MomentumOptions.com Mid-Market Update for 1/6/2017
Record Highs Back in Play/ New Trades (GDOT, S)
1:25pm (EST)
Although futures were slightly weak throughout the night and ahead of this morning’s jobs report, the action was pointing towards a breakout to fresh all-time highs. December nonfarm payrolls came in slightly below estimates with a modest 156,000 jobs added, while the unemployment rate edged higher from 4.6% to 4.7%.
While the talking heads are more focused on Dow 20,000, the more important developments are the moves in the other major indexes. Along with the blue-chips, the S&P 500 and the Nasdaq have also tapped intraday lifetime highs.
The Dow is gaining 90 points to 19,952 while the S&P 500 is up 12 points to 2,281. The Nasdaq is advancing 45 points to 5,533 and the Russell 2000 is climbing 2 points to 1,374.
I have two New Trades I want to get us into ahead of today’s close. Both charts are bullish and I like the setups. I will be back Monday morning with a full update on the market along with the parameters of the trades. Until then, have a great and safe weekend!
Momentum Options Play List
Closed Momentum Options Trades for 2017: 1-0 (100%). 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.
New Trades
Green Dot (GDOT, $24.98, up $0.21)
Buy to Open GDOT March 25 calls (GDOT170317C00025000, $1.30, up $0.05)
Action: I like these call options at current levels and you can use a Limit Order up to $1.50 to get the best fills. These are the regular GDOT March 25 calls that expire on March 17th, 2017. I will provide the parameters of the trade in Monday’s Pre-Market update.
Sprint (S, $8.81, up $0.04)
Buy to Open S February 9 calls (S170317C00009000, $0.54, up $0.01)
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 S February 9 calls that expire on February 17th, 2017. I will provide the parameters of the trade in Monday’s Pre-Market update.
Special Note: The S February 10 calls have traded over 10,000 contracts today. This is suggesting traders are positioning for a blast past $10.
Current Trades
Tower Semiconductor (TSEM, $19.48, up $0.14)
TSEM February 20 calls (TSEM170217C00020000, $0.55, flat)
Entry Price: $0.55 (1/3/2017)
Exit Target: $1.10 (Limit Order on 1/3)
Return: 0%
Stop Target: None
Action: Resistance is at $19.50-$19.75. Support is at $19.25-$19.
Sony (SNE, $29.01, up $0.29)
February 27 puts (SNE170217P00027000, $0.50, down $0.10)
Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: -23%
Stop Target: None
Action: Resistance is at $28.75-$29. Support is at $28.25-$28.
Array Biopharma (ARRY, $8.97, up $0.15)
ARRY March 10 calls (ARRY170317C00010000, $1.00, up $0.05)
Entry Price: $0.85 (12/21/2016)
Exit Target: $1.70
Return: 18%
Stop Target: None
Action: Resistance is at $9-$9.25. Support is at $8.75-$8.50.