Dear Momentum Options Subscriber,

Today’s action has been mostly flat, but the bulls are on track to get the weekly win. The bears have made several attempts to crack support, although it appears the recent trading range will carry over into next week.

The levels to watch for a bull victory this week are Dow 18,128, S&P 2,133, Nasdaq 5,214 and Russell 1,212, as this is where the indices began the week.

The Dow is currently lower by 9 points to 18,153, while the S&P 500 is down a point to 2,141. The Nasdaq is up 12 points to 5,254, and the Russell 2000 is declining 2 points to 1,217.

I have updated our current trades below ahead of the weekend, and I will be back on Monday with a full update. Until then, have a great and safe weekend.

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 3:05 p.m. EST.

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

 

E*Trade Financial (ETFC, $29.58, up $1.38)

ETFC November 29 calls (ETFC161118C00029000, $1.23, up $0.56)

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

Exit Target: $1.80

Return: -37%

Stop Target: None

Action: Shares have traded to a high of $29.97 today, with the options reaching a peak of $1.45. Fresh resistance is at $30. Support is at $29-$28.75.

You can read my detailed write-up on ETFC in Wednesday’s Mid-Market Update.

 

PowerShares QQQ ETF (QQQ, $118.18, up $0.47)

QQQ November 120 calls (QQQ161118C00120000, $0.88, down $0.07)

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

Exit Target: $2.00

Return: -11%

Stop Target: None

Action: Resistance is at $118-$118.25 and the 50-day moving average, followed by $119-$120. Support is at $117.50-$117.

 

Lattice Semiconductor (LSCC, $6.42, down $0.07)

LSCC December 7.50 calls (LSCC161216C00007500, $0.27, down $0.03)

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

Exit Target: $0.60-$0.90

Return: -10%

Stop Target: None

Action: Support is at $6.25. Resistance is at $6.75.

 

Apple (AAPL, $116.60, down $0.46)

AAPL November 125 calls (AAPL161118C00125000, $0.64, down $0.02)

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

Exit Target: $2.20

Return: -42%

Stop Target: None

Action: Support is at $117-$116.50. There is risk to $114-$113.75 on a close below the latter. Resistance is at $118-$118.25.

 

Finisar (FNSR, $29.13, down $0.55)

FNSR November 31 calls (FNSR161118C00031000, $0.60, down $0.01)

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

Exit Target: $2.60

Return: -53%

Stop Target: $0.30 (Stop Limit)

Action: Resistance is at $29.75-$30. Support is at $29-$28.75.

 

Viavi Solutions (VIAV, $7.20, down $0.09)

VIAV December 8 calls (VIAV161216C00008000, $0.16, flat)

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

Exit Target: $1.05

Return: -69%

Stop Target: $0.05 (Stop Limit)

Action: Support is at $7.25-$7.15 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