MTM Options Trader Newsletter - Waiting Out Your Theta

[image]() [image] This Week in the Market Stocks moved lower this past week as bullish momentum could not be maintained. It was not a bad beatdown, although Nasdaq led the way lower. Heading into this week, the three major indexes will see if they can turn on the bullish moves once again, but that might only come with a positive reaction to a couple of inflation numbers being released. The CBOE S&P Volatility Index (VIX) closed higher but still at a relatively low level around its 50-day moving average. Cautious optimism and a non-bearish bias make sense unless the market turns sharply lower. As mentioned above, several reports being released this week could move the market in a big way. One of them is the latest CPI number expected before the open on Tuesday. Implied volatility levels will most likely keep increasing on Monday up until the close. In addition, a few other numbers are expected, including a PPI update and the latest retail figure. Quarterly earnings continue to slow, but a few big-name stocks have yet to report including several retailers. Have a healthy, safe and prosperous week! Feb 14: Consumer Price Index Feb 15: Retail Sales Feb 15: Industrial Production Feb 15: Business Inventories Feb 16: Jobless Claims Feb 16: Producer Price Index Feb 16: Housing Starts Feb 17: Import Price Index Feb 17: Leading Economic Indicators [Read Our Blog](=) Waiting Out Your Theta “Please remain on the line and the next available representative will be with you shortly [elevator music resumes].” WAITING! Yeah. It’s annoying. But we have to do it. And when the wait is over, we finally get what we want…just like theta. How Does Theta Work in Options? The first thing we need to talk about is: How does theta work in options? This is not a big mystery. The option Greek “theta” measures how much an option loses per day from time passing—a phenomenon called time decay, or option erosion. [Continue Reading ...]( MTM Watchlist Here are a few trade ideas we will consider in group coaching class this coming week: SPY – Don’t be surprised! A double calendar worked well again last week and with added volatility, we will look at more. AAPL – The $150 level has been solid support and resistance for the stock. Just like last week, another $150 calendar will be explored. HD – With a major potential support level at $315, a bull put or bull call is a distinct possibility with the stock trading just above that 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 - 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