Mid-Market Update for 2/3/2017

Jobs Report Gives Bulls Fresh Momentum/ New Trade (MYL)

1:05pm (EST)

The market opened higher following a strong jobs report this morning and has added to its gains throughout the session. Nonfarm payrolls came in at 227,000 jobs added versus expectations for 180,000 job additions. The unemployment rate ticked higher to 4.8%, up from 4.7%, as more people came back into the workforce.

Financial stocks are leading today’s charge following news President Trump is rolling back some of the regulations put in place following the 2008 global financial crisis. The Dodd/ Frank bill has been a disaster and one of the main issues that will benefit the Financial stocks once its gone. (AMZN) is trading lower after reporting a mixed quarter. Shares are holding the $800 level after the company beat on the top line but missed on revenue numbers. The company also lowered guidance going forward as they expect to spend more to fight off their competition. I say that with tongue-in-cheek because they truly are a business killer and a still growing monopoly.

Today’s action looks bullish and supports my theory that higher highs would continue through at least mid-February. The Dow is up 170 points to 20,055 while the S&P 500 is surging 15 points to 2,296. The Nasdaq is advancing 21 points to 5,657 and the Russell 2000 is gaining 15 points to 1,372.

I have a New Trade I want to get us into. I could also have another recommendation ahead of the closing bell so stay locked-and-loaded. If you don’t hear from me again, have a great and safe weekend, and we will chat Monday morning.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 7-1 (88%). All trades are dated and time stamped for verification. New subscribers can look at the past history to see how the trades have played out or to research our Track Records.

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

Mylan (MYL, $39.02, up $0.02)

Buy to Open MYL March 42.50 calls (MYL170317C00042500, $0.55, up $0.05)

Action: I like these call options at current levels and you can use a Limit Order up to 70 cents to get the best fills. These are the regular MYL March 42.50 calls that expire on March 17th, 2017. I will provide the parameters of the trade in Monday’s Pre-Market update.


Current Trades

Viavi Solutions (VIAV, $9.27, down $0.01)

VIAV March 9 calls (VIAV170317C00009000, $0.55, flat)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00
Return: 10%
Stop Target: None

Action: Support is at $9-$8.75. Resistance is at $9.50-$10.


TherapeuticsMD (TXMD, $5.96, up $0.08)

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: Resistance is at $6. Support is at $5.50-$5.25.


Sony (SNE, $31.71, down $0.23)

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: Support is at $31.50-$31. Resistance is at $32.