MTM Options Trader Newsletter - ETF or Exchange Traded Fund Option Trading Strategies

[image]( [image] This Week in the Market Volatility still runs the markets and implied volatility continues to wane, despite fairly wide swings in the market on a daily basis. The Dow and S&P 500 both maintain levels above their 50-day moving averages with Nasdaq still struggling to move above it. Most growth stocks have not been able to sustain bullish rallies, although many have dipped lower over the past several weeks. Despite the choppiness, a non-bearish bias continues to rule the market except for many Nasdaq stocks, which remain a little weaker than the overall market. Treasuries were able to find some support and rally off recent lows even after losing some steam on Friday. Traders and investors will have a short week of trading as the market is closed on Friday in honor of Good Friday. Generally implied volatility levels are lower and positive thetas are higher for short weeks of trading. There are several economic reports due out this week, including the latest jobs report scheduled for Friday. Quarterly earnings are trickling in with the next big batch still a few weeks away. The global shortage of semiconductors has slowed down production for many automakers and at this point there is no end in sight. Happy Passover and Easter! Enjoy the week and holidays! Mar 30: Consumer Confidence Mar 31: Chicago PMI Mar 31: Pending Home Sales Apr 01: Jobless Claims Apr 01: Construction Spending Apr 02: Unemployment [Read Our Blog]( ETF or Exchange Traded Fund Trading Strategies Futures traders have access to markets nearly around the clock. Stock and exchange traded fund (ETF) traders must deal with gaps in time and price when there is no market to trade or a huge drop in liquidity of those markets that do trade overnight. When liquidity is low, bid ask spreads are too. Entering an ETF option trading strategy late in the day may help reduce those gaps in time and price. There are gaps in price action for ETFs (and stocks) that do not typically occur in the [Continue Reading ...]( MTM Watchlist Here are several trade ideas we will be looking at in group coaching class this week: BA – There is a nice potential support level at around $235. Bull put spreads will be considered just below that level. TSLA – The stock is still struggling, and Friday it made another big move lower. Is the stock losing its luster? Additional bear put spreads will be a possibility for this week. HD – The stock may be totally overextended to the upside. Potential bearish calendars and bearish vertical spreads may be modeled out around the $300 level. [image] Looking for a Practical Approach to Trading? Learn to use the greeks for valuing options and executing successful trades regardless of market conditions with Dan Passarelli's "Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits." [Buy Now on Amazon]( 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 calling (888) OPTIONS; 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 - 2021. 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