MTM Options Trader Newsletter - Market Timing Is Important for Options Trading

[image](=) [image] This Week in the Market A short week of trading maybe did the trick as the major indexes closed much higher on the week. The Dow, Nasdaq and S&P 500 are still below their 50-day and 200-day moving averages but may have broken their downtrend. How stocks will react this week is anyone’s guess. The S&P 500 gapped above its resistance level around 3,800, so if it can at least hold that level or move higher this week, a non-bearish market outlook may be justified going forward. Several growth stocks that had been beaten down for quite some time have recently showed some bullish life too. As you might imagine with stocks moving higher last week, implied volatility levels and option prices decreased. Looking ahead to this week, there are several economic reports worth noting listed below including the latest GDP revision and consumer confidence. The June unemployment numbers will not be released until the following Friday, July 8. At the time of this writing, there were no significant speeches planned by any of the Federal Reserve members. Quarterly earnings continue to be extremely slow. Have a healthy, happy and a very productive week and remember you are a risk manager first! Jun 27: Durable Goods Jun 27: Pending Home Sales Jun 28: Advance Trade in Goods Jun 28: Consumer Confidence Jun 29: GDP Jun 30: Jobless Claims Jun 30: Personal Income and Spending Jun 30: Chicago PMI Jul 1: Construction Spending [Read Our Blog]() Market Timing Is Important for Options Trading Market timing is often defined as moving money in and out of the market or switching into other asset classes. But is can also mean timing your entry correctly. That is what I want to talk about here. But let’s be honest, as option swing traders (generally in the trade for 2 to 5 days), there is always the unknown of what the market may be the next session if holding the position overnight. That said, patience and the correct timing can still vastly improve your odds for success. Is This the Best Time to Enter? Although not all stocks are market stocks... [Continue Reading ...]() MTM Watchlist Here are a few trade ideas we will consider in group coaching class this week: TSLA – if the stock can break over some resistance around $735 it has a chance to run, provided the market does not move lower. Bull call and bull put spreads will be examined. GLD – We have modeled out several bull put spreads on GLD, but potential bear call spreads may be considered if it continues to struggle and stay below its 200-day moving average. AMZN – After splitting, the stock is more affordable for many investors. A continued push higher may be on tap for the stock. Additional bull call spreads will be looked at targeting a move to its 50-day moving average. [image](=) We're honored to have Dan's Book Trading Option Greeks listed as one of the [Best Options Trading Books]() by New Trader U. [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