Dear Momentum Options Subscriber,

The bulls made some noise on this morning’s open, but the first half of today’s action has been controlled by the bears. The slight pullback hasn’t caused much damage, as fresh support is holding up well.

Some of today’s nervousness can be blamed on Greece, as it has another big meeting on Monday with the European Central Bank (ECB). The ECB increased additional emergency cash for the country’s banks following a rush of deposit withdrawals.

European leaders will also be meeting with Greece on Monday, and the talks could determine the country’s future in the eurozone. Greece has until the end of the month to make a payment, but the country’s fate could become much clearer next week.

Heading into the second half of trading, the Dow is down 53 points to 18,062, while the S&P 500 is lower by 5 points to 2,115. The Nasdaq is off 10 points to 5,122, and the Russell 2000 is up a point to 1,286.

I could have an additional update later this afternoon, as the action could get whacky with regular June options expiration and the Russell rebalance. If you don’t hear from me, have a great weekend, and I will be back on Monday morning with a full update.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 65-20-1 (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 11:55 a.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, $14.94, down $0.12)

RMBS August 16 calls (RMBS150821C00016000, $0.50, down $0.05)

Entry Price: $0.55 (6/19/2015)

Exit Target: $1.40

Return: -10%

Stop Target: None

Action: The calls opened at $0.55 and have traded in a range from $0.50-$0.62 today, so you should have been able to take a position per my limit order instructions in today’s Pre-Market Update.

Shares have pulled back slightly following a run to $15.16 at the start of trading. Support is at $14.75, and I would like to see $15 hold into the close.

 

Microsoft (MSFT, $46.20, down $0.52)

MSFT July 47 calls (MSFT150717C00047000, $0.55, down $0.30)

Entry Price: $0.73 (6/18/2015)

Exit Target: $1.50

Return: -25%

Stop Target: None

Action: Support is at $45.50-$45. Resistance is at $47-$48.

 

United Parcel Service (UPS, $101.18, down $0.22)

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

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

Exit Target: $1.05

Return: -34%

Stop Target: None

 

UPS October 110 calls (UPS151016C00110000, $0.56, down $0.06)

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

Exit Target: $1.40

Return: -20%

Stop Target: None

Action: Resistance is at $102. Support is at $100-$99 and the 100- and 50-day moving averages.

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

 

Wells Fargo (WFC, $57.70, up $0.53)

WFC July 60 calls (WFC150717C00060000, $0.15, down $0.07)

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

Exit Target: $0.50

Return: -25%

Stop Target: None

Action: Support is at $56.50-$56. Resistance is at $58.

 

Rigel Pharmaceuticals (RIGL, $3.30, down $0.07)

RIGL September 5 calls (RIGL150918C00005000, $0.30, flat)

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

Exit Target: $0.80

Return: -25%

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, $29.74, down $0.45)

SNE July 33 calls (SNE150717C00033000, $0.15, down $0.02)

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

Exit Target: $0.90

Return: -33%

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