MTM Options Trader Newsletter - Using Average True Range (ATR) to Boost Your Trade

[image]( [image] This Week in the Market Although Nasdaq moved lower, it was a fairly quiet week as far as the other major indexes go with the Dow and S&P 500 outperforming in comparison. The Russell 2000 is in the neighborhood of its 50-day moving average with the Dow, Nasdaq and S&P 500 safely above theirs for now. Implied volatility spiked up several times last week but closed lower than the previous week despite rising slightly over the past few weeks. Blue-chippers including several financials have been holding steady and moving higher with high-growth stocks continuing to struggle, much to the chagrin of some investors. Quarterly earnings remain slow, but Disney and Alibaba might draw some investor interest this week. Some economic reports are expected this week, including CPI and PPI to name a few, with Friday being particularly heavy. No speeches from the Fed were expected this week at the time of this writing. Have a healthy and safe week and let’s hope a very profitable one as well! May 11: JOLTS May 12: Consumer Price Index May 12: Federal Budget May 13: Jobless Claims May 13: Producer Price Index May 14: Retail Sales May 14: Import Price Index May 14: Industrial Production May 14: Consumer Sentiment [Read Our Blog]( Using Average True Range (ATR) to Boost Your Trade Professional traders use logic and math to design strategies, and Average True Range (ATR) is a critical component. Traders often use ATR to boost profit projection as well as define risk. It is imperative to identify benchmark ranges (ATRs). This vertical indicator (high minus low) may reveal when a market has reached overbought or oversold status. It is also used to gauge when a market has consolidated enough, thus favoring a breakout or onset of a [Continue Reading ...]( MTM Watchlist Here are a few ideas we will most likely discuss in group coaching class this week: JPM – We have modeled out some bullish trade ideas on this stock and more seem to be in the cards. Bull call and bull put spreads will be considered again. TSLA – Call credit spreads have worked out well. And with potential resistance from the 50-day moving average and the $700 level, it might be time for another round. HD – The stock appears poised for another big run higher. Long calls will be looked at depending on Monday’s action. [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