MomentumOptions.com Mid-Market Update for 10/16/2017

Earnings for the Week

3:40pm (EST)

This week’s major earnings announcements could be the catalyst that start a major breakout to continued all-time highs, or a pullback, for the major indexes. Although new highs continue to be in play, I’ve been mentioning the slack action in the small-caps and how they need to break above the 1,515 level while holding the 1,500 area. More on this in a minute.

Today’s big focus will be in Netflix (NFLX) and their numbers after the closing bell. Brown & Brown (BRO), Celanese (CE), Idex (IDEX) and Sonic (SONC) are also scheduled to report.

Tuesday’s action includes CSX (CSX), Goldman Sachs (GS), Harley-Davidson (HOG), Interactive Brokers Group (IBKR), Johnson & Johnson (JNJ), Morgan Stanley (MS), Progressive (PGR) and UnitedHealth Group (UNH).

Abbott Laboratories (ABT), Alcoa (AA), American Express (AXP), eBay (EBAY),Limelight Networks (LLNW), Steel Dynamics (STLD), United Continental (UAL) and United Rentals (URI) highlight the major companies announcing earnings.

Thursday’s major players will be Athenahealth (ATHN), BB&T (BBT), Dover (DOV), E*Trade Financial (ETFC), Genuine Parts (GPC), KeyCorp (KEY), Nucor (NUE), Intuitive Surgical (ISRG), PayPal (PYPL), Philip Morris International (PM), Rogers Communications (RCI), Snap-On (SNA), Taiwan Semiconductor (TSM), Verizon Communications (VZ) and Winnebago Industries (WGO).

Baker Hughes (BHGE), Cleveland-Cliffs (CLF), General Electric (GE), Honeywell International (HON), Procter & Gamble (PG), Schlumberger (SLB) and Sun Trust Banks (STI) will confess their numbers ahead of Friday’s open.

Heading into the closing bell, the Dow is up 72 points to 22,944 while the S&P 500 is adding 3 points to 2,556. The Nasdaq is advancing 15 points to 6,621 and the Russell 2000 is down a point to 1,501.

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, $12.10, up $0.05)

November 12 calls (F171117C00012000, $0.30, flat)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -33%
Stop Target: None

Action: Resistance is at $12.15-$12.20. Support is at $12-$11.75.

 

Cypress Semiconductor (CY, $15.84, down $0.02)

CY November 16 calls (CY171117C00016000, $0.70, flat)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 56%
Stop Target: 55 cents (Stop Limit)

Action: Resistance is at $16-$16.25. Support is at $15.75-$15.50.

 

Limelight Networks (LLNW, $4.35, flat)

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

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 49%
Stop Target: None

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

 

TherapeuticsMD (TXMD, $4.84, up $0.26)

TXMD December 7.50 calls (TXMD171215C00007500, $0.15, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -84%
Stop Target: None

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

TiVo (TIVO, $18.60, up $0.10)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.15, flat)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -79%
Stop Target: None

Action: Resistance is at $18.75-$19. Support is at $18.50-$18.25.