Dear Momentum Options Subscriber,

The bulls got off to a good start this morning, as the market opened higher to push near-term resistance. However, the bears decided they weren’t through with their recent feast and have come back to the table for a third helping.

The market’s lower levels of support are holding, but they have been stretched, and the S&P 500 Volatility Index ($VIX, 19.67, up 2.07) tapped the 20 level this afternoon. I will cover the VIX in more detail in tomorrow’s update, but it is imperative that the bulls hold 20 into today’s close.

The Dow is currently down 106 points to 17,461, while the S&P 500 is sliding 21 points to 2,042. The Nasdaq is declining 91 points to 5,007, and the Russell 2000 is lower by 13 points to 1,145.

I could have another New Trade today if the selling pressure heats up and we need to add a bearish position. For now, however, let’s go check on our current trades.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 95-41-2 (69%). 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 1:40 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.

 

Intel (INTC, $34.63, down $0.12)

INTC January 36 calls (INTC160115C00036000, $0.53, down $0.02)

Entry Price: $0.60 (12/9/2015)

Exit Target: $1.20

Return: -12%

Stop Target: None

Action: Shares have traded in a range of $34-$36 since mid-November. A “golden cross” formed in early November when the 50-day moving average crossed above the 200-day moving average, which is usually a bullish development. Resistance is at $34.75-$35, and a move above the latter would get 52-week highs north of $37 in play. Support is at $34.

 

Medtronic (MDT, $77.30, down $0.78)

MDT January 80 calls (MDT160115C00080000, $0.60, down $0.29)

Entry Price: $0.72 (12/8/2015)

Exit Target: $1.45

Return: -17%

Stop Target: None

Action: Support is at $76, followed by $75-$74.75 and the 200-day moving average. Resistance is at $78.

You can read my detailed write-up on MDT in the Dec. 2 Mid-Market Update.

 

SPDR Gold Shares (GLD, $102.99, up $0.15)

GLD January 95 puts (GLD160115P00095000, $0.23, flat)

Entry Price: $0.51 (12/2/2015)

Exit Target: $1.05

Return: -55%

Stop Target: None

Action: Support is at $102. Resistance is at $104.

You can read my detailed write-up on Gold and GLD in the Nov. 30 Pre-Market Update.

 

MGM Resorts International (MGM, $21.78, down $0.13)

MGM January 25 calls (MGM160115C00025000, $0.19, flat)

Entry Price: $0.53 (12/2/2015)

Exit Target: $1.05

Return: -64%

Stop Target: None

Action: Support is at $21.75 and the 50-day moving average. Near-term resistance is at $23.

 

Harris (HRS, $83.18, down $1.09)

HRS December 85 calls (HRS151218C00085000, $0.40, down $0.30)

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

Exit Target: $2.50

Return: -68%

Stop Target: None

Action: Resistance is at $84-$85. Near-term support is at $82.

 

PowerShares QQQ Trust (QQQ, $112.33, down $2.30)

QQQ December 117 calls (QQQ151218C00117000, $0.11, down $0.21)

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

Exit Target: $1.00 (Limit Order)

Return: -83%

Stop Target: None

Action: Support is at $113.50-$112.50. Resistance is at $115.

 

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.

Corning (GLW) January 20 calls — Continue to hold.

Wells Fargo (WFC) December 57.50 calls — Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options