MTM Options Trader Newsletter - Short-Term Put Option Strategies Explained

[image]( [image] This Week in the Market Stocks continued their march higher this past week as the Dow and S&P 500 touched all-time highs with implied volatility levels dropping to levels last seen over the summer. Although Nasdaq did not move to new highs, it still closed well above its 50-day moving average like the other two. The saga of the infrastructure bill continues, although buyers have not seemed fazed over the past couple of weeks. The debt ceiling issue has at least been pushed back for now, but the clock is starting to tick toward early December when decisions will need to be made yet again. But for now, those two stories and inflation worries are being kept in check by market participants. This week is a huge one as far as big-name stocks expected to announce earnings. Apple, Amazon, Alphabet, Microsoft and Google are on tap, just to name a few. Clearly the results could keep this bullish train running higher or derail it in a big way. In addition, there are some economic reports due out this week, including several housing reports and the latest GDP figure. As always, be cognizant of the expected earnings report before placing any trade and have a happy, healthy and prosperous week! Oct 26: Consumer Confidence Oct 27: Durable Goods Oct 28: Jobless Claims Oct 28: GDP Oct 28: Pending Home Sales Oct 29: Personal Income and Spending Oct 29: Chicago PMI [Read Our Blog]( Short-Term Put Option Strategies Explained The mentality behind short-term put options is probably different from the mentality behind short-term call options. Many times, option traders consider short-term put options mostly as a means of protection, whereas call options are often used only to generate additional income. That said, long and short put options can both generate additional income and offer protection. What Are Short-Term Put Options? If a trader buys a put option, he or she has the right to sell the underlying at a particular price (strike price) before a certain time (expiration). If a trader owns 100 shares of stock and purchases a put option, the trader may be able [Continue Reading ...]( MTM Watchlist Here are some trade ideas we may look at in group coaching class this week: IWM – We have explored several bear call spreads on this ETF, and it may be time to take another look this week. With several forms of potential resistance around $229 and $232, call credit spreads may be an option. COST – The stock continues to climb and does not have earnings expected until December. Additional bull call spreads will be considered if new highs are set or buy setups triggered. NVDA – The $228 level looks like decent resistance for the stock. A surge and hold above that level could trigger some potential bull call spreads. [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, Oct. 25. 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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