MTM Options Trader Newsletter - Taking Option Profits Sooner When Appropriate

[image](=) [image] This Week in the Market It was a sloppy and choppy week yet again as the three major indexes posted a loss and stocks moved lower to close out the week. The market continues to act in a non-bearish fashion with most support levels keeping the indexes from moving lower thus far. The three major indexes are still hanging just below their 50-day moving averages, and the Russell 2000 is attempting to hold its 200-day moving average. It has underperformed compared with the big three. As has been the case, implied volatility and option prices remain relatively low with the VIX (CBOE Volatility Index) recently testing lows from this past summer despite the sell-off on Friday. It seems like only last week, but it is time yet again for another Federal Reserve meeting. Heading into the week, the odds are exceedingly high that Fed members keep rates the same. Naturally, what they say after the announcement could excite or worry the market. There are a couple of reports on Thursday that could move the market as well, while quarterly earnings remain slow. Have a safe, healthy and prosperous week! Sep 19: Housing Starts Sep 20: FOMC Sep 21: Jobless Claims Sep 21: Current Account Deficit Sep 21: Leading Economic Indicators Sep 21: Existing Home Sales [Read Our Blog](=) Taking Option Profits Sooner When Appropriate I think most option traders consider this a very volatile market, and they have for several months. When to take profits can be difficult to determine, especially in an environment like this. One of the hardest hurdles I had to overcome as a retail option trader was not taking profits too soon. I was scared and I exited trades well before my plan outlined. But in a market like we have seen, taking risk off the table sometimes prematurely is not a bad thing. [Continue Reading …](=) MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – Although double calendars have not been on the agenda lately, vertical credit spreads have worked really well. Expect more of them this week. AMZN – We have done several bullish trades on the stock, and they have profited over the past couple of weeks. With Friday’s pullback, look for bull puts to be on the menu this week. AAPL – The stock continues to dance around the $175 level, and you know what that means, right? More calendars possibly around that level 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