MomentumOptions.com Mid-Market Update for 10/6/2017

Energy Consolidating Before Next Major Move

2:50pm (EST)

The Energy Select Sector Spider (XLE) has been consolidating in a tight range following the recent breakout above the 200-day moving average and the late August surge above the 50-day moving average. Resistance is at $68.75-$69 and the top of the trading range with continued closes above the latter being a bullish signal for a push past $70. A drop below support at $67.50-$67.25 and the bottom of the trading range could lead to additional weakness.

It has been a bullish start to the month and with 3Q earnings coming into play starting next week, the action should remain fluid. Today’s slight pullback into the weekend was nearly a given. The Dow is down 16 points to 22,759 while the S&P 500 is off 5 points to 2,546. The Nasdaq is slipping 2 points to 6,583 and the Russell 2000 is lower by points to 1,508.

I have updated the current trades 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, $15.50, up $0.02)

CY November 16 calls (CY171117C00016000, $0.50, flat)

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, $4.27, down $0.01)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.60, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 57%
Stop Target: None

Action: Support is at $4.25-$4.20. Resistance is at $4.50.

 

TherapeuticsMD (TXMD, $5.00, down $0.08)

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

TiVo (TIVO, $19.60, down $0.05)

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.