MomentumOptions.com Mid-Market Update for 12/7/2016

Apple Holding 100-Day Moving Average

2:35pm (EST)

Apple (AAPL, $110.64, up $0.69) continues to be a battleground stock as bullish and bearish traders are currently fighting over the $110 level and a rising 100-day moving average. Although this level has been holding, the 50-day moving average is in a slight downtrend with additional hurdles at $112-$112.50. Short-term support from mid-November is at $108 on a move back below $109.25.

AAPL option premiums are a tad expensive due to the triple-digit stock price. However, near-term options can be used to target sweet, double-digit returns based on momentum. The technical chart is mixed but a temporary bottom may have been set on Monday’s trip to $108.25.

The AAPL December 110 calls (AAPL161216C00110000, $1.60, up $xx) are a “cheap” way to play a possible retest to $112-$112.50 on continued closes above $110. However, these options expire next Friday, or a week from tomorrow.

As far as the market, fresh all-time highs are in play. The Dow is gaining 252 points to 19,504 while the S&P 500 is adding 21 points to 2,233. The Nasdaq is up 47 points to 5,380 and the Russell 2000 is higher by 8 points to 1,360.

I have updated our current trades so let’s go check the action.
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.
E*Trade Financial (ETFC, $35.63, up $0.11)

ETFC January 35 calls (ETFC170120C00035000, $1.50, down $0.25)

Entry Price: $1.20 (11/30/2016)
Exit Target: $2.40
Return: 25%
Stop Target: $1.40 (Stop Limit)

Action: Fresh resistance and blue-sky territory is at $35.75-$36. Support has moved up to $35-$34.75.
PowerShares QQQ Trust (QQQ, $118.15, up $1.27)

QQQ January 122 calls (QQQ170120C00122000, $0.50, up $0.18)

Entry Price: $0.90 (11/30/2016)
Exit Target: $1.80
Return: -45%
Stop Target: None

Action: Resistance is at $118-$118.50. Support has moved up to $117.50-$117.
Rambus (RMBS, $13.79, up $0.33)

RMBS February 14 calls (RMBS170217C00014000, $0.65, up $0.10)

Entry Price: $0.53 (11/30/2016)
Exit Target: $1.10
Return: 21%
Stop Target: None

Action: Fresh resistance is at $13.75-$14. Support is trying to move up to $13.50-$13.25.
TiVo (TIVO, $20.95, up $0.80)

TIVO January 22.50 calls (TIVO170120C00022500, $0.35, up $0.10)

Entry Price: $0.33 (11/30/2016)
Exit Target: $0.70
Return: 4%
Stop Target: None

Action: Resistance is at $21. Support is trying to move up to $20.25-$20.
Chicago Bridge & Iron (CBI, $34.19, up $0.81)

CBI January 35 calls (CBI170120C00035000, $1.20, up $0.30)

Entry Price: $1.25 (11/25/2016)
Exit Target: $2.50
Return: -7%
Stop Target: None

Action: Resistance is at $34.25-$34.50. Support is at $33.
Imax (IMAX,$31.88, up $0.63)

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: Resistance is at $32. Support is at $31.50-$31.25.

You can read my previous comments on IMAX from the 11/28/16 Pre-Market update.
Microsoft (MSFT, $60.98, up $1.03)

MSFT December 62.50 calls (MSFT161216C00062500, $0.15, up $0.08)

Entry Price: $0.45 (11/22/2016)
Exit Target: $1.00
Return: -67%
Stop Target: None

Action: Resistance is at $61. Short-term support is at $59.75-$59.50.
Lattice Semiconductor (LSCC, $6.90, up $0.04)

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

Entry Price: $0.30 (10/12/2016)
Exit Target: 60 cents (Limit Order)
Return: -83%
Stop Target: None

Action: Support is at $6.75 and the 50-day moving average. Resistance is at $7.

You can read my previous comments on LSCC and the buyout offer of $8.30 a share from the 11/4/16 Pre-Market update
Rick Rouse
MomentumOptions.com