MomentumOptions.com Mid-Market Update for 5/26/2017

Two Trading Days Left in May

1:05pm (EST)

With today’s action already on the books, it leaves just two trading days for the bulls and bears to settle May’s fate. I mentioned the small-caps still have some work to do and the current gains in the other major indexes aren’t a given so the bulls can’t take anything for granted.

The bears have long retreated since last week’s growl and could stay quiet through mid-June if the current rally holds. At least that is what my current research is showing. With the market closed on Monday, I’ve been doing some early homework to get a head start on next week’s action. There are a number of bullish signs still developing and why I mentioned there could be another few weeks of upside.

Of course, there could also be some curve balls coming, especially if the political rhetoric heats up, or continued talk of saber-rattling. The President will be back at the White House and there are a number of economic news that could sway market direction.

The good news is there are a number of bearish signs and fresh support levels we can watch for a possible near-term top. Even better will be the opportunities to play the backtest using put options.

Today’s action has been sluggish on light volume and was somewhat expected ahead of the holiday. The Dow is down a point to 21,082 while the S&P 500 is up a half-point to 2,415. The Nasdaq is adding 2 points to 6,207 and the Russell 2000 is off 2 points to 1,381.

I have updated our latest trade Sony (SNE) along with our other current trades. I doubt I will have additional action to take but I will be watching the action into the closing bell while writing. Have a great and safe 3-day weekend and I will talk to you again on Tuesday morning.

 

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.

 

Sony (SNE, $36.76, up $0.59)

SNE July 37 calls (SNE170721C00037000, $1.00, up $0.28)

Entry Price: $0.85 (5/26/2017)
Exit Target: $1.70
Return: 18%
Stop Target: None

Action: Set an Exit Target at $1.70. There is no Stop Target.

Fresh resistance is at $36.75-$37. I believe shares can make a run to $39-$40 by late July on continued momentum. These call options will double from the entry price if shares trade past $38.70, technically, by July 21st, 2017. Support is at $36-$35.50.

Amicus Therapeutics (FOLD, $8.10, down $0.20)

FOLD July 8 calls (FOLD170721C00008000, $0.85, down $0.15)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: 0%
Stop Target: None

Action: Support is at $8-$7.75. Resistance is at $8.25-$8.50.

 

Spider Gold Shares (GLD, $120.50, up $1.02)

GLD June 122 calls (GLD170616C00122000, $0.72, up $0.32)

Entry Price: $0.75 (5/22/2017)
Exit Target: $1.50
Return: -4%
Stop Target: None

Action: Fresh resistance at $121-$121.50. Support is at $119.25-$119.

 

Flex (FLEX, $16.94, down $0.17)

FLEX July 17 calls (FLEX170721C00017000, $0.65, down $0.05)

Entry Price: $0.45 (5/16/2017)
Exit Target: $0.90
Return: 44%
Stop Target: 55 cents (Stop Limit)

Action: Support is at $17-$16.75. Resistance is at $17.25-$17.50.

 

STMicroelectronics (STM, $16.50, up $0.06)

STM October 20 calls (STM171020C00020000, $0.55, flat)

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

 

STM July 17.50 calls (STM170721C00017500, $0.45, flat)

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, $11.25, up $0.07)

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-$11.50. Support is at $11.

 

Cypress Semiconductor (CY, $13.88, down $0.18)

CY June 14 calls (CY170616C00014000, $0.40, down $0.10)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -53%
Stop Target: None

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