NextOptions.com Index and Earnings Options Play List for 1/23/2018
Small-Caps Clear 1,600/ New Trade (INTC)
8:00am (EST)
The market continued its record run into blue-sky territory after the Senate voted to pass a bill that would reopen the federal government following a 3-day shutdown.
The Nasdaq added 1% after closing at a record peak of 7,408 and has traded higher in 11 of 14 sessions to start 2018. The S&P 500 climbed 0.8% to a lifetime high of 2,833 and has held the 2,800 level in three of the past four sessions.
The Dow gained 0.6% after trading to an all-time intraday high of 26,215 while holding the 26,000 level for the 4th-straight session. The Russell 2000 rose 0.5% to close back above 1,600 and an all-time high of 1,605.
Energy surged 2.2% to lead sector strength with Consumer Discretionary and Technology jumping 1.1% and 1%, respectively. Materials were the only sector laggard after giving back 0.2%.
The VelocityShares Daily Inverse VIX (ZIV) closed at 92.91 and the session high to clear upper resistance at 92.50-92.75. Continued closes above the latter keeps 93.50-94.50 and all-time highs in play. Support remains at 90.25-90 on a pullback.
The PowerShares QQQ (QQQ) traded to an all-time high of $168.12 into the closing bell with fresh resistance now at $168.50-$170. Near-term support is at $166.50-$166 with a close below the latter signaling a possible short-term top.
RSI is pushing February 2017 resistance at 85 with continued closes above this level signaling a possible run towards 90 and extremely high overbought levels. Support is at 80-75 with a move below 70 also signaling a short-term top.
The Real Estate Select Sector Spider (XLRE) closed higher by 1% after testing $31.75 intraday. Lower resistance is at $31.75-$32 and the 200-day moving average held with a move above the latter being a slightly bullish development. Support is at $31.50-$31.25 with a close below $31 and the monthly low of $31.10 being a bearish development.
RSI is back in an uptrend after bottoming at 30 with December resistance at 50.
The PowerShares QQQ (QQQ) traded to an all-time high of $168.12 into the closing bell with fresh resistance now at $168.50-$170. Near-term support is at $166.50-$166 with a close below the latter signaling a possible short-term top.
RSI is pushing February 2017 resistance at 85 with continued closes above this level signaling a possible run towards 90 and extremely high overbought levels. Support is at 80-75 with a move below 70 also signaling a short-term top.
The Real Estate Select Sector Spider (XLRE) closed higher by 1% after testing $31.75 intraday. Lower resistance is at $31.75-$32 and the 200-day moving average held with a move above the latter being a slightly bullish development. Support is at $31.50-$31.25 with a close below $31 and the monthly low of $31.10 being a bearish development.
RSI is back in an uptrend after bottoming at 30 with December resistance at 50.
Brown & Brown (BRO), Fulton Financial (FULT), HomeStreet (HMST), Logitech (LOGI), Netflix (NFLX), Preferred Bank (PFBC), ResMed (RMD), Steel Dynamics (STLD), TD Ameritrade (AMTD), Woodward (WWD), Zions (ZION) reported earnings after Monday’s close.
BankUnited (BKU), Huntington Bancshares (HBAN), Johnson & Johnson (JNJ), Kimberly-Clark (KMB), Popular (BPOP), Procter & Gamble (PG), Prologis (PLD), South State (SSB), State Street (STT), Travelers (TRV), Union Bankshares (UBSH), Verizon (VZ), Waters (WAT) are announcing numbers this morning.
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Our top triple-digit winning option recommendations for 2018:
+191% Sony February 48 calls (January 2018)
Our top triple-digit winning option recommendations for 2017:
+900% Lumber Liquidators August 27.50 calls (August 2017)
+400% Limelight Networks December 4 calls (November 2017)
+300% JDcom June 37 calls (May 2017)
+300% Kate Spade March 20 calls (March 2017)
+300% Imax May 30 puts (May 2017)
+286% Fastenal May 49 puts (April 2017)
+246% Dick’s Sporting Goods June 45 puts (May 2017)
+244% Starbucks February 57.50 puts (February 2017)
+200% GameStop April 22.50 puts (March 2017)
+173% Alibaba February 100 calls (January 2017)
+169% Amicus Therapeutics August 12 calls (July 2017)
+116% iShares Russell 2000 (November 2017)
+110% Amicus Therapeutics July 8 calls (June 2017)
+100% Cisco Systems October 32 calls (September 2017)
+100% Bank of America July 23 calls (June 2017)
+100% PowerShares QQQ ETF February 122 calls (January 2017)
+100% Array BioPharma January 8 calls (January 2017)
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Blackberry (BB, $13.28, down $0.03)
BB February 15 calls (BB180216C00015000, $0.25, flat)
Entry Price: $0.50 (1/10/2018)
Exit Target: $1.00
Return: -50%
Stop Target: None
Action: Upper support at $13.25-$13 held with yesterday’s low tapping $13.14. Resistance remains at $13.50.
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Flex (FLEX, $19.44, down $0.17)
FLEX February 19 calls (FLEX180216C00019000, $0.80, down $0.10)
Entry Price: $0.80 (1/18/2018)
Exit Target: $1.60
Return: 12%
Stop Target: None
Action: Support is at $19.50-$19.25. Resistance is at $19.75-$20 holding.
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New Trade!
Intel (INTC, $45.75, up $0.93)
Buy to Open INTC February 47 calls (INTC180216C00047000, $0.75, up $0.20)
Action: We like these call options at current levels and you can use a Limit Order up to 90 cents to get the best fills. These are the regular INTC February 47 calls that expire on February 16th, 2018.
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Upcoming Earnings
Tuesday
After the close: Capital One Financial (COF), Cree (CREE), HB Fuller (FUL), Mercury Systems (MRCY), Navient (NAVI), Texas Instruments (TXN), TSYS (TSS), United Continental (UAL)
Wednesday
Before the open: Abbott Laboratories (ABT), Baker Hughes (BHGE), Comcast (CMCSA), General Dynamics (GD), General Electric (GE), Illinois Tool Works (ITW), Norfolk Southern (NSC), Progressive (PGR), Rockwell Automation (ROK), Royal Caribbean Cruises (RCL), Stanley Black & Decker (SWK), United Technologies (UTX)
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