Dear Momentum Options Subscriber,

The market has traded in positive territory for much of today’s session as the bulls work towards their fourth consecutive day of gains. The multi-day rebound since Monday has recouped most of the losses from the two-day selloff that followed the Brexit vote.

The news flow has been somewhat light, which was to be expected ahead of a three-day weekend, and the last hour of trading should be just as mellow.

The Dow is currently up 2 points to 17,932, while the S&P 500 is adding a quarter-point to 2,099. The Nasdaq is higher by 9 points to 4,852, and the Russell 2000 is popping a point to 1,152.

Although I have been looking at several trades today, I usually refrain from opening new positions ahead of an extended holiday weekend. U.S. markets will be closed all day next Monday, July 4, but we may try to get into New Trades on Tuesday.

In the meantime, I have updated our current trades below, including our position in Skyworks Solutions (SWKS) that we were stopped out of today. Let’s go take a final peak before we get ready to enjoy the weekend.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 52-18 (74%). 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 3:05 p.m. EST.

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


Skyworks Solutions (SWKS, $62.72, down $0.56)

SWKS August 65 calls (SWKS160819C00065000, $2.90, down $0.10)

Entry Price: $2.50 (6/28/2016)

Exit Target: $3.75

Return: 4%

Stop Target: $2.60 (Stop Limit)

Action: The Stop Limit at $2.60 was triggered today when the calls tested a low of $2.55 this morning, and we are now out of the position.

Near-term resistance is at $62-$64. Thursday’s high reached $63.31. Short-term support is at $60-$58.


Cisco Systems (CSCO, $28.78, up $0.09)

CSCO August 29 calls (CSCO160819C00029000, $0.73, up $0.10)

Entry Price: $0.55 (6/30/2016)

Exit Target: $1.10

Return: 33%

Stop Target: None

Action: Resistance is at $28.75-$29. Support is at $28.25-$28.


Energous (WATT, $12.25, down $0.70)

WATT August 12.50 calls (WATT160819C00012500, $1.55, down $0.25)

Entry Price: $1.57 (6/28/2016)

Exit Target: $3.15

Return: -1%

Stop Target: $0.75

Action: Support is at $11-$10 if $12 fails to hold. Resistance is at $12.75-$13.


Morgan Stanley (MS, $25.90, down $0.08)

MS August 28 calls (MS160819C00028000, $0.36, flat)

Entry Price: $0.79 (6/23/2016)

Exit Target: $1.50

Return: -54%

Stop Target: None

Action: Resistance is at $26-$26.25. Support has moved up to $25.25-$25.


Viavi Solutions (VIAV, $6.63, flat)

VIAV September 7 calls (VIAV160916C00007000, $0.32, flat)

Entry Price: $0.55 (6/23/2016)

Exit Target: $1.10

Return: -42%

Stop Target: None

Action: Near-term resistance is at $6.75-$7. Support is at $6.50-$6.40.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options

P.S. — Celebrate July 4th with Huge Savings! My goal is to help you build your wealth. That’s why you can now save up to 60% on your Momentum Options subscription. Some of the best trading opportunities of the year are dead ahead, and I’m expecting us to capture plenty of profits. Accept your huge savings now!