Mid-Market Update for 5/1/2017

Earnings for the Week/ Profit Alert (CSCO)

12:10pm (EST)

I mentioned Apple (APPL) would be reporting earnings Tuesday afternoon and there are a number of other companies worth noting. There could be a bullish or bearish trade out of the bunch as I’ve spent much of the morning scanning charts and looking at setups.

Advanced Micro Devices (AMD), Exelisis (EXEL), Nobel Energy (NBL), Stifel Financial (SF) and Tenet Healthcare (THC) report after today’s close.

On Tuesday, CVS (CVS), Coach (COH), First Solar (FSLR), Gilead Sciences (GILD), GoDaddy (GDDY), Mastercard (MA), Merck (MRK), Pfizer (PFE), Shopify (SHOP), Tower International (TOWR), Twilio (TWLO), Western Union (WU) and Viavi Solutions (VIAV) will announce numbers.

Facebook (FB), Humana (HUM), New York Times (NYT), Strayer Education (STRA), Sprint (S), Tesla (TSLA), USA Truck (USAK) and Yum Brands (YUM) will confess quarterly results on Wednesday.

Some of the major companies reporting Thursday include Avon Products (AVON), Cabela’s (CAB), Dunkin’ Brands Group (DNKN), Dominion Resources (D), Kellogg (K), US Concrete (USCR), World Wrestling Federation (WWE) and Zoetis (ZTS). WWE has been a favorite earnings trade of mine in the past and one of the trade possibilities I’m looking at.

The week wraps up with Cigna (CI), Colfax (CFX), LouisianaPacific (LPX), TransCanada (TRP) and Welltower (HCN) announcing their numbers.

The Dow is up 10 points to 20,950 while the S&P 500 is gaining 6 points to 2,390. The Nasdaq is higher by 36 points to 6,083 and the Russell 2000 is flat at 1,400.

I have a Profit Alert for CSCO. I have also raised the Stop Limit on SQ by a nickel. Stay locked-and-loaded into the close in case I take additional action.


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, $44.90, down $0.06)

ORCL June 46 calls (ORCL170616C00046000, $0.60, flat)

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

Action: Resistance is at $45-$45.50. Support is at $44.50-$44.25.


Cisco Systems (CSCO, $33.92, down $0.15)

CSCO May 34 calls (CSCO170519C00034000, $0.60, down $0.10)

Entry Price: $0.42 (4/25/2017)
Exit Target: $0.85 (closed 1/3 @ 60 cents on 4/27/2017)
Return: 43%
Stop Target: 60 cents (Stop Limit)

Action: The Stop Limit at 60 cents on the remaining 2/3rd’s of the trade has triggered. I will keep CSCO on my Watch List, but for now, we are back on the sidelines.


Snap (SNAP, $22.32, down $0.23)

SNAP May 23 calls (SNAP170519C00023000, $1.40, down $0.05)

Entry Price: $0.75 (4/21/2017)
Exit Target: $2 (Limit Order on half)
Return: 87%
Stop Target: $1.15, raise to $1.20 (Stop Limit)

Action: Raise the Stop Limit from $1.15 to $1.20 to protect profits.

Support is at $22.25-$22. Resistance is at $22.50-$22.75.


Cypress Semiconductor (CY, $13.76, down $0.25)

CY June 14 calls (CY170616C00014000, $0.60, down $0.10)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -29%
Stop Target: None

Action: Support at $13.75 and the 50-day moving average. Resistance is at $14.


Square (SQ, $18.40, up $0.16)

SQ June 18 calls (SQ170616C00018000, $1.25, flat)

Entry Price: $0.95 (4/20/2017)
Exit Target: $1.90 (closed half at $1.20 on 4/28/2017)
Return: 28%
Stop Target: $1.05 (Stop Limit)

Action: Support is at $18-$17.75. Resistance is at $18.50-$18.75 with the 52-week high at $18.45.