Dear Momentum Options Subscriber,
November options expiration day has been bullish over the past 13 years, as the bulls have won the battle in 11 of them, or nearly 85% of the time. The bears had an edge going into today’s action, as futures were slightly weak overnight and heading into this morning’s opening bell.
The activity we have seen in the market this week and for the month of November has also favored the bulls, and the week of Thanksgiving is typically bullish. Over the past two decades, the week has ended higher 75% of the time.
Stats aren’t a sure thing for higher highs, but I have talked about an extended rally lasting at least into the first week of December. If this game plan doesn’t work out, we will protect profits with our current trades and wait for a pullback or trading range to develop.
Heading into the close of trading today, the Dow is lower by 23 points to 18,880, while the S&P 500 off 4 points to 2,183. The Nasdaq is down 8 points to 5,325, and the Russell 2000 is up 3 points to 1,313.
I have updated our current trades below ahead of the weekend. No action is needed at the moment, so have great and safe weekend. I will be back on Monday morning with a full update.
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 2:55 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Tower Semiconductor (TSEM, $18.05, down $0.11)
TSEM January 19 calls (TSEM170120C00019000, $0.58, down $0.04)
Entry Price: $0.50 (11/16/2016)
Exit Target: $1.00
Stop Target: None
Action: Support is at $18-$17.75. Resistance is at $18.25-$18.50.
Apple (AAPL, $109.95, down $0.04)
AAPL January 115 calls (AAPL170120C00115000, $1.64, down $0.14)
Entry Price: $1.24 (11/15/2016)
Exit Target: $2.50
Stop Target: $1.55 (Stop Limit)
Action: Support is at $109-$108. Resistance is at $110.
Array BioPharma (ARRY, $7.86, up $0.54)
ARRY January 7 calls (ARRY170120C00007000, $1.30, up $0.19)
Entry Price: $0.78 (11/14/2016)
Exit Target: $1.80
Stop Target: $0.85 (Stop Limit)
Action: Resistance is at $8. Rising support is at $7.50-$7.25.
Starbucks (SBUX, $55.66, down $0.19)
SBUX January 47.50 puts (SBUX170120P00047500, $0.19 down $0.02)
Entry Price: $0.95 (11/3/2016)
Exit Target: $1.90
Stop Target: $0.12 (Stop Limit)
Action: Resistance is at $56. Support is at $55.25-$55.
Lattice Semiconductor (LSCC, $7.55, up $0.05)
LSCC December 7.50 calls (LSCC161216C00007500, $0.15, down $0.09)
Entry Price: $0.30 (10/12/2016)
Exit Target: $0.60 (Limit Order)
Stop Target: None
Action: Support is at $7.50. Resistance is at $7.75-$8. The 52-week peak is at $7.99.
Viavi Solutions (VIAV, $7.92, up $0.03)
VIAV December 8 calls (VIAV161216C00008000, $0.20, up $0.02)
Entry Price: $0.51 (8/19/2016)
Exit Target: $1.05
Stop Target: $0.14 (Stop Limit)
Action: Support is at $7.75-$7.60. Resistance is at $8.
Editor and Chief Options Strategist