Dear Momentum Options Subscriber,

The small-caps continue to shine and are working on their 14th-straight win, providing they hold today’s gains into the close. The post-election rally has been breathtaking, and I mentioned that it could be smooth sailing into the first week of December.

The Dow is currently gaining 38 points to 19,062, while the S&P 500 is down 2 points to 2,200. The Nasdaq is off 22 points to 5,364, and the Russell 2000 is higher by 5 points to 1,339.

I’m short on commentary today, as I know many of you are getting ready for the Thanksgiving holiday tomorrow, just as I am.

I issued a New Trade on Imax (IMAX) earlier this afternoon, and that alert is reiterated below, so be sure to check it out now if you haven’t already done so.

I also have a Profit Alert on Apple (APPL), which triggered our Stop Limit at the open this morning. This was our 80th winning trade for the year.

Note: I will not be publishing a Pre-Market or Mid-Market Update tomorrow, but you should expect to receive the next Pre-Market Update on Friday morning before the open as usual.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 80-33 (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 2:15 p.m. EST.

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


New Trade

Imax (IMAX, $34.28, up $0.13)

Buy to open the IMAX January (2017) 36 calls (IMAX170120C00036000) for a maximum price of $1.10.

Action: I like these call options at current levels, and you can use a Limit Order up to $1.10 to get the best fills.

These are the monthly options that expire on Jan. 20, 2017. I will provide the parameters of the trade in Friday’s Pre-Market Update.


Current Trades

Apple (AAPL, $111.21, down $0.59)

AAPL January 115 calls (AAPL170120C00115000, $1.56, down $0.41)

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

Exit Target: $2.50

Return: 45%

Stop Target: $1.80 (Stop Limit)

Action: The Stop Limit at $1.80 was triggered on today’s pullback after opening at $1.82, and we are now out of the position.


Microsoft (MSFT, $60.31, down $0.81)

MSFT December 62.50 calls (MSFT161216C00062500, $0.27, down $0.17)

Entry Price: $0.45 (11/22/2016)

Exit Target: $1.00

Return: -40%

Stop Target: None

Action: Short-term support is at $60.50-$60. Resistance is at $61.25-$61.50.


Tower Semiconductor (TSEM, $18.53, up $0.19)

TSEM January 19 calls (TSEM170120C00019000, $0.70, up $0.05)

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

Exit Target: $1.00

Return: 40%

Stop Target: $0.45 (Stop Limit)

Action: Resistance is at $18.25-$18.50. Rising support is at $18.25-$18.


Lattice Semiconductor (LSCC, $7.26, down $0.11)

LSCC December 7.50 calls (LSCC161216C00007500, $0.10, down $0.01)

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

Exit Target: $0.60 (Limit Order)

Return: -67%

Stop Target: None

Action: Support is at $7.25. Resistance is at $7.50.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options