MomentumOptions.com Mid-Market Update for 10/17/2017

Biotech Trying to Hold Support

3:35pm (EST)

The iShares Nasdaq Biotechnology ETF (IBB) cleared longer-term and two-year resistance at $340 earlier this month but has been in a recent downtrend. The weakness towards $336-$335 and prior support levels over the past few sessions could be considered as a normal backtest, as long as it holds. A move below $334.50 would be a cause for concern with additional risk to $332.50-$330. Today’s high reached $339.36 with continued closes above $340 being a bullish development.

As we head into the close, the market is mixed after setting fresh highs. The Dow is up 29 points to 22,986 while the S&P 500 is flat at 2,557. The Nasdaq is down 6 points to 6,617 and the Russell 2000 is down 5 points to 1,496.

 

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Ford (F, $12.22, up $0.10)

November 12 calls (F171117C00012000, $0.35, up $0.05)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -27%
Stop Target: None

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

 

Cypress Semiconductor (CY, $15.87, down $0.01)

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, up $0.03)

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.

 

TherapeuticsMD (TXMD, $4.87, up $0.02)

TXMD December 7.50 calls (TXMD171215C00007500, $0.20, flat)

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

Action: Lower resistance at $4.75-$5 was cleared on yesterday’s run to $4.87. Support remains at $4.50.