Dear Momentum Options Subscriber,

The bulls are pushing the market’s upper resistance levels, and new all-time highs are back in play. The Nasdaq touched a fresh all-time high earlier in the session, while the S&P 500 came within half of a point of making a new record high.

The Dow is currently gaining 34 points to 18,564, while the S&P 500 is higher by 6 points to 2,189. The Nasdaq is adding 19 points to 5,263, and the Russell 2000 is up 8 points to 1,248.

I’m short on commentary this afternoon, as I have been busy looking at a number of potential options to play today. I issued a New Trade alert earlier this afternoon in Vuzix (VUZI), 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.

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 1:05 p.m. EST.

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

 

Energous (WATT, $15.53, up $1.01)

WATT November 17.50 calls (WATT161118C00017500, $1.30, up $0.16)

Entry Price: $1.15 (8/22/2016)

Exit Target: $2.30

Return: 13%

Stop Target: None

Action: Near-term resistance is at $15.50-$15.75. Support is at $14-$13.75 if $15 fails to hold into the close.

 

Viavi Solutions (VIAV, $7.85, up $0.08)

VIAV December 8 calls (VIAV161216C00008000, $0.51, up $0.03)

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

Exit Target: $1.05

Return: 0%

Stop Target: None

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

 

MGM Resorts International (MGM, $24.52, up $0.29)

MGM September 25 calls (MGM160916C00025000, $0.35, up $0.11)

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

Exit Target: $1.40

Return: -50%

Stop Target: $0.15 (Stop Limit)

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

 

Bank of America (BAC, $15.33, up $0.15)

BAC September 15 calls (BAC160916C00015000, $0.48, up $0.10)

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

Exit Target: $1.00

Return: -4%

Stop Target: None

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

 

Rambus (RMBS, $13.87, down $0.06)

RMBS September 14 calls (RMBS160916C00014000, $0.35, flat)

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

Exit Target: $0.80

Return: -13%

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