Dear Momentum Options Subscriber,

Although we are in a holiday-shortened trading week and first-quarter earnings season has come and gone, there are a number of high-profile names scheduled to report over the coming days that will be worth watching — and possibly worth trading.

Following today’s closing bell, TiVo (TIVO) and Zoe’s Kitchen (ZOES) will confess their quarterly numbers.

On Wednesday, Autohome (ATHM), Box (BOX), Cracker Barrel Old Country Store (CBRL), Daktronics (DAKT), GIII Apparel Group (GIII), Land’s End (LE), Michael Kors Holdings (KORS), Semtech (SMTC) and Vera Bradley (VRA) will announce their latest results.

Ambarella (AMBA), Broadcom (AVGO), Ciena (CIEN), Conn’s (CONN), Five Below (FIVE), Hovnanian Enterprises (HOV), REX American Resources (REX) and Zumiez (ZUMZ) will lead Thursday’s mini parade of earnings updates.

Finally, the week will wrap up with Advanced Drainage Systems (WMS) and Piedmont Natural Gas (PNY), which are tentatively scheduled to confess their quarterly numbers on Friday.

The market started today’s session slightly higher, but the action is mixed heading into the second half of trading. The Dow is currently down 91 points to 17,781, while the S&P 500 is lower by 4 points to 2,094. The Nasdaq is gaining 4 points to 4,938, and the Russell 2000 is climbing 5 points to 1,155.

I have plenty more to talk about this week, but, in the meantime, let’s go check on our current trade. I also have another New Trade I’m looking at. However, I want to cover our PowerShares QQQ ETF (QQQ) position first. Stay locked and loaded into the closing bell in case I take additional action.

As a reminder, I will be including the Momentum Q&A section in tomorrow’s Pre-Market Update, which 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!

Additionally, if you have yet to sign up to receive SMS text message alerts, I encourage you do so today.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 45-14 (76%). All trades are dated 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 1:05 p.m. EST.

I hereby disclose that I will be participating in the following trade(s).


PowerShares QQQ ETF (QQQ, $110.11, down $0.02)

QQQ July 112 calls (QQQ160715C00112000, $1.10, flat)

Entry Price: $1.15 (5/31/2016)

Exit Target: $2.30

Return: -4%

Stop Target: None

Action: The initial Exit Target for the trade is at $2.30, but it is not a Limit Order. There is no Stop Target at this time.

Support is at $108.50-$108. Resistance is at $111.50-$112.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options