Dear Momentum Options Subscriber,

The major indices are mixed heading into the closing bell following another tight intraday trading range. McDonald’s (MCD) and Verizon (VZ) are weighing on the Dow, while tech is trying to push higher highs ahead of Apple’s (APPL) earnings announcement this afternoon.

Wall Street is looking for Apple to earn $1.38 a share on revenue of $42.09 billion. The high estimate is at $1.47 a share, while the low estimate has the company earning $1.23 a share. Sentiment is low, but Apple could surprise with an earnings beat, which would certainly help tech continue its momentum.

The Dow is currently down 41 points to 18,451, while the S&P 500 is lower by 2 points to 2,166. The Nasdaq is advancing 9 points to 5,107, and the Russell 2000 is gaining 5 points to 1,215.

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

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 3:20 p.m. EST.

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

 

Rambus (RMBS, $13.99, up $0.27)

RMBS September 14 calls (RMBS160916C00014000, $0.62, up $0.15)

Entry Price: $0.40 (7/22/2016)

Exit Target: $0.80

Return: 55%

Stop Target: None

Action: Resistance is at $13.75-$14. A close above the latter would be very bullish. Support is at $13.25-$13 on a move back below $13.50.

 

MGM Resorts International (MGM, $23.95, up $0.63)

MGM August 24 calls (MGM160819C00024000, $0.86, up $0.31)

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

Exit Target: $1.50

Return: 16%

Stop Target: $0.35 (Stop Limit)

Action: Resistance is at $23.75-$24. Support is at $23.25-$23.

 

Flextronics International (FLEX, $12.90, down $0.06)

FLEX August 13 calls (FLEX160819C00013000, $0.24, down $0.04)

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

Exit Target: $0.50 (Limit Order)

Return: -45%

Stop Target: None

Action: Support is at $12.75-$12.50. Resistance is at $13.25-$13.50.

 

Green Dot (GDOT, $24.01, down $0.01)

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. The recent 52-week high is at $24.34. Support is at $23.75-$23.50 if $24 fails to hold.

 

Energous (WATT, $12.46, up $0.09)

WATT August 12.50 calls (WATT160819C00012500, $0.80, flat)

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

Exit Target: $3.15

Return: -49%

Stop Target: $0.50 (Stop Limit)

Action: Resistance is at $12.50-$12.75. Support is at $11.75-$11.50 and the 50-day moving average on a close back below $13.

 

Viavi Solutions (VIAV, $7.12, flat)

VIAV September 7 calls (VIAV160916C00007000, $0.45, flat)

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

Exit Target: $1.10

Return: -18%

Stop Target: None

Action: Resistance is at $7.15-$7.25. Support is at $6.80-$6.75 and the rising 50-day moving average.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options