MomentumOptions.com Mid-Market Update for 5/30/2017

Earnings for the Week

1:40pm (EST)

Despite a shortened week, there will be plenty of noteworthy companies reporting earnings with possible trades on stocks making double-digit percentage moves. I will be doing some research and homework to target some of the stocks that could make tremendous moves this week, so let’s look at the group.

After today’s close, Danaos (DAC) will report their results and is the only major company worth noting.

On Wednesday, Analog Devices (ADI), Box (BOX), J. Jill Group (JILL), Micheal Kors Holdings (KORS), Palo Alto Networks (PANW), Semtech (SMTC) and Vera Bradley (VRA) will confess their numbers. All of these stocks could move 5%-10%, or more, especially BOX and PANW. A sneaky play could be a bullish call on JILL as options are available to trade on all of the aforementioned stocks.

For Thursday, Broadcom (AVGO), Ciena (CIEN), Cooper Companies (COO), Dollar General (DG), Express (EXPR), Five Below (FIVE), Lululemon Athletica (LULU), Mobileye (MBLY), VMware (VMW), Workday (WDAY) and Zumiez (ZUMZ).

There could be a trade in FIVE, as shares look poised for a continued breakout, or a major backtest if earnings come in light. Shares have made run from $39 in mid-March to a recent $54. The company matched estimates for a profit of 90 cents last quarter and has topped estimates the three previous quarters by a penny, twice, and 2-cents, respectively.

Friday’s action is light with the recent IPO, Canada Goose (GOOS), scheduled to report ahead of the opening bell. The company is expected to report a loss of 15 cents a share.

Turning our focus to the market, the Dow is sliding 37 points to 21,043 while the S&P 500 is off a point to 2,414. The Nasdaq is down 3 points to 6,206 and the Russell 2000 is falling 9 points to 1,373.

I have updated our current trades so let’s go check the tape. I’m also looking at adding 1-2 new trades this week, with one possibly being ahead of today’s close so stay close to your email inbox.

 

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, $36.59, down $0.09)

SNE July 37 calls (SNE170721C00037000, $0.90, down $0.10)

Entry Price: $0.85 (5/26/2017)
Exit Target: $1.70
Return: 6%
Stop Target: None

Action: Support is at $36-$35.50. Resistance is at $36.75-$37.

 

Amicus Therapeutics (FOLD, $7.70, down $0.23)

FOLD July 8 calls (FOLD170721C00008000, $0.65, down $0.10)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: -24%
Stop Target: None

Action: Support is at $7.75-$7.50. Resistance is at $8.

 

Spider Gold Shares (GLD, $120.19, down $0.35)

GLD June 122 calls (GLD170616C00122000, $0.55, down $0.15)

Entry Price: $0.75 (5/22/2017)
Exit Target: $1.50
Return: -27%
Stop Target: None

Action: Support is at $119.25-$119 and the 50-day moving average. Resistance is at $121-$121.50.

 

Flex (FLEX, $17.25, up $0.29)

FLEX July 17 calls (FLEX170721C00017000, $0.75, up $0.15)

Entry Price: $0.45 (5/16/2017)
Exit Target: $0.90
Return: 67%
Stop Target: 47 cents (Stop Limit)

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

 

STMicroelectronics (STM, $16.56, 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 $16.75-$17. Support is at $16.25-$16.

 

Viavi Solutions (VIAV, $11.30, down $0.06)

June 12 calls (VIAV170616C00022500, $0.16, flat)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -54%
Stop Target: None

Action: Support is at $11.25-$11. Resistance is at $11.25-$11.50.

 

Cypress Semiconductor (CY, $13.86, up $0.03)

CY June 14 calls (CY170616C00014000, $0.40, flat)

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.