Dear Momentum Options Subscriber,

The bulls were anxious to see this morning’s jobs number in order to help them regain some lost momentum this week. Futures were negative ahead of the open, but they improved ahead of the news that nonfarm payrolls rose by 178,000 in November.

This was very close to the 180,000 forecast that I mentioned yesterday. However, the unemployment rate dropped to 4.6% from 4.9%, which represents the lowest level since August 2007. This nugget of information has, perhaps, kept today’s losses in check.

The Dow is currently down 25 points to 19,166, while the S&P 500 is slipping a point to 2,190. The Nasdaq is up 2 points to 5,253, and the Russell 2000 is off by half of a point to 1,313.

The most important level I’m watching today is Nasdaq 5,250. In my Nov. 21 Pre-Market Update, I mentioned that this level would need to hold for the rest of the year in order for new highs to continue.

I have updated our current trades below as we head into the close of trading, so let’s go check the tape.

Also, stay tuned for a special announcement later today, as I have some important, exciting news to share with you.

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 3:00 p.m. EST.

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

 

E*Trade Financial (ETFC, $34.91, down $.39)

ETFC January 35 calls (ETFC170120C00035000, $1.41, down $0.29)

Entry Price: $1.27 (11/30/2016)

Exit Target: $2.60

Return: 11%

Stop Target: None

Action: Support is at $34.75-$34.50. Resistance is at $35.25-$35.50.

 

PowerShares QQQ Trust (QQQ, $115.56, up $0.09)

QQQ January 122 calls (QQQ170120C00122000, $0.27, down $0.03)

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

Exit Target: $1.80

Return: -70%

Stop Target: None

Action: Near-term support is at $115. Resistance is at $116-$116.50.

 

Rambus (RMBS, $12.79, up $0.12)

RMBS February 14 calls (RMBS170217C00014000, $0.29, down $0.03)

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

Exit Target: $1.10

Return: -45%

Stop Target: None

Action: Support is at $12.75-$12.50. Resistance is at $13.

 

TiVo (TIVO, $19.60, down $0.20)

TIVO January 22.50 calls (TIVO170120C00022500, $0.17, down $0.08)

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

Exit Target: $0.70

Return: -48%

Stop Target: None

Action: Support is at $19.50-$19.25. Resistance is at $20.50-$20.75.

 

Chicago Bridge & Iron (CBI, $32.08, down $1.77)

CBI January 35 calls (CBI170120C00035000, $0.65, down $0.60)

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

Exit Target: $2.50

Return: -48%

Stop Target: None

Action: Support is at $32-$31.75. Resistance is at $32.50.

 

Imax (IMAX, $31.03, down $0.02)

IMAX January 36 calls (IMAX170120C00036000, $0.20, flat)

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

Exit Target: $1.80

Return: -78%

Stop Target: None

Action: Support is at $31-$30.50. Resistance is at $31.25-$31.50.

 

Microsoft (MSFT, $59.22, up $0.01)

MSFT December 62.50 calls (MSFT161216C00062500, $0.08, down $0.02)

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

Exit Target: $1.00

Return: -82%

Stop Target: None

Action: Support is at $59. Resistance is at $60.

 

Lattice Semiconductor (LSCC, $6.96, up $0.09)

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