Dear Momentum Options Subscriber,
The bulls are once again pushing the tops of the trading ranges and are looking to hold their gains into the close. The action will likely stay heated into tomorrow’s trading session, which is May options expiration.
The Dow is currently up 181 points to 18,241, while the S&P 500 is higher by 19 points to 2,118. The Nasdaq is surging 61 points to 5,043, and the Russell 2000 is gaining 12 points to 1,244.
I have been busy monitoring our current trades today, and there are a couple of other trades I’m still researching. I could have one or more trades ready within the next hour, but, for now, let’s go check the tape.
Momentum Options Play List
Closed Momentum Options Trades for 2015: 47-15-1 (75%). 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.
All prices given in this update are current as of 1:35 p.m.. EST.
I hereby disclose that I will be participating in the following trade(s). 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.
Rigel Pharmaceuticals (RIGL, $4.25, up $0.15)
RIGL September 5 calls (RIGL150918C00005000, $0.70, up $0.10)
Entry Price: $0.50 (5/13/2015)
Exit Target: $1.00
Return: 40%
Stop Target: None
Action: Resistance is at $4.25, followed by $4.50. Support is at $3.85-$3.75 and the 50-day moving average if $4 fails to hold.
Diamond Foods (DMND, $29.34, up $0.15)
DMND June 31 calls (DMND150619C00031000, $0.90, flat)
Entry Price: $0.45 (5/12/2015)
Exit Target: $1.35 (closed one third at $0.80 on 5/13/15)
Return: 93%
Stop Target: $0.50 (Stop Limit)
Action: Near-term resistance is at $30. If cleared, a run to $31-$32 could come. Fresh support is at $28.
Sony (SNE, $32.03, up $0.03)
SNE June 32 calls (SNE150619C00032000, $1.20, flat)
Entry Price: $0.70 (5/8/2015)
Exit Target: $1.75 (closed first half at $1.25 on 5/13/15)
Return: 75%
Stop Target: $0.95 (Stop Limit)
Action: Shares have traded to a high of $32.09 today. The recent 52-week high is at $32.60. A close above this level should get $33-$34 in play. Support is at $31-$30.50.
Wells Fargo (WFC, $55.92, up $0.32)
WFC June 57.50 calls (WFC150619C00057500, $0.35, up $0.04)
Entry Price: $0.31 (5/4/2015)
Exit Target: $0.65
Return: 13%
Stop Target: None
Action: Resistance is at $56. Near-term support is at $55.50-$55.
Limelight Networks (LLNW, $4.15, up $0.04)
LLNW September 4 calls (LLNW150918C00004000, $0.60, flat)
Entry Price: $0.35 (4/29/2015)
Exit Target: $0.80 (Limit Order on half)
Return: 71%
Stop Target: $0.40 (Stop Limit)
Action: Resistance is at $4.20-$4.25. Support is at $3.80 on another close below $4.
Opko Health (OPK, $16.56, up $0.89)
OPK June 16 calls (OPK150619C00016000, $0.80, up $0.15)
Entry Price: $0.50 (4/27/2015)
Exit Target: $1.00 (closed first half at $0.60 on 5/13/15)
Return: 40%
Stop Target: $0.45 (Stop Limit)
Action: Shares are near session highs and look poised to test $17.
Dot Hill Systems (HILL, $6.94, up $0.08)
HILL September 7.50 calls (HILL150918C00007500, $0.60, flat)
Entry Price: $0.45 (4/20/2015)
Exit Target: $1.35-$1.80
Return: 33%
Stop Target: None
Action: Resistance is at $7. Support is at $6.75-$6.50.
Trades on Hold — other 2015 Portfolio Open positions (2): These are trades that are still open in the portfolio but are down over 50%. They have longer expiration dates and are on “hold” but are not worth mentioning until they turn around. This means I would not open any new positions. I’m still keeping track of the trades and will record the results accordingly when the trade closes or if the options expire. Click on the Open Trades and Closed Trades pages to see all open and closed positions.
SunPower (SPWR) June 38 calls (from April 2015) — Resistance is at $32.75 and the 50-day moving average. Support is at $30 — Continue to hold.
BlackBerry (BBRY) June 13 calls (from March 2015) — This is a speculation trade from early March on BBRY receiving a takeover offer of $14 or better by mid-June — Continue to hold.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Momentum Options