MomentumOptions.com Mid-Market Update for 2/7/2017

Bulls Pushing Record Highs/ Profit Alert (MYL)

1:55pm (EST)

The bulls are once again pushing record highs inside of a tight trading range that appears ready to be popped. I often say the longer the trading range, the bigger the breakout, or breakdown, will be but it is important not to get overly aggressive until all signs are clear.

While the Dow and Nasdaq are testing all-time highs, the S&P 500 has lagged and the small-caps are sagging. The Dow is up 40 points to 20,092 while the S&P 500 is adding a half-point to 2,293. The Nasdaq is gaining 8 points to 5,671 and the Russell 2000 is declining 8 points to 1,358. The S&P 500 Volatility Index ($VIX, 11.47, up 0.10) is holding the 11.50 level.

I’m a little short on commentary as I have been busy with new trades and readjusting my Watch List. I have updated the parameters for BSX and TSEM along with a Profit Alert for MYL, so let’s go check the action.

 

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.

 

Boston Scientific (BSX, $25.23, up $0.09)

BSX March 25 calls (BSX170317C00025000, $0.70, up $0.13)

Entry Price: $0.70 (2/7/2017)
Exit Target: $1.40
Return: 0%
Stop Target: None

Action: Set an Exit Target at $1.40. There is no Stop Target.

Resistance is at $25.25-$25.50. Support is at $25-$24.75.

 

Tower Semiconductor (TSEM, $21.87, up $0.02)

TSEM March 23 calls (TSEM170317C00023000, $0.45, up $0.05)

Entry Price: $0.45 (2/7/2017)
Exit Target: $0.90
Return: 0%
Stop Target: None

Action: Set an Exit Target at 90 cents. There is no Stop Target.

Fresh resistance is at $22.25-$22.50. Support is at $21.75-$21.50.

 

Spider Gold Shares (GLD, $117.61, down $0.10)

GLD March 121 calls (GLD170317C00121000, $1.05, down $0.05)

Entry Price: $0.95 (2/6/2017)
Exit Target: $1.90
Return: 11%
Stop Target: None

Action: Resistance is at $118-$120 and the 200-day moving average. Support is at $117-$116.50 and the 100-day moving average.

 

Mylan (MYL, $39.37, down $0.61)

MYL March 42.50 calls (MYL170317C00042500, $0.70, down $0.25)

Entry Price: $0.55 (2/3/2017)
Exit Target: $1.10
Return: 27%
Stop Target: 70 cents (Stop Limit)

Action: The Stop Limit at 70 cents has tripped on today’s backtest to support.

 

Viavi Solutions (VIAV, $9.52, up $0.08)

VIAV March 9 calls (VIAV170317C00009000, $0.65, flat)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00
Return: 30%
Stop Target: None

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

 

TherapeuticsMD (TXMD, $5.80, down $0.03)

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: Support is at $5.75-$5.50. Resistance is at $6.

 

Sony (SNE, $32.14, up $0.20)

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