Mid-Market Update for 8/10/2017

Bears Looking for a Hat Trick

1:40pm (EST)

The bears are looking for their third-straight win and a feat they haven’t accomplished since April. Today’s action is doing some technical damage as Tech is trading below its 50-day moving average for the first time since early July. Volatility has zoomed to heightened levels and today’s close will be an important test for the bulls.

Although there are signs of a continued pullback, it is important to remember how resilient the market has been, especially during these types pullbacks. However, at some point, we can’t ignore the possibility of a continued selloff as it has been over a year since the S&P 500 has experienced a 5% correction.

The Dow is down x points to 21,926 while the S&P 500 is lower by 23 points to 2,450. The Nasdaq is off 92 points to 6,259 and the Russell 2000 is declining 18 points to 1,378.

I have updated our current trades, including a Trade Alert to close WEN, so let’s get on it.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 43-17 (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.


TiVo (TIVO, $18.17, down $0.12)

TIVO October 20 calls (TIVO171020C00020000, $0.60, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -14%
Stop Target: None

Action: Support is at $18. Lowered resistance at $18.50-$18.75.


3D Systems (DDD, $12.51, down $0.32)

August 16 puts (DDD170818P00016000, $3.50, up $0.40)

Entry Price: $0.55 (8/2/2017)
Exit Target: $4 (Limit Order) (closed half @ $1.10 on 8/3/2017)
Return: 318% ($2.30 current avg. closing price)
Stop Target: $2.80 (Stop Limit)

Action: Support is at $12.50-$12.25. Resistance is at $12.75-$13.


Wendy’s (WEN, $15.33, down $0.48)

WEN August 16 calls (WEN170818C00016000, $0.10, down $0.05)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: -78%
Stop Target: None

Action: Close the trade at current levels to save the remaining premium.


TherapeuticsMD (TXMD, $5.66, up $0.09)

TXMD August 7.50 calls (TXMD170818C00007500, $0.10, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -80%
Stop Target: None

Action: Resistance is at $5.75. Support is at $5.50-$5.25.