MTM Options Trader Newsletter - Greeks of Directional Time Spreads

[image](=) [image] This Week in the Market The S&P 500 did move higher last week, but if Friday’s sell-off is any indication, the market is not convinced the bearish move is over. Although some minor resistance levels were broken temporarily last week, they remain in place heading into this week with all the major indexes still trading well below their 200-day moving averages. The S&P 500 closed Friday at a level that acted as support previously, so this week may be critical to see if it acts as support again or if sellers can push the index lower. Implied volatility levels got a boost higher after the big drop to end the week. Banks and the bond market are closed on Monday because of the Columbus Day holiday, but the stock market keep its regular hours. Trading volume may be a little lighter than normal, however. The latest retail sales number is expected this week as well as the notes from the last Fed meeting, which are expected to be released on Wednesday afternoon. Quarterly earnings get started this week as several financial institutions are expected to release their latest numbers toward the end of the week. Get ready! Have a healthy, safe and disciplined week of trading. Oct 12: Producer Price Index Oct 12: FOMC Minutes Oct 13: Consumer Price Index Oct 13: Jobless Claims Oct 14: Retail Sales Oct 14: Import Price Index Oct 14: Business Inventories [Read Our Blog]( Greeks of Directional Time Spreads We’ve been seeing a lot of time spreads trading lately. A LOT. And one variety of time spread I’d always been a fan of—directional time spreads—I’ve become just stark raving mad of a fanatic about recently. Directional Time Spreads Why trade directional time spreads? As I like to say, it’s not just about probability of success. It’s about probability of success vs risk-reward. Time spreads enable traders to not just have a better probability of success, but also to get a superior risk-reward relative to other trades. [Continue Reading ...]( MTM Watchlist Here are a few trade ideas we may consider in group coaching class this week: SPY – Although the market moved higher last week, it closed weak on Friday. Several short iron condors were modeled out last week that profited, and more will be considered again this week. UNG - Natural gas has been hanging just above its 200-day moving average for several sessions now. A break over the $24 level could trigger long calls or bull call spreads. NFLX – The stock continues to trade in a channel between about $215 and $250. Additional short iron condors around those levels will be examined again. [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