Mid-Market Update for 8/11/2017

Bulls Trying to Rebound

2:10pm (EST)

The bulls are trying to rebound from a 3-day pullback with the major indexes holding positive territory, for the most part, throughout the session. Following its worst daily performance since May, the market is also on pace for its worst weekly performance of the year.

With much of the 2Q earnings season nearly wrapped up, Wall Street has turned its full attention to politics, keeping watch for headlines concerning North Korea and any movement on the Trump tax agenda. This will be the next major catalyst to support a higher market in the coming months, or the inevitable pullback everyone has been waiting for.

The Dow is advancing 45 points to 21,889 while the S&P 500 is up 6 points to 2,444. The Nasdaq is higher by 41 points to 6,258 and the Russell 2000 is off a half-point to 1,372.

I have already started my weekend homework and next week should give us great clues on if a rebound is in store, or a continued pullback is in the cards for the market. My Watch List has 10-15 bullish and bearish trade setups with September and October options. We have done well navigating the current volatility and the portfolio is super light.

I have raised the Stop Limit on DDD and I’m suggesting closing TXMD. I could have a New Trade ahead of the close so stay locked-and-loaded. If you don’t hear from me by 3:30pm (EST), have a great and safe weekend.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 43-18 (70%). 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, $18.35, up $0.15)

TIVO October 20 calls (TIVO171020C00020000, $0.60, flat)

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

Action: Resistance is at $18.50-$18.75. Support is at $18.


3D Systems (DDD, $12.71, up $0.11)

August 16 puts (DDD170818P00016000, $3.40, flat)

Entry Price: $0.55 (8/2/2017)
Exit Target: $4 (Limit Order) (closed half @ $1.10 on 8/3/2017)
Return: 309% ($2.30 current avg. closing price)
Stop Target: $2.80, raise to $3 (Stop Limit)

Action: Raise the Stop Limit from $2.80 to $3.

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


TherapeuticsMD (TXMD, $5.57, down $0.11)

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