Dear Momentum Options Subscriber,

Shares of Square (SQ, $13, up $4) made their debut this morning in an initial public offering (IPO) that was priced at $9 a share. The company priced 27 million shares, with Goldman Sachs, Morgan Stanley and JPMorgan leading the offering.

The IPO was indicated to open between $11.25 and $11.50. Shares opened at $11.20 at 10:10 a.m. ET, and they have been strong throughout the session. This is a good sign that the IPO market may still have a few gems in the pipeline. However, it is too early for me to invest in the company without knowing more about its financials at the moment.

We can wait for the company’s first earnings report to get a better idea where it stands in the payment-processing sector. Additionally, options could become available to trade in a few weeks.

As far as the market goes today, trading has been choppy, and the major indices are slightly lower as we enter afternoon trading.

The Dow is slipping 15 points to 17,721, while the S&P 500 is off 3 points to 2,079. The Nasdaq is lower by 2 points to 5,072, and the Russell 2000 is down 4 points to 1,167.

I have updated our trades below, so let’s go check the tape.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 93-38-2 (70%). 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 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.


Harris (HRS, $82.78, up $0.70)

HRS December 85 calls (HRS151218C00085000, $1.25, flat)

Entry Price: $1.25 (11/19/2015)

Exit Target: $2.50

Return: 0%

Stop Target: None

Action: Shares are in a strong uptrend, with all of the major moving averages trending higher. The 52-week high is at $84.78. A move past $85 should get $90 in play on a blue-sky breakout.



Wells Fargo (WFC, $55.62, down $0.05)

WFC December 57.50 calls (WFC151218C00057500, $0.40, down $0.01)

Entry Price: $0.38 (11/18/2015)

Exit Target: $0.80

Return: 5%

Stop Target: None

Action: Near-term resistance is at $56-$56.50. Support is at $54 and the 100- and 200-day moving averages.

You can read my write-up on WFC in this morning’s Pre-Market Update.


Jabil Circuit (JBL, $24.52, down $0.24)

JBL December 25 calls (JBL151218C00025000, $1.10, flat)

Entry Price: $0.65 (11/10/2015)

Exit Target: $1.50

Return: 69%

Stop Target: $0.85 (Stop Limit)

Action: Resistance is at $24.75-$25. Support is at $24.50-$24.

You can read my detailed write-up on JBL in the Nov. 10 Mid-Market Update.


PowerShares QQQ Trust (QQQ, $113.69, up $0.06)

QQQ December 117 calls (QQQ151218C00117000, $0.62, up $0.07)

Entry Price: $0.63 (11/10/2015)

Exit Target: $1.30

Return: -2%

Stop Target: None

Action: Resistance is at $114-$115. Support is at $112.50, followed by $110.


Comcast (CMCSA, $62.54, down $0.02)

CMCSA December 65 calls (CMCSA151218C00065000, $0.51, down $0.03)

Entry Price: $0.74 (11/3/2015)

Exit Target: $1.50

Return: -31%

Stop Target: None

Action: Resistance is at $63. Support is at $61.50, followed by $60 and the 50- and 100-day moving averages.

You can read my detailed write-up on CMCSA in the Nov. 4 Pre-Market Update.


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.

Hilton Worldwide Holdings (HLT) December 27 calls — Continue to hold.

iShares Russell 2000 (IWM) December 124 calls — Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options

P.S. Customer Appreciation Savings Event — Save up to 50%. I’m committed to helping you build your wealth. That’s why you received an invitation this morning to save up to 50% on your Momentum Options membership. Some of the best trading opportunities are dead ahead, and I’m expecting us to capture plenty of profits. By renewing today, you’ll not only save big but also receive the brand new Special Report: 2016 Forecast that I wrote with a few of my fellow InvestorPlace advisors. In it, you’ll discover where we think the market is heading and some of the hottest stocks and sectors you should get into. Don’t wait. Renew today and get immediate access to the 2016 Forecast.