 Hey everyone, welcome to another video lesson from navigation trading calm in this video I want to show you kind of the thought process That we go through when we're putting on a post earnings short put vertical now We teach this strategy in our course, but we've got a a good setup coming up this morning That I just wanted to take you through we may or may not make the trade, but we are videoing this live The the market is about to open in one minute And we're looking at Apple so Apple announced earnings after the market closed last night and If you look here on the trade tab or in thinkorswim you can see it closed at right at a little above $200 $200 and 67 cents and it's opened up at over $210 close to 200 it is now trading a little over to 10 the expected move was $9 just over $9 so it's opening up beyond its expected move after earnings So what typically happens with a stock if it opens above and beyond is expected move is it tends to Stay steady to grind higher or sometimes shoot higher And so what we want to do to take advantage of that is we like to sell puts because the implied volatility will get a crush here but it'll still have some contraction over the next couple days and so we want to look to sell puts or We can define our risk by selling a short put vertical and so that's what we want to do So I've already got one set up and let's see if it it makes sense. It's not quite the risk reward We're looking for so we'll probably we want to go a little bit closer to the money Let's say let's try the 210 and I'm looking at the May with 16 days to expiration You know, we could go out to June But I'm trying to see if there's enough premium in May to make it worthwhile Let's try to the 210 and we're gonna sell a vertical spread and these sometimes can move fast So we may or may not make this happen. I don't want to rush things. I do want to just kind of Try to get in to make it make sense. So let's analyze this and so now we're looking at a trade That's got about a 60% probability of success max risk of about 700 bucks $300 max gain, that's not bad. I kind of like that And so, you know, we can see prices starting to move down. So if we unlock this Starting to come down a little bit and if we look back to the chart I'm just kind of taking you through the process. So it's coming down. It's like it's testing that Expected move line, which is $9 above where it closed And so, you know a lot of times these peaks here They'll kind of become a little bit of support if it's coming down and so I really like this trade So I'm gonna go ahead and put this on Let's go to the 210 200. I'm gonna kick it up one more contract. So we've got a max profit of 628 Max loss of 1374. We won't let it get to that max loss though. We would cut it loose before that and So I'm gonna go ahead and try to get filled here. So hit confirm and send Send And we got filled. So that's it. We're in the trade. I'm gonna get this out to our pro members as an alert All right, so I wanted to jump back on here. It's now 1026 And I actually got filled on an order to exit this Apple trade Less than two hours later after putting it on now I didn't have a chance to jump on because I had a resting order and I got filled so I didn't have a chance to get on Here to record while that happened But basically what happened is exactly what we were looking for in Apple. So after it opened above the expected move bounced around here for about 15 minutes and Then just kind of took off here. And so what we're looking at here is we got filled to enter the order at 317 credit And now price is up here So we ended up getting filled to get out at 184 and So we were able to book over 40 percent. It's even higher now, but we were able to get booked when prices about down here Booked about 266 dollars in profit over 40 percent of max profit in just two hours So these do move a little bit quickly So you've got to be ready kind of before the market opens start kind of looking at the trade so you can see What the options are trading at right when it opens and have your finger on the trigger to get these filled So good trade Typically, they don't even happen that quickly But it was good trade nonetheless and we were able to book over 40 percent of profit in less than two hours So that's a post earnings short put vertical exactly like we teach in our earnings course So if you want to learn more about how to do that just go to navigation trading Dot-com and it's part of our pro membership. See you on the inside