MTM Options Trader Newsletter - A Detailed Credit Spread Guide for Option Traders

This Week in the Market The Dow was able to break the 30,000 barrier last week, but it wasn't able to close above it by week's end. It will get another chance this week, and the way this market has been moving it probably won't be a problem barring unseen circumstances. Market volatility will likely still be around as we head into the first week of December with traders and investors watching to see if Nasdaq can keep its bullish edge over the S&P 500. As has been the case, market participants should maintain a neutral to non-bearish bias until some support levels have been broken. This has not happened for several weeks going back to the end of October. Implied volatility levels as well as option prices continue to slide lower as the market grinds higher. Option traders should be cognizant that option premiums are not at a premium for the most part, especially when considering selling premium. Several economic reports are expected this week, including the November jobs report before the open on Friday. Quarterly earnings continue to be extremely slow. Have a safe, happy and let's hope prosperous week, and remember to review your trades when the market is closed.

Nov 30: Pending Home Sales Dec 1: Construction Spending Dec 2: Beige Book Dec 3: Jobless Claims Dec 4: Unemployment Dec 4: Trade Deficit Dec 4: Factory Orders Read Our Blog

A Detailed Credit Spread Guide for Option Traders What does an option trader do if he or she thinks that an underlying won't most likely go higher but doesn't feel confident that it will drop much or vice versa? Without using options, it is hard to profit from that scenario. Using options, a credit spread in particular, you absolutely can. A Brief Explanation of Credit Spreads Call credit spreads (bear call spreads) can be an effective way to profit when the option trader is expecting the underlying to stay Continue Reading ... MTM Watchlist Here are several trade ideas we will be pondering this week in group coaching class: SPY – The ETF like the S&P 500 has been moving higher. Potential bull put spreads around the $357 level where there is some potential support will be examined. AAPL – We have looked at several neutral trades on the stock over the past several weeks including an iron condor last week. More of the same is probably on tap. BA – After gapping up last week, the stock pretty much traded sideways. A strong bullish close early in the week may trigger some potential bull call spreads.

Market Taker LIVE Advantage Group Coaching Join Market Taker LIVE Advantage Group Coaching and let an options trading coach with more than 25 years' experience in the market help you advance your trading to the next level. You'll enjoy live coaching classes each weekday morning at 9:00 am CT with our head options coach, John Kmiecik, who will cover current market conditions, identify potentially profitable trades, and discuss trading techniques and strategies. You'll also have access to the archived recordings if you miss a class or just want to review. Enroll Today for $349 per Month! Start Now

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 calling (888) OPTIONS; 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 - 2020. All rights reserved. Reproducing or redistributing this content is a violation of federal law.

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