MomentumOptions.com Mid-Market Update for 3/17/2017

VIX Holding 11.50

2:50pm (EST)

Aside from a positive close across the board for the major indexes heading into the weekend, I wanted to see the VIX hold the 11.50 level today. If these events hold into the close, it would be a slightly bullish development for next week.

One day doesn’t make a trend, but Wednesday’s gains by the bulls broke the bears momentum and Thursday’s action was a split-decision. Although I mentioned the back half of March tends to be weak, the major indexes are working on five-straight months of gains.

The slick talking pros are still harping for a 3%-5% pullback and the broken record has been playing since the election. With April historically bullish, and sometimes May, my guess is the market could rally another 2%-4% from current levels instead. However, if there is a chance to make some money to the downside, I won’t be “waiting” to buy stocks at lower levels. Instead, I will use near-term put options.

With seven current positions, we are in great shape to play a continued run to all-time highs. While there is room for an additional 3-5 new trades, I want to at least lock-in partial profits before getting too aggressive.

The Dow is up 26 points to 20,960 while the S&P 500 is gaining 2 points to 2,383. The Nasdaq is higher by 9 points to 5,910 and the Russell 2000 is adding 4 points to 1,390. The S&P 500 Volatility Index (VIX) is at 10.85, down 0.36.

I have updated our current trades so let’s so check the tape. I could have additional updates, if needed, into the close as I will be watching the action. However, if you don’t hear from me again, have a great and safe weekend.

Special Notice: I want to share some news to subscribers on 1-year memberships. I have a 221-page option trading manual that is available to those that wish to receive it as part of your package. The content will be updated throughout this year to better reflect more recent trades but the current information is invaluable as it explains a lot of my trading techniques. Email me at Rick@MomentumOptionsTrading.com to get a copy.

 

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.

 

Viavi Solutions (VIAV, $10.60, up $0.40)

VIAV April 10 calls (VIAV170421C00010000, $0.80, up $0.20)

Entry Price: $0.45 (3/15/2017)
Exit Target: $0.90
Return: 78%
Stop Target: None

VIAV June 11 calls (VIAV170616C00011000, $0.65, up $0.15)

Entry Price: $0.40 (3/15/2017)
Exit Target: $0.80
Return: 62%
Stop Target: None

Action: Fresh resistance is at $10.25-$10.50 with Thursday’s high tapping $10.35. Rising support is at $10-$9.50.

 

Starbucks (SBUX, $55.99, up $1.19)

April 52.50 puts (SBUX170421P00052500, $0.13, down $0.08)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -68%
Stop Target: None

Action: Fresh resistance is at $56-$56.50. Support has moved up to is at $55-$54.50.

 

Amicus Therapeutics (FOLD, $7.19, up $0.07)

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

 

Tower Semiconductor (TSEM, $22.96, up $0.23)

TSEM April 24 calls (TSEM170421C00024000, $0.30, flat)

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

Action: Resistance is at $23.25-$23.50. Support is at $22.75-$22.50.

 

Flex (FLEX, $16.86, flat)

FLEX April 17 calls (FLEX170421C00017000, $0.35, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: 0%
Stop Target: None

Action: Resistance is at $17-$17.25. Support is at $16.75-$16.50.

 

TherapeuticsMD (TXMD, $6.99, up $0.04)

TXMD June 7.50 calls (TXMD170616C00007500, $1.00, flat)

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

Action: Resistance is at $7-$7.25. Support is at $6.75-$6.50.

The mid-November high is at $7.50 with a close above this level likely leading to $9-$9.25 on breakout momentum. Continued closes above the 200-day moving average would be a bullish development. The 50/100-day moving averages are in a nice uptrend.