Dear Momentum Options Subscriber,

The major indices have traded within a tight range on both sides of the ledger today following a weak open. I expect near-term support and resistance to hold, although tomorrow’s action and comments from Fed Chair Janet Yellen will likely decide whether the bulls or bears win the week.

The Dow is currently off 14 points to 18,467, while the S&P 500 is up less than a point to 2,175. The Nasdaq is higher by 6 points to 5,263, and the Russell 2000 is adding 4 points to 1,241.

I issued a New Trade in Nucor (NUE) earlier this afternoon, and I also recommended closing half of our position in Bank of America (BAC), so please be sure to check out my latest alert if you haven’t already.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 63-23 (73%). 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 1:45 p.m. EST.

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

 

Bank of America (BAC, $15.48, up $0.08)

BAC September 15 calls (BAC160916C00015000, $0.64, up $0.07)

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

Exit Target: $1.00 (Sold first half on 8/25/16)

Return: 28%

Stop Target: $0.52 (Stop Limit)

Action: We closed the first half of the position earlier this afternoon to take some risk off the table ahead of tomorrow’s Fed-speak.

Near-term resistance is at $15.50-$15.75. Support has moved up to $15.25-$15.

 

Vuzix (VUZI, $7.68, up $0.37)

VUZI October 7.50 calls (VUZI161021C00007500, $0.85, down $0.14)

Entry Price: $0.95 (8/23/2016)

Exit Target: $1.90

Return: -11%

Stop Target: None

Action: Resistance is at $7.50-$8. Support is at $7.25 and the 50-day moving average.

 

Energous (WATT, $16.10, down $0.39)

WATT November 17.50 calls (WATT161118C00017500, $1.68, down $0.22)

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

Exit Target: $2.30

Return: 46%

Stop Target: $1.40 (Stop Limit)

Action: Support is at $15.50-$15 on a close below $16. Resistance is at $17.50-$18.

 

Viavi Solutions (VIAV, $7.78, up $0.03)

VIAV December 8 calls (VIAV161216C00008000, $0.50, up $0.05)

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

Exit Target: $1.05

Return: -2%

Stop Target: None

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

 

Rambus (RMBS, $13.97, up $0.26)

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 $14. Support is at $13.50-$13.25.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options