Dear Momentum Options Subscriber,

“You just slip out the back, Jack
Make a new plan, Stan
You don’t need to be coy, Roy
Just get yourself free
Hop on the bus, Gus
You don’t need to discuss much
Just drop off the key, Lee
And get yourself free”

I was listening to some Paul Simon this weekend as I did my market homework, and my watch list and fresh chart work are showing that there are more than “50 ways” we could play the market in the coming weeks.

Index ETFs, earnings, gold, oil, volatility, housing, energy, blue-chips, tech, small-caps and financial stocks are all presenting interesting opportunities at the moment. In other words, we are truly in a stock pickers’ market, which is an environment I thrive in.

While trading ranges and lower lows can be frustrating, we have ignored the noise by focusing on options on individual stocks. Most of our trades have been bearish, but we have added bullish trades to the portfolio on rebounds as well.

If you want to have success in the market, it is important to study and prepare on a daily basis, including weekends and holidays. Luckily, that’s why you have me — to save you time and make you money.

Futures were showing a strong start to this morning’s open, and I talked previously about the possibility of a rebound rally coming into play. While it is too early to say that a temporary bottom was set last Thursday, a few more up days would confirm — at least over the short term — that a bottom is in. Today’s session is a good start.

The Dow is currently gaining 205 points to 16,179, while the S&P 500 is higher by 28 points to 1,893. The Nasdaq is surging 88 points to 4,425, and the Russell 2000 is popping 22 points to 994.

I have updated our current trades below, including one partial Trade Alert for our position in Garmin (GRMN), so let’s go check the tape. I could also have a New Trade before the closing bell, 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 1:40 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.


Garmin (GRMN, $35.52, up $1.16)

GRMN February 30 puts (GRMN160219P00030000, $0.22, down $0.17)

Entry Price: $0.98 (1/20/2016)

Exit Target: $0.70

Return: -76%

Stop Target: None

Action: Sell to close the first half of the GRMN February 30 puts at current levels.

I want to keep the second half open in case Garmin misses earnings ahead of tomorrow’s open.


Intel (INTC, $28.91, up $0.27)

INTC March 30 calls (INTC160318C00030000, $0.43, down $0.01)

Entry Price: $0.40 (2/16/2016)

Exit Target: $0.80

Return: 8%

Stop Target: None

Action: I would like to see a close above $29 today, which represents short-term resistance. Support is at $28.50-$28.25.


Bank of America (BAC, $12.18, up $0.23)

BAC March 13 calls (BAC160318C00013000, $0.32, flat)

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

Exit Target: $0.80

Return: -20%

Stop Target: None


BAC April 14 calls (BAC160415C00014000, $0.24, down $0.03)

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

Exit Target: $0.60

Return: -20%

Stop Target: None

Action: Resistance is at $12-$12.25. Short-term support is at $11.75-$11.50.


Rambus (RMBS, $12.34, up $0.37)

RMBS March 13 calls (RMBS160318C00013000, $0.22, up $0.06)

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

Exit Target: $0.70

Return: -37%

Stop Target: None

Action: Resistance is at $12.50. Support has moved up to $12.25-$12.


Opko Health (OPK, $7.83, down $0.06)

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. Support is at $7.50.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options