MomentumOptions.com Pre-Market Update for 11/8/2017
Small-Caps Tumble Towards September Support
U.S. markets finished mixed on Tuesday with the Dow closing in the green for the 6th-straight session after setting another record high on the open. The losses were somewhat contained with the S&P 500 and Nasdaq sliding a half-point and 0.3%, respectively.
However, the Russell 2000 tumbled 1.3% to test late September support on the double-top breakout above the 1,450 level. The low reached 1,476 with a move below 1,470 and the 50-day moving average being a bearish development for a possible backtest towards 1,450 to fill the gap.
I have set a Stop Limit for our F trade while raising the Stop Limit on LLNW to further protect profits.
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, $17.45, down $0.10)
January 20 calls (TIVO180119C00020000, $0.30, flat)
Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Stop Target: None
Action: Support is at $17.25-$17 with yesterday’s low reaching $17.38. Resistance is at $17.50-$17.75.
Ford (F, $12.16, down $0.17)
November 12 calls (F171117C00012000, $0.20, down $0.15)
Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Stop Target: 10 cents (Stop Limit)
Action: Set a Stop Limit at 10 cents to save the remaining premium. These call options expire a week from this Friday and time decay will start to play a big role in the coming days if there isn’t a rebound.
Support is at $12.10-$12. Lowered resistance is at $12.25-$12.30.
Limelight Networks (LLNW, $5.52, up $0.07)
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)
Stop Target: $1.15, raise to $1.25 (Stop Limit)
Action: Raise the Stop Limit from $1.15 to $1.25 to further protect profits.
Lower resistance at $5.50-$5.75 held on Tuesday’s run to $5.63. Rising support is at $5.40-$5.35.
TherapeuticsMD (TXMD, $5.57, down $0.17)
TXMD December 7.50 calls (TXMD171215C00007500, $0.25, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Stop Target: None
Action: Support is at $5.50. Resistance is at $5.75-$6.