MTM Options Trader Newsletter - A Short Iron Condor in Boeing

[image]() [image] This Week in the Market The major indexes closed lower this past week as hotter than expected inflation numbers prompted a big selloff Tuesday that scared buyers away. Stocks rallied back but closed relatively weak on Friday. The major indexes remain in a decent uptrend, but there seems to be a little doubt about whether the market is overextended or will keep trying to advance higher. A non-bearish bias makes sense until key support levels are broken. Option prices and implied volatility levels have ticked up a fraction. Traders will get a breather Monday with markets closed in honor of Presidents’ Day. It will be a slow week as far as economic reports go with only a handful of numbers being released in addition to the notes from the Federal Reserve’s last meeting on Wednesday afternoon. As is usually the case, the Fed has a couple of speaking engagements too that are set for Wednesday and Thursday. Quarterly earnings continue to wane as we move toward March. Enjoy some time off, and have a safe, healthy and prosperous week! Feb 20: Leading Economic Indicators Feb 21: FOMC Minutes Feb 22: Jobless Claims Feb 22: Existing Home Sales [Read Our Blog](=) A Short Iron Condor in Boeing In MTM’s daily group coaching class, we have modeled out several iron condors recently including one in Boeing that we’ll explore below. A short iron condor is a generally market-neutral strategy that combines two credit spreads. A call credit spread is implemented above the current stock price and a put credit spread is implemented below it. The objective of any credit spread is to profit from the short options’ time decay while protecting the position with further out-of-the-money (OTM) long options. If the spreads continue to trade OTM, they each will produce positive theta. How an Iron Condor Works The iron condor is simply combining both the call and put credit spreads as one trade. The [Continue Reading …]() MTM Watchlist Here are a few trade ideas we will most likely look at in MTM’s LIVE Advantage Group Coaching class this week: SPY – This ETF continues to dominate for us in group coaching class, so if it ain’t broke, don’t fix it, right? More vertical debit and credit spreads will be explored and most likely more double calendars too. META – We have done several successful iron condors on this stock over the past several weeks. If support and resistance hold, we will look for more. If resistance breaks, bull call spreads will be next up. FDX – Several iron condors have worked on this stock too, but it may look more like a bear call spread candidate now. Depending on whether resistance holds, vertical credits will be modeled out. [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