MTM Options Trader Newsletter - A Vertical Debit Spread on SPY

[image](=) [image] This Week in the Market The major indexes were able to close higher last week as only Nasdaq was unable to retake its 200-day daily moving average. It was a bumpy ride, but market participants have been used to that for several months now. Heading into this week, the major indexes are still technically in a downtrend setting lower lows and lower highs but have pushed off recent lows. Is a continued bullish rally in the cards for this week? A trendline lower that may be considered potential resistance on the SPY around the $454 level could play a key role if the ETF can surge through or pull back from that point if tested. Implied volatility levels are well off their recent surge higher. Quarterly earnings are starting to dry up, but a few big-name companies are expected to announce this week, like Disney and Twitter, along with a smattering of other stocks in the next several weeks. As far as economic reports go, it is a relatively quiet week with Thursday having the most expected activity. As a reminder, always have your plan thought out and written down before entering any position, and then follow it. Have a safe, healthy and prosperous week! Feb 7: Consumer Credit Feb 8: International Trade Feb 9: Wholesale Inventories Feb 10: Jobless Claims Feb 10: Consumer Price Index Feb 10: Federal Budget [Read Our Blog]() A Vertical Debit Spread on SPY This past Monday in group coaching class, we looked at the S&P 500 ETF (SPY) for a potential vertical debit spread. At the time, the ETF was attempting to surge over some potential resistance from the 200-day moving average. When it did make the surge over the resistance level, it was a bullish opportunity as seen below. But then the question became which strikes and expiration to consider. Since in this case we expected a move sooner than later, it made sense to consider a shorter expiration for two reasons: bigger delta and a possible move to positive theta. [Continue Reading ...]() MTM Watchlist Here are a few trade ideas we will be following in group coaching class this week: GLD – We modeled out a bull put spread on the ETF, and more may make sense with a potential move over its 200-day moving average. FB – After getting decimated following earnings, shares may be looking to move higher again. Bull call spreads will be considered with longer expirations. DKNG – The stock has been getting hammered for quite some time but rallied with the market on Friday. Potential bear puts spread will be explored if the stock rolls over again. [image] MTM Options Training Retreat The 3-Day Training Session where you'll gain new skills and techniques, greater confidence, and a solid plan to help you be a more consistent trader. [Learn More]( 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