MomentumOptions.com Mid-Market Update for 11/7/2017

Earnings in Focus

2:15pm (EST)

Here is a peak of tradable stocks for tonight’s earnings releases:

21st Century Fox (FOXA), Alarm.com Holdings (ALRM), Chef’s Warehouse (CHEF), Energous (WATT), Flowers Foods(FLO), Hostess Brands (TWNK), Kronos Worldwide (KRON), Monster Beverage (MNST), Overstock.com (OSTK), QuickLogic (QUIK), Square (SQ), Twilio (TWLO), Valvoline (VVV), WageWorks (WAGE)

I took a serious look at Hostess Brands as I think shares are going to move 10%-15% based on their numbers. However, the options are thinly traded and only trade in 2.50 increments.

The November 10 puts (TWNK171117P00010000, $0.13, up $0.03) have a bid/ ask of 5/20 cents and would be a total lottery play for bearish traders looking for the stock to drop below $10. However, they would double from the asking price of 20 cents if shares plunge to $9.60 on earnings or the company’s outlook.

Heading into the final hours of trading, the Dow is down 13 points to 23,535 while the S&P 500 is sliding 2 points to 2,588. The Nasdaq is lower by 22 points to 6,763 and the Russell 2000 is getting hammered for 16 points to 1,481.

I have updated our current trades so let’s go check the tape.

 

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.

 

TiVo (TIVO, $17.43, down $0.12)

January 20 calls (TIVO180119C00020000, $0.30, flat)

Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -50%
Stop Target: None

Action: Support is at $17.25-$17. Resistance is at $17.50-$17.75.

 

Ford (F, $12.13, down $0.20)

November 12 calls (F171117C00012000, $0.20, down $0.15)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -56%
Stop Target: None

Action: Support is at $12.20-$12.10. Resistance at $12.40-$12.50.

 

Limelight Networks (LLNW, $5.53, up $0.08)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $1.55, up $0.10)

Entry Price: $0.37 (9/21/2017)
Exit Target: $2.00 (Limit Order on half at $2)
Return: 310%
Stop Target: $1.15 (Stop Limit)

Action: Resistance is at $5.50-$5.75. Support is at $5.25-$5.20.

 

TherapeuticsMD (TXMD, $5.59, down $0.15)

TXMD December 7.50 calls (TXMD171215C00007500, $0.25, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -73%
Stop Target: None

Action: Support is at $5.50. Resistance is at $5.75-$6.