ACTIONS:

Buy to open the WATT August 12.50 calls (WATT160819C00012500) for a maximum price of $1.15.

Buy to open the VIAV September 7 calls (VIAV160916C00007000) for a maximum price of $0.55.

Dear Momentum Options Subscriber,

I have two new bullish trades for the portfolio this afternoon that I’d like us to get into ahead of the closing bell.

 

Energous (WATT, $10.37, down $0.30)

Buy to open the WATT August 12.50 calls (WATT160819C00012500) for a maximum price of $1.15.

Action: I like these call options at current levels, and you can use a Limit Order up to $1.15 to get the best fills. These are the regular August options that expire on Aug. 19.

The pullback in WATT since Tuesday’s high has been brutal. Shares tested a 52-week peak of $14.78 and my near-term price target of $15 before the 30% haircut over the past few sessions. The 50-day moving average failed to hold, and the 100-day moving average is now in play.

Near-term support is at $10-$9.75. Resistance is at $10.75-$11.

 

Viavi Solutions (VIAV, $.97, up $0.11)

Buy to open the VIAV September 7 calls (VIAV160916C00007000) for a maximum price of $0.55.

Action: I like these call options at current levels, and you can use a Limit Order up to $0.55 to get the best fills. These are the regular September options that expire on Sept. 16.

I will provide the parameters of both trades in tomorrow’s Pre-Market Update.

 

I hereby disclose that I will be participating in the aforementioned trade(s).

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options