MTM Options Trader Newsletter - Volatile Events Can Produce Volatile Days

[image]() [image] This Week in the Market The market took a turn to the downside as two consecutive bearish days in the beginning of the week left buyers hesitant to act. When the dust settled, the major indexes had closed much lower for the week. Of the three major indexes, only the Dow continues to trade well above its 200-day moving average. The S&P 500 and Nasdaq remain stuck a fair amount below it. Where the market goes from here is anyone’s guess. The indexes have traded in a fairly tight range for about a month, so a breakout is on the horizon. Will it happen this week? If there were ever a volatility event that could move the market it would be this week. Yes, it is time for another Federal Reserve meeting. The current consensus is that members will increase rates by 50 basis points, but a 75-point hike has been gaining ground. Maybe the CPI number before the open on Tuesday will sway members. The latest retail sales number is expected on Thursday, which will give an early indication of how holiday shopping is going. Remember, sitting on your hands is a position especially over a volatility event. Happy holidays, and have a healthy, safe and prosperous week! Dec 12: Federal Budget Dec 13: Consumer Price Index Dec 14: Import Price Index Dec 14: FOMC Dec 15: Jobless Claims Dec 15: Retail Sales Dec 15: Industrial Production Dec 15: Business Inventories [Read Our Blog](=) Volatile Events Can Produce Volatile Days After looking at the title of this post, you are probably thinking, “well, of course they can.” While we often know things like this as traders, our emotions can take over and common knowledge sometimes go out the window. This is just a reminder to keep the emotional trader inside you in check. Example in SPY Over the past couple of months, there have been some very volatile and erratic trading days even when there was no volatile event. But when there is one that is known, like a FOMC meeting (one this week) or the latest jobs number, traders need to be disciplined. In the 15-minute chart below of the S&P 500 ETF (SPY), you can see buyers and sellers had [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – The ETF is on the list again and for a great reason. It continues to make money for us in so many different forms that it cannot be overlooked, even for a week. Verticals, double calendars and short iron condors will be on the table. BABA – If the stock continues to dance around its 200-day moving average, short iron condors and long calendars will be modeled out. AMZN – Call credit spreads have been working out well on the stock, including those from this past week. Expect more to be considered around potential resistance at the $92 level. [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