MomentumOptions.com Mid-Market Update for 1/25/2017

Dow 20,000 – Finally/ New Trade (VIAV)/ Profit Alert (S)

1:45pm (EST)

For the cheerleaders that have been waiting for Dow 20,000, payday is finally here. Although it is somewhat of a meaningless number, the talking heads are happy, even those that have continued to call for a market pullback. At some point, there will be a backtest but that continues to remain on the back-burner for those that have been worried about putting mew money to work.

While some slick talking pros are starting to talk Trump rally #2, it has been the consolidated trading range that will determine the near-term bounce should momentum continue. This would be welcome news for those that have stayed bullish and fretted out the current trading range.

Heading into the final hours of trading, the Dow is up 160 points to 20,072 while the S&P 500 is gaining 16 points to 2,296. The Nasdaq is advancing 47 points to 5,648 and the Russell 2000 is higher by 10 points to 1,379.

I have a New Trade I want to get us into, along with a Profit Alert, so let’s go check the action.

 

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.

New Trade

Viavi Solutions (VIAV, $9.02, down $0.30)

Buy to Open VIAV March 9 calls (VIAV170317C00009000, $0.50, down $0.22)

Action: I like these call options at current levels and you can use a Limit Order up to 65 cents to get the best fills. These are the regular VIAV March 9 calls that expire on March 17th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Current Trades

TherapeuticsMD (TXMD, $5.75, up $0.11)

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, $15.29, up $0.37)

RIG March 17 calls (RIG170317C00017000, $0.40, up $0.10)

Entry Price: $0.66 (1/13/2017)
Exit Target: $1.35
Return: -39%
Stop Target: None

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

 

Tower Semiconductor (TSEM, $21.39, up $0.58)

TSEM February 21 calls (TSEM170217C00021000, $1.10, up $0.30)

Entry Price: $0.65 (1/11/2017)
Exit Target: $1.30
Return: 69%
Stop Target: None

Action: Resistance is at $21-$21.25. Rising support is at $20.50-$20.

 

Green Dot (GDOT, $26.50, up $0.39)

GDOT March 25 calls (GDOT170317C00025000, $2.30, up $0.40)

Entry Price: $1.30 (1/6/2017)
Exit Target: $2.60
Return: 77%
Stop Target: $1.50 (Limit Order)

Action: Fresh resistance is at $26.25-$26.50. Support is at $25.75-$25.50.

 

Sprint (S, $9.19, up $0.01)

S February 9 calls (S170317C00009000, $0.60, down $0.03)

Entry Price: $0.54 (1/6/2017)
Exit Target: $1.10
Return: 11%
Stop Target: None

Action: Close the trade at current levels.

I still believe shares will clear $10 but I’m looking at March options to give the trade more time to play out.

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

 

Sony (SNE, $30.81, up $0.32)

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: -85%
Stop Target: None

Action: Resistance is at $30.75-$31. Support is at $30.25-$30.