MomentumOptions.com Mid-Market Update for 4/20/2017

Bulls Clear Major Resistance

12:35pm (EST)

Today’s market action once again shows a bull market that just won’t quit. Although the Dow and S&P 500 are still in the forest, the Nasdaq and Russell 2000 have cleared major hurdles. The action in the Transports is also encouraging along with volatility slipping another notch.

The Dow is up 168 points to 20,573 while the S&P 500 is gaining 17 points to 2,355. The Nasdaq is higher by 52 points to 5,915 and the Russell 2000 is adding 13 points to 1,380.

Today’s update is short in nature as I have been busy looking for the best trades to start our next batch of winners for the quarter. There are two trades that I like so let’s get on it!

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 22-9 (71%). 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.

Cypress Semiconductor (CY, $14.04, up $0.47)

Buy to Open CY June 14 calls (CY170616C00014000, $0.85, up $0.10)

Action: I like these call options at current levels and you can use a Limit Order up to $1 to get the best fills. These are the regular CY June 14 calls that expire on June 16th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Square (SQ, $17.50, up $0.30)

Buy to Open SQ June 18 calls (SQ170616C00018000, $0.95, up $0.05)

Action: I these call options at current levels and you can use a Limit Order up to $1.10 to get the best fills. These are the regular SQ June 18 calls that expire on June 16th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Current Trades

Viacom (VIAB, $44.62, up $0.31)

VIAB June 47.50 calls (VIAB170616C00047500, $0.80, up $0.05)

Entry Price: $0.55 (4/18/2017)
Exit Target: $1.10
Return: 45%
Stop Target: 60 cents (Stop Limit)

Action: Resistance is at $44.50-$44.75. Support is at $44-$43.75.

 

Best Buy (BBY, $50.59, up $1.21)

BBY May 45 puts (BBY170519P00045000, $0.20, down $0.15)

Entry Price: $0.57 (4/13/2017)
Exit Target: $1.15
Return: -65%
Stop Target: None

Action: Fresh resistance at $50.50-$51. Rising support is at $49.25-$49.

 

STMicroelectronics (STM, $14.8t, up $0.28)

STM May 15 calls (STM170519C00015000, $0.70, up $0.10)

Entry Price: $1.15 (3/31/2017)
Exit Target: $2.30
Return: -39%
Stop Target: 40 cents (Stop Limit)

Action: Resistance is at $14.75-$15. Support is at $14.50-$14.25.