Dear Momentum Options Subscriber,

The market opened strong today, and the major indices are holding their gains as we head into the final hours of trading. It remains to be seen how today’s close will shape up, but it will be a slightly bullish sign if the indices can hold their key resistance levels.

With the Fed’s decision interest rates due in approximately 24 hours, volatility should remain heightened, and the S&P 500 Volatility Index ($VIX, 20.87, down 1.86) will likely hold the 20 level. Today’s low has reached 20.02.

The Dow is currently jumping 205 points to 17,574, while the S&P 500 is advancing 27 points to 2,049. The Nasdaq is surging 59 points to 5,011, and the Russell 2000 is climbing 14 points to 1,130.

I’m still working on a possible New Trade that could be ready later this afternoon, but I wanted to update our current trades first before opening a fresh position. I’m still trying to find the best strike price for us to play, but stay close to your email inboxes into the close in case I take action. For new subscribers, you can sign up to receive SMS text message alerts by clicking here.

Momentum Options Play List

Closed Momentum Options Trades for 2015: 95-43-2 (68%). 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.


iRobot (IRBT, $34.57, up $0.47)

IRBT January 34 calls (IRBT160115C00034000, $1.65, up $0.26)

Entry Price: $1.10 (12/10/2015)

Exit Target: $2.20

Return: 50%

Stop Target: None

Action: Resistance is at $34.50-$35. A move above the latter could lead to a push towards $36-$37 and fresh 52-week highs. Support is at $33.50 on a move back below $34.


Cisco Systems (CSCO, $27.03, up $0.54)

CSCO January 27 calls (CSCO160115C00027000, $0.62, up $0.19)

Entry Price: $0.53 (12/10/2015)

Exit Target: $1.10

Return: 17%

Stop Target: None

Action: Resistance is at $26.50-$27 and the 100-day moving average. Support is at $26, with risk to $25.50 on a close below this level.


Intel (INTC, $35.19, up $0.72)

INTC January 36 calls (INTC160115C00036000, $0.73, up $0.22)

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

Exit Target: $1.20

Return: 21%

Stop Target: None

Action: Resistance is at $34.75-$35. Support is at $34, followed by $33.50 and the 50-day moving average.

You can read a more about my thoughts on INTC in the Dec. 10 Pre-Market Update.


Medtronic (MDT, $77.00, up $0.35)

MDT January 80 calls (MDT160115C00080000, $0.50, up $0.05)

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

Exit Target: $1.45

Return: -30%

Stop Target: None

Action: Support is at $76, followed by $75-$74.75 and the 50- and 200-day moving averages. Resistance is at $78.

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


SPDR Gold Shares (GLD, $101.61, down $0.18)

GLD January 95 puts (GLD160115P00095000, $0.31, flat)

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

Exit Target: $1.05

Return: -39%

Stop Target: None

Action: Support is at $101-$100. Resistance is at $102, followed by $103.50-$104.

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


Trades on Hold — other 2015 Portfolio Open positions (3): 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.

MGM Resorts International (MGM) January 25 calls — Continue to hold.

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