 What's up navigation traders welcome to this week's video update today's Friday October 4th before we jump in Don't forget part two of the iron duck option spread strategy class is This coming Tuesday October 8th at 4 p.m. Central if you haven't registered Make sure you go to navigation trading comm slash iron duck registration if you already registered for part one You're registered for all three so you don't have to re-register But just make sure you are here on this date October 8th Tuesday at 4 p.m. Central standard time It's gonna be awesome. Here's a couple couple points that we'll talk about One we're gonna talk about how to trade this strategy around stocks earnings announcement Today like I said is October 4th And so earnings season is getting ready to kick in to full effect starting Starting this week. I mean it's already started so make sure you do that We're gonna have a watch list for all the stocks and ETFs to trade remember last in the last session We were primarily just explaining the core concept the strategy and in looking at it on The European style options like SPX and RUT, but now we're gonna jump into the individual stocks and ETFs that you can trade the other thing we're gonna talk about some of the variations including a Broken-wing iron butterfly, which by the way, I might end up doing just a full course on this because there's a lot of detail But I'm at least gonna give you As much as you need to start practicing and trading with it, but this is a really awesome strategy That is kind of just a variation of the iron duck and then Jade lizard. We'll talk about that as well and For anyone with with a pretty small account You definitely want to make sure you're here because you know SPX and RUT can be pretty sizable You know if you're trading a small account, but some of these stocks and ETFs that we'll talk about allow you to trade this strategy With literally just two three five hundred bucks of buying power. So much more Scalable from the first small accounts with this part, too Look forward to seeing you then Let's see. What's next who got caught being hot this week Chris Glenn in the community and actually now that I'm looking at this. I think Glenn has to end so Chris I apologize But thanks for all your contributions been asking some great questions in the community Which is triggering some great conversations. So congrats Chris. You got caught being hot Now on to the alerts first alert on Monday the 30th We did a closing trade in Ford slash 6b. We were only in which is the British pound We were only in this for seven days booked over 30% of max profit And so we were out of that trade re-entered and already got out again this week So booked two winners in in 6b in one week It's been just a great little trading vehicle if we look at FXB, which is the corresponding ETF You can see kind of the implied volatility is up and down up and down up and down that is exactly what we like to see Goes up. We sell premium contracts. We book profits. So that's exactly what we've been doing in 6b Next trade was a closing trade in EWZ. So we closed out our short strangle in EWZ Booked a nice profit on the trade. We were at 18 days to expiration So we needed to either roll or close that and with implied volatility as low as it was in in EWZ at the time at 25 We went ahead and just close that out Next trade rolling adjusting trade in SMH. So we had a short strangle here We rolled that out from October with 18 days out to November with 46 Kept the strikes exactly the same and just extended duration on that spread So if we take a look at SMH and income The contraction in implied volatility is pretty solid over the last couple days here But this is where we're at. We're kind of hanging out in the upper end of the range still This if this continues higher implied volatility stays high. We may look to add another centered Strangle around wherever price is at that point But for now, we're just playing the weight in C game in SMH Next trade opening adjusting trade in Ford slash GC which is gold So we had an iron condor on in gold and then we went ahead and added this one This price was kind of down near the lower end of the range And so let's take a look at that our other our other iron condor We ended up taking off later in the week and booking profits in But this is where this one is here prices sitting right here fairly well centered just waiting for some more time to pass on that Next trade rolling adjusting trade in DIA So we rolled one set of our short call verticals from October to November Extended duration move those strikes down as the market was moving lower We were well over 50% of max profit on that piece And so we're just continuing to roll these to keep that short delta exposure in our portfolio If we look at DIA in fact actually, let me come back to that because we had another roll make more sense after I adjust that one Explained that one next trade opening trade in SPX So we did our first iron duck in SPX did this with seven days to expiration And so let's take a look at that Oops, I got some other things checked here Let's check on the one that we actually have and that's this one So price came down after we put this on on Wednesday Right here price continued to come down even more and then came down even more at this point We were at a point where where price was right here in our duckhead And and now with this today's rally is just ripped higher of course no upside risk So we're we're basically max profit on that on that what we call our beak profit But we're not going to take it off There's still a decent chance that price could come back down here and we could maximize on that and collect max profit So just holding on to this this will be coming off. Let's see right now. We've got how many days to expiration We've got five and so I'll talk about this again on part two of the iron duck web class next week But just playing the waiting game here now if this if this if price goes way out here And we've got like a day left We're just going to close it out because the probability of it coming all the way back into here Is very low But at this point we still have a a decent chance In fact, let me line up the expiration date You can see the gray represents a one standard deviation move And so there's still a decent chance that it could come back into that duckhead area and collect max profit So not taking it off quite yet Uh next trade rolling adjusting trade in xlk So we had a long put vertical in xlk rolled that from october to november And adjusted those strikes as the price continued to move lower So if you look at xlk, this is what that looks like now the price has come up today So it's moved slightly out of range. So looking for some more downside to get back into range there Next trade was an opening trade in 6b. So I mentioned this we Uh, we opened up another short strangle in 6b And we were targeting 30 to 50 of max profit. Well two days later Uh, the uh Implied volatility contracted and we went ahead and booked Over 30 of max profit in just two days on that one. So we are completely out of 6b But if we get a little pop in implied volatility next week, we will look to re-enter Next trade rolling adjusting trade in forward slash es. So this is our long put vertical here that we keep for short delta Rolled this out. Oh, I'm sorry. We actually stayed in the november cycle We were already in november with 44 days. So we didn't roll out in time But we with the stocks moving lower like they were we just moved our strikes down from 30 80 30 30 down to 29 70 29 20 We were well over 50 of max profit. And so we just went ahead and rolled that down So we put it up on the screen here And you can see prices hanging out right here near our break even it's come up with the with the rest of the With the market today being up 30 points in the s&p big strong day I really didn't expect it to be this strong. Uh, but we're just waiting for uh To go back down to benefit this piece Speaking of that, um, I mean this is this is kind of what i'm looking at After those last couple days big moves down I was really expecting a little bounce like we had here But then I was expecting prices to roll back over but we have continued higher And uh, we added some more short delta in today right here in IWM, which I'll talk about Uh, but man, I I just don't see this market ripping back up to hit new highs. I really think we roll back over next week I've obviously been wrong many times. Nobody knows what's going to happen But that is my thesis in the next week. I think we I think we're in for some more downside Um, okay next trade here, uh rolling adjusting trade in foreslash zb in the bonds So we're down to 22 days to expiration in the bonds And there's very little value left in the put side So we wanted to roll our puts up and at the same time with just 22 days We went ahead and rolled the entire spread out in time. So now we're at the 161 puts 164 calls And uh, so let's take a look at zb Bonds have been on a little mini tear to the upside as of late And so if we take a look at the analyze tab, you can see here's where we're at Just kind of hanging out in the upper end of the range right here And so we're just playing the wait and see game Obviously if price moves back down to center in good shape if it moves higher We will look to add potentially another center to strangle around that But just waiting for now next trade closing adjusting trade in gold I already mentioned that so that was our other iron condor that we closed out of booked over 35 of max profit on that piece Rolling adjusting trade in di a so very similar to uh To what was that one very similar to es In di a we're in november with 43 days So we didn't want to roll this out in time, but we were well over 50 of max profit So we just went ahead and rolled our strikes closer So let's go to di a and i'll show you both of those pieces That we have now We've got two different uh sets of short call verticals This one has three contracts you see prices just outside of the range there That's the one that we that we rolled down And then we've got another one with four contracts You can still you can see we've got some profit on that piece But just holding that for some more potential downside Next trade closing trade in 6b So that's the one I already mentioned closed out of here booked over 30 of max profit And just two days on that one nice trade there And then lastly we did an opening trade in iwm today where we were just adding some short delta Got a couple questions in the community about this today So I want to make sure I address those for everybody anybody else who is kind of thinking the same thing One question was why are we bearish in iwm? The answer is it's not necessarily we're not picking on iwm necessarily it's just it's a broad market etf And you know we're getting this little bounce today So like I said, we are anticipating that stocks roll back over next week if that happens iwm is going to go with it and so We're just looking for I like to do I like to add short delta with broad market etfs The other thing is we've already got positions in spx in spy xlk es qqq You know so we di a so we've already got positions in those So this was just a situation of okay. What do we not have a position on and what's kind of a broad market etf? That would be a good option to to get some short delta in and that's why we chose iwm The other question was why did we choose the strikes we chose if we look at the trade tab for example You know we we look at okay, we're pretty far deep in the money with our 155s right here You know we're at the 77 delta at this point and then only two strikes out of the money here The question was you know sometimes sometimes we just do you know a couple in and a couple out Here a I wanted to I wanted to get my strikes a little bit wider to use a little bit more capital get a little bit More short delta involved So that's one thing you you don't have to go that wide so if your portfolio is smaller or You wanted to just be more narrow in your width of wings. You didn't necessarily have to go What is that seven wide like we did But that's what that's we were just playing around with the strikes and that's what we ended up Going with and then the other thing is why why do we go so deep in the money here? And the reason is is basically I was just looking to try to get right at about 60 Probability of profit now it's come down slightly since I put this on but it was right at 60 when I put it on So we got about a 60 probability that it'll expire In our in our favor And that's just that that's just a preference You know you could do it with a higher probability of success You could do it with a lower probability of success. I just like to put these on with about a 60 pop So that's what we did in IWM. So those are all the alerts. Let's take a look at some of our other positions starting with oil Oil got beat down earlier, but it's starting to come back into range We're pretty close to a point of of needing to roll down our calls here But if we look at our calls still got a decent amount of premium in those So not necessarily ready to roll those down yet And we've got a decent amount of time left still 42 days And so we're just playing the waiting game. So if we get a bounce back up in oil We'll be in good shape. If not, we will make necessary adjustments I mentioned yes, I mentioned gold. We've got that iron condor and gold Natty gas has bounced uh for us to the upside in our favor a little bit is coming all the way down here Got a couple of nice bounces yesterday and today In that gas to help bring us back into range But we're just playing the waiting game here. We've got 24 days to expiration. So we'll start rolling these out to the next cycle Early next week. So we'll do one probably on monday or tuesday And then we'll wait a couple days let price kind of move around let things Let things move and then we'll we'll roll the other one out as well Zb I mentioned that one zw we've got an iron condor and wheat price is dead centered got some profit Just waiting for some more before we do anything on that Apple big move today and apple almost three percent higher moved out of our range. So just holding that Uh for that short delta exposure. Hopefully that comes back down into range next week Uh de john deere up again with the rest of the market Hanging out right here near our break even So just waiting for some more downside to benefit that trade I mentioned dia goldman sacks. We are close to actually closing or rolling this one Price was about up here a couple days ago. We didn't get filled to come back Price moved back higher. So we're pretty close to where we put it on But it is good still to have that short delta exposure Speaking of short delta after we put it on that i w m piece today. We're we're not quite two to one on our ratio So we like to we like to keep a short bias in our overall portfolio to help protect us from those downside moves Those vicious downside moves and so we uh, that that's what we did in i w m And that's also what we have on in golden sacks here. And so Our our ratio right now is about two to one. So our short delta, which is beta weighted sp y Is about two to one versus our overall theta in our portfolio. So that's real that that's nice That's where we want to be Especially if we have an assumption that we think stocks are going lower, which I do But we'd like to keep short delta anyway just for those unexpected down moves I mentioned i w m i y r the real estate etf prices hunkered down right here in the middle just waiting for some more theta to the k k re I was a little disappointed in this one. I didn't get filled A few days ago price was up here, but it was it was border. It wasn't it was almost 30 of max profit I had an order to get filled to book 30 percent of max profit never hit and then price ran down on me So that's where we sit right now still got some profit and if things continue higher We'll go ahead and book that and we've got this other piece which is an adjusted strangle Which has got some some profit here since we rolled it and just waiting on that one as well qqq we've got two different Sets of short call verticals. This is one here prices hanging out right near where we put it on And then the other piece here has got some profit, but just holding for some potential more downside SMH I mentioned spx I mentioned spy We've got an iron condor which is pretty well dead centered here waiting for some more profit before we do anything with that one And then lastly xlk. I already mentioned that price just outside of our range This is a long put vertical that we're also hoard holding for that that short delta exposure So that is it. That's all the alerts. Those are all the positions everybody have a great weekend Don't forget tuesday october 8th 4 p.m. Iron duck part two. Let's do it. See you then