Dear Momentum Options Subscriber,
The height of earnings season has quickly passed, but there are a number of noteworthy companies reporting in February and March that will keep Wall Street’s interest piqued.
This week’s biggest announcement will come from Alphabet (GOOG), formally known as Google, following today’s closing bell. Mattel (MAT) is also scheduled to report its latest numbers this afternoon.
On Tuesday, ADT (ADT), Chipotle Mexican Grill (CMG), Exxon Mobil (XOM), Michael Kors (KORS), Pfizer (PFE), Ryder System (R), United Parcel Service (UPS), Wynn Resorts (WYNN) and Yahoo (YHOO) will announce their quarterly results.
Wednesday’s action will include results from Allstate (ALL), Buffalo Wild Wings (BWLD), General Motors (GM), Merck (MRK), Take-Two Interactive Software (TTWO) and Yum Brands (YUM).
On Thursday, Athenahealth (ATHN), Boston Scientific (BSX), Clorox (CLX), Deckers Outdoor (DECK), LinkedIn (LNKD), Ralph Lauren (RL) and Valero (VLP) will confess their numbers.
Finally, the week will wrap up with reports from Estee Lauder (EL), Moody’s (MCO) and Tyson Foods (TSN).
There could be an opportunity for a short-term earnings trade this week, and I will be profiling some possible bullish or bearish plays in the upcoming days.
As far as the market goes this afternoon, the Dow is down 79 points to 16,386, while the S&P 500 is off 7 points to 1,932. The Nasdaq is lower by 11 points to 4,602, and the Russell 2000 is down 8 points to 1,026.
I could also have a New Trade ahead of the closing bell, so stay locked and loaded in case I take action.
Momentum Options Play List
Closed Momentum Options Trades for 2016: 14-2 (88%). 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 1:35 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.
Opko Health (OPK, $7.83, down $0.22)
OPK March 7 puts (OPK160318P00007000, $0.38, up $0.03)
Entry Price: $0.35 (1/25/2016)
Exit Target: $0.70
Stop Target: None
Action: Near-term support is at $7.75-$7.50. Resistance is at $8-$8.25.
You can read my earlier write-up in the Jan. 26 Pre-Market Update.
Garmin (GRMN, $34.87, down $0.31)
GRMN February 30 puts (GRMN160219P00030000, $0.28, down $0.04)
Entry Price: $0.93 (1/20/2016)
Exit Target: $2.00
Stop Target: None
Action: Support is at $34.50-$34. Resistance is at $35.50 and the 50-day moving average.
You can read my expectations for earnings in the Jan. 12 Pre-Market Update.
Editor and Chief Options Strategist