MomentumOptions.com Mid-Market Update for 2/28/2017

Bulls Struggling Ahead of Trump Speech/ Profit Alert (AMD)

3:05pm (EST)

Today’s action has been sluggish with weakness to the downside as Wall Street awaits tonight’s speech from President Trump. The Dow and S&P 500 have traded in a narrow range throughout the day with but are within striking distance of a positive close. Tech and the small-caps – probably not.

The President faces a tough task with a divided Congress intent on slowing any progress he wants to make. While the petty politics has always been around, it would be nice to see the slow-dragging zombies pick up their pace and actually get something done.

The Dow is down 30 points to 20,807 while the S&P 500 is off 7 points to 2,362. The Nasdaq is declining 38 points to 5,823 and the Russell 2000 is sinking 20 points to 1,387.

I have a Profit Alert for one of our current trades (AMD) and I’m still hoping to add another New Trade or two over the next day or so, depending on the action.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 15-2 (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 a Trade Alert outside of these time frames.

 

Advanced Micro Devices (AMD, $14.46, down $0.74)

AMD April 16 calls (AMD170421C00016000, $0.90, down $0.25)

Entry Price: $0.85 (2/27/2017)
Exit Target: $1.70
Return: 4%
Stop Target: 88 cents (Stop Limit)

Action: The Stop Limit has tripped on today’s pullback despite a run to an all-time high of $15.55 on the open. The calls tested a low of 85 cents. I will keep shares on my Watch List for another possible reentry point.

 

Vuzix (VUZI, $6.38, down $0.28)

VUZI April 7.50 calls (VUZI170421C00007500, $0.40, down $0.10)

Entry Price: $0.50 (2/27/2017)
Exit Target: $1.00
Return: -20%
Stop Target: None

Action: Support is at $6.25-$6. Resistance at $6.50-$6.75.

 

3D Systems (DDD, $15.25, down $1.69)

March 18 calls (DDD170317C00018000, $0.10, down $0.35)

Entry Price: $0.45 (2/22/2017)
Exit Target: $1.00
Return: -78%
Stop Target: None

Action: The company topped earnings estimates and forward guidance was ahead of analysts forecasts. Despite the good news, shares are testing backup support at $15-$14.75. Near-term resistance at $15.50-$15.75. I would like to see a recovery of the $16 level by Friday. If not, I could close the trade to save the remaining premium.

 

Flex (FLEX, $16.50, down $0.21)

FLEX April 17 calls (FLEX170421C00017000, $0.30, down $0.10)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -14%
Stop Target: None

Action: Support is at $16.50-$16.25. Resistance is at $17-$17.25.

 

TherapeuticsMD (TXMD, $6.30, down $0.04)

TXMD June 7.50 calls (TXMD170616C00007500, $0.75, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: 0%
Stop Target: None

Action: Support is at $6.25-$6. Resistance is at $6.50.