MTM Options Trader Newsletter - A Credit Spread on CRM

[image](=) [image] This Week in the Market The market shot up big time on Thursday after the latest inflation numbers were released. The S&P 500 and Nasdaq surged through their 50-day moving averages, and the Dow busted through its 200-day moving average. As has been the case, the market seems to focus on the positive and doesn’t let negative news rattle it too much. Heading into this week the question is whether it will continue its bullish or at least non-bearish path. The S&P 500 is within striking distance of the 4,000 level again. The political landscape moving ahead may affect the market too. Implied volatility levels and option prices continue to drop. There are a fleet of economic reports due out this week including a couple of housing reports and the latest update to PPI. Quarterly earnings remain slow for most of the big names, but there are several that have yet to report. The next FOMC meeting is still about a month away. Trade management is the most important part about trading. Spend some time on your management plan! Have a healthy, safe and happy week. Nov 15: Producer Price Index Nov 16: Retail Sales Nov 16: Import Price Index Nov 16: Industrial Production Nov 16: Business Inventories Nov 17: Jobless Claims Nov 17: Housing Starts Nov 18: Existing Home Sales Nov 18: Leading Economic Indicators [Read Our Blog](=) A Credit Spread on CRM When looking at a chart, I often tell my group coaching students to ask themselves what has a better chance of happening. What I mean by this is that if there is any potential support or resistance, a trader can use it as a proxy for what is more likely to happen. In short, support and resistance have a better chance to keep the underlying from moving through that level. Let’s look at a recent trade idea on Salesforce Inc. (CRM) that we considered in class. Using the daily chart of CRM below, we saw that the stock gapped higher at the open and continued to move higher for a time. [Continue Reading ...]() MTM Watchlist Here are a few trade ideas we will look at in group coaching class this week: SPY – How can we not keep watching this ETF? With the big move higher and now resistance levels becoming potential support levels, bull put spreads will be explored. MCD – Until the final two bullish sessions of last week, this stock had been on fire since October. Look for a bounce back and bull call spreads. JNJ – The stock has been trading sideways and seems to be stuck in a rut. Potential bear call and short iron condors will be considered. [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 emailing investorservices@theocc.com; 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