MTM Options Trader Newsletter - Tighten Your Credit Spreads

[image](=) [image] This Week in the Market A bullish market was in full effect as stocks rallied again this past week. The market gapped higher on Friday and did not retreat much throughout the session closing toward the high of the day. That is a really bullish sign for market participants. Stocks may still be a tad extended, so a pullback is likely in the near future. Implied volatility levels keep moving lower if you can believe it with many IV levels on the SPY (S&P 500 ETF) in the single digits. It will be another short week of trading with the market closed in observance of Independence Day on Tuesday and closing early on Monday. Less trading time means lower IV levels too. Even with the shortened trading week, plenty of economic reports are set for release, including the notes from the Fed’s last meeting and the June unemployment figures. Quarterly earnings remain slow. Enjoy some time away from the computer, and have a safe and healthy Fourth of July! Jul 3: Construction Spending Jul 5: Factory Orders Jul 5: FOMC Minutes Jul 6: Jobless Claims Jul 6: Trade Deficit Jul 6: JOLTS Jul 7: Unemployment [Read Our Blog](=) Tighten Your Credit Spreads I always like to say there are two things an option trader can do that can 100% improve his or her trading. Of course, there are more than that, but the two I am referring to are not subjective at all. In this post, I’ll address the first one, and at a later date we’ll look at the second one. Tight Vertical Credits One of the biggest mistakes I see retail and professional option traders make is selling a credit spread with a wide strike difference. The wider you make the spread from the short to the long strike, the worse you make the percentage credit and risk. Do the tightest [Continue Reading ...]() MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this coming week: GLD – The gold ETF continues to move lower but rallied late in the week, creating a potential sell setup. Bear call and bear put spreads will be considered. TSLA – The stock has been trading in a fairly big range but has some interesting pivot levels that might just be perfect for a short iron condor again. V – With a gap above a resistance level at $235, the stock may keep moving higher. Bull call spreads with a couple of weeks until expiration will 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