Dear Momentum Options Subscriber,

Talks between Greece and its European creditors broke down again late Sunday night. The discussions between the two sides lasted anywhere between 30 minutes to an hour, depending on what news feed you read, but the chit-chat failed to accomplish anything.

This follows the breakdown last week between Greece and the International Monetary Fund (IMF). While the situation seems to be getting worse, there is a chance that something will get done by June 25. However, the uncertainty has caused another backtest to support for the broader market.

The Dow is currently off 97 points to 17,801, while the S&P 500 is lower by 7 points to 2,086. The Nasdaq is declining 23 points to 5,027, and the Russell 2000 is declining 4 points to 1,261.

The pullback to support has forced us out of two more good trades, but our other positions are holding up well. I could have additional Trade Alerts into the close, but, for now, let’s go check on the action.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 61-20-1 (74%). 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 12:55 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 portfolio.

 

Rambus (RMBS, $15.20, down $0.08)

RMBS July 16 calls (RMBS150717C00016000, $0.37, down $0.05)

Entry Price: $0.30 (6/10/2015)

Exit Target: $0.60-$0.90

Return: 3%

Stop Target: $0.31 (Stop Limit)

 

RMBS August 16 calls (RMBS150821C00016000, $0.70, down $0.06)

Entry Price: $0.60 (6/10/2015)

Exit Target: $1.20

Return: 3%

Stop Target: $0.62 (Stop Limit)

Action: The Stop Limits for the RMBS July 16 calls and the RMBS August 16 calls have both tripped following today’s dip below $15, and we are now out of both positions.

 

United Parcel Service (UPS, $99.83, down $0.23)

UPS July 105 calls (UPS150717C00105000, $0.35, down $0.07)

Entry Price: $0.53 (6/11/2015)

Exit Target: $1.05

Return: -35%

Stop Target: None

 

UPS October 110 calls (UPS151016C00110000, $0.57, flat)

Entry Price: $0.70 (6/11/2015)

Exit Target: $1.40

Return: -19%

Stop Target: None

Action: Support is at $100-$99 and the 100- and 50-day moving averages on a pullback. A “golden cross” is trying to form between the major moving averages, but a close below $99 would nix the possible setup. Resistance is at $101 and the 200-day moving average. A close above $102 would be a very bullish development.

You can read my extended write-up on UPS in the June 12 Pre-Market Update.

 

Rite Aid (RAD, $8.74, down $0.21)

RAD July 8 calls (RAD150717C00008000, $0.95, down $0.10)

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

Exit Target: $1.30 (closed 1/3 @ $1.00 on 6/11/15)

Return: 49%

Stop Target: $0.80 (Stop Limit)

 

RAD October 9 calls (RAD151016C00009000, $0.75, down $0.10)

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

Exit Target: $1.10 (closed 1/3 @ $0.80 on 6/11/15)

Return: 39%

Stop Target: $0.60 (Stop Limit)

Action: Support is at $8.75, followed by $8.50 and the 50-day moving average. Resistance is $9.

You can read my detailed write-up on RAD in the June 10 Pre-Market Update. We closed a third of both positions on June 11.

 

Wells Fargo (WFC, $56.88, down $0.22)

WFC July 60 calls (WFC150717C00060000, $0.20, down $0.01)

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

Exit Target: $0.50

Return: 0%

Stop Target: None

Action: Support is at $56.50-$56. Resistance is at $57-$57.50. Continued closes above the latter and last week’s high of 52-week high $57.57 should lead to a run at $60. The major moving averages are curling higher, and the uptrend line remains strong.

 

Rigel Pharmaceuticals (RIGL, $3.53, up $0.01)

RIGL September 5 calls (RIGL150918C00005000, $0.45, flat)

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

Exit Target: $0.80

Return: 13%

Stop Target: None

Action: Shares have held their 100-day moving average throughout the year, with current support at $3.50. There is additional risk to $3.25-$3 on a close below $3.40. Resistance is at $3.75-$4 and the 50-day moving average.

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

 

Sony (SNE, $30.71, up $0.27)

SNE July 33 calls (SNE150717C00033000, $0.30, up $0.07)

Entry Price: $0.45 (6/1/2015)

Exit Target: $0.90

Return: -33%

Stop Target: None

Action: Near-term resistance is at $30.75-$31 and the 50-day moving average. Support is at $29-$28.50 and the 100-day moving average on a fade below $30.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options