Dear Momentum Options Subscriber,

The bulls will likely get the weekly win by the close of trading today despite the Dow’s four-week winning streak coming to an end, as the blue-chips are heading south while tech is trading higher.

The Dow is currently down 34 points to 18,424, while the S&P 500 is higher by 3 points to 2,173. The Nasdaq is up 5 points to 5,160, and the Russell 2000 is gaining 3 points to 1,220. The S&P 500 Volatility Index ($VIX, 12.13, down 0.59) is back below 12.50.

I have been researching possible New Trades all day, and I’ve mainly been focusing on options with September and October expiration dates. The monthly August options expire three weeks from today, which means that time premium will start to decay at a faster rate heading into expiration.

Our current trades include two August options and two September options, and we have plenty of room for New Trades starting next week. I will have a full update for everyone on Monday, but, until then, have a safe and great weekend.

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 2:55 p.m. EST.

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

 

Vuzix (VUZI, $8.16, up $0.12)

VUZI September 10 calls (VUZI160916C00010000, $0.50, down $0.25)

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

Exit Target: $2.00

Return: -48%

Stop Target: None

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

 

Green Dot (GDOT, $24.08, up $0.10)

GDOT August 25 calls (GDOT160819C00025000, $0.65, flat)

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

Exit Target: $1.60

Return: -19%

Stop Target: None

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

 

Energous (WATT, $12.36, down $0.11)

WATT August 12.50 calls (WATT160819C00012500, $0.70, down $0.10)

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, up $0.02)

VIAV September 7 calls (VIAV160916C00007000, $0.37, down $0.04)

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

Exit Target: $1.10

Return: -33%

Stop Target: None

Action: Support is at $7, with $6.80-$6.75 and the 50-day moving average serving as backup. Resistance is at $7.25.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options