MomentumOptions.com Pre-Market Update for 11/16/2017
VIX Spikes 13%
U.S. markets showed continued weakness throughout Wednesday with ongoing concerns over tax reforms erasing November gains. The Dow and S&P 500 closed lower for the 4th time in the past 5 sessions but are still just over 1% away from their all-time highs.
The Nasdaq fell for the second-straight session but held 6,700 and a key level of support. The Russell 2000 traded in the red for the fourth time in the past five sessions after falling below 1,460 but a level that held into the closing bell.
The S&P 500 Volatility Index ($VIX, 13.13, up 1.54) surged 13% while tapping an intraday high of 14.51. I have been warning a move above 12.50 could lead to a quick pop towards 14.50-15with a close above the latter leading to panic selling. Yesterday’s close below 13.50 keeps the bulls in the game with rising support at 12.50-12.
The rest of the week will be interesting to see if lower lows are in play, or a rebound is in store. We are close to opening 3-5 new trades (BAC, ORCL, QQQ, IWM, RMBS) depending on the action.
More to come so stay locked-and-loaded.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 50-21 (70%). 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, $16.45, down $0.70)
January 20 calls (TIVO180119C00020000, $0.45, down $0.10)
Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Stop Target: None
Action: Fresh support is at $16.50-$16.25 following yesterday’s close on the low. Lowered resistance is at $16.75-$17.
Limelight Networks (LLNW, $5.75, down $0.21)
LLNW December 4 calls (LLNW171215C00004000, $1.85, down $0.10)
Entry Price: $0.37 (9/21/2017)
Exit Target: $2.50 (Limit Order on half at $2.50)
Stop Target: $1.70 (Stop Limit)
Action: Lower support at $5.80-$5.75 held into the closing bell. Resistance remains at $6-$6.10. In after-hours trading, shares were pushing $6 again.
TherapeuticsMD (TXMD, $5.97, up $0.10)
TXMD December 7.50 calls (TXMD171215C00007500, $0.20, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Stop Target: None
Action: Resistance is at $6-$6.25. Support is at $5.75-$5.50.