MTM Options Trader Newsletter | Don’t Always Bite on a Bullish Base

[image](=) [image] This Week in the Market The whole market moved higher after Trump won the election, with the Dow, Nasdaq and S&P 500 setting all-time highs. Wednesday had the best gains and, for the S&P 500, the most in two years. In addition, the Federal Reserve cut another 25 basis points fueling buyers once again to close out the week. As you might imagine, the three major indexes are currently extended well above their moving averages. The market will need to pull back at some point, but when that will happen is anyone’s guess. A bullish to non-bearish bias on the market still makes sense. Implied volatility and option prices continue to drop with the rise in stocks. It will be a slow start to the week as the bond market is closed Monday in honor of Veteran’s Day and there are no significant economic reports due until Wednesday. However, the CPI and PPI numbers are on the schedule, as is the retail sales figure for October. Quarterly earnings continue to wind down, but there are still plenty of companies left to report, including several retailers and NVDIA. Sitting on your hands and holding cash is also a position and sometimes the best one to have. Have a safe, healthy and outstanding week! Nov 13: Consumer Price Index Nov 13: U.S. Federal Budget Nov 14: Jobless Claims Nov 14: Producer Price Index Nov 15: Import Price Index Nov 15: Retail Sales Nov 15: Industrial Production and Utilization Nov 15: Business Inventories [Read Our Blog]( Don’t Always Bite on a Bullish Base As an option trader, I am always looking for an edge on a trade. Quite often, and especially with the market moving higher, multiple bullish bases present themselves. A quick definition of a bullish base is when the underlying is in an uptrend and then levels off but does not pull back much from recent highs. Sometimes the underlying is extended before doing this, and it is like it is taking a break. But buyers have not let the underlying move much lower. This is usually a strong bullish sign. [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 will keep flowing with short iron condors likely too. GLD – The ETF took a dive lower this week and may continue to struggle to move higher. Potential bear call spreads may be on the docket. TSLA – This stock remains a bullish beast, and we will remain on the lookout for bullish opportunities such as directional call calendars and bull 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