Mid-Market Update for 10/31/2017

Bulls Rebound Ahead of Fed News

3:00pm (EST)

The market opened in positive territory and was slightly choppy afterwards before regaining footing. The indexes have been locked in a narrow range with the Nasdaq testing fresh-all highs. Today’s economic data, including the Chicago Purchasing Manger’s report and Conference Board consumer confidence reading, were well ahead of expectations.

FOMC preview: no change in rates is expected from the Fed with Wednesday’s announcement at 2:00pm (EST). There is no press conference, nor any updated economic projections, so the policy statement is all analysts will have to go on for clues to the normalization path. The strength in the economy in Q2 and Q3 has the market pricing in a December hike with a better than 80% probability, and has been supported by Fedspeak from nearly every policymaker.

Heading into the final hour of trading, the Dow is up 31 points to 23,379 while the S&P 500 is adding 3 points to 2,576. The Nasdaq is higher by 32 points to 6,731 and the Russell 2000 is advancing 14 points to 1,505.

I have a New Trade today so let’s get on it.


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.

New Trade!

TiVo (TIVO, $18.18, up $0.08)

Buy to Open January 20 calls (TIVO180119C00020000, $0.60, up $0.05)

Action: I like these call options at current levels and you can use a Limit Order up to 75 cents to get the best fills. These are the regular TIVO January 20 calls that expire on January 19th, 2018.


Current Trades

Ford (F, $12.26, up $0.16)

November 12 calls (F171117C00012000, $0.30, flat)

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

Action: Fresh resistance is at $12.40-$12.50. Rising support is at $12.10-$12.


Limelight Networks (LLNW, $4.96, up $0.06)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.95, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $1.20 (Limit Order on half at $1.20)
Return: 157%
Stop Target: 75 cents (Stop Limit)

Action: Resistance is at $5-$5.25. Support is at $4.75-$4.70.


TherapeuticsMD (TXMD, $4.80, down $0.08)

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: Support is at $4.75. Resistance is at $5.