MTM Options Trader Newsletter - Patience and the Market Close

[image]() [image] This Week in the Market There was a lot of wiggling and jiggling, but when the dust settled this past week the major indexes had barely moved. The big volatility day was Friday as Fed Chair Powell gave a hawkish speech at the Jackson Hole Symposium reiterating a 2% inflation target and saying he thinks there is a long way to go before we get there. He also said rate hikes are still a possibility. The market was all over the place on Friday but closed on a bullish note. The Dow, Nasdaq and S&P 500 are still below their 50-day moving averages, and there will be a lot of eyes on how the market reacts early on this week. Implied volatility levels have remained consistent over the past several weeks. It is a heavy week as far as economic reports go. The latest GDP update and a consumer confidence number will be analyzed early in the week. In addition, the August jobs report is due out before the open on Friday in front of the long Labor Day weekend. Quarterly earnings continue to wind down with a handful of retailers still set to report. Have a safe, healthy and decisive weekend! Aug 29: JOLTS Aug 29: Consumer Confidence Aug 30: GDP Aug 30: Trade Balance Aug 30: Pending Home Sales Aug 31: Jobless Claims Aug 31: Personal Income and Spending Sep 1: Unemployment Sep 1: Construction Spending [Read Our Blog](=) Patience and the Market Close Let’s discuss something I talk about every single day in MTM’s group coaching class. To me, it is vitally important as a technical trader. When the market closes, there is never a guarantee it will open higher or lower the next session. That is a major concern if you hold a position overnight, which we typically do as option traders. If we knew how the market would open, trading would be a whole lot easier and less fun, right? OK, I am kidding. But there is something I do constantly that helps me tremendously: I see how the stock closes on the day. [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – Those beautiful double calendars did the job again last week, and guess what? They will be explored again this week. BA – The stock dropped on Thursday but was able to rally back to its 50-day moving average on Friday. Potential bull put and bull call spreads will be examined early in the week. JPM – After dropping below its 50-day moving average, the stock has had trouble moving above it. Potential bear call spreads at the moving average will be strongly considered. [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