MTM Options Trader Newsletter - Be on the Side of the Market

[image]() [image] This Week in the Market It may have been a short week of trading, but it turned out bullish as stocks and the major indexes closed higher. The S&P 500 is bearing down on its 200-day moving average, although it did close below it. A move above that level could trigger additional buyers to the market. Despite perceived negativity about the economy, most stocks are finding a way to move higher. The robust option premiums traders have seen over the past several months are fading away as implied volatility levels continue to drop to levels not seen since August. A non-bearish outlook seems to be the way to go until support levels are broken. It's a crazy heavy week of expected economic reports. The latest GDP and consumer spending figures are expected as well as the November jobs report before the open on Friday. If that weren’t enough, Fed Chair Powell is slated to talk a couple of times this week as well. Quarterly earnings remain slow for the time being. Better to be out of the market wishing you were in than in the market wishing you were out. Have a healthy, safe and prosperous week! Nov 29: Consumer Confidence Nov 30: GDP Nov 30: Chicago PMI Nov 30: JOLTS Nov 30: pending Home Sales Nov 30: Beige Book Dec 1: Jobless Claims Dec 1: Consumer Spending Dec 1: Construction Spending Dec 2: Unemployment [Read Our Blog](=) Be on the Side of the Market If you know anything about me, you know how much I look for support and resistance areas on charts to help give me an edge. Just recently, the S&P 500 ETF (SPY) was challenging a resistance level. The market had rallied at the beginning of November, and around mid-month the SPY was trying to move above the $400 level. Round numbers often act as support and resistance levels on charts. As I often remind traders, ask yourself, “what has a better chance of happening?” Let’s Take a Closer Look As you can see from the chart below of the [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we will look at in group coaching class this week: SPY – Not every trade idea on SPY we’ve explored has worked out, but an overwhelming majority have profited. More bull puts around potential support levels and possible iron condors will be on tap. SBUX – With the stock hanging around the $100 level, a break above it could trigger an upside move. Potential bull call spreads will be considered. IBM – The stock has rallied up to a double-top area. If the market does not go on a bullish rampage, bear call spreads may be in order. [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