MomentumOptions.com Mid-Market Update for 7/17/2017

Small-Caps Set Fresh Record High

1:05pm (EST)

The market has traded in an extremely tight range today with the bulls controlling much of the action after a sluggish start. The small-caps have tapped a fresh all-time high and have showed the most strength. Financial stocks are mixed and the weakness in the Transports have limited gains as the bears try to get back in the game.

This will be a busy week for earnings with over 60 S&P 500 companies announcing numbers. Netflix (NFLX) gets the party started after today’s closing bell with analysts expecting a profit of $0.16 a share on revenue of $2.76 billion.

The high estimate has the company earning a profit of $0.24 a share while the low estimate is pegged at $0.08 a share. This would equate to a possible 8-cent swing beat or miss and a headline that could cause shares to be extremely volatile. The 52-week high is just south of $167 and could be cleared on a beat-and-raise quarter. Support is at $160 but there is risk to $157-$155 and $151-$150 and the 50/100-day moving averages on a disappointing quarter.

Heading into the second half of trading, the Dow is up 14 points to 21,652 while the S&P 500 is adding 2 points to 2,461. The Nasdaq is higher by 8 points to 6,320 and the Russell 2000 is climbing 4 points to 1,433.

I have updated our current trades so let’s go check the tape.

 

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.

 

Cypress Semiconductor (CY, $14.25, down $0.22)

CY August 15 calls (CY170818C00015000, $0.50, down $0.10)

Entry Price: $0.40 (7/12/2017)
Exit Target: $0.80
Return: 25%
Stop Target: None

Action: Support is at $14.25-$14. Resistance is at $14.50-$14.75.

 

Wendy’s (WEN, $15.67, up $0.03)

WEN August 16 calls (WEN170818C00016000, $0.45, flat)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: 0%
Stop Target: None

Action: Resistance is at $15.75-$16. Support is at $15.50-$15.25.

 

Bank of America (BAC, $24.04, down $0.17)

BAC August 25 calls (BAC170818C00025000, $0.30, down $0.05)

Entry Price: $0.75 (7/3/2017)
Exit Target: $1.50
Return: -64%
Stop Target: None

Action: Support is at $24-$23.75. Resistance is at $24.50-$24.75.

 

AT&T (T, $36.29, down $0.01)

T August 37 puts (T170818P00037000, $1.15, flat)

Entry Price: $0.78 (6/29/2017)
Exit Target: $1.60
Return: 47%
Stop Target: $1.05 (Stop Limit)

Action: Support is at $36. Resistance is at $36.50-$36.75.

 

TherapeuticsMD (TXMD, $5.26, down $0.37)

TXMD August 7.50 calls (TXMD170818C00007500, $0.25, down $0.20)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -50%
Stop Target: None

Action: Support is at $5.25-$5. Resistance is at $5.50.

 

iPath S&P 500 VIX Futures (VXX, 11.71, down 0.30)

VXX August 14 calls (VXX170818C00014000, $0.35, down $0.05)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -73%
Stop Target: None

Action: Support is at 11.75-11.50. Resistance is at 12.