Dear Momentum Options Subscriber,

The market is taking two different paths today, with the Dow pushing an all-time high while tech is pulling back. The divergence is a slightly bearish signal, as a number of high-profile stocks are taking hits.

The financial stocks are rocketing higher on prospects of a better interest-rate environment, while the health care sector continues its selloff.

The Dow is currently up 156 points to 18,745, while the S&P 500 is gaining 2 points to 2,165. The Nasdaq is down 66 points to 5,184, and the Russell 2000 is higher by 19 points to 1,251.

Earnings are still in play, and the next few weeks are setting up nicely for us to open our next batch of trades. I have been extremely busy throughout the week setting up my watch list with December and January plays, but the volatility is causing me to make some readjustments.

Besides the chart work, I also do fundamental and mathematical setups to find the best trades, so the process is a little tedious. However, the good news is that I do plan on making at least one New Trade today.

In the meantime, let’s go check on the current action. Stay close to your email inboxes, as I hope to have a New Trade ready by 3 p.m. EST.

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 12:40 p.m. EST.

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


Microsoft (MSFT, $58.28, down $1.89)

MSFT December 57.50 puts (MSFT161216P00057500, $1.26, up $0.64)

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

Exit Target: $1.75 (Sold first half on 11/10/16)

Return: 47%

Stop Target: None

Action: I recommended closing the first half of this position earlier this afternoon, so be sure to check out the alert now if you haven’t already.

Fresh support is at $58. Resistance is at $58.75-$59.


Starbucks (SBUX, $53.99, down $0.59)

SBUX January 47.50 puts (SBUX170120P00047500, $0.42, up $0.10)

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

Exit Target: $1.90

Return: -56%

Stop Target: None

Action: Support is at $54-$53.50. Resistance is at $54.75-$55.


Lattice Semiconductor (LSCC, $7.71, up $0.01)

LSCC December 7.50 calls (LSCC161216C00007500, $0.10, down $0.20)

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

Exit Target: $0.70 (Limit Order)

Return: -67%

Stop Target: None

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


Viavi Solutions (VIAV, $7.89, up $0.07)

VIAV December 8 calls (VIAV161216C00008000, $0.25, up $0.03)

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

Exit Target: $1.05

Return: -51%

Stop Target: $0.05 (Stop Limit)

Action: Resistance is at $8. Support is at $7.60-$7.50.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options