MomentumOptions.com Mid-Market Update for 8/31/2017

Materials Showing Strength/ New Trade (XLB)

2:45pm (EST)

The Materials Select Sector Spider (XLB) recovered its 50-day moving average yesterday and is testing fresh resistance at $55-$55.25. Continued closes above the latter would be a bullish development. The 52-week high is at $55.92 that was reached in late July. Lower support at $54.25-$54 has been holding since mid-August with longer-term support at $53.50 holding since early June.

Chart

Heading into the second half of trading, the Dow is up 46 points to 21,938 while the S&P 500 is gaining 13 points to 2,470. The Nasdaq is higher by 55 points to 6,424 and the Russell 2000 is surging 12 points to 1,403.

To play the action in XLB, I have a New Trade so let’s get on it.

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.

New Trade!

Materials Select Sector Spider (XLB, $55.08, up $0.42)

Buy to Open XLB October 56 calls (XLB171020C00056000, $0.45, up $0.07)

Action: I like these call options at current levels and you can use a Limit Order up to 55 cents to get the best fills. These are the regular XLB October 56 calls that expire on October 20th, 2017. I will provide the parameters of the trade tomorrow morning.

Current Trades

Amicus Therapeutics (FOLD, $13.97, down $0.12)

FOLD October 15 calls (FOLD171020C00015000, $1.60, flat)

Entry Price: $1.05 (8/25/2017)
Exit Target: $2.10
Return: 52%
Stop Target: None

Action: Support is at $13.50-$13.25. Resistance is at $14.25-$14.50.

TherapeuticsMD (TXMD, $6.00, down $0.03)

TXMD December 7.50 calls (TXMD171215C00007500, $0.65, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -32%
Stop Target: None

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

Intel (INTC, $35.09, up $0.20)

INTC October 37 calls (INTC171020C00037000, $0.15, flat)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -72%
Stop Target: 10 cents (Stop Limit)

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

TiVo (TIVO, $18.45, up $0.30)

TIVO October 20 calls (TIVO171020C00020000, $0.35, flat)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -50%
Stop Target: None

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