MomentumOptions.com Mid-Market Update for 7/26/2017

Dow Surges to Fresh High

12:50pm (EST)

The Dow soared to triple-digit gains shortly after the open on the strength of an earnings beat by blue-chipper Boeing (BA). The company reported better-than-expected quarterly profits while raising guidance. Profits came in at $2.55 a share on revenue of $22.74 billion. Wall Street was looking for $2.30 a share on sales north of $23 billion.

Shares have traded to a fresh 52-week high of $231 despite the revenue miss. The company is delivering better performance in every segment of the business, according to their CEO, and has helped fuel today’s 8% pop.

The performance has helped the blue-chips to a fresh all-time high with the S&P 500 and Nasdaq also joining in. The FOMC concludes its meeting today, though no major changes are expected when the Fed makes its announcement in a little over an hour.

The Dow is gaining 94 points to 21,707 while the S&P 500 is higher by 2 points to 2,479. The Nasdaq is up 9 points to 6,421 and the Russell 2000 is slipping 2 points to 1,448.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 41-16 (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.

 

Alcoa (AA, $37.14, down $0.16)

AA August 39 calls (AA170818C00039000, $0.55, flat)

Entry Price: $0.55 (7/25/2017)
Exit Target: $1.10
Return: 0%
Stop Target: None

Action: Resistance is at $37.50-$38. Support is at $37-$36.75.

 

Imax (IMAX, $21.65, down $0.05)

IMAX August 21 puts (IMAX170818P00021000, $0.65, flat)

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

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

 

Wendy’s (WEN, $15.81, down $0.14)

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

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

Action: Support is at $15.75. Resistance is at $16-$16.25.

 

TherapeuticsMD (TXMD, $5.95, up $0.20)

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

 

iPath S&P 500 VIX Futures (VXX, 11.01, down 0.05)

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

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -88%
Stop Target: 10 cents (Stop Limit)

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