MTM Options Trader Newsletter - How Do You Feel About Adjustments?

[image]() [image] This Week in the Market It was a bullish week as the major indexes all were able to move higher. The S&P 500 joined the Dow by moving through its 50-day and 200-day averages, and Nasdaq was at least able to close above its 50-day. The S&P 500 is once again on the doorstep of reaching 4,000 and has a good chance of exceeding that level this week. A bullish to non-bearish sentiment on the market seems to be the way to go with stocks moving higher and support levels holding thus far. As you might have assumed, implied volatility levels dropped with the move higher to levels last seen in April. It's another short week of trading with the market closed on Monday in honor of Martin Luther King Jr., and with the short week come lower IV levels. Several economic reports are slated for this week, including the latest PPI number scheduled for Wednesday before the open. A couple of housing reports are also scattered throughout the week. Have a great week, enjoy some time off, and remember to remind yourself you are a risk manager first! Jan 17: Empire State Manufacturing Jan 18: Retail Sales Jan 18: Producer Price Index Jan 18: Industrial Production and Utilization Jan 18: Business Inventories Jan 18: Beige Book Jan 19: Jobless Claims Jan 19: Housing Starts Jan 20: Existing Home Sales [Read Our Blog]( How Do You Feel About Adjustments? This question comes up often in group coaching class and in my one-on-one option coaching sessions: How do you feel about adjustments? I personally do not have a problem with adjustments, but I often tell my students to think of them as brand-new trades. But that’s the problem. Most option traders cannot think clearly and honestly about adjustments. Save the Trade There are several things a person needs to do to become a successful option trader. The list is way too long to include here, but one of [Continue Reading ...]( MTM Watchlist Here are a few trade ideas we will consider in group coaching class this week: SPY – Need I say more? Double and single calendars and iron condors continue to extract money from the market on this ETF, so why would we stop? AMZN – The stock looks to keep moving higher after setting up a potential RKO (red knockout) Friday. More bull call spreads will be explored. COIN – A 50 call calendar worked out beautifully this past week. With some potential resistance and the stock trading at that level, we may explore another one. [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 - 2023. 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