MTM Options Trader Newsletter - Delta Is Lead Dog for Vertical Credits

[image](=) [image] This Week in the Market The market had an incredible day Friday, which was the Dow’s best day of 2024. Because of the late week push, the market closed higher overall. When this resilient market has been pushed, it has responded positively over and over. The S&P 500 is sitting right below its 50-day moving average. That will be the line in the sand this week. Implied volatility levels and option prices continue to move lower with the market’s move higher. Economic reports are slower than last week, but there are a couple of consumer numbers traders and investors will be watching. In addition, several Federal Reserve speakers are scheduled this week, including two on Monday. Quarterly earnings are starting to slow a tad, but there are still a few companies expected to announce in May. As always, check that expected earnings date and confirm it before pulling the trigger on any trade. Have a safe, healthy and prosperous week! May 7: Consumer Credit May 8: Wholesale Inventories May 9: Jobless Claims May 10: Consumer Sentiment May 10: Federal Budget [Read Our Blog]( Delta Is Lead Dog for Vertical Credits I model out several vertical credit spreads every day in MTM’s Group Coaching class. And every day I talk about delta being the most important greek, in my opinion, for vertical credits. Most option traders associate credit spreads as mostly a positive theta trade. I am going to show you why I believe delta is usually the bigger factor. When you consider selling a vertical credit spread as an option trader, probably the first thing you think of is time decay. Of course, positive theta is a very important aspect and is always helping you unless the position moved through breakeven. But if there are more than [Continue Reading …]( MTM Watchlist Here are a few trade ideas we will most likely look at in MTM’s group coaching class this week: SPY – Double calendars and 0-DTE trade ideas continue to excel, especially the iron condors. Expect to see more of them this week too. AAPL – With the stock fresh off its earnings announcement and a move higher, long calendars and vertical credits will be examined. AMZN – The stock has moved up to a previous pivot high. This area might be a double-top resistance level. Potential bear call spreads will be explored. [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