MTM Options Trader Newsletter | Managing Trades Around Volatility Events

[image](=) [image] This Week in the Market The major averages closed on a high note as stocks continued to grind higher despite what some analysts expected. The Dow, Nasdaq and S&P 500 are now all back above their 50-day simple moving averages and once again within striking distance of their all-time highs. Whether they will be able to accomplish that this week is anyone’s guess, but it would not come as a total shock. Implied volatility and option prices continue to move lower with the move higher. Option premium is certainly not at a premium, but that could change in a hurry with a drop in the market. Until then, a bullish to non-bearish bias makes sense. Economic reports are a lot heavier this week with both CPI and PPI set for release. Those interest numbers have moved the market a fair amount in the recent past. There are also multiple Federal Reserve speakers on the slate with at least one talking Monday through Friday. Fed Chair Powell is expected to speak on Tuesday. Earnings continue to dwindle, but there are still more expected over the next few weeks. Have a safe, healthy and prosperous week, and happy Mother’s Day! May 14: Producer Price Index May 15: Consumer Price Index May 15: Retail Sales May 15: Business Inventories May 16: Jobless Claims May 16: Housing Starts May 16: Import Price Index May 16: Production and Utilization May 17: Leading Economic Indicators [Read Our Blog](=) Managing Trades Around Volatility Events The market has been very volatile over the past couple of months. It’s true that sometimes market movement occurs at times without volatility events. But cognizant traders and investors need to be ready when they know a volatility event is coming. Here are a few easy things to do to be prepared. Use Collars for Protection If you are an investor, you can always implement a collar to protect your stock position for 100 shares or more. A collar is selling a call option (usually out-of-the-money) [Continue Reading …](=) MTM Watchlist Here are a few trade ideas we will most likely consider in MTM’s group coaching class this week: SPY – Almost every day we look at 0-DTE trades on the ETF and almost every day we are profitable, especially with iron condors. That trend, we hope, will continue as we explore more opportunities. NFLX – A long calendar worked so well last week that it might be worth another go, especially with the stock in an area it likes to trade sideways around. TSLA – The stock keeps moving lower and is now below its 50-day moving average. Bear calls, bear puts and put calendars will be examined. [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