MomentumOptions.com Mid-Market for 12/21/2017
Bulls Showing Strength/ New Trade (XLU)/ Profit Alert (INTC)
3:00pm (EST)
The market is showing strength following two days of chopping trading with near-term resistance holding. A bevy of economic news was mostly bullish and are helping fuel the rebound.
The Dow is up 14 points to 24,769 while the S&P 500 is gaining 2 points to 2,683. The Nasdaq is higher by 5 points to 6,969 and the Russell 2000 is adding 5 points to 1,542.
My commentary is short as the action has been hot with Profit Alerts in play. Another third of our INTC was closed and I have a New Trade (XLU) I want to get us into. Stay locked-and-loaded into the closing bell in case I take additional action.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 55-23 (71%). 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.
New Trade!
Utilities Select Spider (XLU, $54.45, down $0.55)
Buy to Open XLU January 53 calls (XLU180119C00053000, $0.55, down $0.25
Action: I like these call options at current levels and you can use a Limit Order up to 65 cents to get the best fills. These are the regular XLU January 53 calls that expire on January 19th, 2018.
Current Trades
Spider Gold Shares (GLD, $120.25, up $0.11)
GLD January 117 puts (GLD180117P00117000, $0.30, flat)
Entry Price: $0.95 (12/11/2017)
Exit Target: $1.90
Return: -68%
Stop Target: None
Action: Resistance is at $120.25-$120.50. Support is at $119.75-$119.50.
Intel (INTC, $46.82, down $0.84)
INTC January 45 calls (INTC180119C00045000, $2.25, down $0.70)
Entry Price: $0.53 (12/11/2017)
Exit Target: $4 (closed 1/3 @ $2.85 on 12/20/2017; closed 1/3 @ $2.60 on 12/21/2017)
Return: 371%
Stop Target: $2.00 (Stop Limit on remaining 1/3)
Action: The first Stop Limit at $2.60 has tripped on today’s pullback..
Support is at $46.75-$46.50. Resistance is at $47-$47.25.
Bank of America (BAC, $29.86, up $0.38)
BAC January 30 calls (BAC180119C00030000, $0.67, up $0.12)
Entry Price: $0.50 (12/8/2017)
Exit Target: $1.00
Return: 34%
Stop Target: None
Action: Fresh resistance is at $30-$30.25. Rising support is at $29.50-$29.25.
Viavi Systems (VIAV, $8.85, down $0.01)
VIAV January 9 calls (VIAV180119C00009000, $0.30, flat)
Entry Price: $0.65 (11/29/2017)
Exit Target: $1.30
Return: -54%
Stop Target: None
Action: Resistance is at $9. Support is at $8.75-$8.50.
Twitter (TWTR, $24.95, down $0.25)
TWTR January 24 calls (TWTR180119C00024000, $1.55, down $0.25)
Entry Price: $0.70 (11/22/2017)
Exit Target: $2.50 (closed half @ $1 on 12/18/2017)
Return: 82%
Stop Target: $1.20 (Stop Limit)
Action: Lower resistance at $25.50-$25.75. Support is at $24.75-$24.50.