suggested higher highs today despite a mixed bag of economic news.

The good news came from a strong Gross Domestic Product (GDP) number that helped offset the disappointing news on home sales and orders for durable goods.

Wall Street was a bit surprised to hear that the U.S. economy grew at a 5% annual rate, the fastest pace in over a decade, as consumer spending and business investments increased.

The bad news was that durable goods slipped in November, while new single-family homes sales fell 1.6% last month.

Fourth-quarter earnings season is right around the corner, but companies with different fiscal years are still reporting numbers.

Walgreen (WAG, $76.04, up $1.77) shares are trading higher after the company announced better-than-expected first-quarter numbers. The company reported a profit of $0.85 a share on revenue of $19.5 billion. The suit-and-ties were expecting $0.74 a share on $19.4 billion. Shares have traded to a fresh 52-week peak of $76.94 on the news.

Heading into the second half of trading, the Dow is up 87 points to 18,046, while the S&P 500 is higher by 4 points to 2,083. The Nasdaq is declining 11 points to 4,770, and the Russell 2000 is advancing 3 points to 1,205.

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 12:50 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, $22.91, up $0.25)

JNPR January 23 calls (JNPR150117C00023000, $0.50, up $0.05)

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

Exit Target: $0.75

Return: 39%

Stop Target: None

 

JNPR April 24 calls (JNPR150417C00024000, $0.95, up $0.05)

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

Exit Target: $1.60

Return: 17%

Stop Target: None

Action: Resistance is at $23.25 and the 200-day moving average. Support is fresh at $22 and the 100-day moving average.

 

Boston Scientific (BSX, $13.04, down $0.06)

BSX February 14 calls (BSX150220C00014000, $0.45, flat)

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

Exit Target: $0.90

Return: 0%

Stop Target: None

Action: Support is at $13 followed by $12.85-$12.80 and the 50- and 200-day moving averages. Resistance is at $13.25.

 

Fortinet (FTNT, $30.85, up $0.22)

FTNT March 32 calls (FTNT150320C00032000, $1.55, up $0.05)

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

Exit Target: $2.00

Return: 55%

Stop Target: $1.05

Action: Shares have traded to another 52-week high of $31.17 today. Support is at $29.50-$28.

 

American Express (AXP, $94.22, up $0.60)

AXP January 95 calls (AXP150117C00095000, $1.35, up $0.15)

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

Exit Target: $1.50 (Limit Order on Half)

Return: 125%

Stop Target: $0.95 (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.

 

Marvell Technology (MRVL, $14.42, flat)

MRVL January 15 calls (MRVL150117C00015000, $0.22, flat)

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

Exit Target: $0.70

Return: -37%

Stop Target: None

 

MRVL February 15 calls (MRVL150220C00015000, $0.50, flat)

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

Exit Target: $1.10

Return: -9%

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-$13.75.

 

Pfizer (PFE, $31.40, down $0.69)

PFE February 33 calls (PFE150220C00033000, $0.40, down $0.10)

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

Exit Target: $1.15

Return: -30%

Stop Target: None

 

PFE March 33 calls (PFE150320C00033000, $0.55, down $0.15)

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

Exit Target: $1.40

Return: -19%

Stop Target: None

Action: Support is at $31-$30.50. A close below $30-$29.50 would be bearish. Continued closes above $32 should lead to a breakout to $33-$35. The 52-week high is at $32.96.

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, $119.98, up $0.27)

IWM January 121 calls (IWM150117C00121000, $1.25, up $0.05)

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

Exit Target: $1.80

Return: 39%

Stop Target: $0.95 (Stop Limit)

Action: Resistance is at $120. The 52-week high is at $120.97. Support is at $118-$117.50.

 

PowerShares QQQ (QQQ, $103.54, down $0.24)

QQQ January 107 calls (QQQ150117C00107000, $0.55, down $0.05)

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

Exit Target: $2.00

Return: -44%

Stop Target: None

Action: Resistance is at $105, and continued higher closes above this level would be bullish. Support is at $103.50-$102.

 

JDS Uniphase (JDSU, $13.96, flat)

JDSU March 14 calls (JDSU150320C00014000, $1.00, flat)

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

Exit Target: $1.40

Return: 43%

Stop Target: $0.80 (Stop Limit)

Action: 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, flat)

FLEX January 11 calls (FLEX150117C00011000, $0.40, flat)

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

Exit Target: $1.25

Return: -40%

Stop Target: None

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

 

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