Mid-Market Update for 2/10/2017

Upper Fluff Targets in Play/ New Trade (FLEX)/ Trade Alert (SNE)

2:15pm (EST)

I always look forward to Friday’s and the upcoming weekends that follow, but sometimes as a trader, you just don’t want the week to end. With the bulls pushing fresh record highs and my January fluff targets again today, it will be hard to wait for Monday to get here. I’m sure we will be okay after ringing the register on more profitable trades, but you know how I’m feeling.

Today’s action doesn’t feel like a “blowoff top” as the small-caps have yet to trigger a fresh all-time high and it is a development that may or may not come today or next week. I’ve mentioned March and April are historically bullish months to trade the market, so it is possible we continue to see a slow and steady rise to new highs into May. If volatility returns, the pace and trend could change, but we will worry about playing defense, or using put options, when that time comes.

The Dow is up 118 points to 20,290 while the S&P 500 is gaining 10 points to 2,318. The Nasdaq is surging 26 points to 5,741 and the Russell 2000 is climbing 10 points to 1,389.

I have a New Trade on a stock ready to resume its path towards fresh 52-week peaks along with a Trade Alert for SNE. I will be back Monday with a full report. Until then, have a great and safe weekend!


Momentum Options Play List

Closed Momentum Options Trades for 2017: 9-1 (90%). 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

Flex (FLEX, $16.00, up $0.30)

Buy to Open FLEX March 16 calls (FLEX170317C00016000, $0.40, up $0.14)

Action: I like these call options at current levels and you can use a Limit Order up to 50 cents to get the best fills. These are the regular FLEX March 16 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, $10.34, up $0.05)

VIAV March 10 calls (VIAV170317C00010000, $0.65, flat)

Entry Price: $0.40 (2/8/2017)
Exit Target: $0.80
Return: 62%
Stop Target: 48 cents (Stop Limit)

VIAV March 9 calls (VIAV170317C00009000, $1.40, flat)

Entry Price: $0.50 (1/25/2017)
Exit Target: $2.00
Return: 180%
Stop Target: $1.20 (Stop Limit)

Action: Resistance is at $10.50-$10.75. Rising support is at $10-$9.75.


Boston Scientific (BSX, $25.32, down $0.02)

BSX March 25 calls (BSX170317C00025000, $0.80, flat)

Entry Price: $0.70 (2/7/2017)
Exit Target: $1.40
Return: 14%
Stop Target: None

Action: Resistance is at $25.50-$25.75. Support is at $25-$24.75.


Tower Semiconductor (TSEM, $21.92, down $0.12)

TSEM March 23 calls (TSEM170317C00023000, $0.60, flat)

Entry Price: $0.45 (2/7/2017)
Exit Target: $0.90
Return: 33%
Stop Target: None

Action: Support is at $21.75-$21.50. Resistance is at $22.25-$22.50.


TherapeuticsMD (TXMD, $5.81, 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: Resistance is at $6. Support is at $5.75-$5.50.


Sony (SNE, $31.76, down $0.04)

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: Close the remaining half of the trade for a nickel or dime to save the remaining premium.

Although I predicted a lousy earnings report from the company way back in December, the trade was more of a technical setup that didn’t pan out. Shares have held $30 and it makes sense to save the remaining premium.