MomentumOptions.com Mid-Market Update for 3/27/2017

50-Day MA’s in Play/ Profit Alert (VIAV)

1:40pm (EST)

Futures were showing up to a 1% loss when Wall Street opened for business and a continued backtest towards the 50-day moving averages. The small-caps are on shakier ground but held their 100-day moving average on the opening assault despite dipping slightly below last week’s low.

For the market pundits that have begged for a 5% pullback, half of the action is quickly getting on the books as some are putting money where their mouths are. Other suit-and-ties are simply running for the hills and are proud to say they have finally a called a market top. The indexes have made a dramatic rebound off this morning’s lows so the back-patting might still be a little premature.

The Dow is down 36 points to 20,560 while the S&P 500 is off 2 points to 2,341. The Nasdaq is up 12 points to 5,841 and the Russell 2000 is slipping a point to 1,353.

Today’s bearish action has triggered another Profit Alert as shares of VIAV pulled back on the open.

 

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, $10.91, up $0.19)

VIAV April 11 calls (VIAV170421C00011000, $0.31, flat)

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

VIAV June 11 calls (VIAV170616C00011000, $0.75, up $0.05)

Entry Price: $0.40 (3/15/2017)
Exit Target: $1.20
Return: 50%
Stop Target: 60 cents (Stop Limit)

Action: The Stop Limit at 60 cents tripped on the June 11 calls with the stock’s dip to $10.41 this morning. While disappointed, the trade made 50% in just under 2 weeks, and I could add May call options if shares clear $11 today.

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

 

Starbucks (SBUX, $57.25, up $0.44)

April 52.50 puts (SBUX170421P00052500, $0.05, down $0.02)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -88%
Stop Target: None

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

 

Amicus Therapeutics (FOLD, $7.52, up $0.28)

FOLD April 8 calls (FOLD170421C00008000, $0.30, up $0.10)

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

Action: Fresh resistance is at $7.50-$7.75. Rising support is at $7.25-$7.

 

Tower Semiconductor (TSEM, $23.14, up $0.09)

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 at $23.25-$23.50. Support is at $22.75-$22.50 if $23 fails to hold.

 

Flex (FLEX, $16.62, down $0.01)

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-$17.
The recent 52-week peak is at $16.99.