MTM Options Trader Newsletter - Playing the China Stock Market Rebound

[image](=) [image] This Week in the Market The crazy and volatile weeks continue to add up and last week was no exception. Support levels on the S&P 500 held to start the week, and resistance levels kept the index from moving higher at week’s end. That potential resistance is key to how this week may pan out. If the S&P 500 can move above that level, which is around the 4,700 area, a bullish bias will be in order. If resistance can hold, a non-bullish bias may make sense until a break of resistance occurs. Nasdaq has been the most volatile index of the major three with growth stocks either looking extremely bullish or bearish almost on a day-to-day basis. Implied volatility levels have regressed from the most recent spikes higher as the market has leveled off. It is time for another Federal Reserve meeting, but of course no movement is roundly expected. As always, comments after the announcement are what market participants are wait for and could move markets. There are no other major numbers being released on Monday or Friday, but in between there are several, including the latest retail sales figure. Quarterly earnings remain exceptionally slow. Have a safe, healthy and positive holiday weekend! Dec 14: Producer Price Index Dec 15: Retail Sales Dec 15: Business Inventories Dec 15: FOMC Announcement Dec 16: Jobless Claims Dec 16: Housing Starts Dec 16: Industrial Production [Read Our Blog]( Playing the China Stock Market Rebound China is an interesting place. From the outside (and in reality) the communist country has made huge strides in the direction of capitalism over the past 10 years or so. The move, like all aspects of business (and culture and, well, everything), has been orchestrated by none other than the Chinese Communist Party (CCP). China listed its first options contract in 2016—which Johnnycat and I played a small role in helping to get off the ground. Options being pure risk transfer can be argued to be the most capitalistic thing ever created (and the best and most honorable part of capitalism, as options truly level the playing field between the financial titans and small retail 1-lot traders). [Continue Reading ...]() MTM Watchlist Here are several trade ideas we may focus on this week in group coaching class: TSLA – The $1,000 level has been a major support level for the stock, which just tested it this past week. But the stock has some major potential resistance above that level too. Vertical credit spreads will be looked at closely. PTON – The stock has been moving and gapping lower for several months, and it looks to break down even further after closing weaker to end the week. Additional bear put spreads may be explored. AAPL – After a successful bull call spread on the stock this past week, more need to be considered this week despite the stock looking a tad extended. 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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. 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