 What's up navigation traders happy Friday today is Friday December 14th Welcome to this week's video update. Just a quick reminder if you did not see in the community We chose our who got caught being hot this week helping other traders our man G. Kane was the winner So I just keep up the good work guys love the traction We're getting in the community and the engagement and the participation. So keep that up It's really important to keep this going to help other traders. So Congrats to G. Kane on that. Let's jump into the alerts for the week starting on the 10th on Monday our first trade was an SPY opening iron condor So we already had an iron condor price had moved down close to our break even and so we went ahead and added and added a new Centered iron condor in SPY IV percentile at that time was up to the 95 level And so let's take a look at the charts. You can see big down move here recently and so we'll see if this continues lower Market starting to take a little bit of a beating which if you have short Delta in your portfolio, this is treating you nicely So here it is we've got two pieces on so Let me uncheck this one here So here's the one that we just put on so you can see it's pretty centered We've got some profit in that piece at this point the other trade that we had on was our other iron condor now in a later Alert we went ahead and closed out the untested side as price moved down So this one is out of range here So we need a little bit of upside movement to to benefit that trade But we're just gonna continue to hold this and that's part of why we sold the other iron condor as well just to add some more credit and Continue to manage this as needed. So just playing the waiting game at this point in SPY Next trade was a rolling adjusting trade in ES. So this is the S&P 500 futures contract And so with this we had a long put vertical that we've been rolling in our account And we originally put this on for that short delta exposure and we're just keeping that going so we wanted to extend duration We only had 11 days to expiration at this point when we did the roll rolled out to January We were 39 days and we just adjusted our strikes a little bit closer to price as price has moved down We were over 50% of max profit on the piece on that piece of the trade at that time And so with the 11 days it just made sense to roll So let's take a look at that. It's it's gone down even a little bit since we did that roll So we've got a little bit of profit just looking for some more Downside to benefit that trade and again just keeping that short delta exposure in our overall account And by the way, we are we were a little under one to one We lost some of that short delta when we took off the SPY short call vertical side of this one Which gave us just this long biased vertical And so that creates a little bit less short Short delta in our account overall so we're a little less than one to one one of our members in the community suggested Kind of posting what our overall short delta to theta ratio is in the community And so we're gonna start doing that on a more consistent basis to give you all an idea of where we're at So great suggestion, and I think that's a great idea. So we'll keep you a little bit more up to date and posted If not daily at least every other day just to give you an idea remember It's it's not it's not something that you can keep exact all the time And that's why we talk about keeping a range of anywhere from one to one To five to one and you know with the down move a lot of times you lose some of that short delta So then you don't really want to add short delta what we call in the hole You don't want to really sell in the hole as the market already went down But we want to look at opportunities to add to that short delta exposure as we get bounce backs and in opportunities to do so so look for that in the community in the coming weeks and Another great suggestion another value of this community just people working together asking questions making suggestions to make this all easier for you all So that's where we're at on our short delta exposure Next trade was a rolling adjusting trade in DIA So these were short call verticals that we originally had from an iron condor in this case We rolled from December with 11 days and we rolled out to February with 67 So we just skipped over January just another way to kind of diversify that time frame Diversify that time in the trade gives us more duration gave us a bigger credit for that role And we adjusted our strikes down to compensate for the price moving down We booked over 50% of max profit on that piece of the trade and just extended that duration to keep the short delta in our Portfolio, so if we take a look at DIA, we've got two different sets here Here's the one that we just rolled out to February and then here is the one that we've got in January Okay, so that one has a decent amount of profit again Once these get to about you know around that 50% of max profit range depending on how much time is left We'll look to roll our strikes closer. And if it makes sense, we'll roll these out in time So in January now, we've got 35 days to expiration in February. We've got 63 So remember we like we typically like to be in that 30 to 60 days But you know rolling out where in February we're had 64 or 65 or 66 That's not that big of a deal especially on a directional kind of a bias trade Because you're still gonna get that directional benefit if it moves in your direction We'd like to say under 60 days if we're really just kind of selling premium more of a Delta neutral strategy But going out a little Outside that 60-day range when you're rolling a directional Bias trade is is not a big deal at all. So that's what we did in DIA Next trade opening trade Gld gold the implied volatility popped back up above Well at the 67 level when we put this on so we went ahead and sold a strangle and we did this in the gold futures For slash GC. I mentioned you could have done short strangles or iron condors in either GC or Gld We just simply opted for the gold futures For a little bit more leverage a little bit more efficient use of capital, but either is definitely fine So if we take a look here at gold Spread this out a little bit more so you can see it here We've got a little bit of profit up a little over $200 off of a potential $950 so just looking for some more profit to to come in before we before we take that one off Next trade was a closing adjusting trade in FXI. So we closed out our put butterfly in FXI and we booked over 20% profit on that piece of the trade Still holding our call butterfly in January I mentioned that we will be looking to add another put butterfly in the January cycle potentially But price really snapped back and so we haven't added one yet now It's down again today. So it's really just kind of hovering around that that break even point So if we get a little bit lower move down to around that 40 level We will add another centered put butterfly around that at this point. We're just holding our call butterfly You know if price bounces back into range We'll just continue to hold and manage and and then potentially close that one out But if it does move out of range, we will add another piece and Keep playing that ping-pong game with price as it bounces back and forth and hopefully capture profits on both of those We've been in this FXI trade for a while now and just continuing to to manage it till we get back to get back to profits Next trade was on the 12th. So on 12 11 on Tuesday. We did not have any alerts And I just kind of posted a portfolio update in the community I've noticed that there are still a lot of pro members who have not joined the pro group or joined join the pro Community so make sure you jump in there because that's where a lot of our Communication and questions get answered and updates on the portfolio take place. So be sure to jump in there if you have not already So next trade on the 12th on Wednesday was a rolling adjusting trade in NVIDIA So I know some of the members mentioned they already closed out of this trade booked a profit of around 50% of max profit Great job. That's that was certainly an option in this case We decided to go ahead and roll so we booked that 50% of max profit but we rolled to extend duration on the trade to try to capture even more and Kind of like we did in DIA instead of rolling You know keeping these in January with 37 days to expiration We went ahead and to diversify our time in the trade We went ahead and rolled this out to February collect more credit keep that short delta in our portfolio I can see NVIDIA down again today. So we're we're up a little bit. It's pretty close to where we did the roll But just looking for some more downside in NVIDIA to benefit that trade Next trade was an opening trade in Lulu Lulu lemon. So a new short call vertical here We added this trade really to add some short delta in our portfolio Like I said, we'd like to try to find different opportunities in this case. The market was up this day So we weren't really selling premium because implied volatility was contracting But we did want to add some short delta into our portfolio Which we went ahead and did in Lulu and you can see it's pretty close to where we did it Not much not much profits yet so just waiting for a little bit more downside before we were to close that one and You know, as I mentioned, we're just looking for opportunities. So if the market's up It's a good time to potentially enter into some short delta plays with Lulu We just saw a big move down after earnings and it had started to pop back up And so we're just looking for a continuation to the downside So nothing nothing magical about that entry or anything just looking for Different little pullbacks to make entries to add to that short delta exposure Next trade was an opening trade in MU. So we haven't done many earnings related trades As you all know, I've said said this before When implied volatility is high, we want to use most of our available capital to our core positions selling iron condors selling strangles Getting that that benefit from that high implied volatility So we don't do a lot of earnings trades But I wanted to diversify and add some Additional exposure in here and I was looking at the different stocks that had upcoming earnings and ran across MU micron technology And looked like a good opportunity for a pre earnings long straddle Only nine days to expiration in the options that we chose and they announced earnings on 1218 so that's Tuesday of next week after the market. So we want to be out of the trade by then But just to remind you how this works. So what we looked at was Here's the chart of MU and the last few days before we put this on we put it on right here on 1212 So we got this contraction in implied volatility. So we looked at this as an opportunity To buy a pre earnings long straddle because that that trade is going to benefit from an expansion in implied volatility So if it turned around and starts expanding into earnings like it has and we get a decent move in price That's how you benefit from a long straddle So we're down on this trade a little bit Down about a hundred and thirty five dollars Just because the options have gotten cheaper They haven't expanded enough to really help us and of course we haven't you know price hasn't really gone anywhere So we get a decent move down to around thirty two thirty one or a decent move up, you know They're on thirty thirty eight or thirty nine. That's where we're gonna profit on this trade and we're looking for about 20% of What we paid for the trade to get out. So we'll see what happens there see if that works out But just another way to kind of diversify and get some different exposure than just our typical premium selling strategies in there Next trade was a rolling just in trade in XRT. This is the retail ETF. So we had a short strangle on here price moved down To a point where it hadn't quite breached the short strike But there is very little value left in those calls So it just made sense to close those out roll those closer to the current price We like to roll down to around that 30 delta price and in this case We just stayed in January. So we didn't roll out to February We just rolled our calls down within the same cycle in January. So We take a look at XRT Here's what that looks like now prices prices down here So moved down a little bit more even since we did this but we just simply rolled our calls down Which was at 48 when I say are 49. I Was at 49 rolled them down to 45. So The call was out here at 49 and we just simply rolled that down closer to price Collected that credit and just continued to you know extend duration on the trade So we'll just kind of hold this if the price continues lower Well, we could continue to roll our calls down as we get closer to January Expiration around that 21 day mark. We will look to potentially roll this out to February So just continue to manage as needed Next trade was a rolling adjusting trade in QQQ. So very similar to the DIA We've got a couple sets of short call verticals in the cues that we've continued to roll to keep that short delta exposure In this case the these options had just seven days to expiration. So We're looking to when it once we get down to that area We're looking to roll out to the next expiration cycle in this case We just jumped over January and rolled out to February with 63 days and like I said just extended that duration and Rolled out to the next cycle So let's look at that QQQ So we've got these two different sets. Here's the one zeroed out in December that we rolled to February So here is the February one and it's moved down a little bit since then So we've got some profit already after the roll and then here's the one that we currently hold in January and we've got a decent little profit in there But again holding that till we get to about maybe 50% or so of max profit before we do anything in that piece So we are completely out of December now We've got trades in January and February and then we've got the one earnings trade in micron coming up But as far as our all of our positions, that was the last one that was in December So we are completely out of December at this point Next trade that we did today was an opening trade in IYR so implied volatility Percentile up at that 68 level in IYR. This is the real estate ETF so we wanted to sell some premium here get some exposure in the real estate market and We did that in January with 35 days to expiration The I mentioned we sold our strikes a little bit closer than our typical iron condor We went around that 30 delta mark just so we could collect enough credit to make the trade worthwhile And so I'll show you what I mean here in IYR Let's take off that theoretical one. So here's what that looks like here So we made it a little bit more narrow So in other words the short strikes are sold a little bit closer to price But it gave us a bigger credit a bigger max profit And so it's always that kind of trade-off Do you want a higher probability of success or a higher potential profit in this case? We just opted for a little bit higher credit and and so we'll manage this as needed Next trade was a closing adjusting trade in SPY. I already went over this one So this was a where we closed out the untested side still holding the short-put vertical side and Then we've also got that full iron condor that I that I mentioned as well So just holding on that for now and then lastly we did a closing trade and forward slash ZB Which is the bond futures. We had a short strangle booked over 30% of max profit in just eight days The IV percentile still nice and high at 72 so assuming it stays high into early next week We will potentially look to enter a new bond position Because we like to have that exposure Just another symbol to diversify out of within our portfolio. So Those are all the alerts. Let's take a look at some of our other positions Oil moving down today. That's not what we want in oil. It's down about over two and a half percent We've got two different pieces on in oil. We've got our two different adjusted short strangles This is the 58 call 63 and a half put. So this is a an inverted short strangle And you can see prices down here. So it's still in our range. We've still got a little bit of premium left in these calls As you can see So we're not looking to make any adjustments yet. Just kind of holding for now We've got 33 days left to expiration So I've got a little bit of decent amount of time before we would need to roll out to the next expiration And then here is the other piece Which is also a I'm sorry This is not in an inverted strangle, but it has been adjusted. So we had rolled our calls down in Price kind of hanging out down here in the lower end of the range But again, we've got we've got some premium still Not as much in the calls here. So price continues lower We will go ahead and roll those calls down But at this point we are just holding obviously a bounce higher in oil is going to help us And it's uh, you know, it's just been kind of bouncing around in a little pretty pretty narrow range since it's had that huge downside So just going to continue to stay mechanical on oil Yes, I mentioned that one gold I mentioned that one Nat gas big move down today and that really helps us I mean look at look at this massive move higher than the kind of consolidation now It's breaking lower. So I mean, this is so critical just to stay mechanical I know there is a lot of people who are who were kind of freaking out when they had this big move higher Busted out of the range of our short strangles, but you've got to stay mechanical Even when things, you know have big moves like this and this is why I mean markets don't move in one direction forever There's always going to be end up being some two-sided action The key is did you stay small enough to withstand the this big move? And and that's so so critical and I know I talk about this all the time But it just continues to be the most important thing when it comes to trading and that is your size the fact that we stayed small enough to You know endure this huge move Gave us the ability to wait for price to come back If we were too big and we had to close out of this trade because the move, you know Expanded our margin and expanded Our you know our losses expanded to a point where we couldn't hold it That's when you get hurt with this kind of trading Okay, if you stay small enough you cannot get hurt because you can withstand those big moves and just Extend duration on those trades to get back to where you need to be and so by staying small It not only allowed us to stay mechanical in our adjustments within that gas and this goes for oil too But it also allowed us to continue to manage our other positions in our portfolio So since that big move, I mean we've we've closed out and opened, you know I don't know how many different trades But if that move was too big for our account and did not allow us to make those other trades in the portfolio Then we would have missed out on those too So it's so so critical to keep your position size small and and remember these these options on futures contracts These are bigger than equities. So you've got to stay even smaller We only do one contract at a time in this case we added another piece So we've got two contracts in that gas and two in oil Which you know that I mean that's pushing the limits of size even in the account that we're trading But here's the cool thing guys listen to this so after the oil and Nat gas massive moves excuse me right before that our Overall portfolio for the alerts account was it about 96,000 is where that peaked that's that was the high P&L mark All right, so we started the year with a little under $70,000 in the account It had a little over right at 96,000 right before this big move. Well, guess where we stand now We're at about 93,000. Okay, so we've almost made back all that money in the account and we're still down on that gas We're still down on oil But the fact that we kept our size small enough to still continue to manage and add to and take off Other positions in our portfolio has given us the bill the ability to come all the way back almost to where we were from our from a high P&L in our account and that's I Just cannot stress enough how critical that is to keep your position size small because it allows you to do so many things and Allows you to sleep at night when you have these big moves and now we're getting a move back in our direction Which is helping so anyway, I just had to go on that little rant because it's so so important All right, so here it let's check out our natty gas position. So we've got this one Inverted Adjusted strangle and you can see prices come back almost all the way right to center in this thing now crazy moves So we what we'll do here is we will we're holding this for now Just waiting for some more time to pass some more theta to decay We've got a decent amount of time here. We've still got 45 days to expiration in these options So not looking to roll out yet But just looking to hold for now and then we've got this other piece which is right at the four strike and this is a Has been adjusted to a four strike straddle basically and now look at price It's even it's even left of center here It's even on the downside of the center with this big move down that we've seen So just continuing to hold this and we'll continue to to roll and collect these credits until we get back to profits in natty gas In wheat we've got an iron condor here still pretty centered got some profit not quite enough to take off yet But if we do get to about 50% of max profit on this, I think we'll be at In the positive profit for our wheat trade It's been a long battle just kind of back and forth and we've just kind of continued to play the game We'll get back to profits and then we'll have a losing trade And then we'll add another one and we'll get back to profits And so it's just been a just been a little bit of a battle in wheat We've been in this trade for a long long time It would be kind of cool to close this out because I do want to do a full analysis For beginning to end on this trade just to show you how we've battled this iron condor over the last year Apple down 3.2 percent today. So we've got some profit in our long put vertical here We'll just continue to probably roll this for that short delta exposure assuming we need it at the time Where we get to, you know, maybe around 50% of max profit before we do anything here DIA I mentioned EEM So I was I was looking to potentially get filled on this But I wanted a little bit more profit So I kind of set the the exit away from the current price never never really get closed So once we get to about 50% of max profit here, we'll close this one out And we are in positive P&L on our EEM trade at this point EWW Kind of the same thing here We're looking for a little bit more profit before we take this one off You know what one thing we may do to in the next week assuming price is still fairly centered is We won't be down to that 21 days to expiration point yet But if they do I think next week is when they're going to be adding the the February options You can see there's a February weekly, but they don't even have the February monthly options out yet But once they add those we may look to extend duration by rolling this out to February because once once those come available, they will be around that 60 days to expiration mark So we'll just continue to hold until then We're we're still slightly down on our EWW trade So looking for a little bit more profit before we do anything before we close that one out And the applied volatility is still nice and high You know I'd be percentiles at the 90 level so definitely a symbol that we want to have exposure in Then Facebook we've got this adjusted strangle in Facebook could use a little bit of downside And just more time to pass in our Facebook adjusted strangle there. I mentioned FXI mentioned IWM I think right I've got an iron condor. Maybe I didn't got an iron condor here in IWM Just looking for you know price to kind of stabilize or go a little bit up more theta To decay before we do anything in IWM IYR I mentioned Lulu. I mentioned MU Netflix We've got a short call vertical here in Netflix that we originally put on for short delta exposure It's right where we put it on here So just looking for some downside to to benefit that one it's down over 3% today So it was out of our range that's come all the way back in so just looking for some more downside to benefit that Nvidia I think I already mentioned this one. Yeah, we rolled this one out to February Cues we've got the short call verticals. I mentioned that one SMH Just looking for a little bit of upside some more theta to the K time to pass for that one and Then SPY I mentioned XLK another short Delta position We have on this is a long put vertical got some downside today and just use could use a little bit more to benefit that piece And then XRT are adjusted strangle. I mentioned that during our alerts So that's all the alerts. That is all the positions. Hope everybody has a great weekend Look forward to another great week of trading next week. Talk to you soon my friends