ACTIONS:

Shares of Twitter (TWTR) set to be “called away” at $15.

Sell to close the WFM February 32 calls at current levels.

Dear Momentum Stocks Weekly Subscriber,

I have two Trade Updates for our positions in Twitter (TWTR) and Whole Foods Market (WFM) ahead of today’s close.

 

Twitter (TWTR, $18.26, down $0.17)

Wrote the TWTR February 15 call (TWTR160219C00015000, $3.30, down $0.15)

Original Entry Price: $17.90 (1/22/2016)

Lowered Price from Selling Options: $14.40

Exit Target:  $15.00

Return: 5%

Stop Target: $14.00

Action: Shares will certainly hold the $15 level into today’s close unless something bizarre happens. Our gains will be capped at 5% when the trade is “called away” at the call’s $15 strike price.

 

Whole Foods Market (WFM, $31.33, down $0.06)

WFM February 32 calls (WFM160219C00032000, $0.01, down $0.04)

Entry Price: $0.50 (2/10/2016)

Exit Target: $1.00 (Limit Order)

Return: -98%

Stop Target: None

Action: Sell to close the WFM February 32 calls at current levels.

I should have given this trade more time to play out by going with March options, as shares are still in a nice uptrend. I will keep this in mind if we play another earnings trade in the future so the risk/reward is a little safer.

 

All prices given in this update are current as of 3:10 p.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Stocks Weekly 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 Open Trades and Closed Trades.

Trade on!

Signed

Rick Rouse
Editor
Momentum Stocks Weekly