Dear Momentum Options Subscriber,

Futures were choppy ahead of the opening of overseas markets this morning, and they were mostly weak heading into Wall Street’s current matrix. However, the mixed signals from Tuesday’s session resulted in the market holding both support and resistance, as the major chess moves continue to unfold this week.

In addition to the earnings I profiled in yesterday’s Mid-Market Update, economic news will play a key role this week as well, with Friday’s jobs report highlighting the scene. There are other major events coming next week that could be market-moving, and I will discuss some of those next Monday.

The one major clue I wanted to zone in on this week was the action in the S&P 500 Volatility Index ($VIX, 14.50, up 0.31). Volatility has stayed elevated throughout the session, and the VIX has cleared 15 again.

As far as the major indices go, the Dow is currently down 3 points to 17,783, while the S&P 500 is higher by 2 points to 2,098. The Nasdaq is gaining 10 points to 4,958, and the Russell 2000 is climbing 4 points to 1,158.

The bulls are trying to push higher highs after splitting Tuesday’s session, and a green-light finish would be a bullish clue for the rest of the week.

Today’s update is short and sweet, as I’m looking at another New Trade at the moment. While I’m still doing the math and chart work, it could be ready by the closing bell, so stay locked and loaded in case I take action. I have also updated the parameters for our Inovio Pharmaceuticals (INO) trade that we added to the portfolio earlier this morning, so be sure to check that out below.

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 2:40 p.m. EST.

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


Inovio Pharmaceuticals (INO, $11.30, down $0.02)

INO July 12 calls (INO160715C00012000, $0.75, up $0.10)

Entry Price: $0.80 (6/1/2016)

Exit Target: $1.60

Return: -6%

Stop Target: None

Action: Resistance is at $11.75-$12. Shares are in a rising uptrend and look poised for a breakout. Support is at $11.50-$11.

You can read my extended write-ups on INO in the April 4 Pre-Market Update and the Feb. 1 Pre-Market Update.


PowerShares QQQ ETF (QQQ, $110.36, up $0.02)

QQQ July 112 calls (QQQ160715C00112000, $1.15, flat)

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

Exit Target: $2.30

Return: 0%

Stop Target: None

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

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options

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