MomentumOptions.com Mid-Market Update for 8/23/2017

Fed Speak on Deck

1:45pm (EST)

Expectations for another rate hike this year remain low, with current odds around 33%. The market is awaiting this Friday’s comments from Fed Chair Janet Yellen and ECB President Mario Draghi for fresh insights and thoughts. The softening trend in inflation data, the FOMC minutes, and recent Fedspeak have combined to suggest the Fed will remain sidelined into year end, particularly if the balance sheet unwind begins.

Meanwhile, the ECB has confirmed that Mario Draghi won’t be delivering a new policy message. There’s still some time before the FOMC will have to make a decision on rates, though expectations are widespread that the Committee will announce QT at the September 19th-20th FOMC.

Given today’s action, a continued rally is on hold and I’m expecting a flat session tomorrow ahead of a possible pivotable move on Friday.

The Dow is down 69 points to 21,830 while the S&P 500 is off 8 points to 2,444. The Nasdaq is declining 23 points to 6,273 and the Russell 2000 is sliding 2 points to 1,369.

I have updated our current trades so let’s go check the tape. We are still on HOLD for a possible New Trade.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 44-19 (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.

 

TherapeuticsMD (TXMD, $5.89, down $0.14)

TXMD December 7.50 calls (TXMD171215C00007500, $0.70, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -29%
Stop Target: None

Action: Support is at $6-$5.75. Resistance is at $6.25-$6.50.

 

Intel (INTC, $34.61, down $0.04)

INTC October 37 calls (INTC171020C00037000, $0.18, flat)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -69%
Stop Target: None

Action: Support is at $34.50-$34.25. Resistance is at $34.75-$35.

 

TiVo (TIVO, $18.42, down $0.18)

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

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -13%
Stop Target: None

Action: Support is at $18.25-$18. Resistance at $18.75-$19.