Mid-Market Update for 6/16/2017

June Option Expiration Typically Bullish

1:55pm (EST)

June option expiration day has typically been bullish in recent years despite it also being Triple Witching. It is an event that occurs when the contracts for stock index futures, stock index options and stock options expire on the same day. It takes place four times a year on the third Friday of March, June, September and December.

The name may sound scary but today’s action has been simmered. Given this week’s tug-of-war, it is still too early to say what the next major trend will be, bullish or bearish, and it is always what makes trading fun, fascinating, and interesting. In other words, it is the best job in the world.

While I was hoping for a soft landing to end the week, for the quarter, the portfolio did extremely well. Despite the setback from yesterday, the portfolio went 17-5 from mid-April for a 77% win rate. For the year, I’m also over a 70% win rate with my prediction of Nasdaq 6,350 coming within 9 points of triggering.

I’m hoping to do even better for the second half of the year as explosive market moves could be coming as early as July, or sooner. I have mentioned throughout the year volatility could stay at low double-digits and single-digits for weeks and months and we have been witnessing it since mid-November. So much to the point, some knuckleheads on Wall Street are still saying the VIX is broken.

My point is, I don’t believe there will be a summer doldrum and expect the action to stay hot and very tradable, especially with 2Q earnings season just around the corner. I will have more of an outlook this weekend but I’ve already started my homework.

Peaking in on the market, the Dow is dipping 2 points to 21,357 while the S&P 500 is off 3 points to 2,429. The Nasdaq is lower by 19 points to 6,146 and the Russell 2000 is sliding 8 points to 1,401.

Remember, Father’s Day is Sunday so do your Pop’s good and take hime out, or get him a gift/card. I don’t believe I will be doing any trading into the close, but I have my radar always on in case I see something I like. If you don’t hear from me again, have a great and safe weekend.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 37-15 (71%). 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.


Amicus Therapeutics (FOLD, $9.25, up $0.46)

FOLD July 9 calls (FOLD170721C00009000, $0.80, up $0.25)

Entry Price: $0.50 (6/15/2017)
Exit Target: $1.00-$1.50
Return: 60%
Stop Target: None

Action: Fresh resistance is at $9.50-$10.Rising support is at $9-$8.75. The 52-week peak is at $9.61.


iPath S&P 500 VIX Futures (VXX, 13.08, down 0.01)

VXX August 14 calls (VXX170818C00014000, $1.15, flat)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -2%
Stop Target: None

Action: Resistance is at 13.50. Support is at 13-12.75.