Dear Momentum Options Subscriber,
Apple’s (AAPL, $97.61, down $1.22) Worldwide Developers Conference (WWDC) is set to kick off shortly, and the event has some on Wall Street bustling with enthusiasm. The talking heads are calling the WWDC a big deal and want to hear strong announcements. While some analysts have already come out to say that investors should “buy any dip” in the stock, shares look weak on a technical level and, personally, I would be running for the hills.
A mini “death cross” is in the process of forming, as the 50-day moving average is on the verge of falling below the 100-day moving average. The 200-day moving average continues to show downward progress as well.
I expect Apple to provide its usual upgrade to its iOS system and tweak a few designs, but the “wow” factor might involve a makeover to Apple music to make it more user-friendly, as the competition in the music space continues to heat up. Apple music has approximately 13 million paying subscribers, but Amazon.com (AMZN, $718.44, up $0.53) has its sights set on them.
There could also be some news about Siri as Apple tries to take the upper hand in virtual assistance. However, Amazon seems to be a step ahead of them in that department.
I’m not the best with technology, and upgrades and computer issues are sometimes a hassle for me. I’m more of a trader and writer than a techie, but my visit to Best Buy (BBY, $29.56, up $0.12) over the weekend was interesting.
I have been dreading a technology upgrade, but I’m undergoing that process now. I don’t rush out each year and update to the latest smartphone, iPad or computer, so I tend to wait 2-3 years as the products go through the cycle.
While investigating different gadgets at the store, a Best Buy salesman started pitching to me. To make a long story short, he told me that he wrote “code for some of the phone carriers,” and I was immediately impressed by his knowledge. I said that to him, and he proceeded to tell me that he had earned a master’s degree in the subject.
I asked him about “wireless technology” and how it is set to be integrated into various smartphones. I then asked if Samsung’s latest phone had the capability to charge wirelessly, and he said that it did with the use of a charging “pad.”
I have seen improving wireless-charging advancements over the years, but I asked the salesman, “Well, what if your phone is in your pocket and you are walking around the house and the technology allowed your phone to be charged from 15-20 feet away?” The salesman immediately barked, “That is years away.”
I left our conversation at that and told him I would likely be back this week to purchase Apple’s iPad Pro. I could have given him a stock tip about Energous (WATT), but that is what you pay for. Shares of WATT are on the rise, and I have listed several parameter updates below, so I am anxious to get to our current trades.
The bulls performed well at today’s open, and they are showing strength going into the second half of trading this afternoon. The Dow is currently declining 39 points to 17,825, while the S&P 500 is down 6 points to 2,090. The Nasdaq is off 24 points to 4,870, and the Russell 2000 is lower by a six-pack to 1,157.
I could have a New Trade ahead of the closing bell, so stay close to your email inboxes or listen for a possible SMS text message alert.
Momentum Options Play List
Closed Momentum Options Trades for 2016: 47-16 (75%). 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 1:00 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
SPDR Gold Shares ETF (GLD, $122.74, up $1.00)
GLD July 125 calls (GLD160715C00125000, $2.15, up $0.36)
Entry Price: $1.25 (6/8/2016)
Exit Target: $2.50 (closed first half at $2.11 on 6/13/2016)
Stop Target: $1.85 (Stop Limit)
Action: Resistance is at $122-$124. Support is at $120-$119.50 and the 50-day moving average.
Energous (WATT, $14.42, up $0.77)
WATT July 15 calls (WATT160715C00015000, $1.47, up $0.39)
Entry Price: $0.80 (6/8/2016)
Exit Target: $2.00, raise to $2.10 (Limit Order on first half at $2.10)
Stop Target: $0.85, raise to $1.10 (Stop Limit)
Action: Set a Limit Order to close the first half of the WATT July 15 calls at $2.10.
Also, raise the Stop Limit from $0.85 to $1.10 to protect profits.
Shares traded to a high of $14.50 today ahead of Apple’s WWDC. Short-term resistance at $13.75-$14 has been cleared. Short-term support is at $13.
Inovio Pharmaceuticals (INO, $10.45, down $0.17)
INO July 12 calls (INO160715C00012000, $0.35, flat)
Entry Price: $0.80 (6/1/2016)
Exit Target: $1.60
Stop Target: None
Action: Support is at $10.25-$10 and the 50-day moving average. Resistance is at $11-$11.25.
Editor and Chief Options Strategist