Dear Momentum Options Subscriber,
The market has traded in a tight range today, with the bulls holding a slight lead heading into the second half of trading. Worries over retail sales have caused some concern, as the results came in weaker-than-expected.
The Dow is up 11 points to 18,080, while the S&P 500 is higher by 3 points to 2,102. The Nasdaq is gaining 12 points to 4,988, and the Russell 2000 is down 2 points to 1,231.
I have a number of trade updates listed below, and I could have additional Trade Alerts into the close. For now, let’s go check on our trades, as we are taking partial profits in a couple of names.
Momentum Options Play List
Closed Momentum Options Trades for 2015: 47-15-1 (75%). 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 12:00 p.m. EST.
I hereby disclose that I will be participating in the following trade(s). 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.
Diamond Foods (DMND, $28.77, up $0.47)
DMND June 31 calls (DMND150619C00031000, $0.80, up $0.25)
Entry Price: $0.45 (5/12/2015)
Exit Target: $0.90-$1.35
Return: 78%
Stop Target: None
Action: Take profits and sell to close one third of the DMND June 31 calls at current levels.
Near-term resistance is at $28.50-$29. A close above these levels should get $30 in play.
Sony (SNE, $31.98, up $0.47)
SNE June 32 calls (SNE150619C00032000, $1.25, up $0.20)
Entry Price: $0.70 (5/8/2015)
Exit Target: $1.40
Return: 79%
Stop Target: $0.75 (Stop Limit)
Action: Take profits and sell to close half of the SNE June 32 calls at current levels.
Shares have traded to a high of $32.44 today. The recent 52-week high is at $32.60. Support is at $31-$30.50.
Wells Fargo (WFC, $55.72, up $0.25)
WFC June 57.50 calls (WFC150619C00057500, $0.31, up $0.03)
Entry Price: $0.31 (5/4/2015)
Exit Target: $0.65
Return: 0%
Stop Target: None
Action: Resistance is at $56. Near-term support is at $55.50-$55. There is additional help at $54.50 and the 50-day moving average.
Limelight Networks (LLNW, $4.14, up $0.09)
LLNW September 4 calls (LLNW150918C00004000, $0.60, flat)
Entry Price: $0.35 (4/29/2015)
Exit Target: $0.80 (Limit Order on half)
Return: 71%
Stop Target: $0.40 (Stop Limit)
Action: Resistance is at $4.20-$4.25. Support is at $3.80 on another close below $4.
You can read my full update on LLNW in the May 1 Pre-Market Update.
Opko Health (OPK, $15.54, up $0.73)
OPK June 16 calls (OPK150619C00016000, $0.50, up $0.15)
Entry Price: $0.50 (4/27/2015)
Exit Target: $1.00
Return: 0%
Stop Target: None
Action: Shares have traded to a high of $15.61 today, which is a fresh 52-week high. This sets up a run to $16-$17. Support is at $14.50-$14.25.
Dot Hill Systems (HILL, $6.86, down $0.01)
HILL September 7.50 calls (HILL150918C00007500, $0.60, flat)
Entry Price: $0.45 (4/20/2015)
Exit Target: $1.35-$1.80
Return: 33%
Stop Target: None
Action: Resistance is at $7. Support is at $6.75-$6.50.
Trades on Hold — other 2015 Portfolio Open positions (2): These are trades that are still open in the portfolio but are down over 50%. They have longer expiration dates and are on “hold” but are not worth mentioning until they turn around. This means I would not open any new positions. I’m still keeping track of the trades and will record the results accordingly when the trade closes or if the options expire. Click on the Open Trades and Closed Trades pages to see all open and closed positions.
SunPower (SPWR) June 38 calls (from April 2015) — Resistance is at $32.75 and the 50-day moving average. Support is at $30 — Continue to hold.
BlackBerry (BBRY) June 13 calls (from March 2015) — This is a speculation trade from early March on BBRY receiving a takeover offer of $14 or better by mid-June — Continue to hold.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Momentum Options