MTM Options Trader Newsletter - How to Spot Market Extremes

[image]( [image] This Week in the Market Record highs were set again last week as it seems nothing can slow this market down, whether it be shaky earnings, the threat of inflation or virus cases continuing to rise. Jobs were added and the unemployment rate dipped as buyers continued to push many stocks higher last week. Turning to this week, not much if anything has changed. A bullish to non-bearish bias is still warranted as major potential support areas are far away from where the major indexes have been trading. With the ongoing rise of the indexes, implied volatility levels keep declining along with option prices. Most big names have already announced their latest quarterly numbers, but there are several that that will trickle in over the next couple of weeks. This is no time for an option trader or investor to forget when a company is expected to announce. As far as economic reports go, a few are expected this week including PPI and CPI. Have a healthy and prosperous week and remember management can be the most important part of trading and investing. Aug 9: JOLTS Aug 10: Productivity and Labor Aug 11: Consumer Price Index Aug 11: Federal Budget Aug 12: Jobless Claims Aug 12: Producer Price Index Aug 13: Import Price Index [Read Our Blog]( How to Spot Market Extremes One of the more difficult tasks traders face is choosing areas where market extremes (high or low) are likely to form. Pinpointing ideal entry and exit levels is possibly the hardest but most desired task we face. In the industry, buy areas are known as support and sell zones are called resistance areas. To enhance your ability to identify tops and bottoms requires some history, technical tools and logic. Fundamental Events Leave Clues Event risk or fundamentals drive markets. A chart is the log that displays price action and record history. I recommend labeling prices on your charts where a sharp directional move started in response to a big event, such as an [Continue Reading ...]( MTM Watchlist Here are a few trade ideas that we will most likely look at in group coaching class this week: NVDA – The stock has been rallying as of late and still has another week of trading before it announces earnings. More bull put spreads will be considered for this Friday’s expiration. TSLA – After a rough week, the stock closed around the $700 level. Potential call spreads and calendars around the $700 level will be explored. NKE – Taking a look at the chart of NKE, the stock has been making a big move higher. After a pullback on Friday, it may be ready to rumble again. Bull calls and bull puts will be revisited. [image] We're honored to have Dan's Book Trading Option Greeks listed as one of the [Top 6 Books to Become an Option Trader]( by Investopedia. [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