Dear Momentum Options Subscriber,

Today’s action has favored the bears, but the bulls are keeping things interesting as they try to hold onto their gains for the week.

The Dow is currently down 49 points to 18,548, while the S&P 500 is dropping 7 points to 2,179. The Nasdaq is lower by 13 points to 5,226, and the Russell 2000 is off 2 points to 1,234.

I have updated the parameters of our Viavi Solutions (VIAV) position below, and I also have a Profit Alert for our trade in Energous (WATT).

I could have additional Trade Alerts into the closing bell, so stay locked and loaded. If you don’t hear from me again, however, have a safe and great weekend.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 63-22 (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 1:10 p.m. EST.

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

 

Viavi Solutions (VIAV, $7.76, down $0.05)

VIAV December 8 calls (VIAV161216C00008000, $0.48, up $0.06)

Entry Price: $0.51 (8/19/2016)

Exit Target: $1.05

Return: -6%

Stop Target: None

Action: The Exit Target for the trade is at $1.05, but it is not a Limit Order at this time.

Resistance is at $7.75-$8. Support is at $7.50.

 

Energous (WATT, $13.99, down $0.44)

WATT November 15 calls (WATT161118C00015000, $1.77, down $0.23)

Entry Price: $1.65 (8/17/2016)

Exit Target: $2.40

Return: 3%

Stop Target: $1.70 (Stop Limit)

Action: The Stop Limit at $1.70 was triggered during today’s pullback after opening at $2.05, and we are now out of the position.

 

MGM Resorts International (MGM, $24.09, down $0.27)

MGM September 25 calls (MGM160916C00025000, $0.30, down $0.09)

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

Exit Target: $1.40

Return: -57%

Stop Target: None

Action: Support is at $24.25-$24. Resistance is at $24.50-$24.75.

 

Bank of America (BAC, $15.21, up $0.05)

BAC September 15 calls (BAC160916C00015000, $0.44, up $0.05)

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

Exit Target: $1.00

Return: -12%

Stop Target: None

Action: Near-term resistance is at $15.25-$15.50. Support is at $15-$14.75.

 

Rambus (RMBS, $13.80, up $0.24)

RMBS September 14 calls (RMBS160916C00014000, $0.32, up $0.11)

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

Exit Target: $0.80

Return: -20%

Stop Target: None

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

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options