Dear Momentum Options Subscriber,
Futures were flat ahead of this morning’s non-farm payrolls report, but they improved following the news that 161,000 jobs were added for October, with the unemployment rate falling from 5% to 4.9%. Wall Street was looking for a print of 175,000.
While today’s rebound has provided some relief to a rocky start for November, fresh resistance levels are holding. Obviously, traders still seem nervous about buying ahead of the weekend and Tuesday’s presidential election.
The Dow is currently gaining 45 points to 17,976, while the S&P 500 is adding 8 points to 2,097. The Nasdaq is up 22 points to 5,080, and the Russell 2000 is higher by 17 points to 1,174.
I have updated our current trades below, and I’m looking at adding another New Trade if the action worsens into the close. However, if you don’t hear from me by 3:30 p.m. EST, have a great and safe weekend, and I will be back Monday morning with a powerful update.
Momentum Options Play List
Closed Momentum Options Trades for 2016: 77-31 (71%). 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 1:55 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Starbucks (SBUX, $53.01, up $1.24)
SBUX January 47.50 puts (SBUX170120P00047500, $0.58, down $0.37)
Entry Price: $0.95 (11/3/2016)
Exit Target: $1.90
Stop Target: None
Action: Resistance is at $53.50-$54. Support is at $52.50.
Microsoft (MSFT, $59.11, down $0.10)
MSFT December 57.50 puts (MSFT161216P00057500, $1.10, down $0.03)
Entry Price: $0.86 (11/1/2016)
Exit Target: $1.75
Stop Target: $0.95 (Stop Limit)
Action: Support is at $58-$57.75 and the 50-day moving average. Resistance is at $59.50-$60.
You can read my previous comments on MSFT in the Oct. 31 Mid-Market Update.
Lattice Semiconductor (LSCC, $7.60, up $0.04)
LSCC December 7.50 calls (LSCC161216C00007500, $0.30, flat)
Entry Price: $0.30 (10/12/2016)
Exit Target: $0.70 (Limit Order)
Stop Target: None
Action: Resistance is at $7.75. Support is at $7.50.
You can read my previous comments on LSCC and the buyout offer of $8.30 a share in this morning’s Pre-Market Update.
Viavi Solutions (VIAV, $7.33, up $0.09)
VIAV December 8 calls (VIAV161216C00008000, $0.11, up $0.01)
Entry Price: $0.51 (8/19/2016)
Exit Target: $1.05
Stop Target: $0.05 (Stop Limit)
Action: Resistance is at $7.20-$7.25 and the 100-day moving average. Support is at $7-$6.90.
Editor and Chief Options Strategist