MomentumOptions.com Mid-Market Update for 7/28/2017

Intel (INTC) Tops Estimates

2:20pm (EST)

Futures were lower throughout the night and pointing towards a soft open that has held throughout the session. Yesterday was the busiest day for earnings with a number of high profile reporting after the closing bell. While Amazon.com (AMZN) has garnered much of Wall Street’s interest after an earnings miss, Intel (INTC) quietly silenced its critics with a better-than-expected quarter.

AMZN reported a profit of $0.40 a share on revenue of $38 billion. Analysts were looking for $1.42 a share on sales of $37.2 billion. Meanwhile, INTC topped estimates by 4 cents after reporting earnings of $0.72 a share on revenue of $14.8 billion. Wall Street was looking for $0.68 a share on revenue of $14.4 billion.

Oil prices continue their climb and are now approaching the $50 a barrel level but Exxon Mobil (XOM) is at a fresh 52-week low after its earnings miss ahead of this morning’s opening bell. Shares have tested a low of $78.27 after a 6-cent miss.

The major indexes have rebounded off their lows heading into the close with the blue-chips showing some strength. The Dow is up 10 points to 21,806 while the S&P 500 is off 5 points to 2,469. The Nasdaq is also lower by 5 points to 6,376 and the Russell 2000 is off 6 points to 1,427.

I have updated our trades ahead of the weekend so let’s go check the tape.

 

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, $35.64, down $0.72)

AA August 39 calls (AA170818C00039000, $0.25, down $0.05)

Entry Price: $0.55 (7/25/2017)
Exit Target: $1.10
Return: -53%
Stop Target: None

Action: Support is at $35.50-$35.25. Resistance is at $35.75-$36.

 

Imax (IMAX, $21.60, up $0.50)

IMAX August 21 puts (IMAX170818P00021000, $0.60, down $0.30)

Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Return: -18%
Stop Target: None

Action: Resistance is at $21.75-$22. Support at $21.50-$21.25.

 

Wendy’s (WEN, $15.53, down $0.32)

WEN August 16 calls (WEN170818C00016000, $0.35, down $0.10)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: -11%
Stop Target: None

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

 

TherapeuticsMD (TXMD, $5.58, up $0.11)

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 $5.75-$6. Support is at $5.50-$5.25.

 

iPath S&P 500 VIX Futures (VXX, 11.37, up 0.20)

VXX August 14 calls (VXX170818C00014000, $0.25, flat)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -77%
Stop Target: 10 cents (Stop Limit)

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