Dear Momentum Options Subscriber,

Futures were once again showing a weak open this morning, and the action hasn’t improved much as we head into the second half of today’s session. The main clue I will be looking for today is whether or not near-term support will hold. It has, for the most part, but lower lows have come into play as well.

The Dow is currently down 98 points to 16,975, while the S&P 500 is lower by 16 points to 1,985. The Nasdaq is sinking 36 points to 4,672, and the Russell 2000 is tanking 19 points to 1,075.

Volatility is also spiking, with the S&P 500 Volatility Index ($VIX, 18.56, up 1.21) up as much as 7%.

I have a Profit Alert for our position in Oracle (ORCL) listed below, and I have updated our current trades as well. I’m coming to press a little early today, but I could have additional updates throughout the day depending on the action.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 24-4 (86%). 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 11:30 a.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, $38.20, down $0.16)

ORCL April 40 calls (ORCL160415C00040000, $0.43, down $0.11)

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

Exit Target: $0.80

Return: 5%

Stop Target: $0.42 (Stop Limit)

Action: The Stop Limit of $0.42 triggered on the stock’s dip to $37.94 this morning, and we are now out of our position in the ORCL April 40 calls.

 

Rambus (RMBS, $12.94, down $0.12)

RMBS April 13 calls (RMBS160415C00013000, $0.50, down $0.08)

Entry Price: $0.40 (3/7/2016)

Exit Target: $0.80

Return: 25%

Stop Target: $0.42 (Stop Limit)

Action: Support is at $12.75-$12.60 and the 200-day moving average. Resistance is at $13.25.

You can view a chart for RMBS and read my write-up in yesterday’s New Trade Alert.

 

Intel (INTC, $30.67, down $0.27)

INTC April 29 puts INTC160415P00029000, $0.47, up $0.10)

Entry Price: $0.38 (3/7/2016)

Exit Target: $0.80

Return: 24%

Stop Target: None

Action: Support is at $30.50-$30. A close below $30 should get $29-$28 in play. Short-term resistance is at $31-$31.50.

You can view a chart for INTC and read my write-up in yesterday’s New Trade Alert.

 

CVS Health (CVS, $99.23, up $0.81)

CVS April 105 calls (CVS160415C00105000, $0.40, up $0.10)

Entry Price: $0.45 (3/4/2016)

Exit Target: $0.90

Return: -11%

Stop Target: None

Action: Resistance is at $100 and the 200-day moving average. Support is at $98, followed by $96.50 and the 100-day moving average.

You can view a detailed chart for CVS and read my write-up in the March 7 Pre-Market Update.

 

Hertz Global Holdings (HTZ, $10.43, down $0.27)

HTZ April 11 calls (HTZ160415C00011000, $0.70, down $0.12)

Entry Price: $0.55 (2/26/2016)

Exit Target: $1.10

Return: 27%

Stop Target: $0.60 (Stop Limit)

Action: Support is at $10.25-$10. Resistance is at $10.75-$11.

You can read my detailed write-up in the March 3 Mid-Market Update.

 

Green Dot (GDOT, $22.33, up $0.22)

GDOT June 22.50 calls (GDOT160617C00022500, $1.70, flat)

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

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

Return: 143%

Stop Target: $1.40 (Stop Limit)

Action: Multi-year resistance is at $22-$24. Support has moved up to $22-$21.75.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options