Mid-Market Update for 10/10/2017

Watching the Financial Sector

2:50pm (EST)

The Financial Select Sector Spiders (XLF) traded to an fresh 52-week high of $26.46 last Friday and have tapped $26.36 during today’s session. I’ve mentioned continued closes above prior resistance at the $25.50 level could get 10-year support/ resistance levels at $26.50-$26.75 in play. Continued closes above the latter could lead to a continued rally towards $28-$30. Current support is at $26.25-$26 with a move below the latter signaling a short-term top.

There are a number of banking stocks reporting earnings on Thursday and Friday that could shape direction over the near-term. I’m looking at a possible trade in the sector so stay tuned.

As far as the market, the Dow is up 48 points to 22,809 while the S&P 500 is adding 3 points to 2,548. The Nasdaq is down 2 points to 6,577 and the Russell 2000 is higher by a point to 1,504.

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, $15.91, up $0.38)

CY November 16 calls (CY171117C00016000, $0.75, up $0.20)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 67%
Stop Target: None

Action: Fresh resistance is at $16-$16.25. Rising support is at $15.50-$15.25.


Limelight Networks (LLNW, $4.21, up $0.11)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.55, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 51%
Stop Target: None

Action: Support is at $4-$3.90. Lowered resistance is at $4.25.


TherapeuticsMD (TXMD, $4.80, down $0.23)

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

TiVo (TIVO, $19.58, up $0.13)

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

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -28%
Stop Target: None

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