MTM Options Trader Newsletter - Theta Can Help Your Unwanted Delta

[image](=) [image] This Week in the Market The Dow did not struggle as it did last week and actually hit an all-time high. Nasdaq and the S&P 500 were also able to close higher on the week. Heading into this week, there will be plenty of potentially volatile events that could move stocks. But based on what the market has been doing, a bullish to non-bearish bias still makes sense. Implied volatility levels continue to wane and move lower taking option premium to even lower depths. It is a week of big-name companies announcing earnings, including Apple, Meta, Amazon, Alphabet and Microsoft. If that were not enough, the latest FOMC announcement is due out Wednesday afternoon with no change in the rate expected. That said, the Fed’s language about expected rate changes going forward might move the market that day and afterward too. Have a safe, healthy and profitable week! Jan 30: JOLTS Jan 30: Consumer Confidence Jan 31: FOMC Feb 1: Jobless Claims Feb 1: US Productivity Feb 2: Unemployment Feb 2: Factory Orders Feb 2: Consumer Sentiment [Read Our Blog]( Theta Can Help Your Unwanted Delta If you have attended MTM’s Group Coaching class, you probably know how much I love time spreads. In fact, I even have a T-shirt I like to wear that says so. Calendars happen to be my favorite time spread, usually of the short-term variety. If you are not familiar with them, long calendars consist of selling a call or put and buying another call or put with the same strike but a longer expiration. For me that usually means selling the current week’s expiration and buying the next if there are weekly options available. I like to initiate them early in the week. Positive theta is the main source of potential income for this position, but I like to look at it a little differently. [Continue Reading …]( MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – Vertical debits and credits did well again last week, and we hope to keep this profit train running. More, including potential calendars, will be considered. JPM – After a vigorous move higher from November till the end of the year, the stock took a breather through its earnings announcement. Just this past week, it broke some resistance levels, and it looks like it may run higher again. Bull call spreads will be explored. GLD – The ETF has been trading in a fairly tight range. Iron condors between support and resistance levels 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 - 2024. 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