MTM Options Trader Newsletter - Option Position Sizing Made Simple

[image](=) [image] This Week in the Market It was a short week for market participants, but stocks made a huge move higher after initially gapping down. Looking ahead, the time between Christmas and New Year’s is usually slow with light volume as many traders and investors take some time off. The market will probably not lie down and do nothing until Jan. 3, however. The S&P 500 is close to its all-time high and the Dow and Nasdaq are not too far away from theirs as well. A bullish to non-bearish bias based on technical analysis should be maintained heading into the Monday after Christmas. With news on the Omicron variant and with Russia continuing to build up forces in Ukraine, a market that continues to move higher may not be such a sure deal. Tune in to find out this week. It is a rather light week as far as significant economic reports go with only a handful being released between Tuesday and Thursday. As you might have guessed, expected earnings are nonexistent too. Consider taking a break from trading this week if you have not thought about it already. You could probably use it. Have a happy, healthy and prosperous New Year! Dec 29: Trade in Goods Dec 29: Pending Home Sales Dec 30: Jobless Claims Dec 30: Chicago PMI [Read Our Blog]() Option Position Sizing Made Simple You know what can really kill a trading week? When you win on 8 small trades and lose on 1 big trade. “Why did I trade that one so big? That was STOOPID! Ugh!” That’s what we end up saying in our heads to ourselves. Right? Well, position sizing is one of those things that you have to get right in order to have a long-run, profitable trading system. I’ve struggled with this in the past myself. But I’ve finally come up with a more fool-proof system for sizing my trades with consistency. [Continue Reading ...]( MTM Watchlist Here are several trade ideas we may look at this week in group coaching class: SPY – With the S&P 500 testing its all-time high, there are two possibilities for trade ideas that will be explored depending on Monday: a bear call spread just above resistance or a bull call spread with a move through resistance. TSLA – A couple of successful bull call spreads were considered last week and with a continued move higher we will look at them again. COST – The stock has not been able to move higher even with the market surging higher. Bear call and iron condors may be in order. [image] 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