MomentumOptions.com Mid-Market Update for 3/15/2017

Fed in Focus/ New Trade (VIAV)

12:10pm (EST)

Sure bets are never a 100% event and an important reminder when it comes to putting money to work. Although I mentioned Wall Street has priced in a 90%-95% chance of a rate hike today, and the more important picture was the “dot plot”, the only thing that would surprise the market would be a half-point hike instead of a quarter.

I’m sure the Fed will continue to play their slow hand and pretend to know what they are doing for the rest of the year, but the financial world knows they are playing catch up. All we care about is the 2pm (EST) action afterwards and into the close.

The Dow is up 45 points to 20,882 while the S&P 500 is gaining 7 points to 2,373. The Nasdaq is higher by 10 points to 5,867 and the Russell 2000 is jumping 12 points to 1,374.

Today and the rest of the week could provide the clues for the next major or mini trend. While I do expect a possible rebound today and for the rest of the week, the rest of the month could still be choppy. One of the best ways to trade a defined trend is by playing the indexes and I mentioned I have possible QQQ, SPY, and IWM call and put options ready to roll on my Watch List.

In the meantime, I do have a New Trade I want to get us into. Also, stay close to your email inboxes into the closing bell in case I take additional action.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 18-3 (86%). 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.

 

New Trade

Viavi Solutions (VIAV, $9.98, up $0.34)

Buy to Open VIAV April 10 calls (VIAV170421C00010000, $0.45, up $0.15)

Buy to Open VIAV June 11 calls (VIAV170616C00011000, $0.40, up $0.09)

Action: I like both call options at current levels.

You can use a Limit Order up to 60 cents on the VIAV April 10 calls that expire on April 21st, 2017.

You can use a Limit Order up to 55 cents to get the VIAV June 11 calls that expire on June 16th, 2017.

I will provide the parameters of the trades in tomorrow’s Pre-Market update.

 

Current Trades

Starbucks (SBUX, $54.35, up $0.08)

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: Near-term resistance is at $54.75-$55. Support is at $54-$53.50.

 

Amicus Therapeutics (FOLD, $7.07, up $0.04)

FOLD April 8 calls (FOLD170421C00008000, $0.30, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -50%
Stop Target: None

Action: Support is at $7-$6.75. Resistance is at $7.25-$7.50.

 

Tower Semiconductor (TSEM, $23.00, up $0.52)

TSEM April 24 calls (TSEM170421C00024000, $0.40, up $0.15)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -35%
Stop Target: None

Action: Upper resistance at $22.75-$23 is in play. Support is trying to move up to $22.75-$22.50.

 

Flex (FLEX, $16.81, up $0.02)

FLEX April 17 calls (FLEX170421C00017000, $0.33, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -6%
Stop Target: None

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

 

TherapeuticsMD (TXMD, $6.78, up $0.04)

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.