MTM Options Trader Newsletter - A Call Credit Spread on AMZN

[image]() [image] This Week in the Market The first week of 2022 was not a good one for the bulls with stocks moving lower after holding a bullish base over the holidays. It was a bullish start on Monday with a rally after a gap lower, but it was all downhill from there with the S&P 500 able to hold its 50-day moving average into the close on Friday. Looking ahead to this week, that moving average will be critical. But the odds are on the side of that level to hold. If it doesn’t, stocks could be in for a tumble lower. Implied volatility levels are elevated, but even after a weak close on Friday levels still slid lower. Maybe the option market is still not convinced a bearish move is coming. It is a fairly heavy week of expected economic reports, including the latest CPI and PPI numbers, with Friday having the bulk of releases. Quarterly earnings remain slow, but on Friday a couple of financial institutions kick off the next round of releases and plenty more will follow in the coming weeks. That said, be cognizant of the earnings date before placing your trades especially in the next few weeks – unless of course the underlying does not have earnings. Have a great, safe and healthy week! Jan 10: Wholesale Inventories Jan 12: Consumer Price Index Jan 12: Federal Budget Jan 12: Beige Book Jan 13: Jobless Claims Jan 13: Producer Price Index Jan 14: Retail Sales Jan 14: Import Price Index Jan 14: Business Inventories [Read Our Blog]() A Call Credit Spread on AMZN The market has been very volatile over the past several weeks and Amazon Inc. (AMZN) has been no exception. In the first part of December, we looked at a chart of the stock in MTM’s group coaching class and determined it was a good opportunity for a call credit spread (bear call spread). Call credit spreads can be an effective way to profit when an option trader expects a stock to stay below a certain area. Many times this area is potential resistance in the form of pivot levels or maybe a moving average. Let’s look at how we can implement this trade strategy. [Continue Reading ...]() MTM Watchlist Here are a few trade ideas we will be covering in group coaching class this week: UPS – The stock is threatening to break some major resistance at the $215 level. A bullish close on Monday could trigger a look at bull call spreads. SPY – With the ETF closing right around its 50-day moving average, bull put spreads with a hold of that level may be considered. AMZN – We have modeled out so many call credit spreads on this stock and more may be in the future, including additional bear put 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 - 2022. 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