Dear Momentum Options Subscriber,
I covered a few companies that are scheduled to report earnings this week in this morning’s Pre-Market Update and, with this being the busiest week for third-quarter earnings, the slate is heavy.
Visa (V) will report its numbers after today’s close, and Wall Street is expecting a profit of $0.73 a share on revenue of $4.23 billion. Wynn Resorts (WYNN) will also be reporting.
On Tuesday, some of the major earnings announcements will come from Apple (AAPL), Chipotle Mexican Grill (CMG), Juniper Networks (JNPR), Sprint (S) and Whirlpool (WHR).
On Wednesday, Comcast (CMCSA), F5 Networks (FFIV), O’Reilly Automotive (ORLY), Shutterfly (SFLY), Tesla Motors (TSLA) and Western Digital (WDC) will confess their quarterly results.
Thursday’s action will include reports from Alphabet (GOOG), Amazon.com (AMZN), Chicago Bridge & Iron (CBI), Coinstar (CSTR), Dr Pepper Snapple (DPS), Ford Motor (F), MicroStrategy (MSTR), Piper Jaffray (PJC) and Twitter (TWTR).
The week will wrap up with AutoNation (AN), Chevron (CVX), Exxon Mobil (XOM), Mastercard (MA) and Xerox (XRX) reporting their numbers Friday morning.
Futures were showing a slightly higher open this morning, and the bulls are progressing higher heading into the second half of the action. The Dow is currently higher by 71 points to 18,216, while the S&P 500 is gaining 8 points to 2,149. The Nasdaq is up 45 points to 5,302, and the Russell 2000 is climbing 5 points to 1,223.
I have updated our current trades below, including a Profit Alert for our position in E*Trade Financial (ETFC). This was the 75th winning trade for the portfolio this year, so let’s get to it.
Momentum Options Play List
Closed Momentum Options Trades for 2016: 75-28 (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 1:40 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
E*Trade Financial (ETFC, $28.92, down $.58)
ETFC November 29 calls (ETFC161118C00029000, $0.77, down $0.43)
Entry Price: $0.90 (10/17/2016)
Exit Target: $1.80
Stop Target: $0.99 (Stop Limit)
Action: The Stop Limit at $0.99 was triggered during today’s pullback in the stock, and we are now out of the position.
PowerShares QQQ ETF (QQQ, $119.40, up $1.25)
QQQ November 120 calls (QQQ161118C00120000, $1.28, up $0.39)
Entry Price: $0.99 (10/13/2016)
Exit Target: $2.00
Stop Target: None
Action: Fresh resistance is at $119.50-$120. Support has moved up to $118.
Lattice Semiconductor (LSCC, $6.55, up $0.12)
LSCC December 7.50 calls (LSCC161216C00007500, $0.29, flat)
Entry Price: $0.30 (10/12/2016)
Exit Target: $0.60-$0.90
Stop Target: None
Action: Near-term resistance is at $6.50-$6.60. Support is at $6.30-$6.25 and the 50-day moving average.
Apple (AAPL, $117.52, up $0.92)
AAPL November 125 calls (AAPL161118C00125000, $0.67, up $0.04)
Entry Price: $1.10 (10/11/2016)
Exit Target: $2.20
Stop Target: None
Action: Resistance is at $117.50-$118. Support is at $116.50.
Finisar (FNSR, $29.74, up $0.58)
FNSR November 31 calls (FNSR161118C00031000, $0.50, down $0.10)
Entry Price: $1.28 (10/10/2016)
Exit Target: $2.60
Stop Target: $0.30 (Stop Limit)
Action: Resistance is at $29.75-$30. Support is at $29-$28.75.
Viavi Solutions (VIAV, $7.30, up $0.11)
VIAV December 8 calls (VIAV161216C00008000, $0.18, up $0.03)
Entry Price: $0.51 (8/19/2016)
Exit Target: $1.05
Stop Target: $0.05 (Stop Limit)
Action: Resistance is at $7.25-$7.35 and the 50-day moving average. Support is at $7.10-$7 and the 100-day moving average.
Editor and Chief Options Strategist