Dear Momentum Options Subscriber,

The bears are making a push to fresh support today as the bulls take a breather from the ongoing four-week-long rally. The first half of the action was mixed, and the losses will likely stick unless there is some magic during the final hours of trading.

The Dow is currently down 102 points to 18,492, while the S&P 500 is lower by 9 points to 2,163. The Nasdaq is declining 17 points to 5,072, and the Russell 2000 is slipping 4 points to 1,205.

I have been extremely busy today setting up possible New Trades and watching our current positions. There is no need to take any action at this moment, but stay locked and loaded into the close in case I decide to make a new recommendation.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 59-18 (77%). 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 1:55 p.m. EST.

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

 

Flextronics International (FLEX, $13.12, down $0.13)

FLEX August 13 calls (FLEX160819C00013000, $0.58, down $0.05)

Entry Price: $0.44 (7/14/2016)

Exit Target: $1.00

Return: 32%

Stop Target: $0.50 (Stop Limit)

Action: Resistance is at $13.50-$13.75. Support is at $13-$12.75.

 

MGM Resorts International (MGM, $23.25, down $0.25)

MGM August 24 calls (MGM160819C00024000, $0.57, down $0.10)

Entry Price: $0.74 (7/15/2016)

Exit Target: $1.50

Return: -23%

Stop Target: None

Action: Support is at $23.25-$23 and the 50-day moving average. Near-term resistance is at $23.75-$24.

 

Green Dot (GDOT, $24.06, flat)

GDOT August 25 calls (GDOT160819C00025000, $0.80, flat)

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

Exit Target: $1.60

Return: 0%

Stop Target: None

Action: Near-term resistance is at $24.25-$24.50. Support is at $23.50-$23.

 

Energous (WATT, $11.71, down $0.16)

WATT August 12.50 calls (WATT160819C00012500, $0.65, down $0.10)

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

Exit Target: $3.15

Return: -59%

Stop Target: $0.50 (Stop Limit)

Action: Support is at $11.75-$11.50. Resistance is at $12-$12.25.

 

Viavi Solutions (VIAV, $7.07, up $0.08)

VIAV September 7 calls (VIAV160916C00007000, $0.37, down $0.03)

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

Exit Target: $1.10

Return: -33%

Stop Target: None

Action: Resistance is at $7.15-$7.25. Support is at $6.80-$6.75.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options