Dear Momentum Options Subscriber,
Futures were showing a nasty open this morning, as talks regarding Greece’s debt continue to be mired in an impasse. The sticking points between the country and its creditors are still about possible reforms. Here in the United States, economic news has been mixed ahead of tomorrow’s nonfarm payrolls report.
Despite the chaos, the bulls managed to rebound off of the lows to push positive territory, but they are struggling again as we navigate the afternoon trading.
The Dow is currently down 131 points to 17,944, while the S&P 500 is lower by 13 points to 2,101. The Nasdaq is off 25 points to 5,073, and the Russell 2000 is declining 7 points to 1,257.
My commentary is a little short today, as I have a New Trade that I want us to get into. Although volatility has picked up, support is holding, and I see another opportunity in a name that we have traded recently.
Momentum Options Play List
Closed Momentum Options Trades for 2015: 56-18-1 (75%). 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 12:40 p.m. EST.
I hereby disclose that I will be participating in the following trade(s). 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.
Rigel Pharmaceuticals (RIGL, $3.65, down $0.03)
Buy to open the RIGL September 5 calls (RIGL150918C00005000, $0.40, down $0.05) at current levels.
I like these calls at current levels. I will provide the parameters of the trade in tomorrow’s Pre-Market Update. These are the regular monthly options that expire on Sept. 18.
Sony (SNE, $30.06, down $0.37)
SNE July 33 calls (SNE150717C00033000, $0.35, down $0.05)
Entry Price: $0.45 (6/1/2015)
Exit Target: $0.90
Stop Target: None
Action: Support is at $30.50-$30 and the 50-day moving average. Resistance is at $31.50-$32.
Rambus (RMBS, $15.26, down $0.04)
RMBS July 15 calls (RMBS150717C00015000, $0.85, flat)
Entry Price: $0.50 (5/27/2015)
Exit Target: $1.30 (Limit Order on half)
Stop Target: $0.65 (Stop Limit)
RMBS August 16 calls (RMBS150821C00016000, $0.70, flat)
Entry Price: $0.43 (5/27/2015)
Exit Target: $0.90
Stop Target: $0.55 (Stop Limit)
Action: Today’s high has reached $15.36. A close above $15.75-$16 could lead to a run at $17-$18. Near-term support is at $15, followed by $14.50.
Dot Hill Systems (HILL, $7.48, up $0.29)
HILL September 7.50 calls (HILL150918C00007500, $0.80, up $0.15)
Entry Price: $0.55 (5/21/2015)
Exit Target: $1.10
Stop Target: $0.57 (Stop Limit)
HILL December 7.50 calls (HILL151218C00007500, $1.00, up $0.05)
Entry Price: $0.80 (5/21/2015)
Exit Target: $1.60
Stop Target: $0.85 (Stop Limit)
Action: Shares have traded to a fresh 52-week high of $7.50 today. Resistance is at $7.50-$7.75 on the move above $7.25. Support is at $7.25-$7.
You can read my full update on HILL and check out its 15-year chart in the May 22 Pre-Market Update.
iShares Russell 2000 (IWM, $125.02, down $0.74)
IWM June 128 calls (IWM150619C00128000, $0.36, down $0.19)
Entry Price: $0.70 (5/19/2015)
Exit Target: $0.90 (Limit Order)
Stop Target: None
Action: Short-term support is at $124, followed by $123 and the 50-day moving average. Resistance is at $126-$127.
Limelight Networks (LLNW, $4.17, down $0.06)
LLNW September 4 calls (LLNW150918C00004000, $0.60, flat)
Entry Price: $0.35 (4/29/2015)
Exit Target: $1.00 (Limit Order on half)
Stop Target: $0.45 (Stop Limit)
Action: A move above resistance at $4.50 could lead to a run to $4.75-$5. Support is at $4.25-$4.20.
Trades on Hold — other 2015 Portfolio Open positions (1): 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.
BlackBerry (BBRY) June 13 calls (from March 2015) — This is a speculation trade from early March on BBRY receiving a takeover offer of $14 or better by mid-June. These options will carry some premium through the first week of June. I would like to be out of this trade by next Friday’s close. This gives the trade until June 10 for Blackberry to get a takeover offer — Continue to hold.
Editor and Chief Options Strategist