Dear Momentum Options Subscriber,

The bulls rushed Wall Street’s gates at the open this morning, and they have continued to push higher highs as we head into the close. The rally has been broad-based, as the major indices continue their “V-shaped” recovery with today’s surge to resistance.

The bears will be looking for an opening to make their counterattack, but continued bullish momentum could keep them on the sidelines as volatility eases.

The Dow is currently up 247 points to 16,639, while the S&P 500 is higher by 26 points to 1,944. The Nasdaq is jumping 65 points to 4,570, and the Russell 2000 is gaining 15 points to 1,025.

I have been super busy looking for additional trades today, and I have updated our current positions below. However, stay locked and loaded into the close in case I take additional action.

Note: Starting this week, I will be including a new question and answer section in each Wednesday’s Pre-Market Update that will give you the opportunity to ask me questions about the market and our current trades. To submit your questions, simply send your messages to, and I will do my best to address them every Wednesday morning.

As a reminder, the SEC’s guidelines prohibit me from answering any questions about securities that are not currently on our Momentum Options buy list or from providing individualized trading advice or recommendations for any specific subscriber or portfolio.

I encourage you to send in any questions that I can help with, particularly those that may benefit the broad Momentum Options audience.  If you have a question, chances are there are a handful of other subscribers who may have the same one! Thanks, and I look forward to hearing from you!

Momentum Options Play List

Closed Momentum Options Trades for 2016: 20-3 (87%). 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 2:20 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.


Oracle (ORCL, $37.12, up $0.34)

ORCL April 40 calls (ORCL160415C00040000, $0.38, up $0.08)

Entry Price: $0.40 (2/22/2016)

Exit Target: $0.80

Return: -5%

Stop Target: None

Action: Resistance is at $37.50-$38. Support is at $37-$36.50.


Opko Health (OPK, $9.16, up $0.34)

OPK March 7 puts (OPK160318P00007000, $0.08, down $0.04)

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

Exit Target: $0.70 (closed first half at $0.08 on 2/22/16)

Return: -77%

Stop Target: None

Action: I sent a Trade Alert for the first half of the OPK March 7 puts at $0.08 earlier this afternoon, so be sure to check that out now if you haven’t already done so.

I still want to keep the second half of the trade open in case earnings come in shy of estimates. In the meantime, I’m placing the remaining half of the trade on hold until further notice.


Bank of America (BAC, $12.47, up $0.34)

BAC March 13 calls (BAC160318C00013000, $0.22, up $0.06)

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

Exit Target: $0.80

Return: -45%

Stop Target: None


BAC April 14 calls (BAC160415C00014000, $0.15, up $0.04)

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

Exit Target: $0.60

Return: -50%

Stop Target: None

Action:  Resistance is at $12.50-$12.75. Short-term support is at $12.25-$12.


Rambus (RMBS, $12.59, up $0.18)

RMBS March 13 calls (RMBS160318C00013000, $0.25, up $0.04)

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

Exit Target: $0.70

Return: -29%

Stop Target: None

Action: Resistance is at $12.50-$12.75 and the 200-day moving average. Support is at $12.25-$12.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options