Mid-Market Update for 2/6/2017

Earnings for the Week/ New Trade (GLD)

1:35pm (EST)

Futures were showing a slightly lower open throughout the morning as the bulls try to keep the momentum going from Friday’s session. I have talked about the choppy Monday/ Friday closes on the Dow in recent weeks and some follow through today would help improve this situation. The market has bounced off its lows but is still sluggish heading into the final hours of trading.

This week’s action will be less busier on paper than last week but earnings will still be a factor in helping certain sectors push resistance, or fall back towards support. Some of this week’s highlights will be worth watching as there could be a chance for a earnings trade.

Following today’s closing bell, CBOE Holdings (CBOE) will be announcing their numbers.

On Tuesday, Emerson Electric (EMR), General Motors (GM), Michael Kors (KORS) and Spirit Airlines (SAVE) will report earnings.

For Wednesday, Brink’s (BCO), Goodyear Tire & Rubber (GT), Time Warner (TWX), Whole Foods Market (WFM) and Yum Brands (YUM) will step up to the podium.

Thursday’s action includes Beazer Homes USA (BZH), CVS Health (CVS), Dunkin’ Brands Group (DNKN), Kellogg (K), Twitter (TWTR) and Viacom (VIAB).

The week wraps up with AON (AON) FBR & Company (FBRC) and reporting numbers on Friday morning.

As far as the market, the Dow is down 41 points to 20,030 while the S&P 500 is lower by 8 points to 2,289. The Nasdaq is declining 15 points to 5,651 and the Russell 2000 is off 12 points to 1,365.

I have a New Trade I want to get us into and I updated our current trades. I could also take additional action into the close so stay locked-and-loaded.


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

Spider Gold Shares (GLD, $117.19, up $1.07)

Buy to Open GLD March 121 calls (GLD170317C00121000, $0.95, up $0.18)

Action: I like these call options at current levels and you can use a Limit Order up to $1.10 to get the best fills. These are the regular GLD March 121 calls that expire on March 17th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.


Current Trades

Mylan (MYL, $39.95, up $0.74)

MYL March 42.50 calls (MYL170317C00042500, $0.85, up $0.25)

Entry Price: $0.55 (2/3/2017)
Exit Target: $1.10
Return: 55%
Stop Target: None

Action: Near-term resistance is at $39.50-$40. A close above the latter would be a vert bullish signal. Support is at $38.50 followed by $38-$37.75 and the 100-day moving average.


Viavi Solutions (VIAV, $9.34, up $0.11)

VIAV March 9 calls (VIAV170317C00009000, $0.60, up $0.10)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00
Return: 20%
Stop Target: None

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


TherapeuticsMD (TXMD, $5.80, down $0.04)

TXMD June 7.50 calls (TXMD170616C00007500, $0.60, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -20%
Stop Target: None

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


Sony (SNE, $31.80, up $0.14)

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.