MomentumOptions.com Mid-Market Update for 10/19/2017

Bears Can’t Hold Opening Lows

3:10pm (EST)

Futures were pointing towards a nasty open this morning with the major indexes opening over a half-percent lower. The steady rebound off the lows has been an encouraging sign as we head into the final hour of trading.

The Dow is down 7 points to 23,150 while the S&P 500 is slipping a point to 2,560. The Nasdaq is sliding 27 points to 6,597 and the Russell 2000 is off 3 points to 1,501.

I have been busy looking at new trade setups but today’s whipsaw action saw a lot of stocks gap lower. There could still be some market upside this month but let’s see how tomorrow’s action goes before opening up the playbook.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 50-20 (71%). 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, $12.23, up $0.04)

November 12 calls (F171117C00012000, $0.35, flat)

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

Action: Resistance is at $12.40-$12.45. Support is at $12.10-$12.

 

Limelight Networks (LLNW, $4.73, up $0.27)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.80, up $0.20)

Entry Price: $0.37 (9/21/2017)
Exit Target: $1.20 (Limit Order on half at $1.20)
Return: 112%
Stop Target: None

Action: Fresh resistance is at $4.75-$5. Rising support is at $4.40-$4.35.

 

TherapeuticsMD (TXMD, $4.84, up $0.04)

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

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -79%
Stop Target: None

Action: Resistance is at $5. Support is at $4.75-$4.70.