MomentumOptions.com Mid-Market Update for 6/9/2017

Fresh All-Time Highs in Play

12:25pm (EST)

Despite this week’s back-and-forth action, the bulls are on track to get the weekly win with today’s gains icing on the cake. While some political uncertainty seemed to be lifted here at home yesterday, the U.K. got a curve ball after the Conservative Party lost its majority.

Prime Minister, Theresa May, who called the election in a bid to increase her party’s majority in parliament ahead of the crucial Brexit talks took a gamble – and paid dearly for it. As a result, the Pound is getting pounded and has traded below $1.27, its lowest level in nearly two months.

Futures were slightly mixed throughout the evening from the chaos overseas but improved ahead of this morning’s opening. The action set a bullish tone that should carry over into next week, or longer. While I have predicted higher highs from May that would last through mid-June, at some point this month, there could be a slight pullback.

This means we can still stay with mostly bullish trades, but in a few weeks, we might have to prepare for a pullback, or trading range, in the back half of the month. The good news is that second-quarter earnings season will begin after the July 4th holiday, with the chance of a continued summer rally.

With the portfolio light, we are once again in perfect shape to take advantage of continued strength in the market, or a pullback at some point.

Heading into the second half of trading, the Dow is up 106 points to 21,288 while the S&P 500 is adding 9 points to 2,443. The Nasdaq is down 7 points to 6,314 and the Russell 2000 is surging 17 points to 1,432. All of the major indexes have traded to intraday all-time highs today.

I have updated our current trades and there is a chance I could have a New Trade ahead of the closing bell. However, if you don’t hear from me again, have a great and safe weekend.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 35-11 (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.

 

Bank of America (BAC, $23.54, up $0.57)

BAC July 23 calls (BAC170721C00023000, $1.15, up $0.37)

Entry Price: $0.60 (6/5/2017)
Exit Target: $0.90-$1.20, raise to $1.50
Return: 92%
Stop Target: 63 cents (Stop Limit)

Action: Raise the Exit Targets from $0.90-$1.20 to $1.50.

Fresh resistance is at $23.75-$24. Rising support is at $23.25-$23.

 

Flex (FLEX, $17.45, up $0.10)

FLEX July 18 calls (FLEX170721C00018000, $0.35, flat)

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

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

 

Amicus Therapeutics (FOLD, $8.65, up $0.02)

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 $8.50-$8.25.

 

STMicroelectronics (STM, $17.16, down $0.18)

STM October 20 calls (STM171020C00020000, $0.65, flat)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -7%
Stop Target: None

 

STM July 17.50 calls (STM170721C00017500, $0.60, flat)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -8%
Stop Target: None

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

 

Viavi Solutions (VIAV, $11.66, up $0.23)

June 12 calls (VIAV170616C00022500, $0.14, up $0.06)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -60%
Stop Target: 5 cents (Stop Limit)

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