Dear Momentum Options Subscriber,

I’ve always been a big fan of Jamie Dimon, who is the current CEO at JPMorgan Chase (JPM, $57.08, up $4.01). He tells it like it is, and he’s not afraid to put his money where his mouth is. His company’s stock surged as much as 8% today after it was disclosed that he bought 500,000 shares of JPM in the open market yesterday. Dimon’s vote of confidence in JPM stock was worth a year of his salary, and it has been a rising tide for most stocks in the sector today.

Meanwhile, Square (SQ, $9.16, up $0.64) shares jumped 6% earlier today on news that Visa (V, $69.94, up $1.47) had taken a 10% stake in the company. Visa has held an investment in Square since before its initial public offering, and the move has sparked speculation of a buyout. It’s too soon to say if that will happen, but it was a bullish bet by Visa that could pay off.

The Dow is currently higher by 202 points to 15,862, while the S&P 500 is up 21 points to 1,850. The Nasdaq is adding 36 points to 4,302, and the Russell 2000 is gaining 13 points to 967.

U.S. markets are closed on Monday, Feb. 15, in observance of Presidents’ Day, so it is unlikely that I will open a New Trade today. However, I have between 10 and 15 possible trades waiting in the wings for our next batch of recommendations. I will be working over the weekend to find the best possible ideas so that we will have 3 to 5 solid trades to play the next major trend. The lower trading range and lower lows that have come into play are still keeping me cautious, but a possible rebound rally could be in store for next week.

I will be back on Tuesday morning with the next Pre-Market Update. Until then, have a great and safe weekend.

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 1:30 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, $11.75, up $0.59)

BAC March 13 calls (BAC160318C00013000, $0.30, up $0.11)

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

Exit Target: $0.80

Return: -25%

Stop Target: None


BAC April 14 calls (BAC160415C00014000, $0.25, up $0.06)

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

Exit Target: $0.60

Return: -17%

Stop Target: None

Action: Resistance is at $11.75-$12. Short-term support is at $11.50.


Rambus (RMBS, $11.89, up $0.02)

RMBS March 13 calls (RMBS160318C00013000, $0.16, down $0.04)

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

Exit Target: $0.70

Return: -54%

Stop Target: None

Action: Resistance is at $12. Support is at $11.65-$11.50 and the 50- and 100-day moving averages. Yesterday’s low touched $11.45.


Opko Health (OPK, $7.91, down $0.09)

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.


Trades on Hold — other 2016 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