MTM Options Trader Newsletter | Take Advantage of a Bullish Base

[image](=) [image] This Week in the Market It was a crazy week for the S&P 500, which shot up briskly Wednesday and then did a U-turn much lower Thursday. Not to be outdone, the market rallied again Friday to close out the crazy week at an all-time high. As has been the story, the market seems unstoppable. Not to sound like a broken record, but a bullish to non-bearish bias needs to be respected until proven otherwise. Implied volatility and option prices cannot seem to find their way higher unless earnings are involved. It will be a fairly busy week as far as Federal Reserve speakers go starting right out of the gate Monday with Fed Chairman Powell. At the time of this writing, there were at least three more Fed speakers set to talk later in the week. Adding to the potential volatility will be the release of several economic reports, including the latest retail sales figure. If that weren’t enough, quarterly earnings are starting to kick into high gear with several financial institutions and NFLX scheduled to announce. Remember, cash is and always will be a position, and sometimes it’s the best one to be in. Have a safe, healthy and prosperous week! Jul 16: Retail Sales Jul 16: Import Price Index Jul 16: Business Inventories Jul 17: Housing Starts Jul 17: Industrial Production Jul 17: Beige Book Jul 18: Jobless Claims Jul 18: Leading Economic Indicators [Read Our Blog]( Take Advantage of a Bullish Base We frequently talk about bullish bases in MTM’s Group Coaching class, especially with the market moving higher for much of the year so far. But what does a bullish base look like and how can we use it for a potential bullish entry? Here’s a brief explanation of what a bullish base is and what to look for. Bullish Base I consider a bullish base to be when a stock moves considerably higher, usually over a short period of time, and then begins to trade sideways. If the stock does not pull back more than two-thirds of the move higher, it is a bullish base. For example, if a stock moves [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 – A little volatility has come into play recently, which could make calendars and iron condors even more attractive. We’ll be hunting for more of them this week. V – The company is expected to announce earnings the following week, which will give us a chance for more vertical credit spreads and bullish call calendars. GOOGL – Despite the market rallying, the stock showed little interest in moving much higher. Bear call spreads and calendar 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