Mid-Market Update for 4/25/2017

Nasdaq Clears 6,000/ New Trade (CSCO)

1:20pm (EST)

The Dow set the tone for this morning’s opening surge as a number of blue-chip companies reported blowout quarterly results. McDonald’s (MCD), Caterpillar (CAT) and DuPont (DD) led futures higher throughout the morning that has helped the Dow and S&P push record levels and the Nasdaq clear the 6,000 level for the first time. The Russell 2000 has set an intraday record high.

The opening pop got stronger throughout the first 30 minutes of trading, since then the market has been in a holding pattern. This morning’s earnings parade is still just the beginning of a busy week as I mentioned there are over 200 companies from the S&P 500 scheduled to report.

The Dow is up 244 points to 21,008 while the S&P 500 is gaining 14 points to 2,388. The Nasdaq is higher by 41 points to 6,025 and the Russell 2000 is adding 14 points to 1,412.

Today’s commentary is a little short as I have another new trade I want to get us into. I could also have an additional new trade ahead of the close, if I can finish up the homework, so stay close to your email inboxes.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 23-10 (70%). 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.


New Trade

Cisco Systems (CSCO, $33.44, up $0.16)

Buy to Open CSCO May 34 calls (CSCO170519C00034000, $0.60, up $0.03)

Action: I like these call options at current levels and you can use a Limit Order up to 70 cents to get the best fills. These are the regular CSCO May 34 calls that expire on May 19th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.


Current Trades

Snap (SNAP, $20.90, down $0.30)

SNAP May 23 calls (SNAP170519C00023000, $0.70, down $0.10)

Entry Price: $0.75 (4/21/2017)
Exit Target: $1.50
Return: -7%
Stop Target: None

Action: Support is at $20.75-$20.50. Resistance is at $21.25-$21.50.


Cypress Semiconductor (CY, $14.34, up $0.26)

CY June 14 calls (CY170616C00014000, $1.00, up $0.10)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: 18%
Stop Target: None

Action: Resistance is at $14.25-$14.50. Support is at $13.75-$13.50.


Square (SQ, $18.10, up $0.25)

SQ June 18 calls (SQ170616C00018000, $1.15, up $0.10)

Entry Price: $0.95 (4/20/2017)
Exit Target: $1.90
Return: 21%
Stop Target: None

Action: Resistance is at $18-$18.25. Support is at $17.50-$17.25.


STMicroelectronics (STM, $16.08, up $0.64)

STM May 15 calls (STM170519C00015000, $1.45, up $0.45)

Entry Price: $1.15 (3/31/2017)
Exit Target: $2.30
Return: 26%
Stop Target: 40 cents (Stop Limit)

Action: Fresh resistance is at $16.25-$16.50. Rising support is at $15.75-$15.50.