MTM Options Trader Newsletter - Option Trading Requires Both Experience and Common Sense

[image]() [image] This Week in the Market The market took a deep dive this past week with the S&P 500 and Nasdaq closing well below and the Dow just below their respective 50-day moving averages. As a result, a non-bullish outlook should be maintained for now. This week may be key for where the market goes from here. Implied volatility levels and option prices, as you might imagine, have increased. IV skews for long calendars may be an option this week, so to speak. It is a lighter week as far as economic reports go, but we could see it come to a very volatile end. Federal Reserve Chair Jerome Powell is expected to talk at the Jackson Hole Economic Policy Symposium just after 9 a.m. CT Friday. His talk will be scrutinized for any hint of what rates may do in the future, so market participants beware. Quarterly earnings continue to wind down, but there will be heavy interest in NVIDIA Corp., which is expected to announce this week. Have a safe, healthy and prosperous week! Aug 22: Existing Home Sales Aug 23: New Home Sales Aug 24: Jobless Claims Aug 24: Durable Goods [Read Our Blog](=) Option Trading Requires Both Experience and Common Sense One of the first things I tell my one-on-one coaching students is the one thing I cannot teach is experience. That they must achieve on their own. And it goes without saying that common sense is not easy to come by for many individuals. But you need both to give yourself a chance to extract money from the market as an option trader. Experience Experience comes in so many forms. I would have to write a book instead of a blog post to include them all. If you have not noticed, there [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we will most likely explore in group coaching class this week: SPY – We modeled out several bear call spreads on the SPY, and this week we will look to do the same at potential resistance levels. COST – The stock dropped a lot on Thursday and then settled down a tad on Friday just above its 50-day moving average. Any sign of bullish strength early in the week will prompt some bull put spreads around the moving average. GOOGL – This stock continues to show relative strength despite the downturn in the market over the past couple of weeks. Potential short iron condors will be considered 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