MomentumOptions.com Mid-Market Update for 3/13/2017

Intel (INTC) Buys MobilEye (MBLY)

12:15pm (EST)

Intel made a big acquisition this morning after announcing plans to buy Mobileye. The deal is valued at $63.54 a share in cash, representing an equity value of roughly $15.3 billion, but could take up to 9 months to close. The merger between the two companies is expected to accelerate innovation for the automotive industry and puts Intel in prime position to be one of the leading technology providers.

While there are pros and cons to the fast-growing market for fully autonomous transportation, Intel said the market opportunity for vehicle systems, data and services could swell to $70 billion by 2030. Intel’s current CEO said he wanted to speed up growth by investing in data-intensive market opportunities and acquiring Mobileye was a very solid move.

The deal is expected to be accretive to Intel’s earnings and free cash flow once the acquisition is complete. Intel also said cost synergies could reach $175 million by 2019 and the company will close deal with cash from its balance sheet

Futures were slightly lower throughout the morning but darted into positive territory at various times and ahead of the opening bell. The choppy action from last week has continued and it will be important lower lows don’t come in play today. So far they haven’t but there is another half of trading to go.

The Dow is down 19 points to 20,883 while the S&P 500 is up less than a point to 2,372. The Nasdaq is higher by 11 points to 5,873 and the Russell 2000 is gaining 4 points to 1,369.

I have updated the Stop Limit on the other half of our AMD trade along with the rest of the positions so let’s go check the tape. Stay locked-and-loaded into the closing bell as I could have another new trade ready.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 16-3 (84%). 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.

 

Starbucks (SBUX, $54.52, down $0.01)

April 52.50 puts (SBUX170421P00052500, $0.40, flat)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: 0%
Stop Target: None

Action: Support is at $54-$53.50. Near-term resistance is at $55-$55.50.

 

Advanced Micro Devices (AMD, $14.35, up $0.44)

AMD April 14 calls (AMD170421C00014000, $1.35, up $0.30)

Entry Price: $0.90 (3/7/2017)
Exit Target: $1.80 (closed half at $1.40 on 3/13/2017)
Return: 53%
Stop Target: 45 cents, raise to $1.15

Action: Raise the Stop Limit from 45 cents to $1.15. The low on the calls has been $1.22 today.

Shares have traded to a high of $14.68 shortly after the open with the options reaching a peak of $1.51. Fresh resistance is at $14.50-$14.75. Rising support is at $14.25-$14.

 

Amicus Therapeutics (FOLD, $7.33, down $0.22)

FOLD April 8 calls (FOLD170421C00008000, $0.40, down $0.05)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -33%
Stop Target: None

Action: Support is at $7.25-$7. Resistance is at $7.50-$7.75.

 

Tower Semiconductor (TSEM, $23.10, up $0.05)

TSEM April 24 calls (TSEM170421C00024000, $0.45, flat)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -31%
Stop Target: None

Action: Resistance is at $23.25. Support is at $22.75-$22.50.

 

Vuzix (VUZI, $7.45, up $0.10)

VUZI April 7.50 calls (VUZI170421C00007500, $0.65, up $0.05)

Entry Price: $0.50 (2/27/2017)
Exit Target: $1.00
Return: 30%
Stop Target: None

Action: Resistance is at $7.50-$7.75. Support is at $7.25-$7.

 

Flex (FLEX, $16.64, down $0.02)

FLEX April 17 calls (FLEX170421C00017000, $0.27, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -23%
Stop Target: None

Action: Resistance is at $16.75-$17. Support is at $16.25-$16.

 

TherapeuticsMD (TXMD, $6.74, up $0.07)

TXMD June 7.50 calls (TXMD170616C00007500, $0.95, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: 27%
Stop Target: None

Action: Resistance is at $6.75-$7. Support is at $6.50-$6.25.