MTM Options Trader Newsletter | Take the Odds for a Bear Call Spread

[image](=) [image] This Week in the Market It was a record-setting week for the market as the Dow, Nasdaq and S&P 500 all regained their 50-day moving averages. Two weeks ago, the market looked ripe for a continued move lower, but the indexes climbing higher quickly erased that. Implied volatility levels that spiked severely higher after the selloff have settled down yet again with the market making a brisk move back up. Because of the downtrend ending and resistance levels such as the moving averages being broken, a bullish to non-bearish bias seems to make sense as it has for the better part of 2024. It is a slow week as far as economic reports go, but there are several Federal Reserve talks scheduled, including the latest notes from the Fed’s last meeting. With positive economic numbers last week, Fed members may give a further clue about a rate cut. A couple of housing reports are also on tap for this week. Quarterly earnings continue to slow, but Nvidia’s announcement is still about a week away. Have a safe, healthy and prosperous week! Aug 19: Leading Economic Indicators Aug 21: FOMC Minutes Aug 22: Jobless Claims Aug 22: Existing Home Sales Aug 23: New Home Sales [Read Our Blog]( Take the Odds for a Bear Call Spread On a recent Monday morning in MTM’s Group Coaching class, a student trader asked me to look at a trade idea involving Goldman Sachs Group, Inc. (GS). Teaching and examining trade ideas is what the class is all about, so I was more than eager to check it out. The trade idea was a potential bear call spread on GC, so we quickly turned our attention to the chart and considered our options. GS Bear Call With the stock trading around $487, this option trader was looking to sell a 502.5/505 bear call for that Friday’s expiration, which was four [Continue Reading …]( MTM Watchlist Here are a few trade ideas we will most likely look at in MTM’s group coaching class this week: SPY – After a huge move higher last week, the ETF may be a bit extended. Potential bear call spreads and more 0-DTE iron condors will be explored. NVDA – The stock continues to be a hot topic as it made a big move higher. More bull call spreads will be considered this week. AAPL – There is some formidable potential resistance above where the stock is currently trading. Potential bear call spreads will be modeled out this week. [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