Dear Momentum Options Subscriber,

The bulls are shooting to get their third-straight Monday win today, but they have been having trouble keeping the bears at bay since the opening bell. The losses have been contained, however, and a rebound off of the lows into the close would be a slightly bullish signal.

I mentioned that it would be a busy week for earnings, and there are two heavyweights reporting after today’s closing bell — Netflix (NFLX) and International Business Machines (IBM).

On Tuesday, Goldman Sachs (GS), Harley-Davidson (HOG), Intel (INTC) and Johnson & Johnson (JNJ) will announce earnings.

Abbott Labs (ABT), Morgan Stanley (MS), USB Bancorp (USB) and Seagate Technology (STX) are scheduled to report their quarterly results on Wednesday.

Thursday’s highlights will include reports from American Airlines (AAL), Paypal (PYPL), Travelers (TRV) and Union Pacific (UNP).

Finally, the week will wrap up with the latest from General Electric (GE), Honeywell (HON), McDonald’s (MCD) and SunTrust Banks (STI).

As far as economic news goes, Industrial Production numbers came in better than expected this morning, and a slate of other reports are due out later this week as well.

The Consumer Price Index (CPI) reading comes out ahead of Tuesday’s open, while the Fed’s Beige Book update is due to be released on Wednesday at 2:00 p.m. EST. Thursday’s highlights will include the Jobless Claims number and the Philadelphia Fed Survey ahead of the market open, while the reading on Existing Home Sales is due 30 minutes after start of trading.

Heading into the final hour of trading today, the Dow is down 64 points to 18,074, while the S&P 500 is off 6 points to 2,126. The Nasdaq is lower by 14 points to 5,199, and the Russell 2000 is slipping a point to 1,211.

I have updated our current trades below, so let’s go check the tape.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 74-28 (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 2:25 p.m. EST.

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

 

E*Trade Financial (ETFC, $28.12, down $0.39)

ETFC November 29 calls (ETFC161118C00029000, $0.69, down $0.24)

Entry Price: $0.90 (10/17/2016)

Exit Target: $1.80

Return: -23%

Stop Target: None

Action: The Exit Target for the trade is at $1.80, but it is not a Limit Order at this time. There is no Stop Target at this time.

Support is at $28-$27.75. Resistance is at $28.25-$28.50.

 

PowerShares QQQ ETF (QQQ, $116.89, down $0.25)

QQQ November 120 calls (QQQ161118C00120000, $0.78, down $0.08)

Entry Price: $0.99 (10/13/2016)

Exit Target: $2.00

Return: -21%

Stop Target: None

Action: Support is at $117-$116. Resistance is at $117.25-$118 and the 50-day moving average.

 

Lattice Semiconductor (LSCC, $6.09, up $0.08)

LSCC December 7.50 calls (LSCC161216C00007500, $0.22, down $0.03)

Entry Price: $0.30 (10/12/2016)

Exit Target: $0.60-$0.90

Return: -27%

Stop Target: None

Action: Near-term support is at $6.00-$5.90 and the 100-day moving average. Resistance is at $6.25 and the 50-day moving average.

 

Apple (AAPL, $117.14, down $.49)

AAPL November 125 calls (AAPL161118C00125000, $0.83, down $0.14)

Entry Price: $1.10 (10/11/2016)

Exit Target: $2.20

Return: -25%

Stop Target: None

Action: Support is at $117-$116.50. Resistance is at $118-$118.25.

 

Finisar (FNSR, $29.16, up $0.28)

FNSR November 31 calls (FNSR161118C00031000, $0.55, down $0.01)

Entry Price: $1.28 (10/10/2016)

Exit Target: $2.60

Return: -57%

Stop Target: $0.30 (Stop Limit)

Action: Resistance is at $29-$29.25. Support is at $28.75-$28.50.

 

Viavi Solutions (VIAV, $7.24, down $0.02)

VIAV December 8 calls (VIAV161216C00008000, $0.18, up $0.01)

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

Exit Target: $1.05

Return: -65%

Stop Target: $0.05 (Stop Limit)

Action: Support is at $7.25-$7.150 and the 100-day moving average. Resistance is at $7.45-$7.50 and the 50-day moving average.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options