Dear Momentum Options Subscriber,
Futures were showing another weird opening after midnight, with the S&P 500 slightly lower, but the Dow and Nasdaq 100 futures were showing another strong opening. Usually, the futures market ahead of the overseas markets opening sways one way or another. Given the weirdness of March, it can be blamed on a couple of things.
One would be the “light” volume, as most Wall Street traders are enjoying Spring Break with the kids or are off to warmer climates on their own, thinking they deserve a vacation. The other problem is the sector rotation that is going on.
With today being the last day of the month, it will be interesting to see how Wall Street’s performance measures up to the market’s stats. Heading into this morning’s open, the major indexes were all showing gains for the year and are still up for 2015 despite today’s pullback.
The Dow is declining 99 points to 17,877, while the S&P 500 is lower by 8 points to 2,077. The Nasdaq is down double-deuces to 4,925, and the Russell 2000 is off 7 points to 1,250.
It’s been another busy day, so let’s go check on the trades. I will have more detailed commentary tomorrow, but the game plan is still in place. No need to tap on anyone’s shoulder while we ring the register on a few trades. I could have a New Trade before the end of the day, so stay locked and loaded into the close.
Momentum Options Play List
Closed Momentum Options Trades for 2015: 26-7-1 (76%). 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 1:00 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.
Flextronics (FLEX, $12.73, up $0.08)
FLEX May 13 calls (FLEX150515C00013000, $0.42, flat)
Entry Price: $0.32 (3/30/2015)
Exit Target: $0.65
Return: 31%
Stop Target: $0.33 (Stop Limit)
FLEX April 12 calls (FLEX150417C00012000, $0.80, up $0.02)
Entry Price: $0.67 (2/24/2015)
Exit Target: $1 (Limit Order)
Return: 4%
Stop Target: $0.70 (Stop Limit)
Action: The Stop Limit of $0.70 on the FLEX April 12 calls triggered on this morning’s dip to $12.61.
The FLEX May 13 calls traded down to $0.37, so they are still open.
Shares have traded to another 52-week high of $12.76 today. A close above $12.75 keeps $13-$14 in play. Support is at $12.50.
PowerShares QQQ Trust (QQQ, $106.21, down $0.52)
QQQ April 108 calls (QQQ150417C00108000, $0.55, down $0.16)
Entry Price: $0.65 (3/30/2015)
Exit Target: $1.30 (Limit Order on half)
Return: 3%
Stop Target: $0.67 (Stop Limit)
QQQ May 110 calls (QQQ150515C00110000, $0.65, down $0.10)
Entry Price: $0.65 (3/30/2015)
Exit Target: $1.30 (Limit Order on half)
Return: 3%
Stop Target: $0.67 (Stop Limit)
Action: The Stop Limits of $0.67 on both positions have been breached on today’s pullback.
The QQQs are holding $106, so I could come back to play the QQQ May 110 calls this week or next. However, for now, we are out.
US Steel (X, $24.44, down $1.00)
X May 21 puts (X150515P00021000, $0.65, up $0.15)
Entry Price: $0.60 (3/26/2015)
Exit Target: $1.20
Return: 8%
Stop Target: None
Action: Support is at $24, followed by $23.50 and the 50-day moving average. I’m looking for a test to $20 by mid-May. Resistance is at $25-$26. A close above $27 and the 100-day moving average would be bullish.
You can read my full thoughts on the trade in the March 27 Pre-Market Update.
Cypress Semiconductor (CY, $14.12, up $0.01)
CY April 16 calls (CY150417C00016000, $0.15, down $0.05)
Entry Price: $0.40 (3/18/2015)
Exit Target: $0.80
Return: -63%
Stop Target: None
CY June 16 calls (CY150619C00016000, $0.40, down $0.05)
Entry Price: $0.75 (3/18/2015)
Exit Target: $1.50
Return: -47%
Stop Target: None
Action: Support is at $14-$13.50 and the 100-day moving average. Resistance is at $14.50-$15.
Veeva Systems (VEEV, $25.56, up $0.12)
VEEV April 29 calls (VEEV150417C00029000, $0.15, flat)
Entry Price: $0.60 (3/18/2015)
Exit Target: $1.20
Return: -75%
Stop Target: None
Action: Support is at $25. Resistance is at $26-$27 and the 200-day moving average. If shares close below $24, I will exit the trade. If shares can’t clear $27 by Thursday, I may also exit the trade then.
Yahoo! (YHOO, $45.05, up $0.10)
YHOO April 47 calls (YHOO150417C00047000, $0.40, flat)
Entry Price: $0.80 (2/26/2015)
Exit Target: $1.60
Return: -50%
Stop Target: None
Action: Near-term support is at $44.50, followed by $44-$43 and the 200-day moving average. Shares look poised to test $47 and the 100-day moving average, with momentum possibly pushing $50.
Trades on Hold — other 2015 Portfolio Open positions (3): 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.
Marvell Technology (MRVL) May 18 calls (from February 2015) — Continue to hold.
BlackBerry (BBRY) June 13 calls (from March 2015) — Continue to hold.
Gogo (GOGO) April 23 calls (from March 2015) — Continue to hold.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Momentum Options