MomentumOptions.com Mid-Market Update for 6/30/2017

Whipsaw Action Continues

1:35pm (EST)

Futures were mixed after midnight but improved into this morning’s open with the bulls getting off to a good start. This was a slight signal volatility might calm as traders square positions ahead of a holiday weekend and a light, half session on Monday. In other words, a 4-day vacation is setting up for Wall Street with traders protecting, buying or selling their positions.

While this week’s action has been exciting, I’m super giddy heading into July as volatility likely heats back up along with the start of 2Q earnings season the following week. I don’t take too many earnings trades but any new trades could be effected in the coming weeks and months with the fresh cycle lasting well into August.

I mentioned I could possibly have an index trade today but I may wait until Monday after doing my weekend homework. The market will be open a half day on Monday, or 1pm (EST), so we can wait until then to see if a clear trend starts to establish. The whipsaw swings this week is likely signaling even larger intraday swings and pullbacks, or rallies, in the coming weeks that will be more tradable.

Heading into the second half of trading, the Dow is up 80 points to 21,367 while the S&P 500 is adding 7 points to 2,426. The Nasdaq is higher by 6 points to 6,150 and the Russell 2000 is advancing a point to 1,417.

I have updated our current positions, and if I don’t take action ahead of the closing bell, have a great and safe weekend.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 38-15 (72%). 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.

 

AT&T (T, $37.65, up $0.03)

T August 37 puts (T170818P00037000, $0.83, flat)

Entry Price: $0.78 (6/29/2017)
Exit Target: $1.60
Return: 6%
Stop Target: None

Action: Resistance is at $38-$38.25. Support is at $37.50-$37.45.

 

Amicus Therapeutics (FOLD, $10.04, up $0.11)

FOLD July 10 calls (FOLD170721C00010000, $0.50, flat)

Entry Price: $0.70 (6/22/2017)
Exit Target: $1.40
Return: -29%
Stop Target: None

Action: Resistance is at $10-$10.25. Support is at $9.75-$9.50.

 

TherapeuticsMD (TXMD, $5.30, down $0.05)

TXMD August 7.50 calls (TXMD170818C00007500, $0.35, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -30%
Stop Target: None

Action: Support is at $5.25. Near-term resistance is at $5.50.

 

iPath S&P 500 VIX Futures (VXX, 12.80, down 0.15)

VXX August 14 calls (VXX170818C00014000, $1.00, flat)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -17%
Stop Target: None

Action: Support is at 12.75-12.50. Resistance is at 13-13.50.