 What's up navigation nation? We are back with our contest winner Matt King. How's it going Matt? Hey, man, I'm doing good. How are you? Doing good. So we are back to do a little update and make some trades need to make a couple adjustments Close some things add some things. So got got a busy busy little day here that we need to do some stuff But let's uh, let's show everybody kind of a quick recap of where we're at here We are in we're in four different positions. We've got Nat gas We've got the NASDAQ. We've got Costco and we've got EWZ So if you hover over on the NASDAQ to give an idea of kind of where we're at there That has kind of been our problem child For if you just want to hover over on the account statement slide. Sorry. There we go. Yeah, there you go So NASDAQ has kind of been our problem child. You can see on that on the December contract We were down a little over $1,700 and we rolled and so now in the NQH contract where we've made back a little over 1500 So we're only down less than a couple hundred bucks on the NASDAQ So it's it started to cooperate and I want to point that out because that's just that's the power of staying Mechanical that's the power of rolling and adjusting Now obviously with with what we're dealing with here a finite amount of time. We've only got we only we're only trading for three months So, you know, hopefully hopefully you can kind of see the value of that mechanical rolling and and doing this Constantly over time how you can kind of work your way out of something that goes against you Obviously, we're pushing up against it today is December 8th So we've only got about three weeks left So, you know, hopefully we can we can make back some of some of what we lost and get you You know, get you some profit and that's what we're gonna work on today And the the big problem child now that we're seeing if you kind of hover down over Costco is Costco made a huge move higher and so we're down a little over 1900 bucks on Costco and Let's just let's just go to the let's go to the chart in Costco to start with and let's let's deal with that one right now Okay Yep, this is it so you can see we had that huge move up last week and you know, I think I Think part of the thing is, you know with with tax reform going on a lot of these retail stocks have exploded higher in Anticipation that the new tax reform is going to help retailers So, you know, it exploded higher on us busted out of a range Now you can see right there by the little blue light bulb that we've got earnings coming up in a few days in Costco The goal with this was to be out of the trade before earnings didn't want to necessarily hold it through earnings Because of the the volatility that surrounds earnings, but so if you go to our analyze tab Yep, yep coming over Well, you'll see is it blew through implied volatility spiked up. So we're down about 1900 bucks So so the decision here is we're taking into consideration is if we didn't have this finite amount of time three weeks left I might say let's make the necessary, you know, the mechanical adjustment stay in the trade and And even and even play it through earnings, you know, when you're when you're taking a long-term approach You you can do that. But with this finite amount of time, I don't necessarily want to gamble and say, okay Hopefully Costco doesn't have very good earnings and it bounces back into our range and we make some money Because if it explodes higher after earnings, you know, we we could take max loss on this trade of over 3,800 bucks And I just I don't want to put the account in that position. I don't want to put you in that position So for this case that the thought presses behind this is I'm saying we just close out of this trade and redeploy that Capital into something else that I think we have a higher problem higher probability chance of making some money in the next few weeks Sounds good to me So it's a it's a hard it's a hard loss to stomach Obviously, I mean this this happens. This is trading. You got a you got to deal with losses Not all of them are gonna be winners, but Unfortunately, it happened kind of in this finite amount of time frame. So in this case, let's just close that out and say goodbye to Costco Yeah, we can do that. You want to do that right now? Yeah, let's go ahead and do that. Okay Just go back to So you can just highlight all the legs down below Yeah, we have this is our one with the all four we go Yeah, and just right-click close Closing Said uh, so this one up here at the top. Yep, we're gonna buy back that iron condor Back iron just a lot going on on there By the way, I did get a I got a question on YouTube after posting or when we entered this trade And the question was, you know, you're risking a little over $3,800. That's more than 5% of your capital Which is kind of exceeds the the amount of Capital that we typically want to risk on anyone trade and And the one thing the one reason I I I did this thinking, you know, this is this is okay in this situation is because We weren't we weren't gonna wait for max loss, you know, we're gonna either manage our winners or like in this case We're managing a loser to get out before we hit max loss So so that's why and I kind of answered I answered the individual on YouTube that way But just wanted to make sure everybody else understood kind of the the thought process behind that as well Good call. Good call. Thank you for bringing that up so we've got a 318s the midpoint 344 the natural so let's kick that up to about 325 about three. Yeah, 324. That's fine Let's try to get filled there Try that Okay, that took and actually get we actually get filled right at mid-price at 318. So it's good. Okay. Okay All right, so bye-bye Costco. Good riddance Sorry, it really didn't want to take the loss, but yeah, you know if it's gonna save us from taking a bigger loss then You know it is what it is right So let's go back to well, let's just hover over our ones that we're not doing anything with yet We've got we've got Nasdaq Hover over NQ. Yep. So like I said, it's starting to play nice for us It's still still well within our range if we get a little bit more down movement a little bit more contraction in implied volatility over the next Couple weeks we should make out friendly nicely on this obviously if it moves higher That's that's what we don't want to happen Gotcha and then on EWZ We've we've got some decent implied volatility contraction We just need a little bit more time to pass before we book any book any winners in EWZ Mm-hmm, and then let's go to Nat gas, which is which has moved against us a little bit to the downside So it's breached our it's breached our downside I Waited until it breached our our breakeven as opposed to the short strike just to give it a little bit more time Because there is a little bit of premium in those options Now a couple things were we're 18 days to expiration So as we teach in the course anytime you kind of get under that 21 days to expiration The gamma accelerates the the risk versus your reward starts to accelerate as you get closer to expiration So we want to do two things here. We want to roll the untested side down So we want to roll the calls down closer to price and then with just 18 days to expiration We're gonna roll this out from January to the February cycle Got it So in this case because the because we can't do a one-click roll with futures Let's just do this. So just make a note that our put is 295 it's the 295 put so we're gonna with our breached strike We're gonna keep that at the exact same strike of 2.95 and then we'll Determine what the call strike is when we roll it, but let's just go ahead and close out this entire spread Okay, and Can we do that all at once we don't do that all at once yeah, you can close both of them at the same time Since we're rolling the whole thing out to February got it Great closing by Yeah, that's right And Kick it up one chick One ticker. All right. Yeah, that's where we should should get filled go ahead and confirm and send and We're filled all right. We're out of that one for now and then we can go back into that one. That was Yeah, so go ahead and click on NG Yep, we're gonna go back to the tree tab here I want to look for the cycle with 49 days in the financial. There you go I'm not physical but financial right here So when we roll our calls down You remember where we want to roll our calls down to you kind of what what Delta? We want to roll them down to 30 about 30 Delta Yeah, now that was there was the call side that we're gonna put right at 295 though, right? That was actually the put side first. Oh, that was the put. It was like five seconds ago. We just went over that too All right in that case we're going to around 30 on this one correct correct Okay, and so we can select that. I don't think it selling up 30 selling single Actually, we're gonna sell a strangle. Okay, right back into the straggles and Then we will just make sure the put is at the 2.9 5 there we go way 2.9 5 and Do you want to bring this? Yeah, you can bring it down one tick. Yeah, right there. Okay, and then let's go ahead and analyze that before we send it Yeah, I could call analyze the trade. Let's look at these strangers is Set the slices There you go. So what we've done here just to kind of recap is we've we've rolled out to February So we've extended duration and we've rolled our untested side down and So what by doing this we're still giving ourselves some room to the upside as you know Playing that contrarian role assuming it's gonna be you know prices a lot of times cyclical in nature So we still give ourselves more room to the upside But we've collected more credit and we've rolled out to the next cycle. Got it got it too easy So go ahead and ship that one in Confirm and send And so go No, that one didn't apparently take right away But you take right away, but we got a couple other things to do So in this case, let's just let that order sit for a second. Yep You can do that and the other thing we were going to do is we're gonna go ahead and add another position in that gas If you click on go ahead and click on UNG for a second the ETF Then go to the chart tab. I just want to take a glance at where implied volatility is So you can see the percentile is still in a 98 IV rank is at 79 So really high, you know one of the highest on the on the board out there So not only are we going to adjust but I want to go ahead and add another position on in that gas because it's you know It's a it's a it's a we're getting a lot of credit there for putting on new positions and with a few weeks left Left we're gonna go ahead and we're gonna go ahead and be pretty aggressive And and you know try to put on some positions to get get some of that get some profit over the next few weeks Not the UNG but the slash energy so put basically the same thing that we just did we're just gonna put on a new Thank you. Yeah, exactly position. Okay Back to trade tab go ahead and Take that order entry toolbar down below with the arrow in the line go ahead and take that down So we got a little bit more room. There you go. All right, that looks a lot better now Let's say if we put a new one on we could put it around 20 it's a 21 We're putting on a brand new Yep, exactly. Yep So so much stuff on here. Yeah, actually just minimize that position Box right there right about so. Yep That'll work. I can work with us. I think that one was the 20 Goes right around 21 Do the same thing over here where we're gonna be right around 20. Let's do the 20 so the 2.5 on the put side. Yep And Analyze that it's kind of curved. Did I miss something on that? You didn't miss anything. This is just a little quirk in In in toss so what you'll want to do is just Go over to your watch list over there and Scroll all the way to the bottom And at the very bottom type in forward slash NG F8 and click on that. So it works And then where'd it go? Oh, I'm sorry. I know it happens. So go go to your go to your trade tab So this is this is just one of the quirky things about about futures. So Yeah, the the the NG F8 is actually the one with 18 days to expiration click on the click on the forward slash NG up above there real quick I'm sorry, which one right above you and G the forward slash NG got it. So I'm right here Yeah, so the cycle with with 49 days left is actually NG G8 as you can see right there next to 49 So so down below there the forward slash NG G8 got it There we go And then go to your analyze tab So there you go. That looks that looks like what we're looking for I need to reset those. Yeah, I probably do. Yeah, that's our set slices even 27 70% square in the middle for now. Yeah, that's I would take it So So here's a here's what I want to do now for those watching at home. I don't suggest doing this So but because because you need to be taking a you know in in trading for your account You need to be taking a long-term approach, right? in In the case of what we're doing here for Matt is we've only got a few weeks left And I want to try to get him some profit and I'm willing to take that risk This is this is my money in the account and as long as Matt's okay with it as well I mean he has Matt you really have nothing to lose And we just got filled on that adjustment. Yep, so we're in that so Go ahead and uncheck the position down below. Just leave the red box checked We got filled so it popped it popped in so In this case instead of just doing one contract so as you can see up there in the upper left We've got over $36,000 of buying power available, right? mm-hmm and So what I'd like to do is I'd like to instead of just doing one contract for this new position Let's go ahead and let's go ahead and kick that up To Let's kick that up to three or down to three I should say Excuse me and then hover over here. So we're looking at a max Profit of almost three thousand now with three contracts and Before we send it all the way go ahead and right click on your red box and confirm and send Let's see how much buying power that's gonna take look at that three thousand about three thousand there So let's go ahead and go ahead and cancel out of that. Let's go ahead and let's go ahead and kick that up to five contracts Go on aggressive style Yeah, we've got about five about five thousand of potential capital there So, yeah, let's so let's go ahead and let's go ahead and ship that kick that the price down to You know the point oh nine eight and Should get filled there. So let's go ahead and ship that one in Okay Confirm and send frame up five thousand bucks. That's what I suspected send There it is sold filled So think about this. I mean again, we've we're kind of taking a shot here, right? We've got three weeks to go. We were loading up on something that has the highest implied volatility So giving us the best best chance to potentially make some profit Now we've got 31,000 of capital. I'd like to I'd like to add a couple more things just to you know I don't want to go I don't want to go below. I don't want to use more than 50% of our capital Mm-hmm, but I do but we still have you know six thousand dollars or let's say five thousand dollars more of capital To to get some positions on and so let's go ahead and let's go ahead and take a shot Yeah, all right, let's do it. So we we kind of went through some of the symbols and a lot of the premiums getting sucked out all the You know the implied volatility is going down in a lot of cases, but One thing we looked at was go ahead and click on for slash zs, which is soybeans at the church tab there and Yeah, and for anyone who's Traded the grains, you know that the implied volatility indicator is not accurate in this case However, we we did a little bit of Recon before before we started recording just to see what kind of credit we would get and kind of the amount of credit that we get or Potential profit versus the amount of capital used in soybeans was pretty attractive still So let's go ahead and put on a position in soybeans okay Come on back over here to the trade tab and I'm gonna get rid of this real quick We're looking at February at 49 here and We're looking at 24 or 19 19 19 Think if I ever do this on my own for good I'll probably just always do strangles because that's what I'm so used to doing and then Here probably 22. Yeah, we could go 16 or 22. I'd I'd I'd default to the 22 okay It's 970 because what we did on our recon as well Then let's go ahead and analyze that puppy Trade here we are So about 550 per Is our max profit about 550 per contract? so let's go ahead and Let's see. I think it was taken about a thousand dollars per contract here. So let's let's go ahead and Kick this up to go ahead and do this at five contracts as well Puts us at 2007 50 and we can I Can just look and see what that buying power would be up here right about five thousand on that You're ready to send this out anything else you wanted to look at. No, yeah, let's go ship. Let's go ahead and ship it Okay, that one's out Out and in I like I like the I like where we're going with this one. So Yeah, so we're we're kind of maxed out on our capital usage now We just you know again. We're again. I don't suggest doing this at home just because I mean We're being responsible from a standpoint of we're still only using half of our capital You know, so we're not super overextended Completely, but we are loaded pretty heavily in just a couple of symbols and And again, that's that's just because We only have a few weeks left and I want to I want to take a shot to try to get some get some profit for you No, I mean if for those for those folks at home like if we're I think what you're looking at is hey Don't go so heavy on Just a few but you're saying if you were to do this at home And you want it and you have the money to put into this You're thinking diversify a little bit more like it's okay to put the money into what what's out there But just diversify a little more that way you're not you don't have all your money or all your eggs in the same basket Is that what you're getting out with that? Yeah, exactly We would be in more than just four symbols. You know, we might have it spread out between 10. Yeah It's just it's a little difficult in this case because we're you know Trying to record these sessions to let everybody know and really just try to get you up to speed and you know Just focus on a few symbols, but yeah, you're exactly right Matt. Yeah, there really wasn't I mean right now there really wasn't a Wasn't a ton to go into anyway, so I think what we're doing is I think we picked a few symbols that are You know have some pretty good probabilities of giving us a good return. So, you know, I'm happy with what we're doing Cool, so now we just hope that Nat gas plays nice and and soybeans and yeah, yeah, and NQ continues to To participate in what we need as well. So it's time for a time for a Christmas miracle, right? That's right. That's right All right, Santa Claus don't let us down Sounds good to me man I thank you for all the all the time that you put into this with me in the last couple months, so Sounds good. Well, we will sign off here Matt and we will talk again soon. All right. Take care