Dear Momentum Options Subscriber,

Futures were listless heading into this morning’s opening bell, as Wall Street was waiting on Fed Head Janet Yellen’s comments. Once again, she did her best to be “market correct” so that the zombies wouldn’t be blamed for rocking the bullish boat.

The bulls didn’t have to wait long, and they were showing strength after the open 30 minutes before the Fed comments were due. Following a knee-jerk reaction that nearly erased all of the session’s gains, a run towards higher highs ensued. The action looked picture perfect, but the current gains are slipping, and the bulls are struggling to get the win this week.

The Dow needs to clear 18,553 to squeak out a weekly win. The S&P 500 started the week just below 2,184, while the Nasdaq was above 5,238. The Russell 2000 was up 3 over points going into today’s action after coming in at 1,236 on Monday’s open.

Currently, the Dow is down 76 points to 18,371, while the S&P 500 is down by 7 points to 2,165. The Nasdaq is losing 12 points to 5,199, and the Russell 2000 is off by 1 point to 1,238.

I have updated our current plays below, and I have already started my weekend homework. I could have a New Trade ahead of the closing bell, depending on the action, but I’m still doing the homework and chart work to find the best call options to possibly trade on T-Mobile (TMUS). If I take action, I will do so by 3 p.m. EST. If you don’t hear from me by then, have a great and safe weekend.

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 12:10 p.m. EST.

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


Nucor (NUE, $49.09, up $0.20)

NUE October 52.50 calls (NUE161021C00052500, $0.77, up $0.18)

Entry Price: $0.63 (8/25/2016)

Exit Target: $1.30

Return: 22%

Stop Target: None

Action: Resistance is at $49-$50 and the 100-day moving average. Support is at $48.50-$48. There is risk to $46 on a close below the latter.


Vuzix (VUZI, $7.71, up $0.05)

VUZI October 7.50 calls (VUZI161021C00007500, $1.15, up $0.30)

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

Exit Target: $1.90

Return: 21%

Stop Target: None

Action: Shares have traded up to $7.79 today. Resistance has moved up to $7.75-$8. Support is at $7.50, followed by $7.25 and the 50-day moving average.


Energous (WATT, $16.38, up $0.30)

WATT November 17.50 calls (WATT161118C00017500, $2.05, up $0.32)

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

Exit Target: $2.30

Return: 78%

Stop Target: $1.40 (Stop Limit)

Action: Resistance is at $17-$17.50. Support is at $15.75-$15.50 if $16 fails.


Viavi Solutions (VIAV, $7.74, up $0.01)

VIAV December 8 calls (VIAV161216C00008000, $0.46, up $0.01)

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

Exit Target: $1.05

Return: -10%

Stop Target: None

Action: Resistance is at $7.85-$8. Support is at $7.75-$7.50.


Bank of America (BAC, $15.69, up $0.16)

BAC September 15 calls (BAC160916C00015000, $0.78, up $0.11)

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

Exit Target: $1.00 (closed half at $0.63 on 8/25/2016)

Return: 56%

Stop Target: $0.55 (Stop Limit)

Action: Near-term resistance is at $15.50-$15.75. Support is at $15.25-$15.


Rambus (RMBS, $13.85, down $0.01)

RMBS September 14 calls (RMBS160916C00014000, $0.30, up $0.01)

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

Exit Target: $0.80

Return: -28%

Stop Target: None

Action: Resistance is at $14. Support is at $13.50-$13.25 on a close back below $13.75.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options