MTM Options Trader Newsletter - An Alternative to Selling Option Premium

[image](=) [image] This Week in the Market Stocks and the market continued to move higher helped by a bullish close on Friday. There were a couple of dips, but buyers took advantage once again. Nasdaq did its best to stay afloat this past week. Looking ahead, not much has changed as far as market sentiment. A non-bearish outlook still makes sense as support levels are holding. Implied volatility and option prices remain relatively low making it hard for premium sellers to generate much juice. We’ll get a look at some economic reports during our first full week of December trading, including the November jobs report due out before Friday’s open. There are a couple of consumer numbers on tap as well that may interest traders. At the time of this writing, there were no notable Federal Reserve speaking engagements scheduled. Quarterly earnings remain slow for about another month. Have a safe, healthy and prosperous week! Dec 4: Factory Orders Dec 5: JOLTS Dec 6: U.S. Trade Deficit Dec 7: Jobless Claims Dec 7: Wholesale Inventories Dec 7: Consumer Credit Dec 8: Unemployment Dec 8: Consumer Sentiment [Read Our Blog](=) An Alternative to Selling Option Premium We have talked many times about the draw of selling out-of-the-money (OTM) vertical credit spreads for an option trader. Putting it bluntly, the odds are on your side to make money. But guess what? The risk/reward is not so sweet. If you have looked at implied volatility (IV) levels and option prices recently, you know they have been very low. And some would consider option prices cheap. I’m not trying to talk you out of taking credit spreads. Instead, I’m [Continue Reading …](=) MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – The market keeps grinding higher, and we’ll keep grinding out successful vertical debits and time spreads on this ETF. AAPL – Several calendars around the $190 level have worked extremely well. If that level holds, more will be considered. If it doesn’t, potential bull calls will be on the menu. GLD – After a big move higher Friday, a shift lower may be in order, at least in the short term. Bear put spreads may be explored. [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