Dear Momentum Options Subscriber,

The bulls started the session on a good note and steadily added to their gains heading into the second half of trading. The surge higher has been strong across the board, although upper resistance has been challenged.

Shares of Apple (AAPL, $100.20, up $3.51) are giving tech a lift following a favorable decision concerning the iPhone court case. A federal judge from New York backed some of the arguments Apple has made in its defense against the government and the San Bernardino terrorism case.


The moral “victory” has pushed shares past $100 and the 50-day moving average. Continued closes above $99 would be a bullish sign that higher highs might be in store.

The Dow is up 291 points to 16,807, while the S&P 500 is higher by 36 points to 1,968. The Nasdaq is advancing 100 points to 4,658, and the Russell 2000 is gaining 14 points to 1,048.

I issued a Profit Alert for one of our position in Bank of America (BAC) earlier this afternoon, so please check that out now if you haven’t done so already. I could also have a New Trade ahead of the close, so stay locked and loaded in case I take additional action.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 21-3 (88%). 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 1:00 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.


Whole Foods Market (WFM, $32.23, up $0.92)

WFM April 33 calls (WFM160415C00033000, $0.92, up $0.30)

Entry Price: $0.54 (2/26/2016)

Exit Target: $1.10

Return: 70%

Stop Target: None

Action: Resistance is at $32.50. Support has moved up to $31.50-$31.

You can read my detailed write-up in the Feb. 29 Pre-Market Update.


Green Dot (GDOT, $21.06, up $0.40)

GDOT June 22.50 calls (GDOT160617C00022500, $1.20, up $0.20)

Entry Price: $0.70 (2/24/2016)

Exit Target: $1.75-$2.10 (Limit Order on first half at $1.75)

Return: 70%

Stop Target: $0.85 (Stop Limit)

Action: Resistance is at $21 and the 52-week high of $21.62. Support is at $20.50-$20.


Oracle (ORCL, $37.83, up $1.05)

ORCL April 40 calls (ORCL160415C00040000, $0.42, up $0.15)

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.

You can read my detailed write-up in the Feb. 23 Pre-Market Update. Earnings are due out in a few weeks.


Bank of America (BAC, $13.13, up $0.61)

BAC April 14 calls (BAC160415C00014000, $0.27, up $0.12)

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

Exit Target: $0.60

Return: -10%

Stop Target: None

Action: We took some risk off of the table earlier today when we closed our trade in the BAC March 13 calls. Continue to hold the BAC April 14 calls.


Rambus (RMBS, $13.20, up $0.17)

RMBS March 13 calls (RMBS160318C00013000, $0.41, up $0.17)

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

Exit Target: $0.70

Return: 17%

Stop Target: None

Action: Resistance is at $13-$13.25. Support is at $12.75-$12.50 and the 200-day moving average.


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.

Opko Health (OPK) March 7 puts (OPK160318P00007000) — Continue to hold the second half.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options