MTM Options Trader Newsletter - Sometimes Deeper In-The-Money Is Better

[image]() [image] This Week in the Market The indexes established all-time highs once again, with the market holding its own and even pushing a little higher, especially on Friday. As much as many naysayers have talked about the market being extended or fears that stocks will drop soon, nothing has come to fruition thus far. Therefore, a bullish to non-bearish bias continues to make sense. Why fight the market, right? That said, sooner or later there will be a decent-sized pullback. Implied volatility levels and option prices have remained on the cheaper side since November, despite occasional spikes higher. It is another week packed with economic activity and possible implications. Several Federal Reserve members are set to talk, and Fed Chair Jerome Powell will testify to Congress Wednesday and Thursday. Several economic numbers are due out this week, including the latest jobs figure for February before the open Friday. Quarterly earnings continue to slow, but several retailers are expected to announce, including Target and Costco. Have a safe, healthy and prosperous week! Mar 5: Factory Orders Mar 6: Wholesale Inventories Mar 6: JOLTS Mar: 6: Beige Book Mar 7: Jobless Claims Mar 7: U.S. Productivity Mar 7: Trade Balance Mar 7: Consumer Credit Mar 8: Unemployment Mar 8: Consumer Sentiment [Read Our Blog](=) Sometimes Deeper In-The-Money Is Better With the market moving higher, we have consistently modeled out several bull call spreads in group coaching class in recent months. Here is something to think about next time you are bullish as an option trader and are considering a bull call spread. Many times, moving the spread in-the-money (ITM) makes sense from a probability and positive theta perspective. Let’s consider a recent example. Bull Call Spread in DIS In Walt Disney Co. (DIS) recently, we modeled out a bull call spread with 10 days to go until expiration. We modeled out a 99/102 bull call [Continue Reading …](=) MTM Watchlist Here are a few trade ideas we will most likely look at in LIVE Advantage Group Coaching class this week: SPY – Vertical credits both bullish and bearish did the trick last week, with a profitable double calendar thrown in too. We’ll be considering more of these trade ideas. NVDA – The stock broke the $800 level solidly on Friday and a bull call was initiated. We will explore bull call opportunities again this week. GS – It is remarkable how long this stock has traded in a channel, and we have been able to take advantage of it. More vertical credits and iron condors will be on tap. [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