MomentumOptions.com Mid-Market Update for 2/8/2017

Financial Stocks Lagging/ New Trade (VIAV)

1:45pm (EST)

The Financial sector has been pulling back this week and has limited the upside breakout by the bulls. The 3-session skid hasn’t been too damaging as the Financial Select Sector Spiders (XLF, $23.35, down $0.19) are holding near-term support and its 50-day moving average.

Today’s tight trading range has been mixed with weakness on the open and a rebound in Tech as we wind down the final few hours of trading. The Dow is down 39 points to 20,051 while the S&P 500 is adding a point to 2,293. The Nasdaq is up 4 points to 5,679 and the Russell 2000 is declining 5 points to 1,355.

I’m short on commentary again today as I have a New Trade to play the breakout in VIAV. I could also have another new trade ahead of the closing bell so stay locked-and-loaded.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 8-1 (89%). 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

Viavi Solutions (VIAV, $9.99, up $0.48)

Buy to Open VIAV March 10 calls (VIAV170317C00010000, $0.40, up $0.22)

Action: I want to “piggy-back” our current VIAV trade. I like these call options at current levels and you can use a Limit Order up to 55 cents to get the best fills. These are the regular VIAV March 10 calls that expire on March 17th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Current Trades

Boston Scientific (BSX, $25.23, flat)

BSX March 25 calls (BSX170317C00025000, $0.70, flat)

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

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

 

Tower Semiconductor (TSEM, $21.64, down $0.15)

TSEM March 23 calls (TSEM170317C00023000, $0.50, flat)

Entry Price: $0.45 (2/7/2017)
Exit Target: $0.90
Return: 11%
Stop Target: None

Action: Resistance is at $22-$22.25. Support is at $21.75-$21.50.

 

Spider Gold Shares (GLD, $117.90, up $0.44)

GLD March 121 calls (GLD170317C00121000, $1.20, up $0.20)

Entry Price: $0.95 (2/6/2017)
Exit Target: $1.90
Return: 26%
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.

 

Viavi Solutions (VIAV, $9.99, up $0.48)

VIAV March 9 calls (VIAV170317C00009000, $1.00, up $0.30)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00, raise to $1.50.
Return: 100%
Stop Target: None

Action: Raise the Exit Target to $1.50.

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

 

TherapeuticsMD (TXMD, $5.87, up $0.01)

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, $31.90, down $0.21)

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.