Dear Momentum Options Subscriber,

The market has traded in a tight range ahead of today’s Fed announcement concerning interest rates. While there are both bullish and bearish signs heading into the big event, we still have to accept the idea that the market could stay bound within its four-month-long trading range.

While it would be nice to see the zombies rip the Band-Aid off regarding interest rates, the “smart” money is hoping that Janet Yellen stays dovish and pushes a rate hike down the road.

I would love to see a rate hike today just to end the guessing game and see what the curveball would do to the market.

The Dow is currently up 16 points to 17,920, while the S&P 500 is higher by a point to 2,097. The Nasdaq is gaining 4 points to 5,059, and the Russell 2000 is flat 1,269.

The Fed update is due to be released at 2 p.m. ET. I could have additional updates after the announcement, so stay locked and loaded in case we need to take action.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 63-20-1 (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 portfolio.

 

United Parcel Service (UPS, $100.07, down $0.28)

UPS July 105 calls (UPS150717C00105000, $0.32, down $0.08)

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

Exit Target: $1.05

Return: -40%

Stop Target: None

 

UPS October 110 calls (UPS151016C00110000, $0.58, down $0.02)

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

Exit Target: $1.40

Return: -17%

Stop Target: None

Action: Support is at $100-$99 and the 100- and 50-day moving averages. Resistance is at $101 and the 200-day moving average.

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

 

Rite Aid (RAD, $8.90, down $0.05)

RAD July 8 calls (RAD150717C00008000, $1.05, flat)

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

Exit Target: $1.30 (closed 1/3 @ $1.00 on 6/11/15, closed 1/3 @ $1.00 on 6/16/15)

Return: 59%

Stop Target: $0.80 (Stop Limit)

 

RAD October 9 calls (RAD151016C00009000, $0.85, flat)

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

Exit Target: $1.10 (closed 1/3 @ $0.80 on 6/11/15, closed 1/3 @ $0.80 on 6/16/15)

Return: 52%

Stop Target: $0.60 (Stop Limit)

Action: I want to apologize for an error that was made this morning, as it appears that the company will announce earnings tomorrow, June 18, instead of today. The earnings calendar I referenced listed June 17, but Rite Aid’s investor relations site shows that its earnings are confirmed to be released ahead of tomorrow’s opening bell.

Shares have traded past resistance at $9 to $9.06 but have since pulled back. Support is at $8.75-$8.50.

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. We closed another third of both positions on June 16.

 

Wells Fargo (WFC, $57.25, up $0.03)

WFC July 60 calls (WFC150717C00060000, $0.22, flat)

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

Exit Target: $0.50

Return: 10%

Stop Target: None

Action: Resistance is at $57.50 and the recent all-time of $57.57. Support is at $56.50-$56.

 

Rigel Pharmaceuticals (RIGL, $3.34, up $0.05)

RIGL September 5 calls (RIGL150918C00005000, $0.35, flat)

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

Exit Target: $0.80

Return: -13%

Stop Target: None

Action: Support is at $3.25-$3. Resistance is at $3.50.

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

 

Sony (SNE, $29.86, down $0.58)

SNE July 33 calls (SNE150717C00033000, $0.15, down $0.05)

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

Exit Target: $0.90

Return: -67%

Stop Target: None

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

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options