MTM Options Trader Newsletter - Consider Option Collars in Earnings Season

[image]() [image] This Week in the Market Stocks were able to move higher early on but lost their groove to end the week, with most indexes left relatively unchanged or with small gains. The major indexes broke the downtrend but were unable to move past significant moving averages that acted as resistance. Heading into this week, a neutral to non-bearish bias still seems to make sense based on recent price action. The market has been resilient for the most part, staying away from huge extended drops. Implied volatility levels spiked higher, especially on Friday, which may be a sign volatility and market movement are extra uncertain. Talk about a crazy upcoming week! Not only are several important economic reports expected to be released, but there are also a few Federal Reserve speakers on the docket, including Fed Chairman Powell on Thursday afternoon. In addition, quarterly earnings are starting to accelerate with several companies set to announce, including big names like TSLA and NFLX. Buckle up, it may be a wild ride. Have a healthy, safe and bountiful week! Oct 17: Retail Sales Oct 17: Industrial Production Oct 17: Business Inventories Oct 18: Housing Starts Oct 18: Beige Book Oct 19: Jobless Claims Oct 19: Existing Home Sales Oct 19: Leading Economic Indicators [Read Our Blog](=) Consider Option Collars in Earnings Season The market has been moving higher and implied volatility levels have continued to drop. These are tough times for premium sellers. Adding to the potential frustration is another round of quarterly earnings. Selling a call to help finance a long protective is always a good idea, in my opinion. Generally, collars are used by investors for this exact situation. But many investors fail to realize what collars can do to protect their [Continue Reading …]( MTM Watchlist Here are a few trade ideas we will most likely explore in group coaching class this week: SPY – With implied volatility expected to be elevated and IV skews abundant, vertical credits and single and double calendars will be on tap. GOOGL – With recent pivot highs around the $140 level and potential resistance, bear call spreads will get a long look. GLD – The ETF shot up huge this past week, and a directional call butterfly we modeled out worked well. Calendars around the moving average may 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