MomentumOptions.com Mid-Market Update for 4/27/2017

Big Evening for Earnings/ Profit Alert (CSCO)

1:05pm (EST)

The bulls continued the quest for higher highs on this morning’s open following another barrage of earnings reports and economic data. Most of the numbers have been above expectations, along with first quarter results, overall. Companies are topping expectations at a 70% clip, and near historical averages, however, revenues have also been ahead of forecasts. This is a good sign for the rest of the year, especially if the economy really heats up.

Heading into the second half of action, the major indexes have lost their momentum, though Tech has remained in positive territory ahead of a bustling after-hours. Alphabet (GOOG), Amazon (AMZN), Microsoft (MSFT) and Intel (INTC) will announce their quarterly numbers.

These stocks are heavily weighted in the major indexes and should set the tone for Friday’s action.

The Dow is down 12 points to 20,962 while the S&P 500 is slipping a point to 2,386. The Nasdaq is up 16 points to 6,041 and the Russell 2000 is off 3 points to 1,416.

I have a partial Profit Alert on CSCO as it is hard to pass up a 43% gain in two days. I’m also working on another new trade ahead of the close so stay locked-and-loaded.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 24-10 (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.

 

Oracle (ORCL, $44.84, up $0.15)

ORCL June 46 calls (ORCL170616C00046000, $0.60, up $0.05)

Entry Price: $0.55 (4/26/2017)
Exit Target: $1.10
Return: 9%
Stop Target: None

Action: Resistance is at $44.75-$45. Support is at $44.50-$44.25.

 

Cisco Systems (CSCO, $33.77, up $0.36)

CSCO May 34 calls (CSCO170519C00034000, $0.60, up $0.18)

Entry Price: $0.42 (4/25/2017)
Exit Target: $0.85
Return: 43%
Stop Target: None

Action: Close a THIRD of the trade at current levels.

Resistance is at $33.75-$34. Support is trying to move up to $33.50-$33.25.

 

Snap (SNAP, $21.98, up $0.40)

SNAP May 23 calls (SNAP170519C00023000, $1.10, up $0.10)

Entry Price: $0.75 (4/21/2017)
Exit Target: $1.50
Return: 47%
Stop Target: 77 cents (Stop Limit)

Action: Fresh resistance is at $22-$22.25. Rising support is at $21.50-$21.25.

 

Cypress Semiconductor (CY, $14.35, up $0.37)

CY June 14 calls (CY170616C00014000, $0.95, up $0.10)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: 12%
Stop Target: None

Action: Resistance is at $14.25-$14.50. Support is at $14-$13.75.

 

Square (SQ, $18.43, up $0.35)

SQ June 18 calls (SQ170616C00018000, $1.40, up $0.20)

Entry Price: $0.95 (4/20/2017)
Exit Target: $1.90
Return: 47%
Stop Target: $1.05 (Stop Limit)

Action: Resistance is at $18.25-$18.50. Support is at $18-$17.75.