MomentumOptions.com Mid-Market Update for 2/9/2017

12:30pm (EST)

I sometimes mention the old saying “never short a dull market” and that trading ranges can lead to breakouts. While the talking heads rely more on headlines to explain the market, I focus more on the technical setups. News that a new tax plan could be rolled out in a few weeks is being credited for today’s breakout to fresh all-time highs, but either way, price action is all that matters.

On that front, I’ve stayed bullish with call options following the early November breakout and my price target of Dow 20,000 and Nasdaq 5,500-6,000 from February 2015. I have also called for the fluff targets to current levels and I mentioned I will be making my annual market predictions by the end of this month.

In any event, it has been a tremendously busy year and I couldn’t be more thrilled.

The Dow is gaining 135 points to 20,189 while the S&P 500 is adding 13 points to 2,308. The Nasdaq is advancing 35 points to 5,718 and the Russell 2000 is up 19 points to 1,378.

I have updated our current trades, including a Profit Alert for GLD. I could also have a 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.

 

Viavi Solutions (VIAV, $10.36, up $0.32)

VIAV March 10 calls (VIAV170317C00010000, $0.60, up $0.15)

Entry Price: $0.40 (2/8/2017)
Exit Target: $0.80
Return: 50%
Stop Target: None

VIAV March 9 calls (VIAV170317C00009000, $1.40, up $0.35)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.50
Return: 180%
Stop Target: 90 cents

Action: Fresh resistance is at $10.25-$10.50. Rising support is at $10-$9.75.

 

Boston Scientific (BSX, $25.33, up $0.09)

BSX March 25 calls (BSX170317C00025000, $0.75, 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, $22.09, up $0.55)

TSEM March 23 calls (TSEM170317C00023000, $0.55, up $0.05)

Entry Price: $0.45 (2/7/2017)
Exit Target: $0.90
Return: 22%
Stop Target: None

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

 

Spider Gold Shares (GLD, $117.41, down $0.78)

GLD March 121 calls (GLD170317C00121000, $1.00, down $0.20)

Entry Price: $0.95 (2/6/2017)
Exit Target: $1.90
Return: 5%
Stop Target: $1 (Stop Limit)

Action: The Stop Limit at $1 has tripped on today’s pullback. I’m still bullish on Gold and will keep GLD on my Watch List for another trading opportunity.

 

TherapeuticsMD (TXMD, $5.93, flat)

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 $5.75-$5.50.

 

Sony (SNE, $31.85, up $0.02)

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.