MTM Options Trader Newsletter - Option Trades for a Neutral Outlook

[image](=) [image] This Week in the Market The market never ceases to amaze as volatility continues to rum amok with intraday moves just as crazy as daily gaps. Despite it all, the S&P 500 was able to hold some support from a previous pivot low made in the middle of June until the end of the week. On Friday stocks rolled over and closed decisively below that pivot low and near the low of the session. Will Friday’s weakness carry into this week? That is a distinct possibility now that support may be broken and the index has plenty of room to move lower. Implied volatility levels remain high, but the VIX did not close above recent highs in spite of the lower close. Perhaps market participants are not overreacting to the dip below support. Tune in this week! Thankfully, there is no FOMC announcement this week, but the market does not need that release to produce volatility. Several economic reports are due out this week, including the September jobs report before Friday’s open. Quarterly earnings remain slow, but that will change very soon, which may lead to more market havoc. Have a healthy, safe and outstanding week! Oct 3: Construction Spending Oct 4: JOLTS Oct 4: Factory Orders Oct 5: International Trade Balance Oct 6: Jobless Claims Oct 7: Unemployment Oct 7: Wholesale Inventories Oct 7: Consumer Credit [Read Our Blog](=) Option Trades for a Neutral Outlook As we continue our look at option strategies based on the expected move or non-move, today we’ll explore a neutral outlook. The beauty of options is they allow option traders to profit when there is a neutral bias. Trying to do that with a stock position, for example, is a bit difficult. Neutral Having a neutral outlook on the market or underlying is when the chart shows sideways action. Many times the underlying will be trading between horizontal support and resistance levels.... [Continue Reading ...]( MTM Watchlist Here are a few trade ideas we may consider in group coaching class this week: SPY – If it keeps working, no need to fix it. More bear call and bear put spreads at and below potential resistance levels will be examined. VXX – If the market keeps falling, this ETN may continue to rise. Bull call spreads will be examined this coming week with a target around its 200-day moving average. GOOGL – The $100 level remains potential resistance for this stock. Bear call spreads around that level worked well last week, so we’ll likely look at more this week. [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