Mid-Market Update for 5/15/2017

Cyber Security Stocks Bounce

12:40pm (EST)

A global wave of cyber attacks over the weekend has given cyber security stocks a lift with shares of Check Point (CHKP), FireEye (FEYE), Fortinet (FTNT), Palo Alto Networks (PANW) and Symantec (SYMC) trading higher today. A widespread “WannaCry” malware attack across 150 countries over the weekend is expected to get worse with today’s start to the work week.

CyberArk (CYBR) and ProofPoint (PFPT) are also names that could benefit in the wake of the recent ransomware attack but homework is needed before jumping into any of these names. For instance, FireEye continues to lose money hand-over-fist and CyberArk recently reported disappointing earnings.

The options pits are quite active in the aforementioned stocks as traders bet on continued strength but premiums have spiked on the news. We have traded FEYE and SYMC in the past, and there still might be an opportunity for a trade, but I don’t want to chase these names today.

I mentioned this would be a big week for Wall Street given the tight trading ranges in the Dow and S&P 500 this month. Traders are looking for a much wider swing to the upside, or downside, and I mentioned key support and resistance levels to watch on both indexes.

The Dow is higher by 82 points to 20,978 while the S&P 500 is up 10 points to 2,401. The Nasdaq is gaining 21 points to 6,142 and the Russell 2000 is adding 13 points to 1,396.

I have updated our current trades so let’s go check the tape. I’m also working on possible New Trades ahead of the closing bell so stay locked-and-loaded.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 29-10 (74%). 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.


Imax (IMAX, $28.62, down $0.48)

IMAX June 28 puts (IMAX170616P00028000, $0.55, up $0.10)

Entry Price: $0.40 (5/12/2017)
Exit Target: $0.80
Return: 38%
Stop Target: None

Action: Support is at $29-$28.50. Lowered resistance is at $29.25-$29.50.


Viavi Solutions (VIAV, $11.71, up $0.05)

June 12 calls (VIAV170616C00022500, $0.40, flat)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: 14%
Stop Target: None

Action: Resistance is at $11.75-$12. Support is at $11.50-$11.25.


iShares Russell 2000 (IWM, $138.82, up $1.32)

IWM June 134 puts (IWM170616P00134000, $0.90, down $0.35)

Entry Price: $1.40 (5/2/2017)
Exit Target: $2.10-$2.80
Return: -36%
Stop Target: 70 cents (Stop Limit)

Action: Resistance is at $139-$139.50. Support is at $138.25-$138.


Cypress Semiconductor (CY, $13.77, up $0.32)

CY June 14 calls (CY170616C00014000, $0.45, up $0.10)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -47%
Stop Target: 25 cents

Action: Resistance is at $13.75-$14. Support is at $13.50-$13.25.