MTM Options Trader Newsletter - This Option Strategy Continues to Impress

[image]() [image] This Week in the Market The market remained a bullish juggernaut as the S&P 500 touched another all-time high. The index flirted with a couple of support levels but was able to rally off them and push its way to new heights. Looking at the chart of the S&P 500, the index has seen a fairly steady rise since the end of October. As has been the case, a bullish to non-bearish bias needs to be respected by traders and investors. As you might have guessed with the continued move higher, implied volatility and option prices are still quite low. The bottom line is not to force premium selling strategies if the risk/reward doesn’t make sense, and many times it does not in this market. It is a fairly heavy week as far as economic reports go. Included in the mix are the latest trade balance number and the latest March jobs figure, with the latter expected before the open Friday. In addition, several Federal Reserve members are set to speak between Tuesday and Thursday, which could move the market. Remember, cash is still a position and often the best one to have. Have a healthy, safe and profitable week! Apr 1: Construction Spending Apr 2: Factory Orders Apr 2: JOLTS Apr 4: Jobless Claims Apr 4: U.S. Trade Balance Apr 5: Unemployment Apr 5: Consumer Credit [Read Our Blog](=) This Option Strategy Continues to Impress I love to find profitable trade ideas and teach traders how to manage those trades in MTM’s daily live group coaching class. And if you have spent any time with me in class over the past several years, you have seen me model out long double calendars. My favorite underlyings for these trades have been SPY and IWM, but I have also done them on stocks and other ETFs. They have done better at some times than others, but overall they have excelled. With implied volatility (IV) skews still the norm, there are plenty of chances to do more long double calendars. Let’s take a look. Recent IWM Example At the time of this writing, volatility in the [Continue Reading …](=) MTM Watchlist Here are a few trade ideas we will most likely look at in MTM’s LIVE Advantage Group Coaching class this week: SPY – Credit spreads, iron condors and calendars continue to work well on this ETF. We will explore additional opportunities and maybe some bull calls yet again. GS – The stock broke out of a channel it had been trading in since mid-December. Bullish verticals will be considered this week. BABA – The stock has some major potential support around the $71 level. If it drops below that level, bear put spreads will be modeled out. In addition, there is some potential resistance courtesy of the 50-day moving average, which may trigger bear call spreads. [image]() The strategies in this newsletter are for educational and informative purposes only. All information disclosed in this newsletter should not be considered complete in its entirety. Market Taker Mentoring, Inc. will not be held responsible for changes, oversights, errors or omissions. Dates, prices, news and other information may not be accurate. Please verify all information before trading. You alone are responsible for your own investment decisions. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD), which can be obtained from your broker; by emailing investorservices@theocc .com; or from The Options Clearing Corp., 125 S. Franklin St., Suite 1200, Chicago, IL 60606. No statement in this newsletter is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Copyright Market Taker Mentoring, Inc. 2008 - 2024. All rights reserved. Reproducing or redistributing this content is a violation of federal law. [image] If you do not wish to be contacted via email, you can unsubscribe using this link: [Unsubscribe]( Unsubscribing from email notifications DOES NOT cancel your class, subscription or recurring payments. We recommend that current students do not unsubscribe from email notifications. If you unsubscribe from email notifications, you will not be notified on how to access the classes or subscriptions in which you are enrolled. Market Taker Mentoring, Inc. PO Box 117 Frankfort, Illinois 60423 United States