Dear Momentum Options Subscriber,

Gold came into the week clinging to the $1,200 level, but it is down a few bucks again today to $1,175 an ounce. I mentioned that there would be risk to $1,170-$1,150 if $1,200-$1,190 failed to hold. These levels were tripped to start the week, with gold testing a low of $1,168 on Wednesday.

The SPDR Gold Trust (GLD, $112.49, down $0.10) came into the week just above the $115 level. The GLD July 113 puts (GLD150717P00113000, $1.52, down $0.02) that I talked about in the June 22 Pre-Market Update opened Monday’s session around $0.75 and have doubled on this week’s pullback. If you got into the trade to start the week, I would close half of the position to lock in profits and set a stop limit on the second half at $1.30.

I decided against making this an official trade for the portfolio, as I went with a steel stock over the gold ETF. However, I wanted to provide a quick update, as this technical breakdown played out like a champ.

As far as the market today, the bulls have been in control for much of the session, but the small-caps have struggled. The Dow is currently up 23 points to 17,989, and the S&P 500 is higher by 4 points to 2,112. The Nasdaq is gaining 13 points to 5,135, while the Russell 2000 is adding 2 points to 1,286.

I have updated our current trades below, so let’s go take a look.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 65-20-1 (76%). 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 12:00 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.

 

US Steel (X, $22.28, down $0.13)

X July 21 puts (X150717P00021000, $0.35, flat)

Entry Price: $0.28 (6/23/2015)

Exit Target: $0.60

Return: 25%

Stop Target: None

Action: A move below $22.50-$22 could open the door for a test to $21-$20. Short-term resistance is at $23.50.

You can read my full report on X in the June 24 Pre-Market Update.

 

S&P 500 SPDR ETF (SPY, $210.88, up $0.38)

SPY July 200 weekly puts (SPY150710P00200000, $0.26, down $0.02)

Entry Price: $0.45 (6/19/2015)

Exit Target: $0.90-$1.20 (Limit Order at $0.90 on first half)

Return: -42%

Stop Target: None

Action: A close below $210 and the 50-day moving average would be bearish. Additional help is at $208 and the 100-day moving average. Resistance is at $213.

You can read my full update on SPY and view the chart work in the June 22 Pre-Market Update.

 

Rambus (RMBS, $15.15, up $0.30)

RMBS August 16 calls (RMBS150821C00016000, $0.53, up $0.11)

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

Exit Target: $1.40

Return: -4%

Stop Target: None

Action: Resistance is at $15-$15.25. Support is at $14.50 and the 50-day moving average on a drop below $14.75 and Wednesday’s low.

You can read my full update on RMBS and view the chart work in the June 22 Pre-Market Update.

 

Microsoft (MSFT, $45.75, up $0.12)

MSFT July 47 calls (MSFT150717C00047000, $0.35, flat)

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

Exit Target: $1.50

Return: -53%

Stop Target: None

Action: Support is at $45.50-$45 and the 50-day moving average. Resistance is at $47.

 

Wells Fargo (WFC, $57.47, down $0.07)

WFC July 60 calls (WFC150717C00060000, $0.15, flat)

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

Exit Target: $0.50

Return: -25%

Stop Target: None

Action: Resistance is at $58-$58.50 and Tuesday’s all-time high of $58.26. Support is at $57.

 

Trades on Hold — other 2015 Portfolio Open positions (4): 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 6/1/2015) — Shares are trying to build a fresh floor of support above $30 — Continue to hold.

Rigel Pharmaceuticals (RIGL) September 5 calls (from 6/4/2015) — A move above $3.55 and the 100-day moving average would be bullish — Continue to hold.

United Parcel Service (UPS) July 105 calls (from 6/11/15) — Continue to hold.

United Parcel Service (UPS) October 110 calls (from 6/11/15) — Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options