 What's up navigation nation? Hope everybody's having a great week of trading. I am here with our contest winner again Matt King. What's up, Matt? Hey, what's going on, man? It's good to be back all right, so we we got some movement in the markets today and Which means that creates some opportunity as well as we need to Make a little adjustment in one of our positions. So you're ready to ready to rock it out Heck yeah, let's let's make some money today. All right So let's go to let's just go over there the positions real quick and and take a look at what's going on Let's start with natural gas Ford slash NG Certainly you wanted to look at the analyze tab. Yeah, go ahead go ahead to the analyze tab. That's perfect. So You can see here. We're up about 290 bucks on that trade out of it to a potential max profit of 790 we've been in this trade for about 24 days So we we really want to you know, if we get 30 or 40 percent of max profit within 10 or 15 days We'll go ahead and book those profits But if it lingers on we want to go ahead and wait for 50 percent of max profit. So in this case Let's just let this one sit try to collect a little bit more theta Let these options decay a little bit more and try to book a little bit more profit Sounds like a deal to me and then let's go ahead. Let's skip over NQ. Let's go to ZB Okay, this is our bond position if you can stretch that graph out a little bit Yeah, let's see if we can get a little bit better idea where we're at on this one And if you hover over where price is currently trading you can see we're up about 130 bucks. So Looking for looking for more profit in that one. So nothing to do in the bonds at this point either. Yep And then click on XRT So XRT you can see price is still well within our range. We're down 139 bucks But nothing to do no adjustments needed Nothing to do in XRT So we're just looking for a little bit more of an up move and some more time to pass Before we manage or do anything in XRT Okay, got it. So let's go ahead and go to NQ NQ is our little problem child that we need to deal with today It's kind of the you know, everybody, you know, if you've got multiple kids, you know that you know There's always a there's always a bad one that that you got to Bend over and and take out to the wood shit. Everyone's well, right? Synology Anyway, so we've got we've got NQ We've got two different positions on in the NASDAQ the one that you've clicked on here that you've got showing You can see price has has breached our Upside short call. So our short call is at 6180 where that dotted line is where you've got your mouse perfect And you can see prices has blown through that not not quite to our break-even point, but as the way that we mechanically adjust these strangles is To help reduce risk and and to help just manage the overall position is We're at a point now where yeah, this trade is down about 960 bucks But it's still, you know, it hasn't blown through our break-even at all So a lot of people adjust once it hits the break-even I like to adjust a little bit earlier once it has breached that short call and so in this case It's it's breached our short call. So we are going to make the necessary adjustment. So what we want to do is Essentially the the mechanically the mechanical way that we adjust these is once it breaches that short call We roll the untested side closer to where price is Okay, so essentially what we're doing is we've got this 5,700 put So go ahead and go down below and click off that 6180 call Oh Doing that thing again. Yeah, yeah and reset it This is a little quirky thing with toss. So go ahead and uncheck everything except for that 5,700 put Okay So what you'll notice here is and the reason we make this adjustment is Price is currently, you know 62 24 50 So if you hover over where price is currently trading you can see that just on this put piece We're already at almost max profit meaning that put is not really there's there's not much more Value we can get out of that the only thing that can happen if the Nasdaq You know goes down really quick because we could start losing money on that piece Okay, so so there's no reason to hold on to that We might as well just book the the the profit that's in that piece now Remember we're still down on the trade overall But on this just this put piece We want to we want to get out of that because we can just book that and and and and roll that closer to price to collect another credit So essentially what we're going to do is just go ahead and right click down below on that 5,700 put and with futures Yeah, go ahead and right click on that and Create closing order So with with futures we have to close that we have to close out the piece and then reopen it Essentially, that's how we roll if this were a stock or an ETF We could actually roll this position all in one's transaction, but with futures tossed does not have that functionality at this point so So there you go. So let's go ahead and kick that price down to 5.50 and Hit confirm and send I Have done and we got filled okay, so now we're out of that piece So now the second part of that roll is we want to reenter a new put closer to where price is So let's go to the trade tab. Okay good. This is gonna be a good lesson. So you can see now We've got 18 days left to expiration. So in this case I don't want to open a new position with 18 days left to expiration. That's too short of a time frame Okay So what I want to do is I want to go ahead and open that new put with 46 days to expiration and get back in our wheelhouse of where we like to enter trades kind of in that 30 to 60 day range So if you scroll down and and when we when we roll when we close out one side and we want to roll it closer to price You know the next question that the people have is okay. Well, how close or you know, which one which one do we roll to? So scroll up a little bit. We're gonna go over to our put side Scroll up just a little more. There you go little more There you go So what I what I like to do to stay mechanical is I like to roll up to about the 30 Delta Okay, okay So there's your 30 Delta. So so essentially what we're gonna do is we're just gonna Reopen we're gonna sell a 60 60 put And so to do that just simply right-click where you're at Sell and you're gonna sell a single in this case Okay So we're on the we're already on the put side. So it knows we're selling a put and so we're just gonna sell a single put And so go ahead and click that price up to Say 6675 See if we can see if we get filled there Okay And confirm said Should we have analyzed that before putting that in? Um, you you can absolutely you can uh in this case I just wanted to go ahead and get it filled and then we can look at it on the analyze tab Okay So go ahead and analyze And so the the one other Thing you'll you'll notice so go ahead and click on your um Yeah, pull that up for me normally it gives me a little I know They need the finicky today. There's little finicky things with toss sometimes. Okay, so What you'll see is now down below You see you've got your your three different positions that on that are in the november cycle the ones that are not checked right now And then you've got your one that's checked That is in december So that's the one we just entered This one is that the one down here in the bottom here? Yeah, and and if you if you go over to where the column that says symbol Right there. Let's try you can widen out that column so that you can see you can start to see it's um Down below you can see it says november and then december you can barely see it there Oh, I see what you're saying though. Yeah It's beam Yeah, that's okay It first I thought you could widen those columns. Maybe I'm maybe I'm wrong. So Um, anyway, so it you can see it there in november one's december And and so go ahead and go over to your left hand current account List and click on the nq over there This one right here. Yep. Okay And then and so we're we're we're still on there. So this gives us so then if you click on the Uncheck the 5700 put because it's zeroed out anyway Right there and then click on the 6180 call So this is what our new graph looks like for this position Crazy looking Yeah, a little goofy. So the the thing you got to remember is And now that you're now that you've made an adjustment Toss has wiped out that little profit that we took in the on the put side So this graph doesn't take into account That piece that we've already taken off as a profit. So it's showing we're down $1,600 But we're actually only down on the position about 900 because it it didn't you know that that piece that we already closed out That's closed out. So it's not going to show that in our graph. Gotcha Okay, so that's just something to remember after you adjust you have to kind of Have a you know, you have to be able to remember kind of what we what we already took off And it's not that you have to write it down or remember. I mean, it's all here in the platform For example, if you go to the monitor tab Okay And then there now we can see all the position all the trades that we've made in the nq So we we put that very first strangle on on the 2nd of october We put on another strangle on the 18th And then the two bottom trades are the ones we just did today, which is 10 30 Where we bought back that 5700 put and we sold out the 60 60 put Okay, this is the one where we added a Was it last week maybe or I would have been about right where we added another strangle. Yeah on the 18th. Yep. Yep. Gotcha Yeah So so that's how you that's how you adjust a strangle So I know it you know, it's actually a little bit easier when you're doing with stocks and ETFs because you can just do that role with with one transaction Uh in this case, we had to do it as two separate trades. We had to buy back the 5700 and then resell the 60 60 But that is how you adjust so we're collecting another big credit of 67 dollars And so now we just need you know time to decay We could still use a little bit of down movement in the nasdaq to benefit that piece Uh, and we'll just continue to to monitor and man monitor and manage Now the way that I do this, you know, we've added two positions on We've still got 30 over 31 000 dollars in available funds for trading So again, ivy is still pretty low across the board So I don't I don't want to just I don't want to max out our positions in case it spikes up and we want to have some Some cash on hand to to enter some more positions But I would like to put on one more Does that sound okay with you? Yeah, I'm all right with that We've got a little bit of pop in implied volatility day because because stocks except for the nasdaq stocks are down a bit And so one that we were kind of looking at was eem So we've got we've got positions on in natural gas We've got positions on in the nasdaq, which are primarily tech stocks We've got a position on in bonds We've got a position on in xrt, which is a retail etf So that's an etf that tracks some of the major the big retail stores And now we can put on a position to kind of further our diversification That's not too correlated anything else with eem And so eem is an etf that tracks emerging markets So this is international stocks in in countries like Thailand and brazil and You know some of your other melasia some of your other emerging type markets not your developed markets like France and germany, but you're developing You know your your markets that are still emerging and and a little bit smaller. So that's what eem tracks Okay, it's good to know So we can see iv percentiles at 67. So that's popped up nicely today Giving a little bit more reduced to the options in in eem So let's go ahead and go to the trade tab and see what we're working with I got a good one right there around 46 days. Perfect looks like We there's kind of at that And we'll just scroll down a little bit So you can see the open interest in these options. I mean, there's Tens of thousands sometimes hundreds of thousands of of contracts traded. So very very liquid you can see that The between the bid and the ask that the strikes are Or the the bid and the ask is you know one point wide penny point wide You can't really ask for anything better than that as far 24 25 37 38. Yeah, yeah So um, so yeah, let's let's go ahead and put on a strangle in eem How's uh, nine 19 sound sound like a a good place. Yeah, exactly. We don't want to go to 14 to me That's just too far away. You're not collecting enough. You've got 15 16 cents in there the night You know the 26 you could do but it's it's getting a little bit closer. So I would exactly I'd go with the 19 All right Let's do this here sell strangle And then we'll come over here take a look for Uh, I'm not too far off kind of in the same area as probably 21 uh, delta Strike a 43.5 That's right sider 43.5 And I don't even have to I don't even have to say anything anymore. You just you're on it Yes, sometimes I do all right Um, what was I gonna do? I'm gonna set the Set the right one That was the right one wasn't yep So there is set slices to break even by the dates and it shows us up at about 67 percent total potential profit And it looks like a good place Looks like a good place for us. Yeah So we've got you know 62 dollars is our max profit with one contract So this is kind of similar to the one we talked about in our last lesson on xrt where you know It's only trading at 45 46 dollars. So it's you know, you're not gonna have a ton of of juice in those in those options Because just because it's such a low price So let's go ahead and kick this up to kind of something similar to we did an xrt Let's kick it up to 10 contracts As to say I think we did 10 on that one. So that would put us at a max profit 6 20. Yeah So not Not too horribly risky. So it looks like a good place to be and then uh As long as you're good with that we can Ship it All right, where to go confirm and send Buying power 7 000 so we plenty plenty of uh plenty of Cash I should have put the price down a little bit. But yeah, no, that's okay. We can go in and adjust it, but Yeah, 7 000. I mean that it does take a lot of buying power in eem But uh, but we we have it, you know, so, you know now if you look up at your Upper left hand corner. You can see where after that goes through we'll only have about 24 000 So we're at about 50 percent of um Of our of our current account value. So we're we're right where we we want to be Um, go ahead and you know, let's go ahead and adjust that try to get filled Okay, so it's this one that's working right? Yep And then uh cancel replace Uh Yeah, let's just keep it at 61. We should get filled at 61 cents. I think so, okay We'll see we'll see how good I am Right on Yeah, so all right co. So we're in the trade. We're good to go Okay, now we got uh, we got now we got five positions on so that's really the max that I wanted to do for this For these lessons is you know, I didn't I don't want to have 10 or 12 So we're having to jump on here every every day and make adjustments and and trades and things like that but you know, I think five is a good number we've got We've got a good diversification in symbols that are that are fairly uncorrelated. So I think we're good to go Yeah, it looks looks good to me. It looks like we're doing uh overall looks like we're doing uh, all right at this point so Yeah, I mean we started with we started with 50 grand and we were up to You know, I think we had a high point of where we were up at, you know, 51 Hunt, you know, we're up about 1500 bucks or so and then Nasdaq has had just this huge move on friday and today. So that's that's taken away some of that Um, some of that profit at this point, but we've got more positions on now. So As uh as these options decay and as we move closer to their expiration dates, we'll see that we'll see that theta come back into our account I like it. I like where it's going. So all right All right, sounds good. Well, we will sign off from here and uh, thanks everybody for viewing and we'll talk to you later All right. Thank you