MTM Options Trader Newsletter - Vertical Spreads – The Secret to Successful Trades

[image]( [image] This Week in the Market The market has been fairly consistent in both its unpredictability and resilience. Except for the bigger pullback in September, the major indexes have kept clawing higher since the initial pandemic sell-off early in 2020. With inflation concerns still relevant, stocks were able to rally on Friday to cut losses for the week. Implied volatility levels remained pretty much where they closed the previous week. A non-bearish outlook on the overall market still makes sense going forward, with major support levels in check. The latest retail sales number for October is highlighted this coming week, along with a couple of housing reports. Quarterly earnings remain slow, but several retailers are expected to announce this week, coinciding with the retail sales figure expected on Tuesday before the open. BTC pulled back after rallying hard as many traders are waiting for another surge to possible new highs. Have a safe, healthy and profitable week! Nov 16: Retail Sales Nov 16: Industrial Production Nov 16: Business Inventories Nov 17: Housing Starts Nov 18: Jobless Claims Nov 18: Leading Economic Indicators [Read Our Blog]( Vertical Spreads – The Secret to Successful Trades As an option trader, vertical spreads are most likely an integral part of your arsenal as a swing trader and if they are not, they should be. What makes them so worthy of your consideration is the wide variety of risk/reward and probability scenarios depending on an option trader’s outlook. Vertical spreads can be extremely versatile and represent a major building block of more complex spreads. With a vertical spread, the various strike prices for an option are arranged vertically and the expirations available to trade are displayed horizontally. This defined risk position consists of both a long and short [Continue Reading ...]( MTM Watchlist Here are some trade ideas we will likely explore in group coaching class this week: MSFT – We have done several bull call and bull put spreads on the stock recently and successfully. With the stock moving toward a potential new high, bull call spreads will be considered again. AMZN – The stock has been holding its own, and the 50-day moving average around the $3,400 level may be a good area to set up another bull put spread on this monster of a stock. AMD – After ripping higher over the past month and a half, the stock pulled back last week. On Friday a buy setup triggered, which may lead to bull call spreads. [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