Dear Momentum Options Subscriber,

Today’s action has been mixed, and the market has traded within another tight range. I’ve been super busy setting up our next batch of trades, so I apologize for today’s short commentary, but I have updated our current positions below.

The Dow is currently down 12 points to 18,459, while the S&P 500 is higher by 3 points to 2,170. The Nasdaq is advancing 14 points to 5,154, and the Russell 2000 is off a point to 1,218.

Two of our trades were stopped out earlier today, which has cleared room for possible new trades, so let’s go check the tape.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 61-19 (76%). 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 3:45 p.m. EST.

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

 

Rambus (RMBS, $13.86, down $0.18)

RMBS September 14 calls (RMBS160916C00014000, $0.43, down $0.09)

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

Exit Target: $0.80

Return: 12.5%

Stop Target: $0.45 (Stop Limit)

Action: The Stop Limit at $0.45 was triggered on today’s pullback in the stock, and we are now out of the position with a mild gain.

 

Flextronics International (FLEX, $12.65, down $0.12)

FLEX August 13 calls (FLEX160819C00013000, $0.11, down $0.05)

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

Exit Target: $0.50 (Limit Order)

Return: -77%

Stop Target: $0.10 (Stop Limit)

Action: The Stop Limit at $0.10 was triggered on today’s pullback in the stock, and we are now out of the position.

 

Vuzix (VUZI, $8.05, down $0.08)

VUZI September 10 calls (VUZI160916C00010000, $0.63, down $0.15)

Entry Price: $0.97 (7/27/2016)

Exit Target: $2.00

Return: -35%

Stop Target: None

Action: Support is at $8-$7.50, with risk to $7 on a close below the latter. Resistance is at $8.25-$8.50.

 

Green Dot (GDOT, $23.97, down $.09)

GDOT August 25 calls (GDOT160819C00025000, $0.65, down $0.10)

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

Exit Target: $1.60

Return: -19%

Stop Target: None

Action: Support is at $23.75-$23.50. Resistance is at $24-$24.25.

 

Energous (WATT, $12.35, down $0.10)

WATT August 12.50 calls (WATT160819C00012500, $0.70, down $0.05)

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

Exit Target: $3.15

Return: -55%

Stop Target: $0.50 (Stop Limit)

Action: Support is at $12.25-$12. Resistance is at $12.50-$12.75.

 

Viavi Solutions (VIAV, $7.10, down $0.04)

VIAV September 7 calls (VIAV160916C00007000, $0.41, down $0.04)

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

Exit Target: $1.10

Return: -25%

Stop Target: None

Action: Wednesday’s peak reached $7.20. The 52-week high is at $7.23. A close above $7.25 would be a bullish setup for a run at $8. Support is at $7, with $6.80-$6.75 and the 50-day moving average serving as backup.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options