 What's up navigation traders today is Friday June 15th. Welcome to this week's video update Let's jump into the alerts for the week. So I had it continued our rolls and adjustments into this week as expiration winds down and so let's start with the QQQ so he had Back-to-back vertical rolls where we were simply rolling from June to July and then adjusting these strikes Appropriately to to get us back into where the trade is fairly centered. So we had two of those right in a row So if we take a look at QQQ, obviously, it's been just ripping higher strong one directional Going back to what is that here the 25th or you could even say, you know the 4th of April so Obviously that's gonna, you know, you're gonna have to continue to roll and you're gonna be down on those trades When when you have those one directional moves when you're when you're fighting against it when you know We have this we're using these as short Delta. They were previously part of an iron condor And we're continuing to roll them, you know, so that that is gonna put a drag on our performance But you know that that's the way that we trade, you know in periods of one directional moves to the upside We're typically gonna see a drag on our profits But you've got to just keep putting trades on Booking winners and it all in it kind of all works out over time And you've got to keep that short Delta on to protect yourself from a downside Downside move because we are selling that premium So you can see here after the rolls so we've got three sets of short call verticals now So we just need some, you know a little bit of downside to benefit that Still just just barely outside of the range. This is all three of them combined together because they're so so close together just one strike apart and So, you know just looking for some downside and you know, the market doesn't go in one direction forever So just you know, I've got a lot of questions about this. Should we be holding this short Delta? It seems like it's kind of hurting our performance. Yeah when the when the market's going up Yes, it hurts our performance, but over time and we've been doing this for a lot of years and And to us, this is the best most profitable most consistent way to trade So hang in there and and and just let it play out and you'll see what happens What you don't want to happen is you don't want to get too short, right? You don't want to get overly biased to the short side and right now we are two to one our Short Delta our negative short Delta is Twice as much as our theta. Okay, and that that's right where we want to be we want to be Anywhere from one to one to five to one with our short Delta to theta ratio So we are we are in perfect position right now In my mind as far as how I like to balance our portfolio. So Keep that in mind. Just keep on doing the deal and it'll work out over time Same thing on XLK. We had a long put vertical instead of a short call vertical very similar trade We rolled that from June to July And so you can see prices still Barely within range here again just looking for a little bit of downside to benefit that piece Next trade was a closing adjusting trade in ZN. So we had two different strangles on this one was adjusted at one point You know typically on these naked position short strangles We like to roll or close them once we get in under that 21 days to expiration We let this one go all the way to 10 days to expiration and that's just because it was is very centered I was hoping to get just a little bit more theta to decay before we before we got out of that ended up Just closing that out took a small profit on that piece of the trade and we still have the The other strangle which I'll go to now Which in ZN? Looks like this. So it's a it's a full strangle no adjustments to this one have been made yet And you can see if we get a little bit of up move in bonds and notes Then we'll be able to book a profit here I haven't added to that even when price was down here I was going to I was looking to add potentially another centered strangle here the problem is If you look at the implied volatility of TLT, you know up here would have been fine When applied volatility popped up, but this week it's just been down down down and very low So I didn't want to add any more premium into that one with with implied volatility that low I mean even if we got the IV percentile up above 25 I'd be okay with adding to that one Remember we like to enter a new position We like the one of the indicators IV percentile or IV ranked to be over 50 But if we're doing an adjustment and work on our way around a trade, you know, we'll still do it We'll still add to it if implied volatility is under that 50 level But we don't want to do it and it's seven, you know, you know, but let's say 25 I don't have a specific rule of thumb But if there's a bit of just a little bit of juice in those options, then we'll look to We'll look to add to it, but holding holding steady for now on that one Next trade's opening adjusting trade in DIA So we had to cut up a couple short call vertical spreads They were previously part of iron condors and then we looked at we added an iron condor in DIA So now we've got the three pieces on in DIA Which as you know if you've been following for any length of time, you know that I don't typically like to get more than Three positions on in a symbol at any one time So here's the iron condor that we just put on see you still very centered up a little bit of money But not enough to book yet So continue to monitor that and then we've got the short call verticals kind of similar to QQQ Or we've just got some looking for some downside to benefit to benefit those and hold those for For that short delta exposure in our overall portfolio Next trade was a closing trade in EEM So we closed out our short strangle in EEM booked a profit over 40% of max in just 14 days So if you take a look, let's take a look at the chart of EEM applied volatility has had stayed relatively high got that contraction and In steady price movement gave us a gives the opportunity to To book that one now the IV percentile is right at 50 So if it if it stays up there, we may look to re-enter Into a new position in EEM next week. So look for that We are getting we you know, we do have a less number of positions on less number of symbols than we've had in the past couple months and Part of that is because now implied volatility has contracted There's not as many symbols with high implied volatility So that that's one of the number one of the reasons we like to Expand our exposure in our account have more positions on more symbols when the implied volatility is really high We like to have less when it's low. So that's why you'll see kind of a lower number of symbols here Has implied volatility continues to contract if it does so Next trade was an opening trade in corn. So we hadn't had a corn position on in some time implied volatility Really high in the grains right now a lot of volatility Remember the implied volatility indicator is not accurate on the grains including corn So really just looking at kind of where price was on this compared to past iron condors that we've put on So this is just something that I do out of have to do on a manual basis, but If we look at corn you can see that, you know, there's just been a huge drop which has created this Spike in option prices. So we put this on and you know, unfortunately The option prices expanded even further implied implied volatility and the options spiked even higher So that's why you can see we're down when it's still well within our range So even if it was centered, we'd still be down because the price of those options expanded After we put this trade on so if it continues lower, we'll look to add another piece to this and just continue to manage it mechanically as we do Next trade was a closing trade in adobe So we put our this was our second pre-earnings long straddle that we traded in adobe So we booked a nice profit on the first one Waited a couple days implied volatility contracted again And we three entered tried to go back to the well that squeak some more profit at Profit out held this all the way to the day of earnings, which is the 14th So we had to close it and just booked a tiny profit didn't didn't hit our profit target by any means But we're able to get out profitable nonetheless And then let's actually go to adobe So after they after they announced earnings you can see you know price dipped a little bit But you can see that implied volatility crush So what you know what happens is after they announced earnings the implied volatility is collapses And that's why you don't want to hold those long straddles through the earnings announcement We teach all this in the course and then and then other the other piece of that leading up to earnings So we we were in that we were in the trade The first one and boom had this big move down and applied volatility spiked And so we booked a profit right there within just a couple days then the very next day price bounced back up and implied volatility Collapsed again, and I looked at this is okay. Maybe this is potentially another good entry point Well, we had a decent move in price. We had it. We had a big enough move in price to book a good profit unfortunately Going into the earnings announcement Prey the contra the implied volatility just continued to contract Which is really not normal leading into earnings a lot of times you'll get additional Expansion and implied volatility leading into earnings. We just didn't get that and so that's why we had we just booked a small profit as opposed to a Larger profit that we'd hoped for so Two good trades there though anytime you get profits those are good Next trade was a closing adjusting trade in 6e, which is the euro So we had two strangles closed out one of those booked a profit over 50% of max profit on that piece of the trade Now we're still holding this one here. You see there's a big move in the euro on Thursday So we are barely breached our short strike. So going into next week What I'm looking to do I wanted to give it the weekend see if we do get a little bit of a bounce back before we do the roll But if we take a look at the number of days to expiration, we've only got 20 Okay, so we're under that 21 days to expiration now So we're looking to roll or close that next week now implied volatility in the euro Let's take a look at that is still fairly high Yeah, still 58 on the IV rank 62 on the IV percentile so What I look to do is is is definitely roll that position or or close it depending on where price ends up opening on on Monday But we may add another strangle as well. So we got some decent juice in those options still So we may look to add another Strangle centered around that one out in the In the August cycle with 48 days to expiration. So look for that early next week and lastly opening adjusting trade in wheat so I Thought we were gonna actually close out this trade and be completely out of it However, the opportunity presented itself So we went ahead and added another piece to this one to keep the dream alive to keep the gut to keep it going So we've got two different iron condors in Wheat, let's look at the first one That we've the old one that we've had on for a while. I can see prices hanging out up down here In the downside of its range. No adjustments yet It came down and almost touched the break even hasn't hasn't gotten there yet So no adjustments made there yet and so we just simply added another piece to this to add some additional credit and Potential Profits so you see this is very centered not much not much to do here yet Just waiting for some more time to pass and so we'll continue to manage these as as we need to So let's go over some of the other symbols oil big move down on Friday down over three or about three point seven five percent we've got this adjusted strangle on here if we take a look at the implied volatility for oil if we go to the charts What you'll see is you know, we got that spike back up on Friday with this big down move And so oil is back in play for adding new positions And so what we'll probably do is we'll continue to manage this one The one in August still has 31 days to expiration and then if we go to the Continuous contract here to see the other so September has 61 days. So by Monday that'll have You know 59 days to expiration. So we'll start adding a position in September So with the spike in implied volatility and getting to that point in the next expiration cycle That's in our wheelhouse that 30 to 60 days. We'll start layering another position out in September So look for that early next week as well Yes, so I've got a few positions on in yes, we've got a An iron condor where you can see just need a little bit of down movement to benefit that piece And then as a totally separate trade one that we've been just continuing to roll and keep on for that short delta exposure Is a long put vertical? So just needing some downside movement to benefit that piece Natty gas got an iron condor still in natural gas just need some downside movements more time to pass to benefit that I Mentioned corn. I mentioned notes. I mentioned wheat apple So we've got this long put vertical that we originally put on for that short delta exposure And we've rolled a couple times you can see prices still hanging out near the breakeven range Just need some downside to benefit that whenever Dia Eww so we've got two pieces on here One of which is an adjusted strangle that's been adjusted into a 47 strike straddle So we could just use a little bit of up movement to benefit that one And then we've also got this additional short strangle on here that we're really close to Getting 50% of max profit out of so look for that early next week barring a major down move that takes us out of there We should be able to book a 50% of max profit on that one early next week EWZ so we've got kind of a similar thing. We've got two different positions on here First of which is this adjusted strangle. I remember EWZ had that massive move Right here is down about 6% rebounded came all the way back up now it's starting to roll back over But you can see so prices right here if we take a look at just the calls You know you can see we're pretty much even on those and then obviously on the puts is where we're in the money So what we'll do is we'll just continue to monitor this No need to do anything yet. If we take a look we've still got 34 days to expiration So nothing to do except for weight, you know that theta is going to decay that profit line is going to continue to move up and what we'll do is You know assuming price is still kind of well within our range here We'll just we'll just roll down our calls and continue and then roll that out to the next expiration cycle But not until there's about 21 days left to expiration. So just hold tight on this one Obviously if price continues to move lower, we'll roll down down our calls and maybe stay in July assuming it's there's enough time left But it's got to see what happens when the time is right for now We're just holding and then we added this additional strangle which you can see here It's got a decent amount of profit looking for a little bit more before we close that one out IWM, so we've got an iron condor in IWM and These strikes on that are sometimes I start to forget what my strikes are there we go So need a little bit of downside movement to benefit that it's more time to pass and then we've also got this short call vertical They just again using For that short short bias looking for some downside to benefit that piece went over the Q's and I went over XLK So that's all of our positions. That's all of our trades for the week Everybody have a great weekend. Look forward to a new week of trading next week. Have a good one. Talk to you then