MTM Options Trader Newsletter - Lessons From the Trading Pits

[image]( [image] This Week in the Market Friday’s moderate gains were not sufficient to overcome a drop from earlier in the week. This pattern has continued since the end of the pandemic sell-off back in late March 2020. Delta variant cases keep rising, and the Taliban taking over Afghanistan has done little to persuade market participants from buying for long periods of time. Only the Dow tested its 50-day moving average this past week, but that level remains potential support for all three major indexes. Implied volatility levels did spring up this past week, and the VIX closed out the week at levels last seen at the beginning of the month. Although most companies have announced their latest quarterly earnings, there are still more than a few expected this week. In addition, several economic reports are slated for this week including a couple of housing reports. Is the housing market cooling off as some have suggested? The numbers will tell us. Make some great trades and investments and have a safe and healthy week as August comes to a close. Aug 23: Existing Home Sales Aug 24: New Home Sales Aug 25: Durable Goods Aug 26: Jobless Claims Aug 26: GDP Aug 27: Personal Income and Spending Aug 27: Trade in Goods [Read Our Blog]( Lessons From the Trading Pits Spend time with a broker or pit trader from the era when all trades were executed in a trading pit at an exchange and you will learn about the open outcry and the information it provides. Pits were created to facilitate trade. To an untrained eye a trading pit looks like a mess of mad aggressive people wearing crazy colored jackets. But for a seasoned observer a trading pit reveals incredible amounts of information that is not available on screens or trading platforms. Professional traders monitor order flow. Pro traders use a combination of market generated information (technicals) and fundamentals (supply/demand or earnings) to define and refine strategies. [Continue Reading ...]( MTM Watchlist Here are several trade ideas we will be watching in group coaching class this week: NFLX – After breaking higher this past week, the stock has some tough potential resistance around the $560 level. Depending on what happens Monday, bear call spreads around that level will be considered. FB – The stock has not closed below its 50-day moving average in over five months. Potential bull put spreads just below that moving average are betting that trend continues. GLD – The ETF rallied and has traded sideways for about a week. Bear call spread around several potential resistance levels will be looked at again this coming week. [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