MTM Options Trader Newsletter - A Netflix Calendar Spread That Required Patience

[image](=) [image] This Week in the Market It was another volatile week as the major indexes closed lower with the Russia/Ukraine situation hanging over traders’ heads. As we look ahead to this week, stocks may go the way of crisis news with an expected sell-off if Russia invades Ukraine. For the past couple of weeks, reports and rumors have fueled intraday and morning gaps, and that should be expected this week as well. The Dow, Nasdaq and S&P 500 are all trading well below their 200-day moving averages, so a non-bullish (not full out bearish but expecting resistance levels to hold) bias should be considered for now. With the uncertainty and drop in the market, implied volatility levels are elevated. Due to the holiday on Monday, it will be a shorter week of trading but not necessarily a less action-packed one. Several noteworthy economic reports due out this week are listed below, including a couple of consumer reports and the latest GDP figure. Quarterly earnings continue to wane, but there are still a few big names expected this week. Enjoy some time off and work on your trading plan. Have a safe and healthy week! Feb 22: Consumer Confidence Feb 24: Jobless Claims Feb 24: GDP Feb 24: New Home Sales Feb 25: Personal Income and Spending Feb 25: U Of Michigan Consumer Sentiment [Read Our Blog]() A Netflix Calendar Spread that Required Patience If you know a little about me when it comes to option trading, you know my adoration for time spreads and in particular calendar spreads. I look for them often in MTM’s daily group coaching class and of course for my own personal trading too. What I like about them is that they give an option trader positive theta to offset some delta risk up to a point. But as with most trades, they usually require patience too, which is often a good thing. NFLX Calendar A little less than two weeks ago in class, we took a look at a neutral trade on Netflix Inc. (NFLX), which had been hovering around the [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we will be looking at in group coaching class this holiday-shortened week: SPY – We have modeled out several bear call and calendar spreads on the ETF over the past few weeks. Based on a non-bullish outlook, more may be on tap at several potential resistance levels. VXX – Bull call spreads have been the way to go for this volatility ETN with some producing nice returns, including just last week. More will be explored on some pullbacks. NFLX – With the stock grinding around the $400 level, back-to-back calendars were considered over the past two weeks. If it doesn’t break down from its current level, another will be examined. [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 - 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