Dear Momentum Options Subscriber,
It’s been another busy day ahead of the latest Federal Open Market Committee (FOMC) announcement, which is due to be released shortly. While the broader market is down, there are bullish clues developing that could be subtle hints that a continued rally is in store.
The Russell 2000 small-caps are higher, and the S&P 500 Volatility Index ($VIX, 16.12, down 0.72) is down 4%. I will be watching the action in these two indices at 2 p.m. EST for additional clues that may point to a run to higher highs.
The Dow is currently down 35 points to 17,216, while the S&P 500 is falling 5 points to 2,010. The Nasdaq is lower by 5 points to 4,723, and the Russell 2000 is up by half of a point to 1,067.
I have been working on an update for our position in Energous (WATT) today, and I have also been looking at possible New Trades. I’m pressed for time, but this is what makes my job so much fun, as I love the pressure. New Trades will take priority ahead of the closing bell, but I will have more thoughts on WATT in the morning.
In the meantime, let’s go check on the action, as I have a Profit Alert for our position in Mylan (MYL), which represents our 30th win of the year.
Momentum Options Play List
Closed Momentum Options Trades for 2016: 30-4 (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 1:40 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.
Mylan (MYL, $46.48, up $0.56)
MYL April 45 puts (MYL160415P00045000, $1.30, down $0.40)
Entry Price: $1.10 (3/10/2016)
Exit Target: $2.20
Stop Target: $1.25 (Stop Limit)
Action: The Stop Limit at $1.25 was triggered on today’s pullback in the stock to $45.61, and we are now out of the position.
Energous (WATT, $8.41, up $0.41)
WATT May 10 calls (WATT160520C00010000, $1.60, up $0.49)
Entry Price: $0.80 (3/15/2016)
Exit Target: $1.60-$2.40
Stop Target: None
Action: Resistance is at $8.50-$9 on continued momentum. Short-term support is at $7.75-$7.50.
American Express (AXP, $59.50, up $0.27)
AXP April 62.50 calls (AXP160415C00062500, $0.40, flat)
Entry Price: $0.60 (3/11/2016)
Exit Target: $1.20
Stop Target: None
Action: Support is at $58.50-$58 and the 50-day moving average. Near-term resistance is at $60-$62.50.
You can read my original write-up and view a chart in the March 14 Pre-Market Update.
Intel (INTC, $31.29, down $0.36)
INTC April 29 puts (INTC160415P00029000, $0.28, up $0.02)
Entry Price: $0.38 (3/7/2016)
Exit Target: $0.80
Stop Target: None
Action: Resistance is at $32 and the 100-day moving average. Support is at $31.50-$31.25.
You can view a chart for INTC and read my write-up in the March 7 New Trade Alert.
Editor and Chief Options Strategist