Dear Momentum Options Subscriber,
The market traded in another tight range today, as each of the major indices did not stray far from yesterday’s closing levels. The bears got the upper hand from the start of trading this morning, and the Dow Jones, S&P 500 and Nasdaq all traded steadily lower until shortly after 2 p.m. EST.
They were able to erase some of the losses from there, but each index ended mildly lower by the closing bell. The Dow ended down by 48 points, or 0.3%, the S&P lost 4 points, or 0.2%, while the Nasdaq fell 9 points, or 0.2%. On the other hand, the Russell 2000 small-caps added 1 point today to close at 1,246.
I have been super busy researching possible New Trades today, which is why I am running late with today’s Mid-Market Update. I could have a recommendation ready as soon as tomorrow or later this week, so stay tuned. For now, let’s take a look at how our current positions fared today.
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 4:00 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Vuzix (VUZI, $8.38, down $0.21)
VUZI October 7.50 calls (VUZI161021C00007500, $1.45, down $0.25)
Entry Price: $0.95 (8/23/2016)
Exit Target: $2.50
Stop Target: $1.25 (Stop Limit)
Action: Resistance is at $8.75-$9. Support is at $8.25-$8. The 52-week high is at $9.30.
Energous (WATT, $17.08, down $1.29)
WATT November 17.50 calls (WATT161118C00017500, $2.70, down $0.30)
Entry Price: $1.15 (8/22/2016)
Exit Target: $5.00 (closed first half at $2.50 on 8/29/2016)
Stop Target: $2.00 (Stop Limit)
Action: Shares traded to a 52-week high of $19.29 today before fading into the close. Resistance and additional blue-sky territory is at $18.50-$19, followed by $20. Support is at $16.50-$16.
Bank of America (BAC, $16.19, up $0.35)
BAC September 15 calls (BAC160916C00015000, $1.18, up $0.32)
Entry Price: $0.50 (8/8/2016)
Exit Target: $1.25 (closed first half at $0.63 on 8/25/2016)
Stop Target: $0.80 (Stop Limit)
Action: Today’s high reached $16.23. Resistance is at $16.25. Support is at $15.75-$15.50.
Nucor (NUE, $48.60, down $0.84)
NUE October 52.50 calls (NUE161021C00052500, $0.46, down $0.14)
Entry Price: $0.63 (8/25/2016)
Exit Target: $1.30
Stop Target: None
Action: Today’s high tapped $49.33. Resistance is at $49.50-$50. A close above the latter would be bullish for a possible run towards $52.50-$53. Support is at $48.50.
Viavi Solutions (VIAV, $7.83, up $0.05)
VIAV December 8 calls (VIAV161216C00008000, $0.49, up $0.03)
Entry Price: $0.51 (8/19/2016)
Exit Target: $1.05
Stop Target: None
Action: Resistance is at $7.85-$8. Support is at $7.75-$7.50.
Rambus (RMBS, $13.92, up $0.13)
RMBS September 14 calls (RMBS160916C00014000, $0.29, up $0.09)
Entry Price: $0.40 (8/1/2016)
Exit Target: $0.80
Stop Target: None
Action: Support is at $13.75-$13.50. Resistance is at $14.
Editor and Chief Options Strategist