MomentumOptions.com Mid-Market Update for 3/29/2017

Tech Still Rolling

2:10pm (EST)

Despite another choppy and range-bound session, Tech continues to work its way back towards its all-time and the 5,900 level. The Dow continues to lag but is holding near-term support, as investors await the next steps from the Trump administration.

On that note, economic advisor Gary Cohn is scheduled to meet with President Trump on Thursday to discuss options available as the focus on Wall Street shifts from health care reform to dismantling the tax system.

First-quarter earnings season is less than two weeks away and will help shape market direction for April. In the meantime, I mentioned sector rotation and market divergence could cause some confusion but that a return to record highs are still in play for the major indexes. Of course, volatility will be key going forward and is currently back below the 11.50 level.

The Dow is down 33 points to 20,667 while the S&P 500 is adding 2 points to 2,361. The Nasdaq is up 18 points to 5,893 and the Russell 2000 is higher by 4 points to 1,371.

I have been busy building the Watch List for additional New Trades, both bullish and bearish. I will be using May and June options to play the next major trend and certain stocks as the April options expire three weeks from this Friday. Time decay will start to become more of a factor and when options enter the danger zone.

While we have a number of trades with April expiration dates, I still like the positions as we have used near-term strike prices that are just out-of-the-money. Additionally, although these trades weren’t meant for earnings, they could be, as some of the positions could be effected by the outcome. I have done the fundamental homework on all of the positions, as well, and another reason I still feel comfortable holding them.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 21-3 (88%). 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.

 

TherapeuticsMD (TXMD, $7.24, up $0.25)

TXMD May 7.50 calls (TXMD170519C00007500, $0.95, up $0.10)

Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 19%
Stop Target: None

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

 

Viavi Solutions (VIAV, $10.90, up $0.07)

VIAV May 12 calls (VIAV170519C00012000, $0.31, flat)

Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: 7%
Stop Target: None

VIAV April 11 calls (VIAV170421C00011000, $0.40, up $0.02)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -5%
Stop Target: None

Action: Resistance is at $11-$11.25. Support is at $10.75-$10.50.

 

Starbucks (SBUX, $57.54, up $0.19)

April 52.50 puts (SBUX170421P00052500, $0.05, flat)

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

Action: Resistance is at $57.50-$57.75. Support is at $57.25-$57.

 

Amicus Therapeutics (FOLD, $7.60, up $0.24)

FOLD April 8 calls (FOLD170421C00008000, $0.30, up $0.05)

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

Action: Resistance is at $7.75-$8. Support is at $7.25-$7.

 

Tower Semiconductor (TSEM, $23.10, down $0.06)

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 $23-$22.75.

 

Flex (FLEX, $16.61, 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: Resistance is at $16.75-$17. Support is at $16.50-$16.25.