Dear Momentum Options Subscriber,
The market got off to a good start this morning, as the bulls looked motivated to regain resistance. However, trading turned choppy about an hour into the session, and the bears are still lingering.
Economic news here in the U.S. has been a non-factor, but commodities are looking volatile. The price of oil is up and pushing the $49-per-barrel level, while gold is testing a key level of support at $1,310. I mentioned previously that a close below $1,310-$1,300 would be a very bearish development, and I may take advantage of any further weakness on a move below $1,305-$1,300.
As we head into the final hours of trading, the Dow is lower by 120 points to 18,133, while the S&P 500 is down 13 points to 2,147. The Nasdaq is falling 21 points to 5,279, and the Russell 2000 is declining 5 points to 1,240.
I issued a New Trade earlier this afternoon, and that alert is reiterated below. I will provide the parameters of the trade in tomorrow’s Pre-Market Update.
Momentum Options Play List
Closed Momentum Options Trades for 2016: 74-25 (75%). 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 1:35 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Kroger (KR, $28.94, down $0.34)
Buy to open the KR November 27.50 puts (KR161118P00027500) for a maximum price of $0.60.
Action: I like these put options at current levels, and you can use a Limit Order up to $0.60 to get the best fills.
These are the regular monthly options that expire on Nov. 18. I will provide the parameters of the trade in tomorrow’s Pre-Market Update.
Halozyme Therapeutics (HALO, $11.93, down $0.31)
HALO November 13 calls (HALO161118C00013000, $0.85, down $0.05)
Entry Price: $1.07 (9/27/2016)
Exit Target: $2.15
Stop Target: $0.55 (Stop Limit)
Action: Near-term support is at $12-$11.75. Resistance is at $12.25-$12.50.
Goodyear Tire & Rubber (GT, $32.27, down $0.24)
GT October 33 calls (GT161021C00033000, $0.55, flat)
Entry Price: $0.75 (9/22/2016)
Exit Target: $1.50
Stop Target: $0.30 (Stop Limit)
Action: Support is at $32.25-$32. Resistance is at $32.75-$33.
Viavi Solutions (VIAV, $7.26, down $0.06)
VIAV December 8 calls (VIAV161216C00008000, $0.22, flat)
Entry Price: $0.51 (8/19/2016)
Exit Target: $1.05
Stop Target: $0.15 (Stop Limit)
Action: Support is at $7.25-$7.20. Resistance is at $7.45-$7.50 and the 50-day moving average.
Editor and Chief Options Strategist