Dear Momentum Options Subscriber,

Futures were forecasting a nice pop ahead of today’s opening bell, and the gains have held heading into the close of trading.

The Dow is advancing 121 points to 18,617, while the S&P 500 is higher by 10 points to 2,185. The Nasdaq is gaining 24 points to 5,228, and the Russell 2000 is adding 7 points to 1,230.

I’ve been super busy today researching New Trades and determining where the market could be going heading into next week. The outlook is bullish, which bodes well for our current trades, so let’s go check them out.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 61-21 (74%). 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).

 

MGM Resorts International (MGM, $24.90, up $0.27)

MGM September 25 calls (MGM160916C00025000, $0.74, up $0.15)

Entry Price: $0.70 (8/8/2016)

Exit Target: $1.40

Return: 5%

Stop Target: None

Action: Resistance is at $24.75-$25. The 52-week high for MGM is at $25.29. Support is at $24.50-$24.25, followed by $23.75 and the 50-day moving average.

 

Bank of America (BAC, $14.88, up $0.07)

BAC September 15 calls (BAC160916C00015000, $0.36, up $0.03)

Entry Price: $0.50 (8/8/2016)

Exit Target: $1.00

Return: -28%

Stop Target: None

Action: Resistance is at $15.25-$15.50. Support is at $15-$14.75, followed by $14.50 and the 200-day moving average.

 

Rambus (RMBS, $13.54, down $0.05)

RMBS September 14 calls (RMBS160916C00014000, $0.30, down $0.09)

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

Exit Target: $0.80

Return: -25%

Stop Target: None

Action: Support is at $13.50-$13.25. Resistance is at $13.75-$14.

 

Vuzix (VUZI, $7.70, up $0.35)

VUZI September 10 calls (VUZI160916C00010000, $0.35, up $0.05)

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

Exit Target: $2.00

Return: -64%

Stop Target: None

Action: Resistance is at $7.50-$7.75. Support is at $7.25-$7.

 

Viavi Solutions (VIAV, $7.35, up $0.07)

VIAV September 7 calls (VIAV160916C00007000, $0.55, up $0.04)

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

Exit Target: $1.10

Return: 0%

Stop Target: None

Action: Resistance is at $7.50. Support is at $7, with $6.90-$6.85 and the 50-day moving average serving as backup. Earnings are due out today after the close.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options