MTM Options Trader Newsletter - IV and a Double Calendar on SPY

[image]() [image] This Week in the Market It looked like the major indexes would close higher after a miraculous and record-breaking climb on Thursday, but a big sell-off following a gap higher on Friday did stocks in for the week. What will happen this week is anyone’s guess, but maybe traders and investors will get more of a clue after the open on Monday. It is unclear if bearish sentiment has changed with several different thoughts being tossed around like the worst is over as far as inflation goes and the Fed will get more aggressive to name a few. That said, it really is a shrug-your-shoulders type of situation, but one thing for sure is that volatility will continue. Speaking of volatility, implied volatility remains high but is still not breaking any recent highs over the past several months. It does not seem like a panic situation for the time being. The bond market will see a full week of trading just like stocks after being closed last Monday. There are several economic reports due out this week, including a couple of housing reports that are expected to show a slowdown in starts and existing sales. But don’t think there won’t be any other volatility events. There will be a few more quarterly earnings announced this week with more to follow in the coming weeks. Again, no position is a position. Have a healthy, safe and prosperous week! Oct 17: Empire State Manufacturing Index Oct 18: Industrial Production Oct 19: Housing Starts Oct 19: Beige Book Oct 20: Jobless Claims Oct 20: Existing Home Sales Oct 20: Leading Economic Indicators [Read Our Blog](=) IV and a Double Calendar on SPY Recently in MTM’s Group Coaching class, we talked about a long double calendar on SPY. The interesting part about the conversation was that Fed Chair Powell was speaking the next day at the Jackson Hole Symposium. A volatile day might ensue the next session. Implied Volatility Skews At the time we were looking at the trade, the S&P 500 ETF (SPY) was trading just over the $416 level. I suggested considering this trade toward the close and potentially basing short strikes off where it was closing. [Continue Reading ...]() MTM Watchlist Here are a few trade ideas we may explore in group coaching class this week: SPY – Credit spreads and short iron condors have worked well in this extremely volatile market. More will absolutely be considered this week. GLD – Gold has taken a deep dive lower over the past couple of weeks. If a bullish reversal is spotted, bull call spreads will be modeled out. AAPL – The stock has some potential support and resistance around the $140 level. Potential short iron condors will be examined in front of the company’s earnings report the following 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