MomentumOptions.com Mid-Market Update for 1/24/2017

Bulls Rebound

2:35pm (EST)

I have talked about the continuing trading range heading into February and today’s rebound has given the bulls some breathing room. There were a number of blue-chip stocks that reported earnings ahead of this morning’s open with mixed results.

Verizon (V) was the biggest disappointment after reporting a profit of $0.86 a share on revenue of $32.3 billion. Wall Street was looking for $0.89 a share on revenue of $32.08 billion. The 5% pullback has knocked shares back below $50.

The Dow is up 129 points to 19,929 while the S&P 500 is gaining 15 points to 2,280. The Nasdaq is advancing 43 points to 5,596 and the Russell 2000 is higher by 20 points to 1,368.

Our current trades are getting some nice pin action today so let’s go check the tape.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 3-0 (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.

 

TherapeuticsMD (TXMD, $5.67, up $0.15)

TXMD June 7.50 calls (TXMD170616C00007500, $0.70, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -7%
Stop Target: None

Action: Near-term resistance is at $5.75-$6. Support is at $5.25-$5.

 

Transocean (RIG, $15.02, up $0.26)

RIG March 17 calls (RIG170317C00017000, $0.35, up $0.07)

Entry Price: $0.66 (1/13/2017)
Exit Target: $1.35
Return: -47%
Stop Target: None

Action: Resistance is at $15.25-$15.50. Support is at $14.75-$14.50.

 

Tower Semiconductor (TSEM, $20.77, up $0.48)

TSEM February 21 calls (TSEM170217C00021000, $0.80, up $0.25)

Entry Price: $0.65 (1/11/2017)
Exit Target: $1.30
Return: 23%
Stop Target: None

Action: Resistance is at $20.50-$20.75. Support is at $20-$19.75.

 

Green Dot (GDOT, $26.02, up $0.41)

GDOT March 25 calls (GDOT170317C00025000, $1.70, up $0.10)

Entry Price: $1.30 (1/6/2017)
Exit Target: $2.60
Return: 31%
Stop Target: $1.35 (Limit Order)

Action: Resistance is at $25.75-$26. Support is at $25.25-$25.

 

Sprint (S, $9.18, flat)

S February 9 calls (S170317C00009000, $0.63, flat)

Entry Price: $0.54 (1/6/2017)
Exit Target: $1.10
Return: 17%
Stop Target: None

Action: Resistance is at $9.25-$9.50. Short-term support is at $9-$8.75.

 

Sony (SNE, $30.48, up $0.05)

February 27 puts (SNE170217P00027000, $0.10, flat)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30 (closed half at 10 cents on 1/23/17)
Return: -67%
Stop Target: None

Action: Resistance is at $30.75-$31. Support is at $30.50-$30.25.