Mid-Market Update for 2/21/2017

Restaurants and Retail Earnings in Focus

1:20pm (EST)

The Restaurant sector will be in focus this week, along with a number of other high profile earnings in the Retail and Tech sectors. There will likely be huge swings in a number of the stocks I list below along with a possible earnings trade. Of course, picking the right earnings trade with call or put options is a tricky business but there are a couple of names I like.

After today’s close, First Solar (FSLR), Newmont Mining (NEM), Papa John’s International (PZZA), Texas Roadhouse (TXRH) and Red Robin Gourmet Burgers (RRGB) will announce quarterly results.

Clean Harbors (CLH), Cheesecake Factory (CAKE), Dish Network (DISH), Fitbit (FIT), Jack in the Box (JACK), Mobileye (MBLY), Garmin (GRMN), HP (HPQ), Popeyes Louisiana Kitchen (PLKI), Six Flags (SIX), Square (SQ), Tesla (TSLA) and Toll Brothers (TOL) will confess their numbers on Wednesday.

On Thursday, AMC Networks (AMCX), Chesapeake Energy (CHK), Gap (GAP), Imax (IMAX), Intuit (INTU), Kohl’s (KSS), Nordstrom (JWN), Pinnacle Foods (PF), Sanderson Farms (SAFM), Wayfair (W) and Zoe’s Kitchen (ZOES) will step up to the podium.

Friday wraps up with earnings from BASF (BASFY), Del Frisco’s Restaurant (DFRG), Footlocker (FL) and JC Penney (JCP).

As far as potential trades, I believe KSS, SQ, IMAX, GAP, and SIX are poised for 5%-10% swings. I will be scanning the option pits along with doing fundamental and technical analysis to see if there is a possible bullish or bearish trade. However, I mentioned my Watch List is exploding with fresh ideas so I may not take on the added risk with an earnings play.

As far as the market, futures were pointing towards a higher open throughout the night and into this morning’s open. This indicated fresh all-time highs would be in play and the bulls haven’t let us down.

The Dow is up 88 points to 20,712 while the S&P 500 is gaining 9 points to 2,360. The Nasdaq is adding 12 points to 5,851 and the Russell 2000 is climbing 6 points to 1,405.

I have updated our current trades so let’s go check the action. I’m still working on a possible New Trade so stay locked-and-loaded into the closing bell.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 10-2 (83%). 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.


Jabil Circuit (JBL, $26.07, up $0.16)

JBL March 26 calls (JBL170317C00026000, $0.95, up $0.10)

Entry Price: $0.65 (2/13/2017)
Exit Target: $1.30
Return: 46%
Stop Target: 70 cents (Stop Limit)

Action: Resistance is at $26-$26.25. Near-term support is at $25.75-$25.50.


Flex (FLEX, $16.67, up $0.23)

FLEX April 17 calls (FLEX170421C00017000, $0.41, up $0.09)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: 17%
Stop Target: None

FLEX March 16 calls (FLEX170317C00016000, $0.80, up $0.17)

Entry Price: $0.40 (2/10/2017)
Exit Target: $1.10
Return: 100%
Stop Target: 50 cents (Stop Limit)

Action: Fresh resistance is at $16.75-$17. Rising support is at $16.50-$16.25.


Viavi Solutions (VIAV, $10.65, down $0.06)

VIAV March 10 calls (VIAV170317C00010000, $0.85, flat)

Entry Price: $0.40 (2/8/2017)
Exit Target: $1.20
Return: 112%
Stop Target: 70 cents (Stop Limit)

VIAV March 9 calls (VIAV170317C00009000, $1.75, flat)

Entry Price: $0.50 (1/25/2017)
Exit Target: $2.00 (Limit Order on third)
Return: 250%
Stop Target: $1.55 (Stop Limit)

Action: Resistance is at $10.75-$11. Support is at $10.50.


Boston Scientific (BSX, $25.50, up $0.11)

BSX March 25 calls (BSX170317C00025000, $1.00, up $0.05)

Entry Price: $0.70 (2/7/2017)
Exit Target: $1.40
Return: 43%
Stop Target: 75 cents (Stop Limit)

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


TherapeuticsMD (TXMD, $5.51, down $0.10)

TXMD June 7.50 calls (TXMD170616C00007500, $0.50, down $0.05)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -33%
Stop Target: None

Action: Support is at $5.50-$5.40 with additional help at $5.25-$5. Resistance is at $6.