Dear Momentum Options Subscriber,
Although the Fed meeting on Thursday will garner the most attention, there are a few notable companies that will be reporting earnings this week. Third-quarter earnings season officially starts in early October, but companies with different fiscal years will be reporting before then as well.
I previewed FedEx’s (FDX) earnings in Monday’s Pre-Market Update, as the company will be announcing its numbers ahead of Wednesday’s open.
Cracker Barrel Old Country Store (CBRL) will also be reporting ahead of the bell on Wednesday. After the close, Apogee Enterprises (APOG), Herman Miller (MLHR) and Oracle (ORCL) will announce their quarterly results.
On Thursday, Adobe Systems (ADBE), Manchester United (MANU) and Rite Aid (RAD) will step up to the podium. There are no major announcements scheduled for Friday.
As far as the market goes today, the bulls are once again pushing resistance. The Dow is up 173 points to 16,544, while the S&P 500 is advancing 18 points to 1,970. The Nasdaq is higher by 38 points to 4,844, and the Russell 2000 is gaining 7 points to 1,160.
I could have a New Trade ahead of the close. I’m still researching to find the best options to trade on a couple of names, so stay locked and loaded until the closing bell rings. If you don’t hear from me, however, I will reevaluate the possible new trades tomorrow.
Finally, if you are a new Momentum Options subscriber, be sure to sign up to receive SMS text message alerts, which will be sent to your mobile device any time there is a new action to take.
Momentum Options Play List
Closed Momentum Options Trades for 2015: 85-33-2 (71%). 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 1:05 p.m. EST.
I hereby disclose that I will be participating in the following trade(s). Every 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.
PayPal Holdings (PYPL, $33.50, down $0.27)
PYPL January (2016) 40 calls (PYPL160115C00040000, $1.00, down $0.05)
Entry Price: $1.05 (9/14/2015)
Exit Target: $2.10
Stop Target: None
Action: Resistance is at $34-$35. Short-term support is at $32, with risk to $30 on a close below this level.
You can read my detailed write-up on PYPL in this morning’s Pre-Market Update.
Editor and Chief Options Strategist
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