Mid-Market Update for 3/14/2017

Light Volume on Snowy Weather/ Profit Alerts (AMD, VUZI)

2:50pm (EST)

The recent trading pattern of a tight range with slight weakness continues to play out as blizzard conditions hit Wall Street. Futures were showing a lower open and last week’s lows will need to be watched if they come into play over the next few days. Like yesterday, last week’s levels weren’t breeched and today’s close will be important.

Tomorrow’s Fed decision on interest rates should provide the market with some relief, to the upside or downside, for the rest of the week. The bigger picture will be how the rest of the month plays out ahead of 1Q earnings season that begins in April.

February is usually the trickier month to trade but March has reacted more like the latter despite all-time highs still in play. In today’s face paced world, a week of slack action seems like an eternity but a more defined trend could start to emerge once the Fed rhetoric is out of the way.

In the meantime, it is important to stay patient during trading ranges while taking profits when you can. While I’m still bullish overall, I have been adding a number of possible put options to play. I’ve warned the back half of March is typically weak but that doesn’t necessarily mean we need to get aggressively short.

March expiration is Friday and none of our current trades are in danger of running out of time. However, there is just over a month on the April options before they expire, and I like to be out of option trades before they get down to just 2-3 weeks of time premium.

This means I’m starting to look at May and possibly June options with our next batch of trades. I still like all of the current trades and I have another Profit Alert as AMD has pulled back today.

As far as the market, the Dow is down 39 points to 20,842 while the S&P 500 is declining 8 points to 2,365. The Nasdaq is lower by 22 points to 5,853 and the Russell 2000 is falling 9 points to 1,360.

I wanted to provide the game plan for the next few weeks as I still see plenty of opportunities for trades. However, we might have to wait for the action to come to us so be patient. In the meantime, let’s go check on our current positions as I also have a Profit Alert for VUZI.


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, $54.26, down $0.37)

April 52.50 puts (SBUX170421P00052500, $0.40, up $0.03)

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, $14.08, down $0.20)

AMD April 14 calls (AMD170421C00014000, $1.13, down $0.12)

Entry Price: $0.90 (3/7/2017)
Exit Target: $1.80 (closed half at $1.40 on 3/13/2017)
Return: 42%
Stop Target: $1.15 (Stop Limit)

Action: The Stop Limit at $1.15 on the other half of the trade has triggered.
I will keep AMD on my Watch List for another possible reentry point.


Amicus Therapeutics (FOLD, $7.10, down $0.15)

FOLD April 8 calls (FOLD170421C00008000, $0.35, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -42%
Stop Target: None

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


Tower Semiconductor (TSEM, $22.52, down $0.48)

TSEM April 24 calls (TSEM170421C00024000, $0.30, down $0.15)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -54%
Stop Target: None

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


Vuzix (VUZI, $7.16, down $0.13)

VUZI April 7.50 calls (VUZI170421C00007500, $0.60, down $0.10)

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

Action: Close the trade at current levels.


Flex (FLEX, $16.77, up $0.14)

FLEX April 17 calls (FLEX170421C00017000, $0.25, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -29%
Stop Target: None

Action: Near-term support is at $16.25-$16. Resistance is at $16.75-$17.


TherapeuticsMD (TXMD, $6.73, down $0.03)

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.