MomentumOptions.com Mid-Market Update for 12/13/2016

Record Highs Back in Play/ Profit Alert (MSFT)

1:55pm (EST)

The market continues to push to blue-sky territory as all-time highs ahead of tomorrow’s Fed decision. Wall Street is anticipating a quarter-point rate hike and loosening language for future rate hikes next year.

In corporate news, CEO Rex Tillerson of Exxon Mobil (XOM), has been selected as the nominee to become the next Secretary of State. He was expected to leave the company next year due to retirement and now has a new gig to keep him busy.

The Dow is up 147 points to 19,943 while the S&P 500 is adding 19 points to 2,276. The Nasdaq is gaining 73 points to 5,486 and the Russell 2000 is higher by 13 points to 1,376.

I have updated our current trades, along with a Profit Alert for MSFT, so let’s go check the tape.
Momentum Options Play List

Closed Momentum Options Trades for 2016: 82-34 (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.
Viavi Solutions (VIAV, $8.48, flat)

VIAV March 9 calls (VIAV170317C00009000, $0.38, flat)

Entry Price: $0.37 (12/8/2016)
Exit Target: $1.00
Return: 3%
Stop Target: None

Action: Resistance is at $8.75-$9. A close above the latter should lead towards a run towards $9.50. Short-term support is at $8.40 followed by $8.25-$8.
PowerShares QQQ Trust (QQQ, $121.06, up $2.10)

QQQ January 122 calls (QQQ170120C00122000, $1.60, up $0.90)

Entry Price: $0.90 (11/30/2016)
Exit Target: $1.80
Return: 78%
Stop Target: None

Action: Fresh resistance is at $121.50-$122. Support is at $120.
Rambus (RMBS, $14.24, up $0.03)

RMBS February 14 calls (RMBS170217C00014000, $0.90, flat)

Entry Price: $0.53 (11/30/2016)
Exit Target: $1.10
Return: 70%
Stop Target: 80 cents (Stop Limit)

Action: Near-term support is at $14-$13.75. Resistance is at $14.50 and the 52-week high.
TiVo (TIVO, $21.58, down $0.02)

TIVO January 22.50 calls (TIVO170120C00022500, $0.55, flat)

Entry Price: $0.33 (11/30/2016)
Exit Target: $0.70
Return: 67%
Stop Target: None

Action: Support is at $21.25-$21. Resistance is at $22-$22.50.
Chicago Bridge & Iron (CBI, $36.30, up $0.09)

CBI January 35 calls (CBI170120C00035000, $2.20, flat)

Entry Price: $1.25 (11/25/2016)
Exit Target: $3 (closed half at $2.20 on 12/12/2016)
Return: 76%
Stop Target: $1.75 (Stop Limit)

Action: Resistance is at $36.50-$37. Support is at $35-$34.75.
Imax (IMAX,$32.15, up $0.05)

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 $31.50-$31.25. Resistance is at $32.50. A golden cross has formed with the 50-day moving average crossing above the 200-day moving average last week. This is usually a bullish indicator but shares need to clear $33 to get the short to possibly start covering again.

You can read my previous comments on IMAX from the 11/28/16 Pre-Market update.
Microsoft (MSFT, $63.27, up $1.10

MSFT December 62.50 calls (MSFT161216C00062500, $1.10, up $0.75)

Entry Price: $0.45 (11/22/2016)
Exit Target: 75 cents (Limit Order)
Return: 67%
Stop Target: None

Action: The Limit Order to close the trade has been tripped. If you are still in the trade, remember, these options expire this Friday.
Lattice Semiconductor (LSCC, $7.14, up $0.07)

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-$7.25.

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