MTM Options Trader Newsletter - Profit Taking Orders Are Mandatory

[image]() [image] This Week in the Market The market pushed a fair amount lower despite a holiday-shortened week of trading. Avoided for now was a big sell-off as buyers were able to rally and bring stocks back from their lows on Thursday and Friday. The S&P 500 closed just above its 200-day moving average, and a hold of that level this week would be big for bulls. In fact, the Dow and Nasdaq also closed above their 200-day moving averages with the Dow having the most breathing room for now. Implied volatility levels increased a tad as expected with the decline. Traders and investors will get back to a full week of trading, which will feature speakers from the Federal Reserve on various days. Market participants will be looking for clues about rate hikes going forward. Several economic reports are also set for release, including the latest consumer confidence figure. Quarterly earnings continue to wind down, but a fair number of retailers are expected to report in the coming weeks. Have a safe, healthy and prosperous week! Feb 21: Manufacturing and Services PMI Feb 21: Existing Home Sales Feb 22: FOMC Minutes Feb 23: Jobless Claims Feb 23: GDP Feb 24: Personal Income Feb 24: New Home Sales Feb 24: Consumer Sentiment [Read Our Blog](=) Profit Taking Orders Are Mandatory There is a lot of subjectivity in life and in options trading. In both, there are lots of choices with many potential scenarios. As any trader knows, there are also lots of judgment calls and not a lot of certainty when it comes to options. There is, however, one move that can 100% improve your trading results. Risk Removal What I am talking about is implementing profit taking orders as soon as you have your position on even if profits are not quite realistic in a day or two. Good-til-canceled (GTC) sell limits for debit positions and GTC buy limits [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we will consider in group coaching class this coming week: SPY – We did numerous bear call spread on the ETF. Look for that trend to continue this week, and we may even throw in another double calendar. UNG – We have been watching this one for quite some time, looking for a bullish reversal, and it might have happened this past week. Potential long calls and cash-secured puts will be explored. COST – The stock is in the middle of a very big range. With IV on the lower side, a long straddle will be weighed seriously this week. [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