ACTIONS:

Buy to open the IWM September 123 calls (IWM150918C00123000, $0.78, down $0.35) at current levels.

Buy to open the KKD November 17 puts (KKD151120P00017000, $0.95, up $0.10) at current levels.

Dear Momentum Options Subscriber,

I have a two New Trades to add to our portfolio — one bullish and one bearish — as we head into the final hours of trading today.

The first New Trade is a way to play another rebound in the iShares Russell 2000 (IWM) small-caps to the top of the current trading range.

The second New Trade is on an old favorite, as shares of Krispy Kreme Doughnuts (KKD) look sweet for a “short” position.

 

iShares Russell 2000 (IWM, $119.42, down $1.24)

Buy to open the IWM September 123 calls (IWM150918C00123000, $0.78, down $0.35) at current levels.

I want to get us back into the small-caps and, by going with the regular September call options that expire on Sept. 18, this position will give us two more weeks for the trade to play out over our previous IWM weekly call trade.

 

Krispy Kreme Doughnuts (KKD, $18.18, down $0.17)

Buy to open the KKD November 17 puts (KKD151120P00017000, $0.95, up $0.10) at current levels.

Shares recently pushed resistance and the 100-day average, which is holding. A drop below $18 should get $17.50-$17 in play. These are the regular monthly options that expire on Nov. 20.

I will provide the parameters of both trades in tomorrow’s Pre-Market Update.

 

All prices given in this update are current as of 1:05 p.m. EST.

I hereby disclose that I will be participating in the aforementioned 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 Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options