 What's up navigation traders? Happy Friday. Today is Friday June 8th. Welcome to this week's video update We will jump into the alerts here Just kind of an update on the overall portfolio. So we are We're sitting at about two to one as far as our short Delta versus our Theta So when we when we're trying to manage our portfolio We like to keep a little bit of a short bias a little bit of a short Delta to protect us from high-velocity moves to the downside And so our Delta our short Delta ratio is about two times that of our Theta Which is right in line where we like to keep it sometimes around one to one all the way up to five to one It's kind of our max of where we like to be So we're in good position there. I'll go over that towards the end of the video here Let's jump into the alerts had a lot of adjustments this week Just that time of the cycle to do so expiration week is next Friday So we coming into that expiration week. We'd like to start making our adjustments if needed and starting out we had a rolling adjusting trade in the QQ Q So we have several sets of short call verticals, which were previously part of iron condors We kept those on to continue to keep that short bias that short Delta in our portfolio I did get a couple questions about this about why would you why would you roll specifically? because we are rolling for a slight debit in this case and The only reason that you roll for a debit is because you you you still have that directional assumption or You still want to utilize that trade for the short Delta in your portfolio like we're doing here So if I didn't if I didn't want this trade if I didn't want this trade on if I didn't want that short Delta I would have just closed this trade for a loss But the fact is where we're at Portfolio wise with our with our Delta to theta ratio like I just mentioned is we're right where we want to be so if I close This out next thing I'd be doing is going out and looking for a short bias trade to add in some of that short Delta to our portfolio so there's no reason not to just roll this keep it on and And keep keep extending duration, which is what we're doing here So if we go to the QQQ's Here is here's that piece. So it's the one with four contracts here. We rolled it to the 173 176 call spread you can see prices just right there in the middle right barely within our range here We do have these other two sets that we have not rolled yet. These are still in June and As you can see here, we're slightly out of the range I'm hoping that we can you know potentially get a little bit of a down move here And so that when we roll these next week, we'll be rolling for a credit If not, we'll roll for a debit, which is not optimal But but that's what we need to do to keep that short Delta so just looking for that down move to benefit these pieces and To to benefit our overall portfolio. So regardless of where price is we will be rolling both these sets of short call Verticals from June to July early next week. So look for that Next trade was a closing trade in Amazon So this was that post earnings Short-put vertical that we had on an Amazon that we put on right after the earnings announcement Moved against this right away, but we rolled a couple times and we're able to take a big loser and And turn that into a profit. So great trade there if we take a look at at a chart of Amazon just to give you an idea AMZN So we put this trade on right here. So right after they announced earnings price is about right here when we put it on and A lot of times it'll kind of grind sideways to higher and that's what we were looking for. Unfortunately, it dropped significantly We only had that on as a one-day expiration trade. So we rolled that out to the next expiration Kind of went sideways to up for a little bit. We wanted we you know, we felt like it had that continued upside movement In the short term Plus it helped balance our portfolio by giving us a long balance trade offset some of the short delta And so it just made sense to continue to roll that and then it finally took off Went to the upside and we booked a booked a small profit. So going from a huge loser to a small winner That's the name of the game I mean if you can take those losers and and adjust and roll and and and manage those into winners That makes a huge difference in your consistency and profitability over time Next trade was a rolling adjusting trade in oil, which is cl So basically all we did was rolled down our calls from 78 to 67 and a half Price had moved significantly down breached our downside short strike and our and our break even at the time So we just simply rolled down our untested side just like we teach in the course So if we take a look at oil now You can see we had the significant move down, which is which is what was testing that side if we go to our analyze tab This is what that looks like now. So our calls right here We simply roll those down and now we've got this this adjusted strangle here Just waiting for some more time to pass some more theta to decay Keep in mind. I get a lot of questions about this when you're looking at the P&L, you know I'm showing a negative 1,649 that doesn't take into account the art the piece that we already took off for the profitable side So keep that in mind after you make an adjustment Don't pay attention to this P&L number because it doesn't take in everything into account We'll calculate that all up once we once we get out of the trade and And and so just keep that in mind. So we're just wait. We just want kind of price to stay in this range Theta to decay moves outside. We'll make an adjustment is necessary. But for now, it's just the sit and wait game Next trade was an opening trade in adobe. So this was a pre earnings long straddle in adobe And as we teach in the course what we're doing here is typically implied volatility Expands going into earnings. So this is one of the only times that we'll ever buy a long straddle as opposed to sell it And looking for a profit of about 20% So we benefit from both a big price move and an expansion in implied volatility Now what happened in adobe? I'm going to skip over a couple of alerts here And go to where we close that so we close it just two days later If I can get it here it is so two days later on the seventh So we put it on the fifth took it off on the seventh Closed it for about a 15% profit in just two days. As I mentioned didn't quite make that 20% However, we had a huge spike in iv as well as That expansion a huge spike in implied volatility as well as a decent move in price So if we take a look At our chart here, this is where we took it off. So we had that we got in around here Boom, we had that huge move down in this spike in implied volatility Booked a profit and it was a good it was a good call to book it because look what happened today Price turned around and applied volatility contracted So in a later alert here, I'll show you we actually re-entered today To get back into this trade to go for another try to try to squeak out some more profit Because they don't announce earnings until at 14th. So I'll go over that alert here in just a second Let's get back to get back in order of where we are here So there's the adobe trade. Okay. So next trade was another rolling adjusting trade this one in iwm So we rolled our short call vertical. There's previously part of an iron condor from june to june to july So if we take a look at iwm What you'll see here is we've got a couple pieces on we've got we've got a full iron condor But then the alert that i'm talking about here Is this a short call vertical? That's not right Let me figure out what the strikes are here It's the 166 160. Yeah, there we go So just looking for some more down move again holding this rolling this to keep that short bias that short delta in our portfolio And and continue to extend duration on that trade We've also got a full iron condor here Which is right here. You can see price is still well within our range looking for a little bit of downside A little bit more thated to decay time to pass to benefit that trade Next trade was an opening adjusting trade in nat gas. So we added an iron condor in nat gas Looking to close the winners between 30 and 40 percent just a standard iron condor here Still very centered nothing to do here applied volatility has increased a little bit since we put this on So that's why you see it's down slightly while still centered Uh, but just waiting to see what happens there And then the next trade is we had another uh, we had a another iron condor on that we that we ended up booking booked for over Over 50 of max profit on that piece. So now we're still just holding the the iron condor that I mentioned in this alert here Next trade was another rolling adjusting trade in es So this is our long put vertical again another short bias trade that we have to keep that that short balance that short bias in our portfolio And remember with options on futures you have to do in two separate transactions So we sold this one and then we re-bought this one So if we take a look at what that looks like Uh, it's right here. So you can see prices is right here on our break even need a little bit of downside To to benefit that and then in the es we also have an iron condor, which is a totally separate trade Uh, but you can see prices still right in our range here Just need a little bit of downside and some more time to pass to benefit that piece Next trade rolling adjusting trade in di a so we've got we rolled one of our sets of short call verticals The next alert we rolled another set of short call verticals Again, this is kind of all very similar similar trades. So if you look at di a you can see It's need a little bit down movement there and then same thing with the other one Just need a little bit of downside movement in the dow to benefit those Next trade was a rolling adjusting trade in e wz. So had a massive down move in the e wz Which is the brazilian index if we take a look at the chart first What you'll see here is is you know this day here was just it was about a 5% move down just itself Now you can see the day. It's already rebounded almost 5% So some significant volatility in brazil got us a good spike in implied volatility So we did two things here one Is we rolled down our calls so standard mechanical adjustment Rolled down our calls and rolled down our untested side. So you can see we've got this adjusted strangle now Now obviously in hindsight this thing ripped back higher almost 5% So if we look at those calls that we rolled down, they're actually they're actually losing now And that and that just happens. I mean sometimes you get whipsawed a little bit But you have to stay mechanical. Don't second guess your decisions You can see price is still very centered now We just we just need some more theta to decay watch our profit line creep up Obviously it moves outside of here. We'll make the necessary adjustments But the the next alert that we sent out was it was another adjustment adjustment where we opened up A new strangle to collect more credit and and continue to to manage that trade now Obviously with today's up move. It's it's not very centered now still well within our range though So just looking for some time to pass and for some implied volatility to contract To benefit both of those pieces Next trade I mentioned that one next trade was a closing trade. That's the closing Pre-earnings long straddle in adobe booked booked a nice profit in there Next trade was a closing trade in mcdonald's So this is a trade that we put on as a short put vertical so a bullish bullish trade In mcdonald's and mcdonald's was this trade actually went against us for the majority of the time that we were in it In fact, I got some emails from members saying hey, we're you know, we're We're losing in this trade. What should we do? Well, what we do is we stay mechanical and we let the probabilities play out, you know, we put this trade on Uh kind of around this area here and just kind of grinded lower In it and it was pretty much at a loss the entire time And then all of a sudden boom in two days up up And we were able to book a profit of over 70 of max profit on that trade So just keep in mind you got to let the probabilities play out One of the reasons that we put this trade on to begin with was we were getting a little bit over Short in our portfolio. So we wanted to add in a long bias trade. So that was part of the purpose here And we looked at we looked at mcdonald's as a potential good candidate to give us some of that upside And eventually it did and it worked out. So booked over a profit Booked a profit over of over 70 of max on that one. So great trade there Next trade a closing adjusting trade in cl oil. So we had we had two different positions on in oil I already went over the one that we had that we adjusted That you can see here this other piece which you can see is zeroed out after the close today But this is just another strangle that we added on we only had it on for what was that? eight days Booked a booked a profit of around 30 of max profit Took in took in that profit. And so still just holding the other one If we look at the implied volatility level of oil Still about the same but still about the same as when we when we sent out that alert. So about 52 on the ivy percentile So if we get a little Pop up in implied volatility and some more price movement We may add on another strangle as well as continue To manage this one as necessary. So we'll see what happens in oil I always talk about it how it's my favorite trading vehicle anytime the implied volatility Indicators get above 50. I always want to be in there because you get such a good bang for the buck as far as the amount of capital You have to use versus the potential profit And then lastly we we re-entered this adobe pre earnings long straddle. So Touching on that again So we just we re-entered very almost the very same trade in fact If you look at the where we got in we paid 11 68 I think we paid 11 70 For for the earlier one that we did this week. So what happened was going back to the chart as I mentioned You know, we put the first one on back here On the fifth had this huge move down And the spike in implied volatility which See if we can get this chart to update Show our ivy indicators. It's just working a little slow here today Uh, come on adobe. There we go So we put this initial trade on here on the fifth When implied volatility was fairly low leading into earnings got this huge spike down And the spike up in implied volatility. So we booked a profit down here and then today price reversed Almost about to where we got in before and implied volatility contracted again So we re-entered the trade almost at the same price at 11 points 11 dollars and 68 cents And so implied earnings are announced on June 14th after the market closes. So we want to be out of the trade by then So hopefully we can kind of rinse and repeat and get the same action either a big move one way or another And uh, if it's typical, you know, you see that implied volatility expand into that earnings announcement. So in the next In the next six days or so if we can get that expansion plus a bit of a price move Hopefully we can book another profit in that and double dip twice before that earnings announcement. So we'll see what happens Other trades that we have on we've got uh, two positions on in the euro So we've got a strangle here, which you can see we're up about 232 bucks on Uh, not quite enough to take off yet. And then we've got another strangle neither which have been adjusted either way On either either of the sides. So this one is Hanging out in the upper end of the range No need to adjust or anything yet, but just continue to watch that one I mentioned cl. I mentioned es net gas notes Okay, so this is this is one where uh, I'm playing it slightly different than than the way we teach to uh, to roll in the course With these with this one with this adjusted strangle where we've got two contracts on I've been kind of just holding off To see if we can get a little bit more Increase in profit before I roll now typically we like to roll once we get under 21 days to expiration We want to roll that to the next expiration because that gamma that slope of our profit line starts to accelerate So I will roll this early next week But just giving it a little bit more time because it was you know, real pretty dead centered in range So just giving it a little bit more time See if we could get some more theta decay before I rolled or or even if I got enough I was just going to close it and continue to manage the other piece But the other piece is this here Which is uh, it is a full strangle here just just kind of hanging out within our range So nothing to do there but look on these on this one that's in july look for us to roll that to august early next week We want to we want to get out of that Uh july cycle on that one early next week Wheat we've got an iron condor on here if we can get a little bit of an up movement A little bit more decay We'll take that one off and actually we'll be completely out of wheat at that point We are in the profit on this trade similar to our soybean trade Which we continue to roll and manage for for quite a long time We've been in this wheat trade for quite a long time too. So it'll be cool to see that one come off the books Assuming we can get another little bit of a slight up move If not, if it continues lower, we're going to add another iron condor on there Add some more credit continue to manage that as we teach Apple we've got a long put vertical here You can see we've we've rolled this a couple times just looking for some downside in apple to benefit that Hasn't been the case Recently we've had a lot of up moves in apple. So that's that's kind of worked against us on that trade But continuing to keep that in our in our portfolio for that short bias Uh that short delta that we need I mentioned adobe. I mentioned dia Eem so we've got a strangle on here got some profit there not quite enough to take off yet But if we get a little bit more theta 2 to k Uh going into next week, we might be able to book a profit in that one Eww got a strangle on here kind of same story need a little bit more profit before we take that off And then our other piece is an adjusted strangle Which is actually adjusted into a straddle because the both strikes are at 47 So just needing a little bit of up move there to to benefit that one And we'll continue to manage that into next week I mentioned ewz. I mentioned iwm. I mentioned the cues And xlk. So this is another uh technology based etf that we put on for some short bias Uh this one we could have rolled by now. I'm just you know, we're we're way down here So just giving a little bit more time see if we get some up movement before I roll But we'll look to roll this next week as well. We've got seven days So we'll be into expiration week next week. So we will look to roll that one Next week as well. So That's all our trades. That's all of our positions Hope everybody has a great weekend. We will talk to you next week. Have a good one Thank you