MTM Options Trader Newsletter - Define Risk Using ATR, Value and Acceleration Areas

[image]() [image] This Week in the Market The market broke out higher in a big way with most of the buying toward the end of the week. Both the Dow and S&P 500 reclaimed their 50-day moving averages after hanging below them for several weeks. Nasdaq was not able to move above its 50-day but closed in the vicinity. The CBOE Volatility Index (VIX) moved lower with the surge higher in the market and the index tested some key support on Friday. Turning to this week, the markets may be a little extended to the upside technically, so there is a better chance of some sort of pullback. If the market fails to retreat, it may mean that buyers still have faith in stocks at least for now. The S&P 500 closed just off some potential resistance around the 4,475 level, which may be the new line in the sand so to speak. Not much has changed on the political front with the infrastructure bill still being tossed around Congress and no resolution in sight at the time of this writing. Inflation concerns have not been quelled either. Despite the constant reassurance of the Federal Reserve, market participants do not seem all that concerned at the moment. There are several economic reports due out this week and quarterly earnings will continue to increase over the next several weeks. NFLX and TSLA are expected to report this week. Have a healthy and prosperous week, and remember to check the earnings date! Oct 18: Industrial Production Oct 19: Housing Starts Oct 20: Beige Book Oct 21: Jobless Claims Oct 21: Existing Home Sales Oct 21: Leading Economic Indicators [Read Our Blog](=) Define Risk Using ATR, Value and Acceleration Areas The first task after entering a position should be to determine risk. Risk may be a physical or mental stop loss. Trading is tough enough; setting risk relieves some tension and allows the trader to concentrate on profit potential and trade management. Risk can be measured using average true ranges (ATRs) or points at which a previous trend or acute vertical move originated. Value areas may be used to increase profits while managing a profitable trade. Risk varies for all traders and may differ due to time frame of trade, account size, lack of [Continue Reading ...](=) MTM Watchlist Here are several trade ideas we will be keeping an eye on this week in group coaching class: GS – Fresh off earnings, the stock surged higher on Friday. The 50-day moving average is potential support for a bull put spread in that area. NVDA – The stock rallied over its 50-day moving average and looks primed to test highs from several weeks ago. Bull call spreads will be considered. CHWY – The stock has been moving lower since its last earnings report in September. A drop below $62 might trigger a bearish entry with long puts as a possibility. [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]( 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. 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