Dear Momentum Options Subscriber,
Futures were forecasting a slightly higher open and continued strength to higher highs ahead of this morning’s opening bell. Today’s action has helped the broader market break out to fresh all-time highs, and my fluff targets from this morning’s Pre-Market Update are coming into play.
I mentioned that this would be a shortened trading week, but there are a few notable earnings worth following. Tyson Foods (TSN, $57.58, down $9.79) reported unimpressive numbers and a CEO change this morning. The earnings miss has punished shares today, and they are currently down 14%.
After today’s close, Brocade Communications (BRCD), Jack In The Box (JACK) and Sina (SINA) will report their quarterly results.
On Tuesday, Barnes & Noble (BKS), Campbell Soup (CPB), Cracker Barrel (CBRL), Dollar Tree Stores (DLTR), GameStop (GME), Hormel Foods (HRL), HP Inc. (HPQ), Medtronic (MDT) and Urban Outfitters (URBN) are scheduled to report earnings.
Deere (DE) and Trina Solar (TSL) will report on Wednesday, there are no announcements slated for Thursday and the schedule will be light on Friday as well.
The Dow is currently gaining 73 points to 18,941, while the S&P 500 is adding 13 points to 2,195. The Nasdaq is up 41 points to 5,363, and the Russell 2000 is higher by 4 points to 1,320.
I’m still working on a possible New Trade ahead of today’s closing bell, but I wanted to get this update out to you ahead of time. If you don’t hear from me by the close today, however, we will try again tomorrow.
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 2:40 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Tower Semiconductor (TSEM, $18.20, up $0.20)
TSEM January 19 calls (TSEM170120C00019000, $0.55, down $0.01)
Entry Price: $0.50 (11/16/2016)
Exit Target: $1.00
Stop Target: $0.39 (Stop Limit)
Action: Resistance is at $18.25-$18.50. Support is at $18-$17.75.
Apple (AAPL, $111.62, up $1.56)
AAPL January 115 calls (AAPL170120C00115000, $1.98, up $0.27)
Entry Price: $1.24 (11/15/2016)
Exit Target: $2.50
Stop Target: $1.55 (Stop Limit)
Action: Resistance is at $112-$112.50. Support is at $110, followed by $108-$107.75 and the 100-day moving average.
Array BioPharma (ARRY, $7.93, up $0.61)
ARRY January 7 calls (ARRY170120C00007000, $1.36, down $0.09)
Entry Price: $0.78 (11/14/2016)
Exit Target: $2.50-$3.00
Stop Target: $1.05 (Stop Limit)
Action: Resistance is at $8-$8.25. Support is at $7.50-$7.25.
Starbucks (SBUX, $55.99, up $0.22)
SBUX January 47.50 puts (SBUX170120P00047500, $0.15, down $0.03)
Entry Price: $0.95 (11/3/2016)
Exit Target: $1.90
Stop Target: $0.12 (Stop Limit)
Action: Resistance is at $55.75-$56 and a downward-sloping 200-day moving average. Support is at $55-$54.75 and the 100-day moving average. The 50-day moving average is curling higher, and a move above $56.25-$56.50 will surely trigger the Stop Limit.
Lattice Semiconductor (LSCC, $7.47, down $0.07)
LSCC December 7.50 calls (LSCC161216C00007500, $0.11, down $0.04)
Entry Price: $0.30 (10/12/2016)
Exit Target: $0.60 (Limit Order)
Stop Target: None
Action: Support is at $7.50-$7.25. Resistance is at $7.75-$8.
Viavi Solutions (VIAV, $7.94, up $0.05)
VIAV December 8 calls (VIAV161216C00008000, $0.15, down $0.05)
Entry Price: $0.51 (8/19/2016)
Exit Target: $1.05
Stop Target: $0.14 (Stop Limit)
Action: Resistance is at $8 and the recent 52-week high, with Friday’s peak reaching $7.99. Support is at $7.75-$7.60.
Editor and Chief Options Strategist