 Hey everyone, welcome to another video lesson from NavigationTrading.com. In this video, I want to show you the update we have made to our watch list. So if you log in to your members area at NavigationTrading.com and just go to the welcome area down below, you'll see the course downloads, one of which is the strategy watch list. So you can just click on that and the watch list will pop up. And what we've done is an update is a couple of things. We've added a few new symbols to the Strangle and Iron Condor list and let me tell you why. So a couple that we've added here, XLV, XLI, XLP, XBI, they are extremely liquid sector ETFs. And so we've added those, KRE is another one, that's the regional banking. All these are liquid, high, open interest, and tight bid ask spreads. So we've gone ahead and added those. Now the other thing that we've done is we've changed up a little bit on our Iron Condor watch list as far as the index and ETF list goes. This was a lot shorter and what we had done was we had only included kind of the higher priced liquid symbols. And the reason being is because the way that we teach Iron Condors in our course is we like to sell the short strikes at around that 20 delta mark. Well, that doesn't really work for some of these lower priced symbols. However, as a modification, and I'll be updating the course as well just to tie into this, and that is we just have to adjust those strikes on those lower priced symbols to make the trade worthwhile. So you can download that new watch list for kind of the updated symbols and on both the short strangle and Iron Condors. And then let's go to the platform and let me show you an example of exactly what I'm talking about. So let's choose a lower priced symbol like FXI, FXI is currently trading for around $45. So I consider a lower priced symbol under $100. And so if you look at this, if we were to set this trade up in Iron Condor in the traditional method like we teach in the course where we're selling the 20 delta, so in this case let's sell the 22, so sell Iron Condor. And we are going to go three points wide here so that'd be the 51 would be the call that we would buy. And then over on the put side, same thing, so the 20 delta would be the 42.5 so we'll change our short put to the 42.5 and then three strikes below that would be the 39.5. So what happens here, if we take this overly analyzed tab is you can see if we set our price slices to break even like we like to do and make sure our calendar is on the right expiration date, which is June 22 in this case, you can see we have a good probability of success, good probability of profit of over 67%. Here's the problem. Look at our max profit. We're only collecting 64 cents in credit or a max profit of $64. And our max loss is 236. So a couple things, one we like our max risk on the trade to be no more than three times our max profit. And that 236 is well over three times $64. So from that perspective, the risk reward isn't really there. The other thing is we only have a max profit of 64 bucks. And so remember on an iron condor, this is a four legged spread, meaning you're going to pay a commission on each contract entering and closing the position. Now, Tasty Works has zero commissions to close. So that's a little bit more favorable from this perspective. But say you're trading on Thinkorswim, you've got commissions going in and commissions going out. And let's say you're paying a dollar per contract, that's $4 in, $4 out. That's $8 in commission out of your potential $64 profit. So it just doesn't make any sense. However, I did add these lower price symbols back to the iron condor watch list because you can adjust these to make it make more sense. So what we would do is we simply need to squeeze in our short strikes closer to the current price. So instead of selling the 20 delta, we might sell the 30 or 32 or 38 delta. And let's take a look, for example, at the 32. So if we sell that iron condor, let's use the same strike width. So let's do 50 on the call side is the one we'd buy. And then we'll go over here and do about the same. So we've got a 33 delta. So that'd be the 44 strike. So we change our short put to the 44 and three points lower would be 41. Okay, now we've got a $1.12 credit. Okay, so that's a lot better. And kind of as a rule of thumb, I mean, this isn't a hard fast rule. But I like to collect at least a dollar on these to make it worthwhile. And now what you'll see is you've got a max profit of $112 per contract with a max loss of $188. So that risk return profile is a little bit more in line. Now, keep in mind, when you do this, I'm moving my price slices to the break even. Look what that does. It lowers our probability of success. Okay, so when you squeeze those short strikes in, it's going to lower your probability of success. But it gives you enough credit to make the trade worthwhile. So there's always a give and take with risk and reward. You're going to get a higher max profit with a lower probability of success or a lower max profit with a higher probability of success. And you just need to adjust those strikes accordingly. So that is why I added them back because there's confusion because we were putting on some of these tight iron condors in our portfolio. And I was having members say, well, hey, this symbol isn't on the iron condor watch list, so why are you using it? And this is the reason why. The other thing to keep in mind as it relates to this watch list is that the price of these symbols changes. The market is always moving. So this is kind of a snapshot right now. But these wing widths are just general ideas of where to start your wing width. You may need to adjust that to a probability and in credit that makes the most sense for you and what you're trying to do. But we put these wing widths in just to give you a foundation of where to start. And then you can always adjust those inner out from that perspective once you analyze the trade on your platform. The other thing to keep in mind, and one other example I want to show you is look at SLV. That is the Silver ETF. We rarely trade SLV. And here's why. If we take a look at SLV, it's currently trading at almost not even $14. So for a low price symbol like that, A, the open interest going out into the June contract with 59 days, the open interest isn't really there. And then you're just getting barely any premium in there. So you would basically have to do an iron butterfly to even consider this. And I'm not even sure if that is worthwhile. Let's just set it up here at the 14 strike. And we'll sell an iron condor. Let's go three points wide. So we'll go 17 to the upside. Change our put to the 14 as well. Go three strikes lower to the 11. See, we're only getting $0.64 on this. And that's why it makes more sense to trade higher price symbols. And then, yeah, look at this, I wouldn't even touch this. The amount of potential profit is not even close to being worth what you pay in transaction costs and your risk on the trade. So we're keeping that on the watch list. And just remember, that's all it is. It's a watch list, something for you to have on your platform for you to look at and see if it makes sense. Now if Silver gets up to $20, then it might make more sense. But right now it's so low priced that we probably would not be trading it at this point. All right, hopefully that clears up a little bit confusion. And hopefully that is helpful in just creating your watch list of symbols that you can look at on a daily basis to look for potential trades. I hope that was helpful. If you want to see all the other stuff we're doing at Navigation Trading, just go to navigationtrading.com. We'll see you on the inside.