Dear Momentum Options Subscriber,

Futures were strong ahead of the opening of overseas markets, but they weakened before Wall Street got to work. This was an indication that another choppy session could be in store, and that is exactly what we have seen so far today.

While today’s action is being blamed on price swings in the U.S. dollar and WTI crude oil, I believe it has more to do with expectations for tomorrow’s jobs report.

The Dow is currently up 30 points to 16,367, while the S&P 500 is lower by 2 points to 1,910. The Nasdaq is slipping 11 points to 4,493, and the Russell 2000 is climbing 3 points to 1,013.

I have been busy with my watch list lately, prioritizing my top trades for the best return potential and risk/reward setups. I could have another New Trade ahead of the close today, so stay locked and loaded. In the meantime, let’s go check on our current positions.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 15-2 (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 2:05 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.


Bank of America (BAC, $13.20, up $0.17)

BAC March 13 calls (BAC160318C00013000, $0.79, up $0.09)

Entry Price: $0.68 (2/3/2016)

Exit Target: $1.00-$1.40

Return: 16%

Stop Target: None

Action: Resistance is at $13.25-$13.50. Short-term support is at $12.75-$12.50 if $13 fails to hold.


Rambus (RMBS, $12.35, up $0.21)

RMBS March 13 calls (RMBS160318C00013000, $0.37, up $0.07)

Entry Price: $0.35 (2/2/2016)

Exit Target: $0.70

Return: 6%

Stop Target: None

Action: Resistance is at $12.25-$12.50. Support is at $11.75.

You can read my extended write-up in the Feb. 2 Pre-Market Update.


Opko Health (OPK, $8.18, up $0.39)

OPK March 7 puts (OPK160318P00007000, $0.28, down $0.12)

Entry Price: $0.35 (1/25/2016)

Exit Target: $0.70

Return: -20%

Stop Target: None

Action: Resistance is at $8.25. Near-term support is at $7.50.

You can read my earlier write-up in the Jan. 26 Pre-Market Update.


Trades on Hold — other 2015 Portfolio Open positions (1): 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.

Garmin (GRMN) February 30 puts — Earnings are due to be released on Feb. 17, before the market opens — Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options