MomentumOptions.com Mid-Market Update for 12/22/2016

Still on Standby

12:40pm (EST)

Futures were lower throughout the morning but were improving ahead of this morning’s economic news. Jobless Claims impressed Wall Street with futures turning slightly positive but the carryover failed to hold into the open.

While today’s push past Dow 20,000 will probably have to wait another day, in the bigger picture, it’s just a number. While I have listed additional fluff targets if the market makes another breakout to all-time highs, at some point, the opportunity to go short will come. It might be next week, next month, or at some point in 2017, but remember I play the trend and I could care less if the market goes up or down.

For new subscribers, I say this because I don’t want you to get caught up in the market hype. At some point, there will be a flush, or an elevator drop, on unexpected news, or perhaps, geopolitical concerns. In the meantime, we will let the technical picture guide us into the new year as it remains bullish.

The Dow is down 43 points to 19,898 while the S&P 500 is off 7 points to 2,257. The Nasdaq is declining 33 points to 5,437 and the Russell 2000 is lower by 14 points to 1,360.

I have updated our current trades so let’s go check the tape.

 

Momentum Options Play List

Closed Momentum Options Trades for 2016: 87-36 (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.

 

Array Biopharma (ARRY, $8.62, up $0.04)

ARRY March 10 calls (ARRY170317C00010000, $0.85, flat)

Entry Price: $0.85 (12/21/2016)
Exit Target: $1.70
Return: 0%
Stop Target: None

Action: Near-term resistance is at $8.75-$9. The recent 52-week peak is at $9. Support at $8.50-$8.25.

 

CVS Health (CVS, $79.07, down $0.78)

CVS January 82.50 calls (CVS170120C00082500, $0.50, down $0.12)

Entry Price: $0.68 (12/20/2016)
Exit Target: $1.40
Return: -26%
Stop Target: None

Action: Support is at $78. Resistance is at $80-$80.50 and the 50-day moving average.

 

Viavi Solutions (VIAV, $8.31, down $0.09)

VIAV March 9 calls (VIAV170317C00009000, $0.32, flat)

Entry Price: $0.37 (12/8/2016)
Exit Target: $1.00
Return: -14%
Stop Target: None

Action: Short-term support is at $8.40-$8.35 followed by $8.25-$8. Resistance is at $8.50-$8.75.

 

TiVo (TIVO, $20.25, down $0.35)

TIVO January 22.50 calls (TIVO170120C00022500, $0.20, flat)

Entry Price: $0.33 (11/30/2016)
Exit Target: $0.70
Return: -39%
Stop Target: None

Action: Support is at $20.50-$20 and the 50-day moving average. Resistance is at $21.25-$21.50.