 What's up everybody? We are back with our contest winner Matt King. How we doing today Matt? Hey, I'm good. Thanks for asking So we are just doing a quick update today is November 13th We are currently on the monitor tab of The account we've been trading and as you can see we've got well We've got five positions on if you look in the lower left hand corner of our of our current account positions We've got a position on in Nat gas forward slash NG We've got two positions on in the NAS deck forward slash NQ. We've got one on in bonds forward slash ZB Then we've got one on in EEM, which is the merging markets ETF and we've got one in XRT Which is the retail ETF? So what I wanted to do today is you know, we've got we've got three three different stock positions NASDAQ EEM and XRT those are all stocks So there's some there's some decent high implied volatility in a lot of stocks right now However, I don't want to get over weighted in stocks too much in case we do have a huge crazy move but what I would like to do is Matt and I were talking before we before we started recording this little overview here and that is one of the one of the Symbols oil is is getting a little bit of a spike in implied volatility. So go ahead and click on USO Matt Okay So here is the chart of USO and if you look at the implied volatility indicator down below You can see we've had a nice spike higher To where the IV percentile is over that 50 level, which is what we like to see when we sell premium it's at the 56 level and So what I'd like to do is I'd like to put on a position in oil You know right now we are We've got a little over $31,000 in capital So we're under that 50% of Of our net lick of our account value. So we've got a little bit of room to play and And the reason I don't want to you know, I mentioned I don't want to do any more stocks because we already have three different symbols that are stock related But oil is a fairly uncorrelated asset to anything that we have on now So we've got net gas. We've got stocks. We've got bonds and I think by putting on oil. It's just it really Lessons the overall risk of our portfolio and it gives us the potential to make some profit in an uncorrelated symbol That makes sense Matt. Yeah, it makes perfect sense Cool. So USO is the ETF. So we're not actually gonna trade the ETF We're actually actually gonna trade the underlying future which is Ford slash CL So go ahead and click on that and then go to the trade tab crude oil and then we're going to the trade Yep It's a waiting for waiting for data. Yeah, and so we'll we'll go to the one we've got 31 days left in January. So That looks good All my strikes are showing So if we start with the call side, you can see there We've got nice volume thousands of contracts traded on on every strike that we'd be looking at so Go ahead and pick a number or any number almost any number almost any number house 22 Yeah, that looks good And actually I do try to I try to stay on the whole numbers So let's let's go with the 19 because it's at the 61 strike Okay, 16. I mean we're doing one contract. So it you know, that's not a huge deal, but I just kind of make it a practice to stay on the whole numbers if if possible. So let's go to the 61. Okay, we can do that So we'll stay with the stay with the theme of selling strangles on the futures And then go up to the put side and we're gonna look for around the same thing about the 19, which 51 sound 19 is a 51 whole number still You're actually looking at the bid ask The right-hand column is the Delta. So let's go down to the On this case this case, we're gonna get stuck with a half number, but that's okay So yeah, go ahead and do the 53 and a half on the put side That should should pay the closer attention All right 61 on the call 53.5 Yep, looking at about a 92 cent credit. So let's analyze this puppy and you said one single contract on that Yeah, let's just do one here All right, so we're we've got a max profit of $920 potentially And so go ahead and set your slices. There you go as I look 74 percent sounds like a pretty good probability there Yep, a little over 74. That's great. Yeah, pull that screen up. It looks like you're trying to Right under the black part is where you want to be right there. Yep. Yeah, you'd think that toss would make this a little easier on us, but There it comes. There we go All right, so that looks good. So let's go ahead and ship this order and let's before we do or probably not gonna get filled at 92 Let's kick that down to 91 cents Where'd it go? There it is 91 there. Yep Okay, does this matter if I use that or I don't want you actually want to minimize that We'll stay with the yeah, just go ahead and click on the oh no There you go. Yeah, right click on the red anywhere and then just confirm and send Using a little over $1,100 in buying power. So that's good. Not too not too much click send I am done and we got filled So we are in so I like that. I like the I like the diversification we've got in our portfolio now If you go to go to your EEM and XRT So you can see we're we're getting to the point where we are You know, it's very centered and You can see we've got a profit if you hover over the little price hash Right there in the middle See we've got 117 out of 305 So waiting for a little bit more a little bit more profit in there before we take that off but But we're in good shape there and remember in our last video we actually Sized down our positions in EEM and XRT because of the amount of buying power power they were used So we booked a little bit of profit But we'll wait to take the rest off and then go ahead and click on XRT And XRT is moving down. It's about it's down about a person a little over a percent today So it's moving down a little bit We needed to kind of stay where it is or move up before we book book any more profits there Yeah, that one definitely needs to come up a little more. Yeah, okay And then let's just check out the other positions to check out the net gas So that we just put that one on so nothing to do there yet Tiny bit a tiny bit of profit. I'm on NG. I'm on NG right now. Is that what you're seeing? Yeah, yeah, Nat gas and so we're up about 20 bucks. So nothing to do there yet. Okay, and Then the NASDAQ this is our little problem child So we've got the two different positions on here. We adjusted both of those So just looking for a little bit of downside in the NASDAQ Which which I like that because I don't like the fact that we're down on it But I like the fact that we're positioned for a little bit of a down move I mean stocks have just been flying so high for so long, you know some at some point We hopefully we'll see a little retracement. I don't know the stock market. It's so strong Maybe it's gonna go up forever. That seems like the weirdest part of trading options is Putting these positions on is like that's the hardest part to relearn is it sounds weird going out We're hoping that the stock market goes down so that we can make some money Yeah, and that's that is one of the biggest mind shifts That that you'll that you have as kind of a newer trader because you've always been taught in investing By low and so high right exactly And so what what this is what this is doing is you know the market You know the market has been going up It feels like straight up for for quite a while now, but that's we are in a very Unnormal there's such a thing if that's even a word. We're in a very Unnormal abnormal market Where you know typically we're seeing we see up and down movement and a little bit more cyclicality But we've just been seeing the markets be so strong But the bottom line is I was joking I was being a little facetious when I said maybe it'll go up forever Because that's absolutely not the case You know, I mean this thing is is going to go down at some point when that happens who knows But but you got to but you got to be ready and the fact that we're now holding short Delta or a little bit of a short bias in our portfolio. I like that a lot so That's awesome And then next the last position we've got on is the bonds which is for ZB. We adjusted this piece here We're we're up a little bit and we're up in bonds overall since we started in early October But we want a little bit more profit in this one before we before we book that are we looking for that to come up to Because I know we may if we made an adjustment on that one we might want it to come up higher than Or it may not need to come up as high as what I'm thinking it needs to come up to a thousand before we would want to To make a move on that Yeah, after the adjustment we actually maybe not a thousand but like 800 Yeah, under with with with the adjustments it it gets to a point where it depends on how much time we have to expiration It depends on where price is at the time So that's a little tough to answer. I mean if we you know, if we get a contraction in Volatility and bonds and we get we get a few hundred dollars more in profit We'll probably just book this book this and then if implied volatility spikes back up We could reposition it with a new, you know, higher probability strangle Go to your go to your monitor tab because that's a really good question. Go to your monitor tab real quick And if we look at ZB You know, so we we made a hundred and forty dollars on the on the December contract a little over a hundred and forty and now we're up a hundred and seventy one in the in the January contract, so, you know, we're we we've made money and You know if if implied volatility stays low Well, we probably just want to book that profit after we're up a few hundred dollars Because we don't we don't necessarily want to be in it because if if bond spike that's gonna hurt our if they If the volatility spikes that's gonna hurt our position So so sometimes you're you're not necessarily even waiting for a percentage of max profit and specifically after you adjust It depends on where price and volatility is sometimes we'll just we'll just book that and and maybe reposition those dollars in a In an underlying that has higher higher implied volatility at the time. Yeah So go to your go to your trade tab. Let's see how many days we have left in that bond trade Yeah, see we still we still have 39 days left to expiration. So we're not in any hurry for sure so We're just gonna we're just gonna keep that Yeah, I got my my dog. I don't know if I told you Matt, you know, did I ever tell you what my dog's name is? I Don't think you did I probably remember So I did I did a contest for our members of navigation community a while back when I first got he's about six months old now But I named him Vicks. So he's he's our little he's our little volatility index Little Vicks, I thought you were gonna say name me like never something Yeah, so that gives you an insight of how much of a trading junkie I am right name my dog after after a market index Hey, I get it There's nothing wrong with that Well, cool. Well, we will sign off here and And check back in in a few days and hopefully book some profits We've now got six different underlines on which I wanted to kind of keep it three to five But six is cool, too So hopefully we can get a little bit of contraction in IV have price kind of go our way and come back with some more profit Hey, and we're finally out of the hole Yeah We're working our way that NASDAQ goes with some money. So hopefully that cooperates for us. Yeah, they do. All right, man Sounds good. Thank you for for this. I appreciate it. All right, Matt sounds good. Talk to you soon. All right. Take care