MTM Options Trader Newsletter - Do Not Fear the Short Iron Condor

[image]( [image] This Week in the Market Stocks moved higher last week with several indexes breaking through resistance levels before cooling off into the close on Friday. The three major indexes are finally all trading above their 50-day moving averages with their 200-day MAs still well above current levels. The market has held its own over the past several weeks despite the threat of a recession and rising rates. Meanwhile, implied volatility levels and option prices continue to work their way lower. Quarterly earnings kick into high gear this week with big-name stocks such as Apple, Meta, Amazon and Alphabet expected to announce. If that weren’t enough, the Federal Reserve is set to announce the next rate hike on Wednesday afternoon with most expecting a three-quarter point move higher, although a full point higher is not out of the question. Commentary from Fed Chair Powell after the announcement may give traders and investors a better sense of direction going forward. Several other economic reports are due out this week as well and are listed below. Have a healthy, safe and adventurous week! Jul 26: Consumer Confidence Jul 26: New Home Sales Jul 27: Durable Goods Jul 27: Pending Home Sales Jul 27: FOMC Jul 28: GDP Jul 28: Jobless Claims Jul 29: Personal Income and Spending Jul 29: Chicago PMI [Read Our Blog](=) Do Not Fear the Short Iron Condor If you haven’t noticed, the market has been a volatile mess or, as I like to say, there’s been a lot of slop and chop. With implied volatility levels and option prices still relatively high, it is a potentially good time to sell some neutral premium. One of the best strategies to do that is a short iron condor. Short Iron Condor Though it may sound daunting, an iron condor, and specifically a short iron condor, is selling two vertical credit spreads: a call and put spread. [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we may look at in group coaching class this coming week: SPY – Although we considered some bear call spreads last week, bull put spreads have been the most profitable. More may be explored this week around potential support levels. TSLA – Fresh off its earnings announcement, the stock rallied this past week. Bull call spreads to capture an expected big move to the upside may be examined. GS – Although financials have rallied big, they may be due for a pullback. Potential bear call spreads over some potential resistance around $327 may be on tap. [image] Dominate the Market This Earnings Season Are you ready to learn to spot bankable earnings trades, set them up with our easy-to-follow process and know exactly when to take them off to maximize your returns? Imagine... - No more missing out on $1,000s of revenue - No more sleepless nights worrying about "what you could have done" - No more grasping at straws, "trying stuff" to see what works If you want to finally have control, even in the craziest markets, this is the first step! You'll have everything you need and be fully supported throughout this program to take advantage of this complete Earnings Trading training package. Join today and get the Total Earnings Domination package for 93% off the regular price! [Start Now]() Last chance! This offer expires at 12 p.m. Central, Monday, July 25. 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. 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