MomentumOptions.com Mid-Market Update for 7/25/2017

Record Highs in Play/ New Trade (AA)

1:00pm (EST)

The market is showing some continued momentum as the major indexes are making another run at record highs. Tech was slight weak on the open but is showing strength heading into the second half of action. Earnings from the Tech sector have been mixed along with lowered outlooks and margin pressure, in some cases.

Financial stocks are showing major strength today along with a bounce back in retail. Volatility is still being compressed with the VIX once again hitting a historic low.

The Dow is up 126 points to 21,639 while the S&P 500 is adding 9 points to 2,479. The Nasdaq is higher by 6 points to 6,417 and the Russell 2000 is climbing 13 points to 1,451.

I do have a New Trade I want to get us into so let’s get on it.

 

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.

 

New Trade

Alcoa (AA, $37.33, up $0.64)

Buy to Open AA August 39 calls (AA170818C00039000, $0.55, up $0.15)

Action: I like these call options at current levels and you can use a Limit Order up to 70 cents to get the best fills. These are the regular AA August 39 calls that expire on August 18th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.

 

Current Trades

Imax (IMAX, $21.45, down $0.05)

IMAX August 21 puts (IMAX170818P00021000, $0.70, flat)

Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Return: -10%
Stop Target: None

Action: Resistance is at $21.75-$22. Support is at $21.25-$21.

 

Wendy’s (WEN, $15.88, up $0.10)

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

 

TherapeuticsMD (TXMD, $5.60, down $0.21)

TXMD August 7.50 calls (TXMD170818C00007500, $0.25, flat)

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

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

 

iPath S&P 500 VIX Futures (VXX, 11.01, down 0.01)

VXX August 14 calls (VXX170818C00014000, $0.15, flat)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -87%
Stop Target: 10 cents (Stop Limit)

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