Dear Momentum Options Subscriber,

The bears are pushing the market’s lower levels of support this afternoon, with tech and the small-caps setting fresh 52-week lows. The price of oil continues to plunge as well, as WTI crude has traded below $27 a barrel today.

Gold is up over 4%, and the 10-year Treasury bond is yielding under 1.7%. Volatility has stayed below 30, however, which might be the one bright spot for the bulls.

Fridays have been bullish in recent weeks, but, with the major indices working on a five-session slide, tomorrow’s action becomes much more important. If there is no rebound into today’s close or on Friday, the panic selling I have been warning about could come quickly.

The Dow is currently down 357 points to 15,557, while the S&P 500 is lower by 34 points to 1,817. The Nasdaq is falling 49 points to 4,234, and the Russell 2000 is off 10 points to 952.

I have updated our current trades below, and I could have a New Trade ahead of the closing bell depending on the action, so stay locked and loaded.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 17-2 (89%). 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 1:50 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, $11.13, down $0.85)

BAC March 13 calls (BAC160318C00013000, $0.17, down $0.10)

Entry Price: $0.40 (2/9/2016)

Exit Target: $0.80

Return: -58%

Stop Target: None


BAC April 14 calls (BAC160415C00014000, $0.17, down $0.04)

Entry Price: $0.30 (2/9/2016)

Exit Target: $0.60

Return: -43%

Stop Target: None

Action: Fresh support is at $11. Short-term resistance is at $11.25.


Rambus (RMBS, $11.70, down $0.04)

RMBS March 13 calls (RMBS160318C00013000, $0.16, flat)

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

Exit Target: $0.70

Return: -54%

Stop Target: None

Action: Support is at $11.65-$11.50 and the 50- and 100-day moving averages. Resistance is at $12.

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


Opko Health (OPK, $7.90, up $0.05)

OPK March 7 puts (OPK160318P00007000, $0.35, flat)

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

Exit Target: $0.70

Return: 0%

Stop Target: None

Action: Resistance is at $8-$8.25. 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 — Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options