MomentumOptions.com Mid-Market Update for 7/31/2017

Earnings still in Focus

1:00pm (EST)

The bulls are trying to put the finishing touches on nice July as the major averages are mixed heading into the second half of trading. Tech and the small-caps are slightly weak but are still holding monthly gains.

Earnings will be in focus again this week including Cognex (CGNX), Kaman (KAMN), Pandora Media (P), Texas Roadhouse (TXRH), Trex (TREX) and True Blue (TBI) after today’s closing bell.

Beazer Homes (BZH), Eaton (ETN), Harris (HRS), Lumber Liquidators (LL), Pfizer (PFE), Scotts Miracle-Gro (SMG), Sony (SNE), Sprint (S), Under Armour (UA) and Xerox (XRX) are reporting ahead of tomorrow’s opening bell.

The Dow is up 85 points to 21,915 while the S&P 500 is adding a point to 2,473. The Nasdaq is lower by 18 points to 6,356 and the Russell 2000 is off 6 points to 1,422.

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

 

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, $35.99, up $0.35)

AA August 39 calls (AA170818C00039000, $0.20, flat)

Entry Price: $0.55 (7/25/2017)
Exit Target: $1.10
Return: -56%
Stop Target: None

Action: Resistance is at $36-$36.25. Support is at $35.50-$35.25.

 

Imax (IMAX, $21.55, down $0.40)

IMAX August 21 puts (IMAX170818P00021000, $0.55, up $0.05)

Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Return: -31%
Stop Target: None

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

 

Wendy’s (WEN, $15.32, down $0.22)

WEN August 16 calls (WEN170818C00016000, $0.25, down $0.05)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: -46%
Stop Target: None

Action: Support at $15.25-$15. Resistance is at $15.50.

 

TherapeuticsMD (TXMD, $5.57, down $0.05)

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

 

iPath S&P 500 VIX Futures (VXX, 11.20, down 0.09)

VXX August 14 calls (VXX170818C00014000, $0.20, flat)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -86%
Stop Target: 10 cents (Stop Limit)

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