ACTIONS:
Buy to open the RMBS May 13 calls (RMBS150515C00013000, $0.58, up $0.21) at current levels.
Buy to open the RMBS August 15 calls (RMBS150821C00015000, $0.47, up $0.17) at current levels.
Dear Momentum Options Subscriber,
I have two New Trades on a name that I have followed for years. Shares have been in a tight 50-cent trading range for over a month, but they are breaking out today. The pop past $13 could lead to a test of $15 and its 52-week high just south of this level.
Rambus (RMBS, $12.91, up $0.34)
Buy to open the RMBS May 13 calls (RMBS150515C00013000, $0.58, up $0.21) at current levels.
Buy to open the RMBS August 15 calls (RMBS150821C00015000, $0.47, up $0.17) at current levels.
Shares of Rambus have been holding their 50-day moving average since early February. This follows a “double bottom” at $10.01 in January that occurred three days apart.
A “mini” golden cross formed in February, with the 50-day moving average crossing above the 100-day moving average. Another golden cross recently developed last week, with the 50-day moving average crossing above the 200-day moving average.
A 50-cent trading range of $12.75-$12.25 has been in place since the beginning of March, with a high of $12.88. The 52-week high is $14.82.
I like these both of these options at current levels to play a possible run to $15+. The May options are the regular monthly options that expire on May 15, and the August options are the regular monthly options that expire on Aug. 21.
All prices given in this update are current as 3:00 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.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Momentum Options