MomentumOptions.com Mid-Market Update for 6/5/2017

Action from ASCO

12:05pm (EST)

There are a number of Biotech stocks on the move today following updates from the 2017 American Society of Clinical Oncology, or ASCO, that started over the weekend. The event runs through June 6 and historically has been a positive catalyst for the oncology sector as dozens of companies in the field present their ideas and updates.

Loxo Oncology (LOXO) is surging 50% after demonstrating a 76% confirmed objective response rate for tumors. The suit-and-ties were looking for a response rate for the drug, larotrectinib, to clear 70% or better. Given the news, one analyst said FDA approval for larotrectinib is now as close to a “slam dunk” as it gets in Biotech.

Dynavax (DVAX) is gaining 17% following its presentation at ASCO. The company has a drug, SD-101, in Phase 2 development. As far as options, DVAX call options are seeing some action but LOXO does not currently trade options.

Turning our focus to the overall market, trading has been choppy with slight downside pressure on the open. A small recovery to the upside came afterwards but the action is back in the red heading into the second half. The Dow is gaining 3 points to 21,209 while the S&P 500 is down a point to 2,437. The Nasdaq is lower by 7 points to 6,298 and the Russell 2000 is slipping 7 points to 1,398.

I have updated our current trades along with the parameters of our BAC position.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 33-10 (77%). 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.

 

Bank of America (BAC, $22.60, up $0.15)

BAC July 23 calls (BAC170721C00023000, $0.60, up $0.06)

Entry Price: $0.60 (6/5/2017)
Exit Target: $0.90-$1.20
Return: 0%
Stop Target: None

Action: Set Exit Targets at 90 cents and $1.20. There is no Stop Target.

Resistance is at $22.75-$23. Support is at $22.50-$22.25.

 

Flex (FLEX, $17.53, down $0.09)

FLEX July 18 calls (FLEX170721C00018000, $0.45, down $0.04)

Entry Price: $0.40 (6/1/2017)
Exit Target: $0.80
Return: 12%
Stop Target: None

FLEX July 17 calls (FLEX170721C00017000, $0.95, down $0.05)

Entry Price: $0.45 (5/16/2017)
Exit Target: $1.35
Return: 111%
Stop Target: 80 cents (Stop Limit)

Action: Support is at $17.25-$17. Resistance is at $17.75-$18.

 

Sony (SNE, $37.81, up $0.06)

SNE July 37 calls (SNE170721C00037000, $1.50, flat)

Entry Price: $0.85 (5/26/2017)
Exit Target: $1.70
Return: 76%
Stop Target: $1.25 (Stop Limit)

Action: Resistance is at $37.75-$38 with breakout potential to $40-$41 on continued strength. Support is at $37.25-$37.

 

Amicus Therapeutics (FOLD, $8.30, down $0.10)

FOLD July 8 calls (FOLD170721C00008000, $0.90, flat)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: 6%
Stop Target: None

Action: Support is at $8.25-$8. Near-term resistance is at $8.50-$8.75.

 

STMicroelectronics (STM, $16.56, down $0.20)

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: Support is at $16.50-$16.25. Resistance is at $16.75-$17.

 

Viavi Solutions (VIAV, $11.24, down $0.15)

June 12 calls (VIAV170616C00022500, $0.10, down $0.02)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -71%
Stop Target: None

Action: Support is at $11.25-$11. Resistance is at $11.50-$11.75.

 

Cypress Semiconductor (CY, $14.12, up $0.18)

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: 10 cents (Stop Limit)

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