Dear Momentum Options Subscriber,

It seems that Wall Street is jumping back on the bullish bandwagon, as the market is enjoying its best day of gains since early May.

The financial stocks remain strong, with Goldman Sachs (GS, $213.08, up $4.06), Wells Fargo (WFC, $57.45, up $0.75) and JPMorgan Chase (JPM, $68.42, up $1.24) hitting fresh 52-week peaks.

The Financial Select SPDR (XLF, $25.10, up $0.40) has also traded to a new 52-week high of $25.14 today. I have mentioned that a move above $24.80-25 would be a very bullish development.

The Dow is currently gaining 253 points to 18,017, while the S&P 500 is advancing 25 points to 2,105. The Nasdaq is zooming 66 points to 5,080, and the Russell 2000 is soaring 18 points to 1,268.

I have updated our current trades below, and I’m working on another New Trade. For now, let’s go check the action.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 59-19-1 (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 12:05 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.

 

Rite Aid (RAD, $8.68, up $0.23)

RAD July 8 calls (RAD150717C00008000, $0.80, up $0.05)

Entry Price: $0.65 (6/9/2015)

Exit Target: $1.30

Return: 23%

Stop Target: None

 

RAD October 9 calls (RAD151016C00009000, $0.65, up $0.05)

Entry Price: $0.55 (6/9/2015)

Exit Target: $1.10

Return: 18%

Stop Target: None

Action: Resistance is at $8.50-$8.75. Support is at $8.25.

You can read my detailed write-up on RAD in this morning’s Pre-Market Update.

 

Wells Fargo (WFC, $57.45, up $0.75)

WFC July 60 calls (WFC150717C00060000, $0.30, up $0.09)

Entry Price: $0.20 (6/5/2015)

Exit Target: $0.50

Return: 50%

Stop Target: None

Action: Shares have traded to a fresh 52-week high of $57.57 today. The breakout into blue-sky territory is showing that a run to $60 could be coming. Support is at $56-$55.50 and is moving up.

 

Rigel Pharmaceuticals (RIGL, $3.74, up $0.24)

September 5 calls (RIGL150918C00005000, $0.50, up $0.05)

Entry Price: $0.40 (6/4/2015)

Exit Target: $0.80

Return: 25%

Stop Target: None

Action: Shares have made a push past resistance at $3.75 today, as they have touched $3.77. If held into the close, a run to $4 could be coming. Support is at $3.50, followed by $3.30-$3.25 and the 100-day moving average.

You can read my detailed write-up on RIGL in the June 5 Pre-Market Update.

 

Dot Hill Systems (HILL, $7.53, up $0.11)

HILL September 7.50 calls (HILL150918C00007500, $0.80, flat)

Entry Price: $0.55 (5/21/2015)

Exit Target: $1.10

Return: 36%

Stop Target: $0.57 (Stop Limit)

 

HILL December 7.50 calls (HILL151218C00007500, $1.20, flat)

Entry Price: $0.80 (5/21/2015)

Exit Target: $1.60

Return: 50%

Stop Target: $0.85 (Stop Limit)

Action: Resistance is at $7.50-$7.75. 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, $126.31, up $1.87)

IWM June 128 calls (IWM150619C00128000, $0.40, up $0.25)

Entry Price: $0.70 (5/20/2015)

Exit Target: $0.90 (Limit Order)

Return: -43%

Stop Target: None

Action: Resistance is at $126-$127. Short-term support is at $124 and the 50-day moving average.

 

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.

Sony (SNE) July 33 calls (from June 2015) — Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options