Dear Momentum Options Subscriber,
Apple (AAPL, $127.98, down $0.49) is now an official “blue-chip” stock, as the company joined the Dow this morning after replacing AT&T (T, $33.30, down $0.29) on the index.
Although Apple is the world’s most valuable company, its stock ranks fifth out of the Dow’s 30 weighted stocks that make up the index.
Goldman Sachs Group (GS), 3M (MMM), International Business Machines (IBM) and Boeing (BA) are ahead of Apple — for now.
At current levels, a 1% move in Apple’s stock price, would equate into an 8.5-point gain or loss on the Dow.
One of my main arguments for why the Dow could reach 20,000 this year was the inclusion of Apple. Although the Dow still has another 2,000 points to go to make this a reality, it was exactly what I have been planning for.
Shares of Apple traded to a high of $129.25 on the open but have since slipped back. The recent 52-week high is north of $133.
Heading into the second half of trading, the Dow is down 116 points to 17,959, while the S&P 500 is lower by 11 points to 2,087. The Nasdaq is advancing 5 points to 4,987, and the Russell 2000 is declining a quarter-point to 1,251.
I’ve updated our current trades below, so let’s go check the action.
Momentum Options Play List
Closed Momentum Options Trades for 2015: 24-6-1 (77%). 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 12:35 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.
Cypress Semiconductor (CY, $15.25, down $0.01)
CY April 16 calls (CY150417C00016000, $0.45, flat)
Entry Price: $0.40 (3/18/2015)
Exit Target: $0.80
Return: 13%
Stop Target: None
CY June 16 calls (CY150619C00016000, $0.80, flat)
Entry Price: $0.75 (3/18/2015)
Exit Target: $1.50
Return: 7%
Stop Target: None
Action: Support is at $15 and the 50-day moving average. Resistance is at $15.50-$15.75.
Veeva Systems (VEEV, $27.46, down $0.02)
VEEV April 29 calls (VEEV150417C00029000, $0.65, flat)
Entry Price: $0.60 (3/18/2015)
Exit Target: $1.20
Return: 8%
Stop Target: None
Action: Support is at $27 and the 200-day moving average. There is additional risk to $26-$25 on a close below this level. A move above $28.50 and the 50- and 100-day moving averages could lead to additional short covering and a run past $30.
Gogo (GOGO, $21.22, up $0.08)
GOGO April 23 calls (GOGO150417C00023000, $0.60, flat)
Entry Price: $0.55 (3/17/2015)
Exit Target: $1.10
Return: 9%
Stop Target: None
Action: Resistance is at $22. Support is at $21-$20.
Yahoo! (YHOO, $45.00, up $0.33)
YHOO April 47 calls (YHOO150417C00047000, $0.65, up $0.10)
Entry Price: $0.80 (2/26/2015)
Exit Target: $1.60
Return: -19%
Stop Target: None
Action: A close above $45 should lead to a run at $47-$48. Near-term support is at $44-$43.
Western Union (WU, $19.17, down $0.18)
WU April 20 calls (WU150417C00020000, $0.20, down $0.05)
Entry Price: $0.36 (2/25/2015)
Exit Target: $0.75
Return: -44%
Stop Target: None
Action: Support at $19.25-$19, with risk to $18.75 on a close below the latter. Resistance is at $19.50.
American Express (AXP, $81.46, down $0.40)
AXP April 87.50 calls (AXP150417C00087500, $0.25, down $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 is at $80.
Flextronics (FLEX, $12.15, up $0.07)
FLEX April 12 calls (FLEX150417C00012000, $0.40, flat)
Entry Price: $0.67 (2/24/2015)
Exit Target: $1.35
Return: -40%
Stop Target: None
Action: Short-term resistance is at $12.25-$12.50. The 52-week high is at $12.48. Support is at $11.75-$11.50 and the 50-day moving average if $12 fails to hold.
Marvell Technology (MRVL, $15.88, up $0.05)
MRVL May 18 calls (MRVL150515C00018000, $0.30, flat)
Entry Price: $0.50 (2/18/2015)
Exit Target: $1.00
Return: -40%
Stop Target: None
Action: Resistance is at $15.75-$16. Support is at $15.50-$15.
BlackBerry (BBRY, $9.69, down $0.08)
BBRY June 13 calls (BBRY150617C00013000, $0.25, flat)
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