MTM Options Trader Newsletter - Don’t Bite on the Head Fake

[image]() [image] This Week in the Market The Dow could not keep up with the S&P 500 and Nasdaq, but stocks were able to post gains again. A non-bearish bias on the market still makes sense as the major indexes continue to either refuse to move lower or add to previous gains. As they often say about a sports team that doesn’t have the best defense but also doesn’t give up a lot of points, it is a “bend but don’t break” mentality for the market. Implied volatility levels and option prices continue to drop as the market grinds higher. It's a heavy week as far as economic reports go. Not only is the FOMC announcement coming Wednesday afternoon, but there are also a couple of inflation numbers set for release. At the time of this writing, no change in the target rate is expected, but traders and investors will be looking for hints of what the Federal Reserve may be thinking going forward as far as rate hikes or cuts. The plot may thicken. Have a healthy, safe, and harmonious week! Dec 12: Consumer Price Index Dec 12: Federal Budget Dec 13: Producer Price Index Dec 13: FOMC Dec 14: Jobless Claims Dec 14: Import Price Index Dec 14: Retail Sales Dec 14: Business Inventories Dec 15: Industrial Production [Read Our Blog](=) Don’t Bite on the Head Fake The opening of the market can be a crazy, anxiety-filled time. Many experts will tell you not to trade at the open, but that can be debated. Many times, especially in this market, there are sizable gaps higher or lower to start the session. If you are watching the underlying or have an already-established position, your pulse may race and many times there is an instinct to do something right there and then. But knowing not to get fooled into early market action can improve your chances for success many times over as a technical analyst. [Continue Reading …](=) MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – Vertical credits worked well again, as did a double calendar. With the FOMC this week, more verticals and doubles will be explored. META – With a big bullish rally to close out the week, the stock may be primed for an even bigger bullish move. Potential bull calls and directional call calendars will be considered. WMT – The stock dropped below some critical support levels and has not done much to work its way back. With continued weakness, bear put spreads 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