Dear Momentum Options Subscriber,

The bears are on track for the weekly (and possibly monthly) win, as they continue their attack on near-term support levels. Fridays have been a train wreck for the Dow recently, as it has fallen in all of the past five Friday sessions, but Nike (NKE, $109.64, up $4.42) is trying to help the blue-chips end that losing streak today.

Greece issues remain unresolved, and there will be risk over the weekend that could affect Monday’s open depending on the rhetoric that comes from the debt discussions. There are both bullish and bearish signals heading into next week, and we will have to do our best to navigate the noise.

The Dow is currently up 70 points to 18,200, while the S&P 500 is higher by a point to 2,103. The Nasdaq is down 21 points to 5,090, and the Russell 2000 is declining 2 points to 1,280.

I could have an additional update ahead of the closing bell and/or a potential New Trade. 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 (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 12:30 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, $21.64, down $0.40)

X July 21 puts (X150717P00021000, $0.55, up $0.10)

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

Exit Target: $0.60 (closed first half at $0.45 on 6/25/15)

Return: 76%

Stop Target: $0.25 (Stop Limit)

Action: Shaky support is at $22-$21.75, and a move below the latter should get $21-$20 in play. Short-term resistance is at $22-$22.50.

Side Note: Schnitzer Steel Industries (SCHN) is scheduled to report earnings on Tuesday, June 30, which could have a slight impact on shares of X next week. SCHN has a 52-week low of $15 that I would love to see tested.

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

 

S&P 500 SPDR ETF (SPY, $210.04, up $0.18)

SPY July 200 weekly puts (SPY150710P00200000, $0.30, down $0.05)

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

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

Return: -33%

Stop Target: None

Action: Support 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, $15.24, down $0.09)

RMBS August 16 calls (RMBS150821C00016000, $0.58, down $0.01)

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

Exit Target: $1.40

Return: 5%

Stop Target: None

Action: The next layers of resistance are at $15.50-$15.75 following the close above $15.25. Support is at $15-$14.75.

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

 

Microsoft (MSFT, $45.47, down $0.18)

MSFT July 47 calls (MSFT150717C00047000, $0.30, down $0.05)

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

Exit Target: $1.50

Return: -61%

Stop Target: None

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

 

Wells Fargo (WFC, $57.50, up $0.33)

WFC July 60 calls (WFC150717C00060000, $0.10, flat)

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

Exit Target: $0.50

Return: -50%

Stop Target: None

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

 

Rigel Pharmaceuticals (RIGL, $3.35, down $0.06)

RIGL September 5 calls (RIGL150918C00005000, $0.26, down $0.02)

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

Exit Target: $0.80

Return: -35%

Stop Target: None

Action: A move above resistance at $3.50 and the 100-day moving average would be bullish. Support is at $3.25-$3.

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

 

Sony (SNE, $31.22, up $0.07)

SNE July 33 calls (SNE150717C00033000, $0.20, flat)

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

Exit Target: $0.90

Return: -56%

Stop Target: None

Action: A move above $32.50 should get the trade back to even. Support is at $29-$28.50 and the 100-day moving average if $30 fails to hold.

 

Trades on Hold — other 2015 Portfolio Open positions (2): 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.

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