Dear Momentum Options Subscriber,
This afternoon, I want to take a look at some of the companies that will be reporting earnings this week, as there could be an opportunity for a trade amongst these names. If I see an opportunity with a good risk/reward profile, I will send out a Trade Alert, so stay tuned.
On Tuesday, Alcoa (AA), Fastenal (FAST), Staffing 360 Solutions (STAF) and VOXX International (VOXX) will announce their latest earnings.
CSX (CSX) will highlight Wednesday’s action, while Delta Air Lines (DAL) will report its numbers on Thursday.
Friday’s earnings will sway markets more than the aforementioned companies, as a number of financial names — Citigroup (C), JPMorgan Chase (JPM), PNC Financial Services Group (PNC) and Wells Fargo (WFC) — will all be reporting.
As far as the market goes, the Dow is higher by 97 points to 18,337, while the S&P 500 is gaining 10 points to 2,164. The Nasdaq is up 42 points to 5,334, and the Russell 2000 is climbing 14 points to 1,251.
I have updated our current trades, and I issued a New Trade earlier this afternoon, which 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 2:25 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Finisar (FNSR, $30.65, down $0.01)
Buy to open the FNSR November 31 calls (FNSR161118C00031000) for a maximum price of $1.45.
Action: I like these call options at current levels, and you can use a Limit Order up to $1.45 to get the best fills.
These are the regular monthly calls that expire on Nov. 18. I will provide the parameters of the trade in tomorrow’s Pre-Market Update.
Kroger (KR, $28.92, down $0.02)
KR November 27.50 puts (KR161118P00027500, $0.42, down $0.02)
Entry Price: $0.50 (10/4/2016)
Exit Target: $1.00
Stop Target: None
Action: Near-term support is at $29-$28.75. The recent 52-week low is at $28.71. Resistance is at $29.25-$29.50.
Halozyme Therapeutics (HALO, $12.18, up $0.26)
HALO November 13 calls (HALO161118C00013000, $0.75, flat)
Entry Price: $1.07 (9/27/2016)
Exit Target: $2.15
Stop Target: $0.55 (Stop Limit)
Action: Resistance is at $12.25-$12.50. Near-term support is at $12-$11.75.
Goodyear Tire & Rubber (GT, $32.65, down $0.19)
GT October 33 calls (GT161021C00033000, $0.48, down $0.13)
Entry Price: $0.75 (9/22/2016)
Exit Target: $1.50
Stop Target: $0.30 (Stop Limit)
Action: Support is at $32.75-$32.50. Resistance is at $33.
Viavi Solutions (VIAV, $7.31, up $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: Resistance is at $7.45-$7.50 and the 50-day moving average. Support is at $7.25-$7.15 and the 100-day moving average.
Editor and Chief Options Strategist