Dear Momentum Options Subscriber,

The bulls are pushing higher highs today, and the market’s near-term resistance levels are being tested. Tech and the small-caps are leading the charge, although IBM (IBM, $150.52 down $4.25) is weighing down the Dow slightly following the company’s earnings update.

As far as economic news, the Consumer Price Index (CPI) reading rose 0.3% in September, matching forecasts, while the core CPI, excluding food and energy, was up 0.1%. Expectations were for the core CPI reading to show an increase of 0.2%.

The Dow is currently higher by 96 points to 18,183, while the S&P 500 is gaining 16 points to 2,143. The Nasdaq is up 58 points to 5,258, and the Russell 2000 is climbing 10 points to 1,220. The S&P 500 Volatility Index ($VIX, 15.27, down 0.94) is down 6%, but it has failed to crack the 15 level today.

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 2:45 p.m. EST.

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

 

E*Trade Financial (ETFC, $28.48, up $0.35)

ETFC November 29 calls (ETFC161118C00029000, $0.91, up $0.15)

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

Exit Target: $1.80

Return: 1%

Stop Target: None

Action: Resistance is at $28.50-$28.75. Support is at $28-$27.75.

 

PowerShares QQQ ETF (QQQ, $116.82, down $0.32)

QQQ November 120 calls (QQQ161118C00120000, $1.16, up $0.29)

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

Exit Target: $2.00

Return: 17%

Stop Target: None

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

 

Lattice Semiconductor (LSCC, $6.43, up $0.34)

LSCC December 7.50 calls (LSCC161216C00007500, $0.30, up $0.05)

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

Exit Target: $0.60-$0.90

Return: 0%

Stop Target: None

Action: Resistance is at $6.50. Support is at $6.00-$5.90.

 

Apple (AAPL, $117.88, up $0.33)

AAPL November 125 calls (AAPL161118C00125000, $0.91, up $0.03)

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

Exit Target: $2.20

Return: -17%

Stop Target: None

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

 

Finisar (FNSR, $29.14, up $0.15)

FNSR November 31 calls (FNSR161118C00031000, $0.55, flat)

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

Exit Target: $2.60

Return: -57%

Stop Target: $0.30 (Stop Limit)

Action: Resistance is at $29-$29.50. Support is at $28.75-$28.50.

 

Viavi Solutions (VIAV, $7.27, up $0.08)

VIAV December 8 calls (VIAV161216C00008000, $0.16, down $0.02)

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

Exit Target: $1.05

Return: -69%

Stop Target: $0.05 (Stop Limit)

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

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options