MomentumOptions.com Mid-Market Update for 10/12/2017

Utilities Rebounding

3:45pm (EST)

The Utilities Select Spider (XLU) continue to show strength following Tuesday’s close above the 50-day moving average and today’s run to $54.67. Fresh resistance at $54.50-$54.75 is being tested with a move above the latter likely leading to a run towards early September highs. Rising support is at $54-$53.75 with a close back under $53.50 signaling additional weakness. RSI has returned above the 60 level after bottoming near 40 earlier this month and is in a strong uptrend.

As far as the market, the Dow is down 37 points to 22,835 while the S&P 500 is off 4 points to 2,551. The Nasdaq is lower by 9 points to 6,594 and the Russell 2000 is up a point to 1,507.

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.

 

Ford (F, $12.12, down $0.24)

November 12 calls (F171117C00012000, $0.35, down $0.10)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -16%
Stop Target: None

Action: Support is at $12. Resistance is at $12.25.

 

Cypress Semiconductor (CY, $15.80, down $0.19)

CY November 16 calls (CY171117C00016000, $0.70, down $0.05)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 54%
Stop Target: 50 cents (Stop Limit)

Action: Support is at $15.75-$15.50. Resistance is at $16.

 

Limelight Networks (LLNW, $4.32, 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: Resistance is at $4.25. Support is at $4-$3.90.

 

TherapeuticsMD (TXMD, $4.66, down $0.16)

TXMD December 7.50 calls (TXMD171215C00007500, $0.20, down $0.05)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -78%
Stop Target: None

Action: Support is at $4.50. Resistance is at $4.75-$5.

TiVo (TIVO, $18.55, down $0.65)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.25, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -63%
Stop Target: None

Action: Fresh support is at $18.50-$18.25. Lowered resistance is at $18.75.