Dear Momentum Options Subscriber,

Futures were showing a positive open after midnight but Japan’s “surprise” $274 billion stimulus package ahead of this morning’s open was a curve ball Wall Street hadn’t penciled-in this week. To be fair, not too many slick talking pros figured Japan would be back at it again this soon with regards to stimulating their economy. However, there isn’t anything in the global or currency markets that should come as a surprise to anyone these days.

The race to the bottom continues as Australia cut its interest rates to record lows while the Euro hits 5-week highs against the Dollar. These headlines are bearish and the bulls are trying to hold near-term support on today’s weakness.

The growing “divergence” I talked about this morning is making this a very difficult market to trade but we are just getting started. The current game plan is to close one or two trades this week while opening one or two and waiting for the whacky action to play out today, tomorrow, or the rest of the week.

The portfolio has been on cruise control since mid-June as 12 out of the past 13 recommendations have been winners. Folks, the summer doldrums are tricky to navigate. And while we still have a few current trades in play, I will take this kind of track record every single summer.

Additionally, with 80 trades in the books and a nearly 80% win rate for 2016, I’m proud of my hard work, and hopefully, it has made it easier for you to ride shotgun with me. My point is, don’t go anywhere because you will enjoy the next 5-month ride even more than the first half of the year. In other words, there is still plenty of money to make from now until the New Year!

The Dow is declining 104 points to 18,300 while the S&P 500 is lower by 17 points to 2,153.  The Nasdaq is skidding 56 points to 5,127 and the Russell 2000 is down 14 points to 1,204.

I have updated our current trades and I’m working on a possible New Trade ahead of today’s close. Stay close to your email inboxes in case I take action and be sure to sign up for my text alerts.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 61-19 (76%). All trades are dated and time stamped 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 1:25 p.m. EST.

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

 

Rambus (RMBS, $13.25, down $0.33)

RMBS September 14 calls (RMBS160916C00014000, $0.30, down $0.10)

Entry Price: $0.40 (8/1/2016)

Exit Target: $0.80

Return: -25%

Stop Target: None

Action: Support is at $13.25-$13. Near-term resistance is at $13.50-$13.75.

 

Vuzix (VUZI, $7.60, down $0.31)

September 10 calls (VUZI160916C00010000, $0.55, down $0.20)

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

Exit Target: $2.00

Return: -43%

Stop Target: None

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

 

Green Dot (GDOT, $23.60, down $0.27)

GDOT August 25 calls (GDOT160819C00025000, $0.60, flat)

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

Exit Target: $1.60

Return: -25%

Stop Target: None

Action: Support is at $23.75-$23.50. Resistance is at $24-$24.25. Earnings are due out after Thursday’s close.

 

Energous (WATT, $12.25, down $0.40)

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: Support is at $12.25-$12 followed by $11.75 and the 50-day moving average. Resistance is at $12.50-$12.75. Earnings are due out next week, August 9th.

 

Viavi Solutions (VIAV, $7.03, down $0.10)

VIAV September 7 calls (VIAV160916C00007000, $0.42, flat)

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

Exit Target: $1.10

Return: -24%

Stop Target: None

Action: Support is at $7 with $6.90-$6.85 and the 50-day moving average serving as backup. Resistance is at $7.25. Earnings are due out August 11th.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options