Mid-Market Update for 10/2/2017

Earnings for the Week/ New Trade (CY)

1:50pm (EST)

I mentioned there were a number of marquee names reporting earnings this week and I wanted to cover them in case there is a possible trade going into or after the news.

AZZ (AZZ), Lennar (LEN), NovaGold Resources (NG) and Paychex (PAYX) are confessing quarterly results on Tuesday.

Wednesday’s action includes: Acuity Brands (AYI), Monsanto (MON), PepsiCo (PEP) and RPM International (RPM).

Constellation Brands (STZ), Costco Wholesale (COST), Helen of Troy (HELE), International Speedway (ISCA), Yum China Holdings (YUMC) are reporting numbers on Thursday.

There are no major announcements on Friday.

Heading into the final hours of trading, the Dow is up 128 points to 22,533 while the S&P 500 is gaining 7 points to 2,527. The Nasdaq is higher by 10 points to 6,506 and the Russell 2000 is surging 11 points to 1,501.

I have a New Trade I want to get us into so let’s get on it.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 49-19 (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.


New Trade!

Cypress Semiconductor (CY, $15.22, up $0.20)

Buy to Open CY November 16 calls (CY171117C00016000, $0.45, up $0.05)

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 CY November 16 calls that expire on November 17th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.


Current Trades

Limelight Networks (LLNW, $4.07, up $0.10)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.40, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 9%
Stop Target: None

Action: Resistance is at $4.20-$4.25 on continued closes above $4. Support is at $3.90-$3.75.


TherapeuticsMD (TXMD, $5.20, down $0.09)

TXMD December 7.50 calls (TXMD171215C00007500, $0.30, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -69%
Stop Target: None

Action: Support is at $5. Resistance is at $5.50.

TiVo (TIVO, $19.85, flat)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.75, flat)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: 0%
Stop Target: None

Action: Resistance is at $19.75-$20. Support is at $19.50-$19.25.