MTM Options Trader Newsletter | Bid-Ask Spreads Can Be Deceiving

[image](=) [image] This Week in the Market The big story last week was NVIDIA earnings. Numbers were released and the stock moved lower to close out the week. It was a decent drop, enough to push the stock below its 50-day moving average. The three major indexes all closed a little lower than the previous week. That being said, a non-bearish bias on the market still seems to make sense as the market continues to drift sideways with the S&P 500 trading in a tight range without any substantial support levels being tested or broken. With the lack of any significant movement from stocks, implied volatility and option prices stayed relatively low. Traders and investors will get a break from the market as the Labor Day holiday on Monday keeps the market closed until Tuesday. Take some time to review your trading plan! Next week is a pretty heavy week as far as economic reports go culminating with the jobs report before the market opens on Friday. In addition, Fed President Williams will speak shortly after the jobs report. After NVIDIA earnings last week, quarterly numbers continue to slow as the bulk of companies have already reported for the quarter. Enjoy some time off and have a safe, healthy and long weekend! Sep 3: Construction Spending Sep 4: U.S. Trade Deficit Sep 4: JOLTS Sep 4: Factory Orders Sep 4: Beige Book Sep 5: Jobless Claims Sep 5: U.S. Productivity Sep 6: Unemployment [Read Our Blog](=) Bid-Ask Spreads Can Be Deceiving The market has certainly been on a mission lately, moving higher over the past several weeks after a big decline. In addition, implied volatility (IV) levels have continued to drop after spiking higher for a few days. That is not a good thing for option traders who love to sell premium. But the good news is that bid-ask spreads tend to be tighter when options are cheaper. What, you never worry about bid-ask spreads? If that is the case, you should definitely read on. What Is Not to Like? [Continue Reading …](=) MTM Watchlist Here are a few trade ideas that we will most likely be looking at this coming week: SPY – The ETF continues to be our #1 source for quality trade ideas. More 0-DTE iron condors on the SPY and double calendars will be modeled out again this week. GOOGL – The stock continues to be stuck in a rut so to speak so more neutral trade ideas like iron condors and calendars will be modeled. AAPL – Bear call spreads and calendars were successful this past week and including bull put spreads will be considered next 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