MTM Options Trader Newsletter - Evolve in Your Trading

[image]( [image] This Week in the Market Unlike last week when the four major indexes closed mixed, after Friday’s sell-off all closed much lower for the holiday-shortened week. A new virus variant pushed the market much lower on Friday, and without an early close stocks might have dropped even lower. This sets up a potentially crazy and volatile week starting on Monday. The Dow gapped below its 50-day moving average with Nasdaq and the S&P 500 still managing to close a fair amount above theirs. Implied volatility, as you may have guessed, shot up to levels not seen in a couple of months. Will this be a buy-the-dip early this week? We will have to wait and see, but patience is advised. As if the bearish close on Friday was not enough to worry about heading into this week, several economic reports are expected, including the November jobs report on Friday. With jobless claims dropping so much over the past several weeks, the number or expectation of the number may set the tone heading into the following week. There are some other reports worth noting, including a couple of housing reports. Quarterly earnings remain slow. Have a safe, healthy and prosperous week, and enjoy the holiday season! Nov 29: Pending Home Sales Nov 30: Consumer Confidence Nov 30: Chicago PMI Dec 1: Construction Spending Dec 1: Beige Book Dec 2: Jobless Claims Dec 3: Unemployment Dec 3: Factory Orders [Read Our Blog]( Evolve in Your Trading “The more I see, the less I know, the more I like to let it go.” That’s a quote from a song written by my fellow Midwesterner Anthony Kiedis of the Red Hot Chili Peppers. Clearly he was referring to option traders. Starting Option Trader 1-on-1 Coaching When I first started working with option traders in 1-on-1 Coaching, I had, well, a different approach than I have now—which I think my current students appreciate. A student would tell me about their trading method, and I’d (often) not even let them finish their sentence before interjecting something along the lines of, “Why are you doing that? [Continue Reading ...]( MTM Watchlist Here are a few trade ideas we will be considering in group coaching class this week: ZM – After getting its price cut in half in a few short months, the stock may be ready to rumble higher again with the threat of this new variant. Potential bull call spreads will be explored. AAPL – Like most stocks that moved lower on Friday, there are potential support levels that should hold if the market does not collapse. Bull put spreads will be examined. GLD – After a huge drop this past week, the ETF may look to rally off its 50-day moving average. Directional calendars and bull call spreads will be looked at. [image] Expand Your Options Knowledge The more you learn, the more you earn. Any seasoned trader knows truer words were never spoken. Read up on Put-Call Parity and Synthetics in this excerpt from Dan's top-selling book Trading Option Greeks. [Read 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. 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