Dear Momentum Options Subscriber,

The bulls are trying to continue Wednesday’s gains and reclaim upper resistance with some follow through. The bears are still eyeing the 50-day moving averages and backup support as we wind down the final hour of trading.

The Dow is down 17 points to 18,337 while the S&P 500 is lower by a point to 2,163.  The Nasdaq is gaining 7 points to 5,166 and the Russell 2000 is up 2 points to 1,215.

I have been super busy today researching and setting up our next batch of trades. We will also have a trade in play on tomorrow’s open that could leave the portfolio with just three open positions, which is exactly where we want to be.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 61-20 (75%). 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 3:05 p.m. EST.

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

 

Rambus (RMBS, $13.44, up $0.01)

RMBS September 14 calls (RMBS160916C00014000, $0.30, up $0.01)

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

Exit Target: $0.80

Return: -27%

Stop Target: None

Action: Resistance is at $13.25-$13.50. Support is at $13.25-$13.

 

Vuzix (VUZI, $7.76, down $0.08)

September 10 calls (VUZI160916C00010000, $0.57, flat)

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

Exit Target: $2.00

Return: -41%

Stop Target: None

Action: Resistance is at $8. Support is at $7.50.

 

Green Dot (GDOT, $23.66, up $0.09)

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 today’s close.

 

Viavi Solutions (VIAV, $7.15, flat)

VIAV September 7 calls (VIAV160916C00007000, $0.43, flat)

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

Exit Target: $1.10

Return: -22%

Stop Target: None

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

 

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options