MomentumOptions.com Mid-Market Update for 3/24/2017

Awaiting Health Care Vote

3:10pm (EST)

The market is trading at its worst level of the day as Wall Street prepares for a vote on the American Health Care Act, which is intended to dismantle and replace the Affordable Care Act, or Obamacare.

The outcome will likely keep the market on choppy footing but most pundits don’t expect the bill to pass. Voting in the bill should start a half-hour ahead of the closing bell. The suit-and-ties believe a surprise yes vote would likely lead to a relief rally, but could weigh on bonds. A no vote may or may not lead to a selloff.

The Dow is down 98 points to 20,558 while the S&P 500 is off 7 points to 2,339. The Nasdaq is lower by 4 points to 5,813 and the Russell 2000 is up a half-point to 1,353.

I have updated the current trades ahead of the weekend so let’s go check the action.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 20-3 (87%). 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, $10.68, down $0.10)

VIAV April 11 calls (VIAV170421C00011000, $0.31, down $0.07)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -26%
Stop Target: None

VIAV June 11 calls (VIAV170616C00011000, $0.75, flat)

Entry Price: $0.40 (3/15/2017)
Exit Target: $1.20
Return: 88%
Stop Target: 60 cents (Stop Limit)

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

 

Starbucks (SBUX, $56.89, up $1.04)

April 52.50 puts (SBUX170421P00052500, $0.07, down $0.03)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -82%
Stop Target: None

Action: Resistance is at $57-$57.50. Support is at $56.50-$56.

 

Amicus Therapeutics (FOLD, $7.26, up $0.12)

FOLD April 8 calls (FOLD170421C00008000, $0.20, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -67%
Stop Target: None

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

 

Tower Semiconductor (TSEM, $23.02, up $0.11)

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: Support is at $22.75-$22.50. Resistance is at $23-$23.25.

 

Flex (FLEX, $16.58, down $0.06)

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: Support is at $16.50-$16.25. Resistance is at $16.75.