Dear Momentum Options Subscriber,
Earnings will be light from now until the first week of April, which is when first-quarter earnings season starts. There are a few notable companies worth watching this week, however, and I could trade one of these names if there is a good risk/reward setup.
After today’s close, Lifeway Foods (LWAY), magicJack (CALL) and Molycorp (MCP) will report earnings.
Adobe Systems (ADBE), Bankrate (BANK), Burlington Stores (BURL), Clean Diesel Technologies (CDTI), Oracle (ORCL), Plug Power (PLUG), Papa Murphy’s Holdings (FRSH) and Quiksilver (ZQK) will confess their numbers on Tuesday.
FedEx (FDX) highlights Wednesday morning’s action, while General Mills (GIS), Jabil Circuit (JBL), Shoe Carnival (SCVL), Silver Wheaton (SLW), Tilly’s (TLYS) and Williams-Sonoma (WSM) are scheduled to report after the close.
For Thursday, Nike’s (NKE) numbers after the bell are all that matter. Side Note: Tesla Motors (TSLA) is also providing Wall Street a non-earnings update before the bell.
Ahead of Friday’s open, Darden Restaurants (DRI), KB Home (KBH) and Tiffany & Company (TIF) will be in focus.
The bulls are trying to win their third-straight Monday session, as the Dow is up 190 points to 17,939, and the S&P 500 is higher by 21 points to 2,074. The Nasdaq is surging 42 points to 4,914, and the Russell 2000 is climbing 5 points to 1,237.
I could have another New Trade later this afternoon, so stay close to your email inboxes. For now, I have updated our current trades, so let’s go check the action.
Momentum Options Play List
Closed Momentum Options Trades for 2015: 22-6-1 (76%). All trades are dated and time stamped so new subscribers can look at the past history to see how the trades have played out.
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 9 a.m. and 12 p.m. – 1 p.m. updates. Also, I will usually give you a heads-up if I think I’m going to send an email outside of these time frames.
All prices given in this update are current as of 12:50 p.m. EST.
Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.
NVIDIA (NVDA, $22.86, up $0.16)
NVDA April 23 calls (NVDA150417C00023000, $0.65, up $0.09)
Entry Price: $0.65 (3/16/2015)
Exit Target: $1.30
Return: 0%
Stop Target: None
NVDA May 24 calls (NVDA150515C00024000, $0.65, up $0.05)
Entry Price: $0.65 (3/16/2015)
Exit Target: $1.30
Return: 0%
Stop Target: None
Action: Shares recently made a strong breakout from a four-month long trading range of $19-$21. Near-term support is at $22. Resistance is at $23 and the 52-week high of $23.42. A close above the latter should lead to a run to $25-$26.
Yahoo! (YHOO, $43.58, up $0.71)
YHOO April 47 calls (YHOO150417C00047000, $0.45, up $0.09)
Entry Price: $0.80 (2/26/2015)
Exit Target: $1.60
Return: -44%
Stop Target: None
Action: Shares have traded to a high of $43.88 today. Resistance is at $43-$43.50. A close above $44 would be very bullish. Support is at $42.25-$42 and the 200-day moving average.
Western Union (WU, $19.53, up $0.02)
WU April 20 calls (WU150417C00020000, $0.40, flat)
Entry Price: $0.36 (2/25/2015)
Exit Target: $0.75
Return: 11%
Stop Target: None
Action: Shares have reached a peak of $19.63 today. Resistance is at $19.50-$19.75. Support is at $19.25-$19.
American Express (AXP, $81.46, up $0.86)
AXP April 87.50 calls (AXP150417C00087500, $0.25, up $0.05)
Entry Price: $0.56 (2/25/2015)
Exit Target: $1.15
Return: -55%
Stop Target: None
Action: Resistance is at $83-$84 and the 50-day moving average. Support at $80, and there is risk to $79-$78 on a close below this level.
Flextronics (FLEX, $11.88, up $0.19)
FLEX April 12 calls (FLEX150417C00012000, $0.30, up $0.05)
Entry Price: $0.67 (2/24/2015)
Exit Target: $1.35
Return: -55%
Stop Target: None
Action: Resistance is at $11.75-$12. Support is at $11.50 and the 50-day moving average.
Marvell Technology (MRVL, $16.07, up $0.01)
MRVL May 18 calls (MRVL150515C00018000, $0.35, flat)
Entry Price: $0.50 (2/18/2015)
Exit Target: $1.00
Return: -30%
Stop Target: None
Action: Resistance is at $16.25-$16.50. Support is at $16-$15.75 and the 50-day moving average.
BlackBerry (BBRY, $9.72, down $0.09)
BBRY June 13 calls (BBRY150617C00013000, $0.25, down $0.01)
Entry Price: $0.60 (3/2/2015)
Exit Target: $1.20+
Return: -58%
Stop Target: None
Action: Resistance is at $10 and the 200-day moving average. Support is at $9.75-$9.50. This is a speculation play that BBRY will get a takeover offer by mid-June.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Momentum Options