MomentumOptions.com Mid-Market Update for 1/13/2017

Financial Results Mixed/ New Trade (RIG)

1:55pm (EST)

The Financial stocks are rallying following better-than-expected earnings from Bank of America (BAC) and JPMorgan Chase (JPM). Wells Fargo’s (WFC) numbers missed on both the top and bottom line but shares are trading higher.

I will cover the results more in-depth next week but it was a good start to 4Q earnings season. The flow of earnings will return on Tuesday as the market closed on Monday.

As far as the market, the top of the trading ranges and fresh all-time highs are in play with Tech leading the way.

The Dow is down 5 points to 19,885 while the S&P 500 is up 5 points to 2,270. The Nasdaq is jumping 33 points to 5,580 and the Russell 2000 is higher by 13 points to 1,374.

I have a New Trade I would like to get us into and I have updated our other positions. I will be back Tuesday morning with a full report. Until then, have a great and safe weekend!

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 2-0 (100%). 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 8am and 12pm–2pm (EST) updates. Also, I will usually give you a heads-up if I think I’m going to send an Trade Alerts outside of these time frames.

New Trade

Transocean (RIG, $15.60, down $0.24)

Buy to Open RIG March 17 calls (RIG170317C00017000, $0.66, down $0.09)

Action: I like these call options at current levels and you can use a Limit Order up to 80 cents to get the best fills. These are the regular RIG March 17 calls that expire on March 17th, 2017. I will provide the parameters of the trade on Tuesday morning.

 

Current Trades

Tower Semiconductor (TSEM, $20.42, up $0.16)

TSEM February 21 calls (TSEM170217C00021000, $0.75, up $0.05)

Entry Price: $0.65 (1/11/2017)
Exit Target: $1.30
Return: 15%
Stop Target: None

TSEM February 20 calls (TSEM170217C00020000, $1.30, up $0.15)

Entry Price: $0.55 (1/3/2017)
Exit Target: $2 (closed 1/3 @ $1.10)
Return: 124%
Stop Target: $1 (Stop Limit)

Action: Resistance is at $20.50-$21. Support is at $20-$19.75.

 

Green Dot (GDOT, $25.17, up $0.17)

GDOT March 25 calls (GDOT170317C00025000, $1.50, up $0.15)

Entry Price: $1.30 (1/6/2017)
Exit Target: $2.60
Return: 15%
Stop Target: None

Action: Resistance is at $25.25-25.50. Support is at $24.50-$24.25.

 

Sprint (S, $8.60, up $0.14)

S February 9 calls (S170317C00009000, $0.38, up $0.06)

Entry Price: $0.54 (1/6/2017)
Exit Target: $1.10
Return: -30%
Stop Target: None

Action: Resistance is at $8.75-$9. Support is at $8.50-$8.25.

 

Sony (SNE, $30.93, up $0.06)

February 27 puts (SNE170217P00027000, $0.15, flat)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: -77%
Stop Target: None

Action: Resistance is at $31-$31.50. Support is at $30-$29.50.