Dear Momentum Options Subscriber,

Market participants spent the first half of today’s trading session waiting for and listening to Fed Chair Janet Yellen’s comments regarding last week’s Federal Open Market Committee (FOMC) meetings. After reading her prepared statement, she continued to stress caution about the jobs market and the potential “Brexit” in the Q&A session that followed.

Last month’s lousy jobs report print of only 38,000 shows the loss of economic momentum, and Yellen seemed worried that this could be a drag on the overall economy if the trend continues. As far as the Brexit vote, she warned of potentially significant repercussions if Britain left the European Union.

However, her tone hasn’t hurt the bulls too bad today, and they will be trying to hold their slight gains into the closing bell.

The Dow is currently adding 8 points to 17,813, while the S&P 500 is up 2 points to 2,085. The Nasdaq is lower by 8 points to 4,828, and the Russell 2000 is down 7 points to 1,150.

I have updated our current trades below, so let’s go check the tape.

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 service@momentumoptions.com, 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 to do so today.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 49-16 (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 1:45 p.m. EST.

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

 

iRobot (IRBT, $36.54, down $0.18)

IRBT July 38 calls (IRBT160715C00038000, $0.47, down $0.07)

Entry Price: $0.55 (6/20/2016)

Exit Target: $1.10

Return: -15%

Stop Target: None

Action: Support is at $36-$35 and the 100-day moving average on a move below $36.50-$36.40. Resistance is at $37-$37.25 and the 50-day moving average.

 

Energous (WATT, $11.04, down $0.20)

WATT August 12.50 calls (WATT160819C00012500, $1.22, down $0.08)

Entry Price: $1.06 (6/16/2016)

Exit Target: $2.00-$2.50

Return: 15%

Stop Target: $1.10 (Stop Limit)

Action: Support is at $10.50-$10. Resistance is at $11.25-$11.50.

 

Viavi Solutions (VIAV, $7.12, up $0.02)

VIAV September 7 calls (VIAV160916C00007000, $0.58, up 0.02)

Entry Price: $0.48 (6/16/2016)

Exit Target: $1.00

Return: 21%

Stop Target: None

Action: Near-term resistance is at $7-$7.25. The 52-week high is at $7.38. Support is at $6.80-$6.75.

 

Microsoft (MSFT, $51.06, up $0.99)

MSFT July 48 puts (MSFT160715P00048000, $0.25, down $0.15)

Entry Price: $0.71 (6/16/2016)

Exit Target: $1.45

Return: -65%

Stop Target: None

Action: Resistance is at $51-$51.50. Support is at $49.50-$49.

 

Inovio Pharmaceuticals (INO, $11.38, up $0.18)

INO July 12 calls (INO160715C00012000, $0.50, up $0.10)

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

Exit Target: $1.60

Return: -38%

Stop Target: None

Action: Resistance is at $11.50-$11.75. The 52-week high is at $11.69. Support is at $11-$10.75.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options