MTM Options Trader Newsletter - Do You Know About XSP Options?

[image]( [image] This Week in the Market Stocks continued their decline, and not even a slew of earnings could push them higher. The S&P 500 tried to hold its 200-day moving average but ultimately pushed lower in the latter part of the week. Most rallies were met with sellers throughout the week, and on Friday there wasn’t much enthusiastic buying to close out the week. Only Nasdaq is trading above its 200-day moving average. A non-bullish outlook seems to make sense until some resistance levels have fallen. Implied volatility and option prices didn’t move much, at least according to the VIX (Volatility S&P 500 Index). Speaking of IV, there are still plenty of quarterly earnings on the docket, including the ever-popular Apple, which is expected to announce Thursday after the close. If you own Apple, consider a collar over the announcement and, let’s hope, sleep better at night. The Federal Reserve is set for another announcement this week, although a rate hike is not expected, and the latest jobs figure is also on the slate. Don’t take off that seatbelt just yet! Have a safe, healthy and enjoyable week. Oct 31: Consumer Confidence Nov 1: JOLTS Nov 1: Construction Spending Nov 1: FOMC Nov 2: Jobless Claims Nov 2: US Productivity Nov 2: Factory Orders Nov 3: Unemployment [Read Our Blog](=) Do You Know About XSP Options? You may not know this, but there is a product from the CBOE (the Chicago Board Options Exchange) that may interest option traders. It is the XSP, which is the mini version and one-tenth the value of the S&P 500 (SPX). The S&P 500 is the capitalization-weighted index of 500 stocks from various industries. This gives option traders more flexibility and potentially less risk than trading the SPX. Let’s look at a few specifics. SPX vs. XSP Option Chains Below you see an option chain of XSP and one of the SPX. [Continue Reading …](=) MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – We did well with bear calls and bull puts, and this week it will be more of the same just at different strike prices. GOOGL – After declining vigorously and then gapping even lower after earnings, the stock may be a bit extended to the downside. With any bullish momentum, bull calls and directional call calendars will be explored. TSLA – The stock continues to dance below its 200-day moving average. Iron condors above that level and at some potential support around the $200 level will be examined. [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