MomentumOptions.com Mid-Market Update for 6/22/2017

Biotech Breaking Out/ New Trades (FOLD, TXMD)

1:45pm (EST)

The Biotech sector is breaking out following the recent move above the $300 level in the iShares Nasdaq Biotechnology ETF (IBB). The 2-year weekly chart below shows the 50/200-day moving are in nice uptrends with fresh resistance in the $320-$330 area. Rising support is at $310-$300 with backup help at $290-$285.

The surge past multi-year resistance should help individual stocks gain momentum and why I like the sector.

Today’s action has been slightly bullish with the indexes trying to regain positive territory for the week. The Dow is up 23 points to 21,433 while the S&P 500 is adding 4 points to 2,440. The Nasdaq is higher by 18 points to 6,252 and the Russell 2000 is gaining 6 points to 1,405.

I have two New Trades I want to get us into so let’s get on it.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 38-15 (71xx%). 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, $10.21 up $0.27)

Buy to Open FOLD July 10 calls (FOLD170721C00010000, $0.70, up $0.18)

Action: I like these call options at current levels and you can use a Limit Order up to 85 cents to get the best fills. These are the regular FOLD July 10 calls that expire on July 21st, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

TherapeuticsMD (TXMD, $5.82, up $0.02)

Buy to Open TXMD August 7.50 calls (TXMD170818C00007500, $0.50, up $0.05)

Action: I like these call options at current levels and you can use a Limit Order up to 65 cents to get the best fills. These are the regular TXMD August 7.50 calls that expire on August 18th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

iPath S&P 500 VIX Futures (VXX, 12.67, down 0.12)

VXX August 14 calls (VXX170818C00014000, $0.95, flat)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -21%
Stop Target: None

Action: Support is at 12.50-12.25. Resistance is at 12.75-13.