MomentumOptions.com Mid-Market Update for 7/24/2017

Mixed Action Ahead of FOMC Meeting

12:40pm (EST)

Futures were slightly soft throughout the morning hinting weakness today as the market awaits the heaviest volume of earnings due out this week. In addition, the FOMC meeting that begins tomorrow has also caused some tentativeness. Financial stocks showing some strength but most sectors are in the red.

Heading into the second half of trading, the Dow is down 48 points to 21,532 while the S&P 500 is slipping 2 points to 2,470. The Nasdaq is higher by 9 points to 6,396 and the Russell 2000 is off 3 points to 1,432.

I’ve been super busy looking at a New Trades and there are two possible plays I like this week. I’m still doing research so stay tuned. In the meantime, let’s go check on our current trades.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 40-16 (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.

 

Imax (IMAX, $21.82, up $0.57)

IMAX August 21 puts (IMAX170818P00021000, $0.60, down $0.20)

Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Return: -17%
Stop Target: None

Action: Resistance is at $21.75-$22. Support is at $21-$20.75.

 

Cypress Semiconductor (CY, $14.60, down $0.05)

CY August 15 calls (CY170818C00015000, $0.50, down $0.05)

Entry Price: $0.40 (7/12/2017)
Exit Target: $0.80
Return: 25%
Stop Target: 42 cents (Stop Limit)

Action: Support is at $14.50. Resistance at $14.75-$15.

 

Wendy’s (WEN, $15.92, up $0.06)

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 at $16-$16.25. Support is at $15.75.

 

TherapeuticsMD (TXMD, $6.00, up $0.31)

TXMD August 7.50 calls (TXMD170818C00007500, $0.30, up $0.05)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -40%
Stop Target: None

Action: Fresh resistance is at $6-$6.25. Support is at $5.75-$5.50.

 

iPath S&P 500 VIX Futures (VXX, 11.16, down 0.05)

VXX August 14 calls (VXX170818C00014000, $0.17, down $0.03)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -82%
Stop Target: 10 cents (Stop Limit)

Action: Support is at 11. Resistance is at 11.25-11.50.