Dear Momentum Options Subscriber,

Oil was up 7% in pre-market trading this morning ahead of OPEC’s oil-production decision. Futures were also up and pointing towards a higher open, with record highs still on the horizon.

There is a lot more I will discuss about oil early next week, but I want to focus on possible New Trades instead. With one month left to go and the winding down of another successful year, the portfolio is in great shape to add positions into January, February and possibly into March.

I wanted to add this morning’s recommendations to the portfolio today, as I have talked about a continued rally into early December and possibly into year-end. While there is the risk of choppiness or another backtest to support I was bullish ahead of the election and talked about a return to lifetime highs following the oversold pullback and hold of the 200-day moving averages.

I have waited to see if fresh levels of support would hold and make a solid base at lower levels, but I also covered the downside targets we need to be wary of, so the game plan is in place. Remember — the trend is our friend, and the outlook seems bullish into late December.

Heading into the close of trading, the Dow is up 24 points to 19,145, while the S&P 500 is down 3 points to 2,201. The Nasdaq is lower by 53 points to 5,327, and the Russell 2000 is off 5 points to 1,322.

I have updated the parameters of the trades from this morning, so let’s go check the tape. I also have a Profit Alert for our position in T-Mobile (TMUS) as well as an adjustment to my E*Trade Financial (ETFC) recommendation. I will provide more specific details on each trade throughout the week.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 81-34 (70%). 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 3:10 p.m. EST.

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

 

E*Trade Financial (ETFC, $34.57, up $0.50)

Buy to open the ETFC January (2017) 35 calls (ETFC170120C00035000) for a new maximum price of $1.35.

Action: The call options opened at $1.28 and haven’t traded down to my maximum price of $1.15 yet.

Go ahead and raise the maximum price to $1.35 so that we are able to get in at current levels.

Resistance is at $34.75-$35. Support is at $34-$33.75.

 

T-Mobile (TMUS, $55.39, up $0.41)

TMUS December 56 calls (TMUS161216C00056000, $0.80, down $0.28)

Entry Price: $0.75 (11/25/2016)

Exit Target: $1.50

Return: 20%

Stop Target: $0.90 (Stop Limit)

Action: The Stop Limit at $0.90 was triggered during today’s pullback in the stock, and we are now out of the position.

 

PowerShares QQQ Trust (QQQ, $117.64, down $1.30)

QQQ January 122 calls (QQQ170120C00122000, $0.55, down $0.33)

Entry Price: $0.90 (11/30/2016)

Exit Target: $1.80

Return: -39%

Stop Target: None

Action: The Exit Target for the trade is at $1.80, but it is not a Limit Order at this time. There is no Stop Limit at this time.

Support is at $118. Resistance is at $117.50-$117.

 

Rambus (RMBS, $13.13, down $0.27)

RMBS February 14 calls (RMBS170217C00014000, $0.46, down $0.12)

Entry Price: $0.53 (11/30/2016)

Exit Target: $1.10

Return: -13%

Stop Target: None

Action: The Exit Target for the trade is at $1.10, but it is not a Limit Order at this time. There is no Stop Limit at this time.

Support is at $13. Resistance is at $13.25-$13.50.

 

TiVo (TIVO, $20.25, down $0.55)

TIVO January 22.50 calls (TIVO170120C00022500, $0.35, down $0.07)

Entry Price: $0.33 (11/30/2016)

Exit Target: $0.70

Return: 6%

Stop Target: None

Action: The Exit Target for the trade is at $0.70, but it is not a Limit Order at this time. There is no Stop Limit at this time.

Support is at $20. Resistance is at $20.50-$20.75.

 

Chicago Bridge & Iron (CBI, $33.44, up $1.35)

CBI January 35 calls (CBI170120C00035000, $1.15, up $0.50)

Entry Price: $1.25 (11/25/2016)

Exit Target: $2.50

Return: -8%

Stop Target: None

Action: Resistance is at $33.50-$34. Support is at $33.

 

Imax (IMAX, $32.02, up $.47)

IMAX January 36 calls (IMAX170120C00036000, $0.45, flat)

Entry Price: $0.90 (11/23/2016)

Exit Target: $1.80

Return: -50%

Stop Target: None

Action: Resistance is at $31.75-$32. Support is at $31.25-$31.

 

Microsoft (MSFT, $60.33, down $0.76)

MSFT December 62.50 calls (MSFT161216C00062500, $0.18, down $0.14)

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

Exit Target: $1.00

Return: -60%

Stop Target: None

Action: Support is at $60.25-$60. Resistance is at $60.75-$61.

 

Lattice Semiconductor (LSCC, $6.97, down $0.07)

LSCC December 7.50 calls (LSCC161216C00007500, $0.05, flat)

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

Exit Target: $0.60 (Limit Order)

Return: -83%

Stop Target: None

Action: Support is at $7-$6.75. Resistance is at $7.20-$7.25. Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options