Mid-Market Update for 12/16/2016

Trivago (TRVG) Goes Public/ Trade Alerts (IMAX, LSCC)

3:20pm (EST)

Shares of Trivago (TRVG, $11.76, up $0.76) opened trading at $11.20 today after pricing its initial public offering at $11 a share. JPMorgan, Morgan Stanley and Goldman Sachs acted as managers for the offering as the deal was cut to 26 million shares from over 28 million shares and priced below the $13-$16 expected range.

Trivago (TRVG) is a hotel-search company controlled by Expedia (EXPE). Options could be available to trade in a month of so and could provide an opportunity down the road as a trade.

Speaking of trades, I was hoping to get us into a few fresh positions today but the action has been choppy. I also usually refrain from opening new positions on a Friday due to weekend time decay but I’m expecting a continued rally into yearend like I have been predicting.

The Dow is down 9 points to 19,843 while the S&P 500 is slipping 5 points to 2,256. The Nasdaq is off 18 points to 5,438 and the Russell 2000 is higher by 2 points to 1,368.

I have raised the Stop Limit for our current GLD trade. I’m also suggesting an early exit in IMAX. The LSCC trade is expiring at the close. I will be back Monday with a full update. Until then, have a great and safe weekend!


Momentum Options Play List

Closed Momentum Options Trades for 2016: 86-34 (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.


Spider Gold Shares (GLD, $108.07, up $0.73)

GLD January 107 puts (GLD170120P00107000, $1.60, down $0.35)

Entry Price: $0.75 (12/142016)
Exit Target: $2.50-$3.50
Return: 113%
Stop Target: $1, raise to $1.30 (Stop Limit)

Action: Rise the stop Limit from $1 to $1.30.

Resistance is at $107.75-$108. Support is at $106.50.


Viavi Solutions (VIAV, $8.43, down $0.10)

VIAV March 9 calls (VIAV170317C00009000, $0.37, down $0.03)

Entry Price: $0.37 (12/8/2016)
Exit Target: $1.00
Return: 0%
Stop Target: None

Action: Short-term support is at $8.40 followed by $8.25-$8. Resistance is at $8.75-$9.


TiVo (TIVO, $21.00, up $0.10)

TIVO January 22.50 calls (TIVO170120C00022500, $0.35, flat)

Entry Price: $0.33 (11/30/2016)
Exit Target: $0.70
Return: 6%
Stop Target: None

Action: Support is at $21.25-$21. Resistance is at $22-$22.50.


Imax (IMAX,$30.62, down $0.73)

IMAX January 36 calls (IMAX170120C00036000, $0.15, down $0.05)

Entry Price: $0.90 (11/23/2016)
Exit Target: $1.80
Return: -88%
Stop Target: None

Action: Close the trade at current levels to save the remaining premium.


Lattice Semiconductor (LSCC, $7.09, 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: These options expire today and will be worthless by the close if shares stay below $7.50. You can still try to get a nickel for the options into the close but I haven’t been filled and its unlikely we will.