MomentumOptions.com Mid-Market Update for 4/5/2017
Bulls Pushing Near-Term Resistance
2:35pm (EST)
The bulls got some good news ahead of the open following better than expected ADP employment numbers. The report showed that private companies added 263,000 jobs for the month, well above expectations for 185,000 jobs. This sets the stage for a possible big surprise for Friday’s nonfarm payroll report.
This afternoon’s March FOMC meeting minutes revealed some of the zombies viewed stock prices as “quite high” relative to standard valuation measures. The Fed also said prices of other risk assets, such as emerging stock markets, high-yield corporate bonds, and commercial real estate, had also risen significantly.
The remarks didn’t upset the apple cart as the indexes are still trading near their highs. The Dow is up 131 points to 20,820 while the S&P 500 is gaining 13 points to 2,373. The Nasdaq is higher by 26 points to 5,925 and the Russell 2000 is adding 3 points to 1,371.
I have updated our current trades and I have been busy updating my Watch List. I could have a New Trade ahead of the close so stay close to your email inboxes.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 21-4 (84%). 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.
STMicroelectronics (STM, $15.42, up $0.22)
STM May 15 calls (STM170519C00015000, $1.10, up $0.10)
Entry Price: $1.15 (3/31/2017)
Exit Target: $2.30
Return: -4%
Stop Target: 55 cents
Action: Resistance at $15.50-$15.75. Support is at $15.25-$15.
TherapeuticsMD (TXMD, $8.04, up $0.43)
TXMD May 7.50 calls (TXMD170519C00007500, $1.20, up $0.20)
Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 50%
Stop Target: None
Action: Fresh resistance is at $8-$8.25. Support is at $7.75-$7.50.
Viavi Solutions (VIAV, $10.22, down $0.10)
VIAV May 12 calls (VIAV170519C00012000, $0.15, flat)
Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: -48%
Stop Target: None
VIAV April 11 calls (VIAV170421C00011000, $0.10, flat)
Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -76%
Stop Target: None
Action: Support is at $10.25-$10 and the 50-day moving average. Resistance is at $10.50-$10.75.
Amicus Therapeutics (FOLD, $7.17, down $0.06)
FOLD April 8 calls (FOLD170421C00008000, $0.15, flat)
Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -75%
Stop Target: None
Action: Support is at $7-$6.75. Resistance is at $7.25-$7.50.
Tower Semiconductor (TSEM, $22.67, up $0.06)
TSEM April 24 calls (TSEM170421C00024000, $0.10, flat)
Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -85%
Stop Target: None
Action: Support is at $22.50-$22.25. Resistance is at $22.75-$23.
Flex (FLEX, $16.63, down $0.07)
FLEX April 17 calls (FLEX170421C00017000, $0.15, flat)
Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -57%
Stop Target: None
Action: Support is at $16.50-$16.25. Resistance is at $16.75-$17.