Mid-Market Update for 10/4/2017

Biotech Trying to Breakout

2:40pm (EST)

The iShares Nasdaq Biotechnology ETF (IBB) is starting to show signs of a breakout following Monday’s surge to $338.80, or 1.5%. Today’s high has tapped $340.92 to clear resistance at $340. The run to fresh 52-week highs this week cleared multi-year resistance at $338 from December 2015. Continued closes above $340 should lead to a run towards $343-$343.50 and March 2015 resistance. Support is $338-$337.75 followed by $336-$335.

IBB spent the month of September trading in a tight range between $328-$336. A trading range of this magnitude, or 20 sessions, can often lead to a major breakout (or breakdown) once a defined move is made out of this range. It is important to note, a month latter, IBB made a backtest to the $330 level before eventually zooming to an all-time high near $390 in July 2015.

Today’s action is mixed heading into the closing bell. The Dow is up 18 points to 22,660 while the S&P 500 is adding over a point to 2,536. The Nasdaq is down 4 points to 6,527 and the Russell 2000 is off 5 points to 1,506.

We got some nice pin action on LLNW so let’s go check the tape.


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.


Cypress Semiconductor (CY, $15.29, down $0.13)

CY November 16 calls (CY171117C00016000, $0.50, down $0.05)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 11%
Stop Target: None

Action: Resistance is at $15.50-$15.75. Support is at $15.25-$15.


Limelight Networks (LLNW, $4.36, up $0.17)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.55, up $0.10)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 48%
Stop Target: None

Action: Fresh resistance is at $4.50. Rising support is at $4-$3.90.


TherapeuticsMD (TXMD, $5.16, up $0.15)

TXMD December 7.50 calls (TXMD171215C00007500, $0.25, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -73%
Stop Target: None

Action: Resistance is at $5.25. Support is at $5-$4.75.

TiVo (TIVO, $19.60, down $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: Support is at $19.50-$19.25. Resistance is at $20-$20.25.