MomentumOptions.com Mid-Market Update for 6/7/2017

Crude Oil Slips to $46/ Profit Alert (SNE)/ Trade Alert (CY)

1:00pm (EST)

The market is trading slightly higher heading into the second half of trading despite oil tumbling another 4% to $46 a barrel. The pullback came after the Energy Department reported a surprise jump in U.S. crude stockpiles.

Oil stocks Exxon Mobil (XOM and Chevron (CV) are falling in sympathy with both names approaching 52-week lows. Exxon’s is at $79.26 while Chevron’s stands at $97.53.

There could be an opportunity to trade these names if additional layers of support fail, or, after a bottoming process forms. Overall, Energy stocks have lagged the market this year and remain unloved.

Financial stocks are catching a bid today and this is a slightly bullish sign. The Financial Select Spiders (XLF) are trading above the 50-day moving average but face additional resistance at $23.75 and the 100-day moving average. I mentioned coming into the week a move above these levels would be a big deal but we aren’t there, yet.

The Dow is up 10 points to 21,146 while the S&P 500 is adding a point to 2,429. The Nasdaq is gaining 9 points to 6,284 and the Russell 2000 is higher by 3 points to 1,398.

I have a Profit Alert for SNE and a Trade Alert for CY.

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, $22.51, up $0.28)

BAC July 23 calls (BAC170721C00023000, $0.56, up $0.13)

Entry Price: $0.60 (6/5/2017)
Exit Target: $0.90-$1.20
Return: -7%
Stop Target: None

Action: Resistance is at $22.50-$22.75. Support is at $22.25-$22.

 

Flex (FLEX, $17.34, down $0.06)

FLEX July 18 calls (FLEX170721C00018000, $0.40, flat)

Entry Price: $0.40 (6/1/2017)
Exit Target: $0.80
Return: 0%
Stop Target: None

FLEX July 17 calls (FLEX170721C00017000, $0.90, flat)

Entry Price: $0.45 (5/16/2017)
Exit Target: $1.35
Return: 100%
Stop Target: 80 cents (Stop Limit)

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

 

Sony (SNE, $37.86, down $0.27)

SNE July 37 calls (SNE170721C00037000, $1.60, down $0.20)

Entry Price: $0.85 (5/26/2017)
Exit Target: $2.50
Return: 88%
Stop Target: $1.60 (Stop Limit)

Action: The Stop Limit at $1.60 has tripped on today’s pullback. I will keep SNE on my Watch List for another possible bullish trade, but for now, we are out.

Amicus Therapeutics (FOLD, $8.55, up $0.04)

FOLD July 8 calls (FOLD170721C00008000, $1.10, flat)

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

Action: Resistance is at $8.75. Support is at $8.25 on a move back below $8.50.

 

STMicroelectronics (STM, $16.84, up $0.47)

STM October 20 calls (STM171020C00020000, $0.60, up $0.10)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -14%
Stop Target: None

 

STM July 17.50 calls (STM170721C00017500, $0.50, up $0.10)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -23%
Stop Target: None

Action: Shares traded down to $16.23 yesterday while closing below lower support at $16.50-$16.25. Resistance is at $16.75-$17.

 

Viavi Solutions (VIAV, $11.40, down $0.03)

June 12 calls (VIAV170616C00022500, $0.10, flat)

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

Action: Resistance is at $11.75. Support is at $11.25.

 

Cypress Semiconductor (CY, $13.82, down $0.23)

CY June 14 calls (CY170616C00014000, $0.30, down $0.15)

Entry Price: $0.85 (4/20/2017)
Exit Target: 90 cents
Return: -65%
Stop Target: 30 cents (Stop Limit)

Action: The Stop Limit at 30 cents has triggered on today’s pullback.