MomentumOptions.com Mid-Market Update for 8/1/2017

Apple on Deck With Earnings

12:40pm (EST)

One of the biggest earnings announcement of the week comes after today’s closing bell with Apple (AAPL) updating Wall Street with its numbers and outlook. Analysts are expecting a profit of $1.57 a share on revenue of $44.89 billion.

The company has topped estimates over the past four quarters by 8, 15, 1, and 4 cents, respectively. The high estimate have Apple earning $1.64 a share while the low forecast is pegged at $1.50. This could mean a 7-cent beat or miss based on headline numbers.

Shares are currently battling a flat 50-day moving average with risk to $145-$142.50 on an earnings miss or lowered guidance. A blowout quarter with a rosy outlook could push shares towards $152.50-$155.

Although I would love to trade Apple, the option premiums are a little juiced heading into the announcement.

The run to continued all-time highs has clearly put my February price targets in play given today’s gains. For new subscribers, I predicted price targets of Dow 22,000-22,250; S&P 2,500-2,525; Nasdaq 6,300-6,350; and Russell 1,500-1,525. I adjusted the Nasdaq target to 6,500 once the previous targets were cleared.

The Dow is gaining 86 points to 21,978 while the S&P 500 is up 5 points to 2,475. The Nasdaq is higher by 7 points to 6,355 and the Russell 2000 is off a quarter-point to 1,424.

I’m working on a possible new trade I hope to have ready ahead of the closing bell so stay locked-and-loaded in case I take action. In the meantime, let’s go check on the current 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, $36.28, down $0.12)

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 $36-$35.75. Resistance is at $36.50-$37.

 

Imax (IMAX, $22.00, up $0.60)

IMAX August 21 puts (IMAX170818P00021000, $0.45, down $0.15)

Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Return: -42%
Stop Target: None

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

 

Wendy’s (WEN, $15.42, down $0.02)

WEN August 16 calls (WEN170818C00016000, $0.25, flat)

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

Action: Support is at $15.25-$15. Resistance is at $15.50-$15.75.

 

TherapeuticsMD (TXMD, $5.40, down $0.25)

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, 11.05, down 0.17)

VXX August 14 calls (VXX170818C00014000, $0.12, down $0.03)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -905
Stop Target: 10 cents (Stop Limit)

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