 One of the most common questions I get asked is, you know, how do I start day trading? So what me and my mentor about it for our viewers on YouTube is create a free mentorship course that reveals our 12 secrets that every single brand new day trader should know before they get started. But please take note that there is limited seating every single week. So please reserve your spot at myinvestingclub.co. The link is in the description. All right. So, December 15, 2020. We're going to talk about today is we're going to talk about the results of the implied volatility crush, or as people say, the crush. What it can do when the stock doesn't go in the direction that that most of the volume anticipates and what we warned about. Yeah, I know I'm good. I'm just being sarcastic. I can't miss a good sarcasm opportunity. All right, so we talked about implied volatility crush and how it can really, really, really negatively affect your long term positions. And we talked about a couple plays on which we would sell premium or otherwise we would short the calls. OK, so basically, for those of you that are not educated in options, totally fine. Jump into the options bootcamp, especially that dude that's only been here. That's only it's got the free month binge watch, bro. Binge watch, binge watch, binge watch. Now, if, for example, you had taken these trades, I want to show the results of it. Now, remember, premium selling. I'm not going to talk about fancy spreads or hedges or this or that. I'm not talking about those positions per se. What I want to point out is you can use this stuff as a directional trader, right? Like we want to trade the direction that we think the stock is going to go. We think the stock is going to go higher. So we buy calls, but at that very point in time and the market is basically overpricing those calls on the underlying stock. So the volatility is very, very, very inflated. And then we get a blow off top and then the premium on those calls gets crushed, even though the price is not down that much. So, yeah, absolutely. Don't don't go jumping into options before watching those videos. Watch the boot camp videos, watch the boot camp videos, watch the boot camp videos. It's absolutely crucial. So and then what I'm also going to talk about today is the is the the whole Santa Claus rally. So I'm going to share some data with you guys to kind of quantify what's happening. And because I covered my short position today, as you can see, we've kind of we've got this really, I mean, we had a really bearish, bearish move on Monday where we gapped back as a fat gap in the market and we sold. Look at the hourly candles all red, all red, gap up, slight grind. And then just here we are breaking out of that. So we set a high and a low, a lower high, a higher low. And now. Yeah, don't ask me questions if you haven't watched the videos, because I'll know if you haven't watched the videos based on the questions that you asked me, I will answer any question, any question. After you've watched the videos, after you watch the videos, you can light me up and I will answer everything. But if you haven't if you haven't watched the video, I'm not going to shortcut it for you, you got to go out there and you got to put in the work and you got to watch the content. There's a reason why I've spent half of my life making all these damn videos. So use them. All right. So with premium selling, we need to talk about an options chart here. So one of the biggest premium selling situations was with GME or GameStop. OK, this was based on earnings. OK, so the earnings. And here's what I don't understand. OK, here's what I don't understand with the PS4 with with the Xbox six thousand or whatever PS5 or whatever freaking issue we are on now at this point. Fifty three cents, we still lost money. A dollar forty we still I mean like nothing is improving for GME at this point. You know, there's some bullish outlook on it that still remains. OK, great. But here's what I want to point out here. We got the the whole by the rumor by the rumor that the earnings are going to be great. So the run already occurs, the run occurs. And what you'll see in this chart is you will see and I think I've got it here yet. You'll see how look at the height right here, the height right here. This is the implied volatility. You'll see that implied volatility in the options is increasing, increasing, increasing, and now look, it's at it's at all time lows basically at this point. So it's very indicative when you see something like this, that even if you remain bullish on the stock, OK, here's how you can. I don't care if you like if you're like me and you don't really sell premium. I've tried a couple of times and just it's not for me, it's just not like I'm like I start like I do it and I'm like, meh, I don't really have no interest in this. Hey, guys, my name is Tosh Bradley. I'm one of the head mentors and moderators of my investing club. If you have any questions about getting started in trading, getting started in M.I.C., M.I.C. in general, text me at 213-458-5997. This is not a robot, it is me directly on the other end of my business line. And we'll get you in the club. We also have special promotions going on that I can get to you depending on your trading needs. Hit me up. What you can do is you can use this to your advantage if the premium or this little ranking right here is over this red line. Stock is going parabolic. This line is increasing, increasing, increasing, increasing. Ideally, you want it over 50. Really, all this is saying is don't continue to overstay in a long position that stops working. Because as soon as this dies or has any kind of pullback like that. If your option was doing this, right, your options going up, up, up, up, up, up, up, up, up, up, up, up, up, up, up. And then all of a sudden it just kind of starts going like that. Or the worst case scenario is once it actually blows off and you're like, all right, let me buy this dip, right? Let me buy that dip right there. But what happens is that's when your premium starts going sideways because the volatility has died down. It's reached a peak and the cost of your calls is just going to it's just going to dwindle like this because the interest in the stock going higher is not there even though, even though it could still have a bullish chart. People are not bullish on it going much higher any time soon. So you have to pay attention to that, even if you're not selling premium. You need to know that to not get yourself caught in a trade that is going to work against you immediately, simply because you're not in at the right time. And dude, yes, Amazon premium burn is probably like the Amazon is what people love to trade that are like that that that that like short calls or short puts like every day, that's like that is their stock is Amazon. And because the premium is so stupidly overpriced every single Monday that by Friday it is just in the trash. But you've got to have a big account to do it. And so I don't really recommend it. But it is they are grotesquely overpriced, in my opinion. So like on Monday, I mean, they're they're like $50. And then, yes, in Tesla, Tesla is the same way. Absolutely. Tesla is the same way Monday. I can't use this analogy. I have a good analogy that I wanted to use that describes the prices of options. But it's inappropriate. So the premium is very high on Monday. And on by Friday, it's it's in the single digits. But Monday, it's, you know, 20, 30, 40, $50, $60 per contract. But if you're on the if you can get on the right side of that trade by Friday, I mean, you're making 90 percent every single week, week in and week out. And so it but it's tough to do it's risky. And but if you're good at it, then I mean, more power to you. There's ways to hedge yourself. There's ways to protect yourself. And I think that, you know, everybody needs to try to educate themselves on that matter, don't necessarily think it's like 1000 percent necessary to make those trades, but it's a great way to path the wallet in the in the times where you like, OK, I don't want to short. But I don't want to long because we're just in this like moment where it's like it's too high of a price, but, you know, don't short it because we've seen what that does. But maybe we need to consolidate. OK, well, let me sell some premium there. Let me short some calls. Maybe we just go sideways and these call prices will just die. And I can, you know, get some money off of the short. On the bulls. So there's ways to make money there. Anyway, so GME at this time right here, this crush that happens in implied volatility, your position, even if you're long from here, even if you're long from here at 1540 and it opens at 14, that's not a very big drop. OK, it's not that big. But in terms of premium, like when that happens, it just. Thanks, the premium just dies, which means the stock's going to need some more time to to play out now. These these fresh plays like this, like QS, YQ, PLTR, I want to talk about these. These are opportunities to sell calls because you think about the majority of the market, the majority of the market is bullish, right? And so recently, what's been happening is the puts have not been moving. OK, so put contracts are contracts that you buy in options when you want the price of the stock to go down. So when the stock when the stock price goes down, the put price goes up, you make money. So when you short the calls, then you are betting against the bulls. OK, so the bull in in reason why I say short calls rather than buy puts at this very moment is because the bull just cannot stop making money. And so when something finally pulls back, they're like, no, never, never, this did never happen. Y'all have a good one. We'll see you later. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. We do our best to post a new video every single day. If you have any questions about MIC or any general trading questions, please text us using the number here. Also, stay up to date by watching some of our most recent videos right over here.