MomentumOptions.com Mid-Market for 12/14/2017
Small-Caps Stay Choppy
3:30pm (EST)
The market opened higher following economics news on retail, trade price and jobless data but is headed for a lower close with the major indexes in the red for the final hour of trading.
The big story of the day is Walt Disney’s (DIS) purchase of Fox (FOX) assets for $52.4 billion, which had been in the works for a few weeks. Financials are slightly weak following the Fed’s latest rate hike yesterday, despite the dovish dissent.
An apparent agreement was reached yesterday between both houses of Congress on the reconciled tax deal as well, although there may be a couple holdouts on the fiscal implications from the news out today. A vote is expected next week and could keep the market range bound until a decision is finally hammered out.
As I head to press, the Dow is down 44 points to 24,541 while the S&P 500 is off 9 points to 2,653. The Nasdaq is lower by 18 points to 6,857 and the Russell 2000 is sinking 15 points to 1,509.
I have updated the parameters of the PFE trade so let’s go check the action.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 54-23 (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.
Pfizer (PFE, $36.45, down $0.19)
PFE January 37 calls (PFE180119C00037000, $0.31, down $0.13)
Entry Price: $0.43 (12/14/2017)
Exit Target: $0.90
Return: -23%
Stop Target: None
Action: The options opened at 43 cents and volume is heavy. Shares have traded to a fresh 52-week peak of $36.89 with resistance at $36.75-$37 holding. Support is at $36.25-$36.
Spider Gold Shares (GLD, $119.13, down $0.04)
GLD January 117 puts (GLD180117P00117000, $0.62, flat)
Entry Price: $0.95 (12/11/2017)
Exit Target: $1.90
Return: -31%
Stop Target: None
Action: Resistance is at $119.25-$119.50. Support is at $119-$118.75.
Intel (INTC, $43.17, down $0.17)
INTC January 45 calls (INTC180119C00045000, $0.47, down $0.03))
Entry Price: $0.53 (12/11/2017)
Exit Target: $1.10
Return: -11%
Stop Target: None
Action: Support is at $43.25-$43. Resistance is at $43.50-$43.75.
Bank of America (BAC, $28.75, down $0.09)
BAC January 30 calls (BAC180119C00030000, $0.40, flat)
Entry Price: $0.50 (12/8/2017)
Exit Target: $1.00
Return: -20%
Stop Target: None
Action: Support at $29-$28.75. Resistance is at $29.25-$29.50.
Viavi Systems (VIAV, $8.71, down $0.14)
VIAV January 9 calls (VIAV180119C00009000, $0.35, down $0.05)
Entry Price: $0.65 (11/29/2017)
Exit Target: $1.30
Return: -42%
Stop Target: None
Action: Support is at $8.75-$8.50. Resistance is at $9-$9.25.
Twitter (TWTR, $22.50, up $0.84)
TWTR January 24 calls (TWTR180119C00024000, $0.55, up $0.20)
Entry Price: $0.70 (11/22/2017)
Exit Target: $1.40
Return: -18%
Stop Target: 15 cents (Stop Limit)
Action: Fresh resistance is at $22.75-$23. Rising support is at $22.25-$22.