MTM Options Trader Newsletter - Mind the Gap When Trading Options

[image]() [image] This Week in the Market Stocks went crazy again last week, moving lower after the Federal Reserve added 25 basis points to interest rates on Wednesday and then gapping higher the next session. Overall, the market fared well with Nasdaq continuing to outperform the Dow and S&P 500. As has been the case, a non-bearish bias seems to make sense until major support levels are broken, which may not happen for a long time. Of course, an expected volatility event could change that course quickly. Implied volatility levels and IV skews have dropped after last week’s activity. The FOMC is in the rearview mirror for now, but Fed speakers will most likely move the markets going forward from time to time. As far as economic reports go this week, the latest update to the GDP is expected as well as a couple of consumer reports. Quarterly earnings remain slow, but the bulk of them are not too far off. Have a healthy, happy and very prosperous week! Mar 28: Trade in Goods Mar 28: Consumer Confidence Mar 29: Pending Home Sales Mar 30: Jobless Claims Mar 30: GDP Mar 31: Personal Income and Spending Mar 31: Consumer Sentiment [Read Our Blog](=) Mind the Gap When Trading Options This market remains a volatile beast, gapping higher or lower practically every session. We are also almost through another round of quarterly earnings, which always seem to create potential for large gaps. I think many of us can agree that the first 30 minutes of the market can be very volatile because of a volatility event or from an earnings report. If you have been watching the market over the past couple of months, you might say the entire sessions have been volatile. But by being patient, and many times sitting out early market action, you can improve your chances for success later in the session. [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we will look at in group coaching class this week: SPY – We absolutely killed a couple of double calendars on the SPY last week. Despite not having the same IV skews we saw then, there will be opportunities for more this week. AMD – The stock has been ripping higher for several weeks and has rallied to some potential resistance. Depending how it handles that resistance, bear calls or bull calls will be modeled out. TSLA – The stock continues to hold its own, so short iron condors and vertical credits will once again be explored. [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