MomentumOptions.com Mid-Market Update for 5/25/2017

Bulls Popping a Six-Pack

12:00pm (EST)

The bulls are working on their sixth-straight up session with fresh record highs in play today. Futures were strong throughout the night and into the open, leaving little doubt momentum would stay strong and Wall Street would be caught off-guard looking ahead to the three-day weekend.

While vacations are nice, fund managers that are underperforming this bull market might want to stay home and do some extra work. Of course, we do our homework Daily and have stayed mostly long and strong throughout the year with call options. We have benefitted from using put options, sparingly, but my February price targets for the major indexes were aggressive and have helped us avoid the noise.

I have also done well identifying trading ranges throughout the year that has also help us avoid the pitfalls of time premium. There have been and still are a few more months this year where options expire mid-month. It’s imperative you give your trades enough time to play out without overpaying, while at the same time, ensuring the stock can make the move you want it to make within that time frame.

Option trading is not an easy gig but it’s the best job in the world, to me.

With today’s gains and breakout to fresh all-time highs for the Nasdaq and S&P 500, those that sold in May and went away are starting to regret that move. Of course, I don’t worry about ever getting “out” of the market because I play the trend and I love both the bulls and bears.

The Dow is higher by 56points to 21,068 while the S&P 500 is adding 9 points to 2,413. The Nasdaq is up 37 points to 6,200 and the Russell 2000 is gaining 6 points to 1,389.

I’m working on a possible New Trade but still running the math to find the best option. For now, let’s go check on the current action, but stay locked-and-loaded into the close in case I pull the trigger.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 32-10 (76%). 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.

 

Amicus Therapeutics (FOLD, $8.58, up $0.14)

FOLD July 8 calls (FOLD170721C00008000, $1.10, up $0.10)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: 29%
Stop Target: None

Action: Fresh resistance is at $8.75-$9. Support is at $8.25-$8.

 

Spider Gold Shares (GLD, $119.59, down $0.02)

GLD June 122 calls (GLD170616C00122000, $0.45, down $0.05)

Entry Price: $0.75 (5/22/2017)
Exit Target: $1.50
Return: -40%
Stop Target: None

Action: Support is at $119.25-$119. Resistance at $119.75-$120.

 

Flex (FLEX, $17.14, up $0.16)

FLEX July 17 calls (FLEX170721C00017000, $0.70, up $0.10)

Entry Price: $0.45 (5/16/2017)
Exit Target: $0.90
Return: 56%
Stop Target: None

Action: Fresh resistance is at $17.25. Support is trying to move up to $17-$16.75.

 

STMicroelectronics (STM, $16.49, up $0.13)

STM October 20 calls (STM171020C00020000, $0.55, up $0.05)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -21%
Stop Target: None

 

STM July 17.50 calls (STM170721C00017500, $0.45, up $0.05)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -31%
Stop Target: None

Action: Resistance is at $16.50-$16.75. Support is at $16.25-$16.

 

Viavi Solutions (VIAV, $11.16, up $0.02)

June 12 calls (VIAV170616C00022500, $0.12, flat)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -66%
Stop Target: None

Action: Resistance is at $11.25. Support is at $11.

 

Cypress Semiconductor (CY, $14.00, up $0.11)

CY June 14 calls (CY170616C00014000, $0.50, up $0.10)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -41%
Stop Target: None

Action: Resistance is at $14-$14.25. Rising support is at $13.75-$13.50.