MomentumOptions.com Mid-Market Update for 10/9/2017

3Q Earnings Season Underway

3:10pm (EST)

The start of 3Q earnings season gets underway this week and should lead to some great price action throughout the month in a number of stocks. Much of the focus will be on the financial sector and the back half of the week. Good results from this group would be a bullish sign for the market.

Barracuda Networks (CUDA) and Voxx International (VOXX) will report numbers after Tuesday’s closing bell.

Wednesday action includes BlackRock (BLK), Delta Air Lines (DAL), Fastenal (FAST) and Saratoga Investment (SAR).

Citigroup (C), Domino’s Pizza (DP), JPMorgan Chase (JPM), Lindsay Manufacturing (LNN) report Thursday morning.

Bank of America (BAC), Del Frisco’s Restaurant (DFRG), First Horizon National (FHC), JB Hunt Transportation (JBHT), PNC Bank (PNC) and Wells Fargo (WFC) will announce numbers ahead of Friday’s opening bell.

Heading into the final hour of trading, the Dow is down 17 points to 22,756 while the S&P 500 is sliding 4 points to 2,544. The Nasdaq is off 10 points to 6,579 and the Russell 2000 is lower by 6 points to 1,503.

I have updated our 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, $15.51, flat)

CY November 16 calls (CY171117C00016000, $0.55, flat)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 22%
Stop Target: None

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

 

Limelight Networks (LLNW, $4.21, down $0.03)

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 $4.20 followed by $4-$3.90. Resistance is at $4.50.

 

TherapeuticsMD (TXMD, $5.06, up $0.06)

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, $19.42, down $0.28)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.50, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -26%
Stop Target: None

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