MTM Options Trader Newsletter | How Straddles and Strangles Work

[image](=) [image] This Week in the Market Even an abbreviated week of trading and the threat of new tariffs could not slow down this bullish market, with the S&P 500 racing to a record high once again. Looking ahead to this week, a bullish to non-bearish outlook on the market still seems to make sense despite the threat of a pullback at some point. Implied volatility levels and option prices continue to drop, with the VIX (CBOE Volatility Index) at low levels last seen in spring and summer. We’re back to a full week of trading with several economic numbers expected for release, including the November jobs report before the open Friday. There are also a couple of consumer numbers and a few Federal Reserve speakers on the docket. Quarterly earnings continue to grind to a halt as we move toward 2025. Have a safe, healthy and prosperous week! Dec 2: Construction Spending Dec 3: JOLTS Dec 4: Factory Orders Dec 4: Beige Book Dec 5: Jobless Claims Dec 5: Trade Deficit Dec 6: Unemployment Dec 6: Consumer Sentiment Dec 6: Consumer Credit [Read Our Blog]( How Straddles and Strangles Work Straddles and strangles are strategies option traders can use when they think a move in the underlying is imminent, but the direction is uncertain. Sounds like a can’t-lose plan, right? Well, obviously, if it were that easy, we would all be trading them, all the time. Let’s take a closer look. Place Your Bets With either strategy, the trader is betting on both sides of a trade by purchasing a put and a call simultaneously. An option strangle is generally just out-of-the-money (OTM), but [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 – It’s not a surprise that this ETF is still on our list. More 0-DTE iron condors and double calendars will be explored again this week. AAPL – We did a beautiful bull put spread on the stock last week, and bull call spreads will be a must if the stock breaks through some resistance. JPM – The stock continues its slow climb higher and a poor man’s covered call will be considered 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