Dear Momentum Options Subscriber,
Shares of Nike (NKE, $102.56, up $4.24) are trading at fresh 52-week and all-time peaks despite reporting a mixed quarter.
The company reported a profit of $0.89 a share on revenue of $7.5 billion following Thursday’s close. Wall Street was looking for $0.84 a share on sales north of $7.6 billion.
Nike struggles, at times, with currency issues, but the company managed the quarter rather well despite the dramatic rise in the dollar. Despite the revenue miss, sales growth was up 6% domestically, while Chinese and Western European sales were both up double-digits.
Overall, future orders were up 2% but would have come in above 10% without currency exchange headwinds. Impressive.
On the flip side, Tiffany & Company (TIF, $83.15, down $3.22) blamed a stronger dollar for its revenue miss. The company matched Wall Street’s estimate for $1.51 a share, but revenues missed by $200 million. The company lowered its full-year guidance to $4.20 a share versus expectations for $4.41 a share.
Nike’s gains have accounted for roughly 30 Dow points, but the index may have to wait until next week to reach new highs.
Heading into the second half of trading, the Dow is up 193 points to 18,152, while the S&P 500 is higher by 20 points to 2,109. The Nasdaq is surging 43 points to 5,035, and the Russell 2000 is climbing 10 points to 1,264.
I have updated our current trades, so let’s go check the action. I could have a late-day update if the action turns sour into the close, but all signs are pointing towards higher highs. I will be back on Monday with a full update and the chart work for next week. Until then, have a great weekend everyone!
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 12:25 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, $15.43, up $0.01)
CY April 16 calls (CY150417C00016000, $0.45, down $0.05)
Entry Price: $0.40 (3/18/2015)
Exit Target: $0.80
Return: 13%
Stop Target: None
CY June 16 calls (CY150619C00016000, $0.85, down $0.05)
Entry Price: $0.75 (3/18/2015)
Exit Target: $1.50
Return: 13%
Stop Target: None
Action: Support is at $15 and the 50-day moving average. Resistance is at $15.50-$15.75.
Veeva Systems (VEEV, $27.38, down $0.55)
VEEV April 29 calls (VEEV150417C00029000, $0.65, down $0.15)
Entry Price: $0.60 (3/18/2015)
Exit Target: $1.20
Return: 8%
Stop Target: None
Action: A move above $28.50 and the 50- and 100-day moving averages could lead to additional short covering and a run past $30. Support is at $27 and the 200-day moving average. There is additional risk to $26-$25 on a close below this level.
Gogo (GOGO, $21.12, up $0.04)
GOGO April 23 calls (GOGO150417C00023000, $0.45, flat)
Entry Price: $0.55 (3/17/2015)
Exit Target: $1.10
Return: -18%
Stop Target: None
Action: Resistance is at $22. Support is at $21-$20.
Yahoo! (YHOO, $45.16, up $0.18)
YHOO April 47 calls (YHOO150417C00047000, $0.60, flat)
Entry Price: $0.80 (2/26/2015)
Exit Target: $1.60
Return: -25%
Stop Target: None
Action: Closes above $45 should lead to a run at $47-$48. Near-term support is at $44-$43.
Western Union (WU, $19.27, up $0.02)
WU April 20 calls (WU150417C00020000, $0.20, flat)
Entry Price: $0.36 (2/25/2015)
Exit Target: $0.75
Return: -44%
Stop Target: None
Action: Support is at $19.25-$19, with risk to $18.75 on a close below the latter. Resistance is at $19.50.
American Express (AXP, $82.79, up $1.25)
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 is at $80.
Flextronics (FLEX, $12.31, up $0.19)
FLEX April 12 calls (FLEX150417C00012000, $0.50, up $0.10)
Entry Price: $0.67 (2/24/2015)
Exit Target: $1.35
Return: -25%
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, $15.91, up $0.11)
MRVL May 18 calls (MRVL150515C00018000, $0.25, flat)
Entry Price: $0.50 (2/18/2015)
Exit Target: $1.00
Return: -50%
Stop Target: None
Action: Resistance is at $15.75-$16. Support is at $15.50-$15.
BlackBerry (BBRY, $9.68, down $0.02)
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