$1.40 Stop Limit triggered on the second half of the IWM January 121 calls.


Dear Momentum Options Subscriber,

I have another Profit Alert on a trade that triggered our Stop Limit by a penny.  While frustrating, locking in a profit of 78% makes up for the pullback in the small-caps today.


iShares Russell 2000 (IWM, $120.59, down $0.46)

IWM January 121 calls (IWM150117C00121000, $1.50, down $0.30)

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

Exit Target: $2.20 (closed half at $1.80 on 12/29/2014)

Return: 78%

Stop Target: $1.40 (Stop Limit)

Action: The Stop Limit of $1.40 on the second half of the trade has triggered.

The calls traded to a low of $1.39 late this afternoon following the dip in IWM to $120.32.

While this is frustrating, I can now focus on the February or March options to play either a rebound or further weakness.


All prices given in this update are current as of 3:35 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.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options