MomentumOptions.com Mid-Market Update for 6/1/2017

Jobs Report Bullish/ New Trade (FLEX)

12:00pm (EST)

Futures were showing a sluggish start to today action for much of the morning but improved following a better-than-expected jobs report. The ADP employment change report showed an increase of 253,000 jobs, versus expectations for the addition of 180,000 private sector jobs in May. Meanwhile, weekly initial jobless claims were 248,000 versus the expected 238,000 first-time claims.

This gave futures a lift and led to a positive open with the major indexes holding slight gains heading into the second half of action. The Financial stocks are showing a slight bid and the Dow Jones Transportation Average is trying to clear its 100-day moving average on a possible breakout. Both developments are bullish signs.

The Dow is up 29 points to 21,038 while the S&P 500 is gaining 5 points to 2,417. The Nasdaq is higher by 14 points to 6,213 and the Russell 2000 is climbing 7 points to 1,377.

My commentary is a little short as I have another New Trade for the portfolio. Shares of FLEX are at fresh 52-week peaks so I want to piggy-back our current position that has now reached a triple-digit profit.

 

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.

New Trade

Flex (FLEX, $17.52, up $0.26)

Buy to Open FLEX July 18 calls (FLEX170721C00018000, $0.40, up $0.07)

Action: I like these call options at current levels and you can use a Limit Order up to 50 cents to get the best fills. These are the FLEX July 18 call options that expire on July 21st, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Current Trades

Sony (SNE, $36.47, down $0.15)

SNE July 37 calls (SNE170721C00037000, $0.85, down $0.05)

Entry Price: $0.85 (5/26/2017)
Exit Target: $1.70
Return: 0%
Stop Target: None

Action: Support is at $36.25-$36. Resistance is at $36.75-$37.

 

Amicus Therapeutics (FOLD, $8.15, up $0.11)

FOLD July 8 calls (FOLD170721C00008000, $0.75, flat)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: -12%
Stop Target: None

Action: Resistance is at $8.25-$8.50. Rising support is at $7.75-$7.50.

 

Spider Gold Shares (GLD, $120.24, down $0.38)

GLD June 122 calls (GLD170616C00122000, $0.50, down $0.10)

Entry Price: $0.75 (5/22/2017)
Exit Target: $1.50
Return: -33%
Stop Target: None

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

 

Flex (FLEX, $17.52, up $0.26)

FLEX July 17 calls (FLEX170721C00017000, $0.90, up $0.15)

Entry Price: $0.45 (5/16/2017)
Exit Target: $0.90
Return: 100%
Stop Target: 47 cents (Stop Limit)

Action: Fresh resistance at $17.50-$17.75. Support is at $17.25-$17.

 

STMicroelectronics (STM, $16.38, down $0.09)

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, $11.46, up $0.24)

June 12 calls (VIAV170616C00022500, $0.15, up $0.03)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -57%
Stop Target: None

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

 

Cypress Semiconductor (CY, $14.24, up $0.25)

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

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

Action: Fresh resistance is at $14.25-$14.50. Rising support is at $14-$13.75.