Dear Momentum Options Subscriber,

Earnings will come back into play in a big way today and for the rest of the week, as a number of high-profile companies and Wall Street darlings are set to confess their latest numbers.

Lowe’s (LOW) and Target (TGT) updated analysts this morning with mixed results. Lowe’s missed estimates by $0.08 on lower revenue, while Target topped forecasts by $0.21 and upped its full-year guidance.

The king of the penny-beat, Cisco Systems (CSCO), will report its numbers after the closing bell today, along with L Brands (LB) and NetApp (NTAP).

Tomorrow, Best Buy (BBY), Wal-Mart Stores (WMT), Applied Materials (AMAT), Children’s Place (PLCE), Intuit (INTU), Nuance Communications (NUAN) and Salesforce.com (CRM) will be announcing their numbers.

To close out the week, Abercrombie & Fitch (ANF), Buckle (BKE) and Foot Locker (FL) will step up to the plate on Friday.

Today’s action in the market is mixed, but it seems to be favoring the bulls. Goldman Sachs (GS) is weighing down the blue-chips, and the broader market is slightly lower.

The Dow is down 69 points to 18,854, while the S&P 500 is off 5 points to 2,174. The Nasdaq is up 16 points to 5,292, and the Russell 2000 is higher by a point to 1,303.

I have updated our current trades below, and I’ve set the parameters for our latest trade in Tower Semiconductor (TSEM), so let’s go check the tape.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 78-31 (72%). 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 12:00 p.m. EST.

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

 

Tower Semiconductor (TSEM, $17.55, up $0.03)

TSEM January 19 calls (TSEM170120C00019000, $0.50, flat)

Entry Price: $0.50 (11/16/2016)

Exit Target: $1.00

Return: 0%

Stop Target: None

Action: The Exit Target is at $1.00, but this is not a Limit Order at this time. There is no Stop Target at this time.

Resistance is at $18-$18.25. I’m looking for a run to $20 by mid-January if $18.50 is cleared this month. Support is at $17-$16.50.

 

Apple (AAPL, $109.45, up $2.35)

AAPL January 115 calls (AAPL170120C00115000, $1.59, up $0.40)

Entry Price: $1.24 (11/15/2016)

Exit Target: $2.50

Return: 28%

Stop Target: $0.60

Action: Fresh resistance is at $110. Support is trying to move up to $108-$107.40.

 

Array BioPharma (ARRY, $7.12, up $0.13)

ARRY January 7 calls (ARRY170120C00007000, $0.85, up $0.04)

Entry Price: $0.78 (11/14/2016)

Exit Target: $1.80

Return: 9%

Stop Target: None

Action: Resistance is at $7-$7.25. Support is at $6.75-$6.50.

You can read my previous comments on ARRY in yesterday’s Pre-Market Update.

 

Starbucks (SBUX, $55.17, up $0.58)

SBUX January 47.50 puts (SBUX170120P00047500, $0.28, flat)

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

Exit Target: $1.90

Return: -71%

Stop Target: None

Action: Resistance is at $55-$55.25. Support is at $54.25-$54.

 

Lattice Semiconductor (LSCC, $7.75, up $0.01)

LSCC December 7.50 calls (LSCC161216C00007500, $0.35, flat)

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

Exit Target: $0.60 (Limit Order)

Return: 17%

Stop Target: None

Action: Resistance is at $7.75-$8. The 52-week peak is at $7.99. Support is at $7.50.

 

Viavi Solutions (VIAV, $7.89, down $0.01)

VIAV December 8 calls (VIAV161216C00008000, $0.20, flat)

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

Exit Target: $1.05

Return: -61%

Stop Target: $0.14 (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