Dear Momentum Options Subscriber,

The bulls are trying to win their second-straight Monday session despite some of the weakness the market experienced at the open today. The bears were slightly aggressive at the start of trading, but they ran into trouble with near-term support before the bulls battled back.

The Dow is currently down 38 points to 18,514, while the S&P 500 is lower by 4 points to 2,179. The Nasdaq is slipping 5 points to 5,233, and the Russell 2000 is off a third of a point to 1,236.

I have been busy this morning setting up our next series of trades for the next few weeks, and I issued a New Trade alert earlier this afternoon in Energous (WATT), so please be sure to check that out now if you haven’t already. I will provide the parameters of the trade in tomorrow’s Pre-Market Update.

Stay close to your email inbox or listen for an SMS text alert into the closing bell, as I could take additional action.

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 1:40 p.m. EST.

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

 

Viavi Solutions (VIAV, $7.77, flat)

VIAV December 8 calls (VIAV161216C00008000, $0.48, down $0.01)

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

Exit Target: $1.05

Return: -6%

Stop Target: None

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

 

MGM Resorts International (MGM, $24.14, down $0.02)

MGM September 25 calls (MGM160916C00025000, $0.25, down $0.03)

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

Exit Target: $1.40

Return: -64%

Stop Target: None

Action: Support is at $24.25-$24, followed by $23.75 and the 50-day moving average. Resistance is at $24.50-$24.75.

 

Bank of America (BAC, $15.18, down $0.04)

BAC September 15 calls (BAC160916C00015000, $0.38, down $0.05)

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

Exit Target: $1.00

Return: -24%

Stop Target: None

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

 

Rambus (RMBS, $13.96, up $0.12)

RMBS September 14 calls (RMBS160916C00014000, $0.36, up $0.06)

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

Exit Target: $0.80

Return: -10%

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