MomentumOptions.com Mid-Market Update for 9/11/2017
Financial Stocks Holding 200-Day Moving Average
The Financial Select Sector Spiders (XLF) tested the 200-day moving average last Thursday and a level that had been holding since June 2016. Friday’s nearly 1% rebound is being followed up with today’s 1.6% pop. Continued closes above resistance at $24.50-$24.75 would be a slightly bullish development. A move back below $24-$23.75 would be a bearish development for a continued backtest towards $23-$22.75.
The XLF October 24 calls (XLF171020C00024000, $0.75, up $0.20) can be targeted by bullish traders on a move above $24.75. These options would double from current levels if XLF can keep momentum and clear $25.50, technically, by October 20th.
The XLF October 24 puts (XLF171020P00022000, $0.35, down $0.20) can be targeted by bearish traders on a drop below $23.75. These options would double from current levels if XLF reverses course and falls below $23.30, technically, by October 20th.
These options together would create a straddle option trade with a premium just just above $1. This would be considered a safety trade, or chicken trade, if you are unsure of the direction over the next month. The breakeven points would be a move above $25, or a drop below $23, and would double if XLF trades above $26, or falls below $22, by October 20th.
Weekly options along with regular November and December options on XLF are also available to trade but these are the ones on my current Watch List.
As far as the market, the Dow is up 253 points to 22,050 while the S&P 500 is gaining 25 points to 2,486. The Nasdaq is higher by 67 points to 6,427 and the Russell 2000 is advancing 15 points to 1,414.
I have updated our current trades so let’s go check the tape.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 46-19 (71%). 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.
Cypress Semiconductor (CY, $13.78, up $0.31)
CY October 14 calls (CY171020C00014000, $0.50, up $0.10)
Entry Price: $0.60 (9/1/2017)
Exit Target: $1.20
Stop Target: None
Action: Resistance is at $13.70-$13.75. Support is at $13.50-13.40.
TherapeuticsMD (TXMD, $6.48, down $0.13)
TXMD December 7.50 calls (TXMD171215C00007500, $0.90, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Stop Target: None
Action: Support is at $6.50-$6.25. Resistance is at $6.75-$7.
Intel (INTC, $35.81, up $0.62)
INTC October 37 calls (INTC171020C00037000, $0.30, up $0.11)
Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Stop Target: 10 cents (Stop Limit)
Action: Fresh resistance is at $35.75-$36. Rising support is at $35.25-$35.
TiVo (TIVO, $18.55, up $0.45)
TIVO October 20 calls (TIVO171020C00020000, $0.45, up $0.05)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Stop Target: None
Action: Resistance is at $18.50-$18.75. Support is at $18-$17.75.