MomentumOptions.com Mid-Market Update for 10/11/2017

Gold Trying to Rebound/ New Trade (F)

3:15pm (EST)

The Spider Gold Shares (GLD) are trying to rebound following last Friday’s backtest to the $120 level with early August support holding. Monday’s rebound above $122 was bullish and is being followed by today’s push to $122.65. Fresh resistance at $122.50-$123 and the 50-day moving average is holding. Continued closes above the latter would be a bullish development. Support is at $122-$121.50 with a move back below $120 signaling a false breakout. RSI held support just below the 40 level and is back in a strong uptrend.

There are a number of GLD bullish call options I have looked at but I feel like we would be chasing at current levels.

Heading into the second half of trading, the Dow is up 26 points to 22,857 while the S&P 500 is adding 2 points to 2,553. The Nasdaq is advancing 11 points to 6,598 and the Russell 2000 is down 2 points to 1,505.

While I’m passing on GLD, for now, I do have a New Trade in Ford (F) I want to get us into.

 

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!

Ford (F, $12.40, up $0.01)

Buy to Open November 12 calls (F171117C00012000, $0.45, down $0.04)

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 F November 12 calls that expire on November 17th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market Update.

 

Current Trades

Cypress Semiconductor (CY, $15.96, up $0.02)

CY November 16 calls (CY171117C00016000, $0.75, flat)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 67%
Stop Target: 50 cents (Stop Limit)

Action: Resistance is at $16-$16.25. Support is at $15.50-$15.25.

 

Limelight Networks (LLNW, $4.20, down $0.03)

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. Resistance is at $4.25.

 

TherapeuticsMD (TXMD, $4.83, down $0.05)

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, $19.30, down $0.30)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.35, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -50%
Stop Target: None

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