Dear Momentum Options Subscriber,

While much of the nation watched the electoral votes come in last night in anticipation of who might win the election, futures were giving a much clearer signal. Dow futures were down more than 800 points at one time last night, but they recovered massively ahead of this morning’s opening bell.

The opening weakness lasted about an hour, with fresh support levels easily holding. The market started gaining momentum after Speaker of the House Paul Ryan offered his congratulations to President-elect Donald Trump and Hillary Clinton gave her concession speech.

Today’s whipsaw action was hard to imagine, but the bulls have shown their resiliency throughout the year. The Dow is currently gaining 255 points to 18,588, while the S&P 500 is adding 23 points to 2,163. The Nasdaq is up 47 points to 5,241, and the Russell 2000 is higher by 30 points to 1,225.

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

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 2:40 p.m. EST.

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

 

Starbucks (SBUX, $54.66, up $0.04)

SBUX January 47.50 puts (SBUX170120P00047500, $0.32, down $0.04)

Entry Price: $0.95 (11/3/2016)

Exit Target: $1.90

Return: -66%

Stop Target: None

Action: Resistance is at $54.50-$55. Support is at $54-$53.50.

 

Microsoft (MSFT, $59.89, down $0.58)

MSFT December 57.50 puts (MSFT161216P00057500, $0.67, up $0.06)

Entry Price: $0.86 (11/1/2016)

Exit Target: $1.75

Return: -22%

Stop Target: None

Action: Resistance is at $60-$60.50. Support is at $60-$59.

You can read my previous comments on MSFT in the Oct. 31 Mid-Market Update.

 

Lattice Semiconductor (LSCC, $7.70, down $0.05)

LSCC December 7.50 calls (LSCC161216C00007500, $0.30, flat)

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

Exit Target: $0.70 (Limit Order)

Return: 0%

Stop Target: None

Action: Support is at $7.50. Resistance is at $7.75-$8.

You can read my previous comments on LSCC and the buyout offer of $8.30 a share in Friday’s Pre-Market Update.

 

Viavi Solutions (VIAV, $7.78, up $0.22)

VIAV December 8 calls (VIAV161216C00008000, $0.18, up $0.07)

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

Exit Target: $1.05

Return: -65%

Stop Target: $0.05 (Stop Limit)

Action: Resistance is at $7.75-$8. Support is at $7.40-$7.35.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options