MTM Options Trader Newsletter | Watch How a Stock Closes

[image](=) [image] This Week in the Market The Dow was able to cross over the 40,000-point range as stocks continue to defy the odds and move higher. It may try to move well past that level this week as the market grinds on. The S&P 500 was no slouch either, also setting a new high. The market has kept a positive outlook even in the face of some adversity from national and global events. A bullish to non-bearish bias makes sense until the market stops moving higher and major support levels have been broken. Implied volatility levels remain low as do option prices. This is not a particularly heavy week as far as economic numbers go, but it is packed in terms of Federal Reserve speakers. Not only is there at least one scheduled every trading day, but Fed Chair Powell is giving a commencement speech Sunday. Quarterly earnings continue to wind down, but there is one this week that many traders and investors will be watching closely: NVIDIA. They are scheduled to report Wednesday after the close. Have a safe, healthy and prosperous week! May 22: Existing Home Sales May 22: FOMC Minutes May 23: Jobless Claims May 23: New Home Sales May 24: Durable Goods May 24: Consumer Sentiment [Read Our Blog](=) Watch How a Stock Closes Getting an edge using technical analysis is crucial when it comes to trading. If you hold a position overnight, there is never a guarantee how the market will open the next session. If only we knew, right? Trading would be a whole lot easier and less nerve-racking. There is something I have found, however, that helps tremendously and that is watching how a stock closes on the day. If It’s a Bullish Close… When I am looking for a bullish or bearish directional trade, the way the underlying closes is vitally important. For example, I will enter a bullish trade closer to the end of the session if the stock looks like it will close [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 – Despite low IV levels, we have been able to extract money on 0-DTE trades and vertical credits on this ETF. Count on that trend to continue this week. META – A long calendar has worked well around resistance levels the past couple of weeks. Expect more of the same this week with IV skews likely due to the Memorial Day holiday. BA – The stock finally busted through its 50-day moving average after a long drop lower over the past several months. Bull call spreads and directional call calendars 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