MTM Options Trader Newsletter | Hard Profit Taking Option Orders

[image]( [image] This Week in the Market Stocks moved lower on the week with the major indexes closing lower. Corporate earnings moved the indexes higher as well as lower with many of the FAANG stocks releasing their earnings this past week. Amazon stock did the best of the ones that announced. Looking ahead from a technical analysis point of view, the three major indexes are still trading above their 50-day and 200-day moving averages; but there will be lots of activity this coming week that can affect that. A non-bearish bias makes sense until proven otherwise. Implied volatility levels continue to creep a little higher. Talk about an extra crazy week coming up! Implied volatility levels are already jacked up because of the election, and then you have the FOMC announcement too. It is anyone’s guess how the market will react to the outcome of the election. At the time of this writing, the overwhelming odds are for the Federal Reserve to cut interest rates another quarter of a percent. In addition to the FOMC, there are several other economic reports expected to be released. Even though quarterly earnings are starting to slow, several companies are expected to report this week. I have said buckle up before, but this week it will be mandatory. Have a safe and healthy week, and be patient! Nov 4: Factory Orders Nov 5: Trade Deficit Nov 7: Jobless Claims Nov 7: U.S. Productivity Nov 7: Wholesale Inventories Nov 7: FOMC Nov 7: Consumer Credit Nov 8: Consumer Sentiment Nov 8: Federal Budget [Read Our Blog]( Hard Profit Taking Option Orders Here is a topic I cover daily when it comes to options trading. It is so important that I cannot go a day without bringing it up several times in MTM’s Group Coaching class or with students in a one-on-one environment. The topic is always having a hard profit taking target when you have a position on. Risk Removal One of the main ways to be an effective risk manager as an options trader is to implement profit taking orders as soon as you have your position on. Do this immediately even if profits are not quite realistic in a day or two. Good-till-canceled (GTC) sell limits for debit positions [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 – With the election and FOMC this week, there will be some crazy IV skews. 0-DTE trades and double calendars will be on the top of the list. AAPL – After announcing earnings last week, the stock gapped lower. Now there are plenty of options for potential bull put and calendar spreads. VLO – Energy stocks like VLO continue to be non-bullish with resistance levels holding. Potential bear call spreads and directional put calendars will be explored. [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