Buy to open the RMBS May 14 calls (RMBS160520C00014000, $0.45, flat) at current levels.

Dear Momentum Options Subscriber,

I mentioned earlier today that I had New Trades lined up for our portfolio, and the best of the batch at the moment is in Rambus (RMBS). A “golden cross” has officially formed today, with the 50-day moving average crossing above the 200-day moving average. I’m using the same call options we traded last week to play continued strength in the stock, but this is a new position.


Rambus (RMBS, $13.50, down $0.01)

Buy to open the RMBS May 14 calls (RMBS160520C00014000, $0.45, flat) at current levels.

Action: I like these call options at current levels, and you can use a Limit Order up to $0.60 to get the best fill.

These are the regular monthly options that expire on May 20, and I will provide the parameters of the trade in tomorrow’s Pre-Market Update.

Near-term resistance is at $13.75-$14. Support is at $13.25-$13.


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 aforementioned trade(s). Every new 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 Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options