MomentumOptions.com Mid-Market Update for 3/20/2017

Small-Caps Pull Back

12:00pm (EST)

The bulls are trying to extend last week’s momentum but have struggled maintaining momentum. The action is mixed with the blue-chips and Tech showing strength while the small-caps and the broader market are slightly lower.

I expected some choppiness this week, and possibly next, but it doesn’t mean stronger stocks can’t still go higher. For all the talk that this is a stock picker’s market, my rebuttal is that it is always a stock picker’s market. To keep things simple, trade the trend, up or down, and use caution during trading ranges.

The Dow is up 32 points to 20,947 while the S&P 500 is down a point to 2,377. The Nasdaq is higher by 7 points to 5,908 and the Russell 2000 is declining 6 points to 1,384.

I have updated our latest VISV trade along with a raising the Exit Targets on our two others. I could have additional alerts into the closing bell but wanted to get this quick update out.

 

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, $10.85, up $0.15)

VIAV April 11 calls (VIAV170421C00011000, $0.45, up $0.08)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: 7%
Stop Target: None

VIAV April 10 calls (VIAV170421C00010000, $1.05, up $0.10)

Entry Price: $0.45 (3/15/2017)
Exit Target: $0.90, raise to $1.35
Return: 133%
Stop Target: 75 cents (Stop Limit)

VIAV June 11 calls (VIAV170616C00011000, $0.85, up $0.10)

Entry Price: $0.40 (3/15/2017)
Exit Target: $0.80, raise to $1.20
Return: 112%
Stop Target: 55 cents (Stop Limit)

Action: Set an Exit Target at 85 cents on the April 11 calls. There is no Stop Target. Raise the Exit Target from 90 cents to $1.35 on the April 10 calls. Raise the Exit Target from 80 cents to $1.20 on the June 11 calls.

Resistance is at $10.75-$11. Support is at $10.50-$10.25.

 

Starbucks (SBUX, $55.99, up $0.21)

April 52.50 puts (SBUX170421P00052500, $0.10, down $0.03)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -75%
Stop Target: None

Action: Resistance is at $56-$56.50 and the 50-day moving average. Support is at $55.50-$55.

 

Amicus Therapeutics (FOLD, $7.20, up $0.18)

FOLD April 8 calls (FOLD170421C00008000, $0.25, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -58%
Stop Target: None

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

 

Tower Semiconductor (TSEM, $23.42, up $0.50)

TSEM April 24 calls (TSEM170421C00024000, $0.50, up $0.15)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -23%
Stop Target: None

Action: Fresh resistance is at $23.75-$24. Support is at $23-$22.75.

 

Flex (FLEX, $16.75, down $0.05)

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, $7.10, up $0.04)

TXMD June 7.50 calls (TXMD170616C00007500, $1.05, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: 40%
Stop Target: None

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