MomentumOptions.com Mid-Market for 12/8/2017
Watching the Russell 3000/ New Trade (BAC)
3:25pm (EST)
The Russell 3000 Index ($RUA) has been volatile after reaching a lifetime high of 1,580. Today’s continued rebound has reached a peak of 1,570 with lower resistance at 1,565-1,570 holding. Continued closes above the latter would be a bullish development for a retest and run towards 1,580-1,600. Support is at 1,560-1,550 with a move below 1,545 being a slightly bearish development.
RSI is back in an uptrend with resistance at 70-75 and levels that served as early and late November resistance.
The market is on track for a solid week of gains as we wind down the final hour of trading. The Dow is up 87 points to 24,299 while the S&P 500 is adding 11 points to 2,648. The Nasdaq is higher by 26 points to 6,838 and the Russell 2000 is advancing 3 points to 1,523.
I have a New Trade I want to get into ahead of the weekend so let’s get on it.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 54-22 (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!
Bank of America (BAC, $28.99, up $0.20)
Buy to Open BAC January 30 calls (BAC180119C00030000, $0.50, up $0.03)
Action: I like these call options at current levels and you can use a Limit Order up to 60 cents to get the best fills. These are the regular BAC January 30 calls that expire on January 19th, 2018.
Current Trades
Viavi Systems (VIAV, $8.83, up $0.02)
VIAV January 9 calls (VIAV180119C00009000, $0.35, flat)
Entry Price: $0.65 (11/29/2017)
Exit Target: $1.30
Return: -53%
Stop Target: None
Action: Resistance is at $9. Support is at $8.75-$8.50.
Twitter (TWTR, $21.10, up $0.09)
TWTR January 24 calls (TWTR180119C00024000, $0.25, flat)
Entry Price: $0.70 (11/22/2017)
Exit Target: $1.40
Return: -64%
Stop Target: 15 cents (Stop Limit)
Action: Resistance is at $21.25-$21.50. Support is at $20.75-$20.50.
TiVo (TIVO, $16.00, up $0.05)
January 20 calls (TIVO180119C00020000, $0.15, flat)
Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -75%
Stop Target: None
Action: Support is at $16-$15.75. Resistance is at $16.25.