Dear Momentum Options Subscriber,

Futures were strong throughout Sunday night and into this morning’s open, and the S&P 500 has tapped fresh all-time highs at 2,141.22 today at the time of this writing.

It has been a super busy day for me, but, like a kid at Christmas, I couldn’t wait for Wall Street to open, as the bulls are bringing fresh gifts to traders that have been long.

The Dow is currently gaining 117 points to 18,263, while the S&P 500 is adding 10 points to 2,140. The Nasdaq is higher by 38 points to 4,995, and the Russell 2000 is up 11 points to 1,188.

I have updated our current trades below, so please make the adjustments in your trading accounts accordingly. I could also have additional New Trades or Trade Alerts into today’s closing bell, so stay locked and loaded.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 55-18 (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 12:00 p.m. EST.

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

 

Cisco Systems (CSCO, $29.47, up $0.21)

CSCO August 30 calls (CSCO160819C00030000, $0.62, up $0.11)

Entry Price: $0.62 (7/11/2016)

Exit Target: $1.25

Return: 0%

Stop Target: None

Action: Set an Exit Target at $1.25, but do not make it a Limit Order at this time.

Resistance is at $29.75-$30. Support is at $27.25-$27.

 

Achillion Pharmaceuticals (ACHN, $9.29, up $0.15)

ACHN August 10 calls (ACHN160819C00010000, $0.58, up $0.13)

Entry Price: $0.45 (7/8/2016)

Exit Target: $0.90-$1.35

Return: 29%

Stop Target: None

Action: Near-term resistance is at 9.25-$9.50, with a move above the latter likely leading to $10 or higher. Support is at $9-$8.75.

 

Green Dot (GDOT, $23.95, up $0.22)

GDOT August 25 calls (GDOT160819C00025000, $0.95, up $0.04)

Entry Price: $0.80 (7/7/2016)

Exit Target: $1.60

Return: 19%

Stop Target: None

Action: Shares have traded to a 52-week high of $24 today. Resistance is at $24-$24.50. A blue-sky breakout could get shares pushing $25-$26. Support is at $23.50-$23.

 

Energous (WATT, $12.93, up $0.67)

WATT August 12.50 calls (WATT160819C00012500, $1.80, up $0.60)

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

Exit Target: $3.15

Return: 15%

Stop Target: $0.75

Action: Resistance is at $13. Support has moved up to $12.

 

Morgan Stanley (MS, $26.50, up $0.13)

MS August 28 calls (MS160819C00028000, $0.40, up $0.02)

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

Exit Target: $1.50

Return: -49%

Stop Target: None

Action: Resistance is at $26.50-$26.75. Support is at $26-$25.75.

 

Viavi Solutions (VIAV, $6.85, up $0.10)

VIAV September 7 calls (VIAV160916C00007000, $0.40, up $0.11)

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

Exit Target: $1.10

Return: -42%

Stop Target: None

Action: Near-term resistance is at $7. Support is at $6.65-$6.60.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options