MomentumOptions.com Mid-Market Update for 7/12/2017

Bulls Rally as Yellen Speaks/ New Trades (CY, WEN)

1:00pm (EST)

The market opened sharply higher and has remained in positive territory throughout the day as testimony from Janet Yellen to the House Finance Committee has dominated headlines. The Fed Chair has stated the central bank should begin paring its balance sheet in the near-term and that she and the central bank continue to expect gradual increases in the federal funds rate over time. She also added they were not looking to adjust the 2% inflation target.

Of course, there is much more to talk about but I’s rather focus on the market. The Dow is up 107 points to 21,516 while the S&P 500 is adding 16 points to 2,441. The Nasdaq is higher by 57 points to 6,250 and the Russell 2000 is gaining 11 points to 1,424.

My update is short as I have 2 New Trades for us to get into. I could have additional Trade Alerts into the closing bell so stay locked-and-loaded.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 39-15 (74%). 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.

New Trades

Cypress Semiconductor (CY, $13.94, up $0.17)

Buy to Open CY August 15 calls (CY170818C00015000, $0.40, up $0.05)

Action: I like these call options at current levels and you can use a Limit Order up to 50 cents to get the best fills. These are the regular CY August 15 calls that expire on August 18th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Wendy’s (WEN, $15.74, down $0.06)

Buy to Open WEN August 16 calls (WEN170818C00016000, $0.45, down $0.05)

Action: I like these call options at current levels and you can use a Limit Order up to 55 cents to get the best fills. These are the regular WEN August 16 calls that expire on August 18th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Current Trades

Bank of America (BAC, $24.45, down $0.15)

BAC August 25 calls (BAC170818C00025000, $0.50, down $0.08)

Entry Price: $0.75 (7/3/2017)
Exit Target: $1.50
Return: -33%
Stop Target: None

Action: Support is at $24.25-$24. Resistance is at $24.75-$25.

 

AT&T (T, $36.72, up $0.12)

T August 37 puts (T170818P00037000, $0.90, down $0.05)

Entry Price: $0.78 (6/29/2017)
Exit Target: $1.60
Return: 16%
Stop Target: 80 cents (Stop Limit)

Action: Resistance is at $36.75-$37. Support is at $36.75-$36.50.

 

TherapeuticsMD (TXMD, $5.19, up $0.20)

TXMD August 7.50 calls (TXMD170818C00007500, $0.40, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -20%
Stop Target: None

Action: Resistance is at $5.25-$5.50. Rising support is at $5-$4.75.

 

iPath S&P 500 VIX Futures (VXX, 12.44, down 0.27)

VXX August 14 calls (VXX170818C00014000, $0.60, down $0.10)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -50%
Stop Target: None

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