MTM Options Trader Newsletter - Using VXX as a Portfolio Hedge

[image]( [image] This Week in the Market The indexes moved lower to start the week but were able to erase a good chunk of their losses by the close. Buyers certainly have been resilient with all the dips over the past few months. Heading into this week, not much has changed as far as the market goes with the three major indexes all trading well above their 50-day and 200-day moving averages. A bullish to non-bearish bias for the market should be considered until proven otherwise. Implied volatility levels ticked up a bit, possibly in anticipation of a heavy week of expected quarterly earnings. Speaking of earnings, it is like a big-name stocks haven with Tesla, Microsoft, Alphabet, Facebook, Apple and Amazon, just to name a few, scheduled to report this week. This may put a little directional kick into the market, more so than we saw last week. In addition, several economic reports are due this week (listed below), including a couple of consumer reports, the latest GDP figure and another Fed announcement, although no movement is expected. Be cognizant of the earnings date before taking any trades (especially if it is not meant to be an earnings trade), and have a healthy and profitable week! Apr 26: Durable Goods Apr 27: Consumer Confidence Apr 28: Trade in Goods Apr 28: Fed Announcement Apr 29: Jobless Claims Apr 30: Personal Income and Spending Apr 30: Consumer Sentiment [Read Our Blog]( Using VXX as a Portfolio Hedge During the past couple of weeks, several people have asked me about using VXX as a portfolio hedge. Maybe people feel things are getting a little toppy with all the Fed intervention and the many other harbingers of potential danger hanging over the markets. I wanted to write about this subject because it’s pretty darned interesting and deserves timely consideration. First things first, let me clarify that my commentary should not be construed in any way as advice. My intention is to teach and get you thinking. By sharing my trading experience and product knowledge, my hope is for you to make educated decisions about how to manage your trading (and hedging). [Continue Reading ...]( MTM Watchlist Here are several trade ideas we will be bantering around in group coaching class this week: NFLX – After gapping lower this past week after earnings, the stock has maintained a level just over $500 where it has some potential support. Depending on how Monday opens, potential bull put spreads around support will be looked at. CRM – The stock has threatened to move though a major resistance level around the $335 level but failed on Friday. Bull call and bull put spreads will again be considered. GLD – The gold ETF has had a nice move higher but looks to be at some potential resistance around $168. Potential call credit spreads around that level will be modeled out if the ETF does not gap higher on Monday. [image] Dominate the Market This Earnings Season Are you ready to learn to spot bankable earnings trades, set them up with our easy-to-follow process and know exactly when to take them off to maximize your returns? Imagine... - No more missing out on $1,000s of revenue - No more sleepless nights worrying about "what you could have done" - No more grasping at straws, "trying stuff" to see what works If you want to finally have control, even in the craziest markets, this is the first step! You'll have everything you need and be fully supported throughout this program to take advantage of this complete Earnings Trading training package. Join today and get the Total Earnings Domination package for 93% off the regular price! [Start Now]( Last chance! This offer expires at 12 p.m. Central, Monday, April 26. 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. 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