 Hey everyone, welcome to this week's video update recording this the morning of Saturday, August 1st Hope everybody had a fantastic week of trading We're gonna jump into the alerts talk about our current positions and update you on the day trading strategy. So Let's jump in to the alerts starting with Monday the 27th The first trade was opening a weekly double calendar in SPX We didn't get one on the week before just because of where the volatility was and so we put this on this one had four days to expiration in the front week seven in the back and We ended up taking this one off on Friday booking a hundred and some dollars 195 I think so decent little trade but you know What we're seeing is and and I know there's been some discussion in the community about this But we're seeing what we're seeing is on the day of expiration If this is a fossil update here for me, but on the day of ex expiration You know, so once this you know currently at six days to expiration You can see when we put these on we always like to have the front week that we're selling the vol be higher The implied volatility is higher in the front week than the back And that's how we're getting some of that favorable pricing and that good risk reward Now what we're seeing what we're seeing happening is in the last day expiration day Those can sometimes flip meaning that will go higher and that will be lower meaning the back week is Contracting quicker than the front week and so, you know, there's a lot of a lot of folks in the community saying You know, I'm just gonna start taking it off on Thursday or you know with one-day to expiration instead of waiting till zero days to expiration I think there's some validity to that You know in in the back testing and just in our experience and we've had some monster winners When we took it off the day of expiration, you know a few it's probably about a month ago now But we had one that was like over $1,300 winner per contract And had we taken it off? One-day to expiration we may have only booked for 500 and on the day we booked like 1300 so You know, it just depends on what the options do, right? But but I think from a consistency standpoint over time I think I think there is some validity in taking it off with one-day to expiration And I wouldn't necessarily take it off in the morning of the Thursday in the morning with one-day to expiration But maybe later in the day because I've been watching them and really seeing some Expansion in your profits later in the day on that Thursday as well But then as soon as you open up on Friday That implied volatility differential has has kind of flipped and it makes the break-evens and the and the max profits really kind of Sync in on those calendars and and so watching that closely and just just be aware of it I'm not I'm not saying we you know, we'll still we're still gonna hold some till the day of expiration depending on the situation We're still gonna take off some on Thursday with one-day to expiration But just some thoughts and some things to be aware of so, you know You've so as an example with this one here, you know Here's here's the current break-evens and we know implied volatility is gonna expand and contract these break-evens throughout the life Of the trade the max profit can expand and contract because essentially we're Selling a strangle in the front week and we're buying a strangle in the back week And so it's the difference between the volatility between the front and the back that really makes the biggest difference And so what I was kind of saying is on on Friday the day of expiration You know what we've been seeing at least the last few weeks is we wake up and we get this vol contraction between the differential where it brings in the break-evens Pretty significantly and it and it and it brings the the max profit down So it's it's it's sinking our profit line. So we're not booking as much profit now. We've still Price has been staying within range. And so we've still just been booking profits week after week after week And so that's been great, but obviously we want to maximize that profit So just some thoughts to to consider when you're determining to take this off, you know We I always talk about, you know, 90% of what we do is we want to be mechanical But there's also a 10% sub subjectivity that comes into trading And so, you know, that's kind of that 10% taking it off the day of expiration taking it off the day before Overall back testing these strategies taking it off the day of expiration over time actually performs better but Taking off with one day at expiration also performs well. So Anyway, just just a couple random thoughts on that to help you be aware when you're managing these things Okay, so that's one that we put on that that's when we put on Friday, but the one that we took off We ended up like I said booking I think 195 bucks on this one here next trade opening adjusting trade in GC in gold So gold obviously precious metal silver gold have just been on a rampage to the upside and implied volatility has spiked So we had an iron condor on price has breached the upper break even of that iron condor and An implied volatility has expanded and so let's take a look at that one first You can see prices out of range here However, I meant and I mentioned this in the in the community if you look at the untested side, you know Typically at that point we would be taking off the untested side But you can see there's still a decent amount of premium in these options now if price continues higher We'll go ahead and close that out and see if we can get a little bit of a reversal but You know, that's that's why we're not making an adjustment yet by closing that that put vertical side because there's still a Lot of premium premium in there due to the spike in implied volatility So what we did do is we went ahead and added a new one in the same cycle And you can see we're up about 120 bucks on that one since we since we put that one on So just gonna continue to manage these as mechanically as we do Next trade opening trade in SPY. So we added an iron duck in SPY Did this one with 20 days to expiration. So we've got a few different ducks on and So let's take a look here in SPY. We've got two two of them in SPY We've got this one here that I just Actually, this is not the alert. I just showed you but this is one that we already had on prices hanging out right here up in the beak and So this one expires 813 so we still got a good chance of price getting back down to the duck head So we're just gonna hold that for now the alert that I just showed you Which was at 20 would 20 days expiration at the time We put it on because he prices run higher up the beak in this one as well But still a decent chance it could get down to the Down to the duck head and so we're gonna go ahead and hold this and see what happens You know even when price runs up and you know, even if you're at max on the beak profit We've still got a lot of time left and still a decent chance I like to hold that because that that even though the trade shows as long Delta It actually in reality is giving you some you know a decent amount of downside protection because if price You know drops and now it's in the duck head. Well, that's where we wanted it anyway Right, so I don't mind holding those now if price runs really higher And you know like I like we talked about in the course if we have less than a 10 or 15% chance of price getting back To that max profit area we will just go ahead and book that beak and move on free up that capital and redeploy that capital While we're here. Let's also just take a look at one other spy position we have and that's this iron condor I feel like we've had this thing on forever, but price is hanging out up here in the upper end of the range now with this one Unlike the gold iron condor if we take a look at the put vertical and we were basically maxed out on that So I just I'm just giving it over the weekend, you know If we do get a downside move we'll continue to hold it But if it if price stays right here or moves higher We will close out that put vertical side hold on to the call vertical side and see if we can't get a little bit of retracement down and then Depending on where we're at with everything else. We may add another iron condor Onto here a new centered iron condor in the next cycle. So we will see on Monday Next trade closing trade in SPI so we had another duck on and We went ahead and close this so this is one where price did run higher had a very little chance of Getting back down into the duck heads. We went ahead and close that out early booked beak profit on that one Opening trade in Starbucks. Okay, so we did some post earnings long post earnings trades on a few different stocks We're in the heat of earnings season, which is great. We've getting getting some more different opportunities So in this one, this is a little bit different than what we taught in the course, right? We we taught if if price opens up above the expected move The stock has a tendency to go sideways to higher And so a lot of times we'll look at a short put or a short put vertical I just I didn't want to do a short naked put and with Starbucks being a you know a 70 mid 70s Priced stock you're just not getting enough premium to do a vertical Because buying that buying that one for protection just really reduces the amount of premium you get and so What I did here is I just bought a long call and we did it deep in the money to kind of minimize that theta decay Now what happened with Starbucks is let's go to the chart. It did not do what we hoped it did it would do so SB you X and So zoom in here a little bit. So here's here's the here's what the expected move was price opened up above it It ran higher look like it was gonna be a nice trade and then it just came down and the next day really dropped Then it bounced and I thought well, we still may have a chance and the next day just kind of petered out So I I still think that Starbucks It will next into next week will potentially continue higher So we'll be watching that but I didn't want to I didn't want to roll this I didn't want to you know, it was in this cycle here with You know at this point six days to expiration So the theta decay will really start to kick in over the weekend and into early next week So I didn't want to hold it over the weekend. So we went ahead and just closed it and took a loss on the trade You know these these these trades have been so good over the years I mean just so high percentage winners very few losers that I'm gonna still continue to take these But this one just did not work out. We had another one that didn't work out as well I'll go over that one here in a second And then one of the other ones AMD the one that did work out booked about a $650 winner on this one Let's take a look at AMD So we did the same thing on this. It's a low price stocks. I didn't want to do a short naked put and And it's too too too low price to do a vertical So we just bought a deep in the money call See price opened up. It came down. I think we got in like right here We got into a really good price and then prices shot up We closed it out the next day up here booked booked a nice quick $650 profit on that one And then the other one was Shopify and this one was the this one was the painful one. So shop. Let's take a look at shop SHOP So this one opened it opened it up well above the expected move We let it come down a little bit got in about right here and then prices, you know really came through again It bounced and and here's what you will see a pretty a lot. In fact, I was considering adding here when it was down here because What you know, a lot of times it'll come down It'll bounce off that expected move and rock it higher Well, this and so that's what I was kind of hoping would happen here Well, the next day it didn't it came down and it came right down to here And I was I was actually very close to adding to it right here, but I didn't want to do it for the alerts portfolio I didn't you know, I just I didn't want to add that amount of risk it was already a pretty decent sized position and so just did not do it and And and what happened is it really rallied hard off that point And I thought I was gonna get a little bit of a continuation into Friday But just didn't do it obviously that the market was pulling it down and and so we ended up closing that one out for a loss But again, you know, I'm gonna keep I'm gonna keep pounding these trades when we get the opportunities because these post earnings Trades when they open above the expected move. They're still super high probability So don't let a couple of losers defer you from taking these trades. You remember it's it's over time It's a large number of occurrences That that is is what determines, you know, if this is a good trade or bad trade Don't take two trades two out of three and say, ah two out of three didn't work I'm not doing that strategy anymore because these are very powerful very very profitable trades Next trade XBI short strangle So we rolled our short strangle and it had been adjusted into a straddle kept the strikes the same rolled it out to the 105 Just extended duration So if we take a look at XBI XBI down a couple percent on Friday, which is helpful kind of getting us back into center We're up about a hundred and eighty five eighty six bucks since we've done that role Next trade closing trade in AMD. So that's the one I just showed you booked about six. I think it was 650 bucks on that one opening trade in Amazon, so we did a an earnings iron duck in Amazon and What happened with Amazon earnings? Well, they exploded And so let's take a look at AMZ in So it opened up big. In fact, it was above the expected move as well You know with with the all of them that I had on I did not put a another one on here, but and then price moved lower, but we we got out of our Amazon duck booked beak profit two hundred and ten dollars on the beak. So nice profit there Next trade opening trade in Facebook. So we added another post earnings short put vertical in Facebook Facebook also had Really good earnings and so, you know, it opened up right here price came down I got in right here. It's rallied up. So we're up a little bit on the trade and we'll hold this into next week All we need is a is a little bit of a move higher We're looking to book about a 50% plus of max profit. Obviously if we get a rip-roaring rally, we'll book more than that If we get up to about 50% or so of max profit, we'll go ahead and book that and Then next trade closing trade in SPX, so this this is that closing trade I mentioned that we did on Friday in that weekly double calendar booked a small profit 100 plus dollars in that 150 maybe I can't remember exactly what it was And then we opened up a new one now One thing to consider is, you know, we again, we don't We like we would prefer to open these up on days when implied volatility implied volatility is contracting Now at the time we put this on Implement when price was centered implied volatility was actually up But it's still the difference between the front and the back week that matters that matters the most so You know the the front week we want to be higher than the back week And so that was still the case and so we went ahead and open it up because we wanted to have one of these positions On now price moved higher So the good thing is if price does move lower next week That's gonna do one of two things or it's gonna do a couple things one It's gonna get us back to center and be you know It's gonna spy complied volatility, which could be a benefit for this position So hopefully we get a little downside next week Next trade closing trade in shops. So that was that post earning short put vertical That was the Starbucks clothes Amazon that was the we just let that one expire in the beak so so far up the beak that And toss doesn't charge any Assignment or exercise fee so we went ahead and just let that one expire and that's a duplicate So don't worry about that we're gonna get that removed. So that's it for the week on our trade alerts Let's take a look at some of our other positions Starting with yes, so we've got two different long put verticals and yes, that one's way out of range. It's got How much time does it have? It's got 20 days to expiration. So we're gonna hold it a little bit longer. Our other one's got 48 days to expiration and It is it's it's just inside range here So just holding news for that short delta exposure speaking of short delta exposure We're about one to one on our ratio. So our theta versus our short delta We're about one to one on that ratio Gold I mentioned Natty gas. We're getting ready to roll this one. We're up We're up over $1,300 since we did our last roll and so Natty gas has been doing really well for us the last couple cycles We're at 25 days to expiration So, you know, when we get down to 21, we'll definitely roll this so so probably Monday and the fact that we're over 25% of our max profit, you know, this is a this is a prime Prime time to roll this so we'll be doing that on Monday Same was ZB now prices at a range. So our our puts need to be rolled up as well I just wanted to give this over the weekend. It was at 21 days to expiration. Yeah, so today Saturday It's it's at 20. So we're under 21 days on this one now. So Just gonna give it till Monday and we're gonna go ahead and roll that roll the puts up and roll that out to the next cycle Apple smashed earnings Up over 10% which is not and the reason I didn't do anything in here You know, it did it did open up above a suspected move and this would have been a really nice post earnings trade And that's that's a lot of times what you see with these things now in this case We already had a position on an apple. So I didn't want to add another one We've got a short position. So I didn't want to add a long position in Apple So that's why we didn't take this trade but Yeah, so we've got our long put vertical we're holding for short Delta. So that's going against us one thing to note on Apple They just came out and announced August 31st They are going to be doing a four for one stock split. So if you only own any outright shares in Apple So for every one share that you're you own you're going to You're now going to own four shares and the stock is going to be cut by 25% Which I don't like I like the big high-priced stocks juicy premium like your Amazon Tesla's Apple You know, I like these big high-priced stocks, but that's that's what they're doing so it's going to go down to about a hundred and some dollar stock instead of a $400 stock and So just look for that that's going to happen August 31st And so depending on what we have on from an options perspective We'll be keeping you up to speed on on what how that's going to affect that and what we need to do if anything So stay tuned on that DE John Deere. We've got a Short call vertical and John Deere holding this for that short Delta exposure Price is a little bit out of range there need some downside DIA we've got two sets of short call verticals This one is just inside range here and then this one is a little bit out of range Just looking for some downside to get back in there. I mentioned Facebook. That's our post earnings trade IWM so we've got a bunker here and it's getting to the point now with with a P&L lines going to start sagging Into Death Valley. So we want to get out of this now This expires 1017 so we always want to be out of these by about 60 days expiration We're less than that but we're gonna go ahead and close this out and then extend duration So this one's in October We're gonna we'll go ahead and do one out in November with which currently has 111 days So we'll just close that one out and basically extend duration basically we're not gonna roll it technically We're just gonna close it out as a separate trade open a new one in November But that's the plan in IWM on the on the bunker And then we've also got two sets of long put verticals. One is just just outside the range and This one is a little bit more outside the range. So just looking for some downside there Same with QQ queues. We've got a bunker here and this one is also in October so we won't do it on the same day But we'll also be looking to close this one out and and put on a new one with further duration in In the queues as well. We've also got a couple sets of short call verticals price just inside the range here and Just inside the range here. So one is in August one's in September And so just looking for some downside there one thing to note about bunkers too and and I want to make sure You all are clear on this. Remember this is this is for that that downside protection, right? For that for that short delta exposure if the market does really start to get crazy to the downside and You know, we've we've I mean these have these have not Performed from a standpoint of making you profits overall Over the last few months and but here's why I mean, you know, I think this is kind of goes without saying but oops It's kind of good. Why is that happening? I? Mean we you know we benefited from these during this period here but obviously when you have a Something like this go on of course bunkers are not gonna be profitable, right? But you don't know that this is gonna happen ahead of time And so, you know, we're gonna kill still continue to keep bunkers on as a hedge and keep in mind We're still you know, we're still booking profits on our iron ducks. We're still booking profits on our weekly double calendars we've got short strangles and iron condor so you've got to look at it holistically and The fact that we're able to continue to be profitable continue to book profits While still having this hedge on while still being basically fully hedged to the downside That's that's the key and so don't get discouraged if you know You keep having these bunkers that potentially got to close out their losers You got to put another one on because that's what they're there for and Anytime you get a rip your face off rally like we've seen here, of course They're not gonna be profitable But but you still got to have that downside protection to some extent now the amount that you have that's a personal preference You know, we we always talk about our ratio of theta versus our short delta and and what we're comfortable with and we've really we've actually Done really well with that in this in this rally. We haven't gotten overly short You know, we've stayed about one to one on our short delta versus our theta and that's that's kind of the ideal place We want to be you know, we've talked about in the past having a a range of you know Either between one to one and five to one on our short delta You know any more I think I think five to one is just I think that's a little bit too short specifically now that we've Introduced the bunker trade to you don't you know, you've got some really good down side protection But you don't have all the upside risk As opposed to like like some of our verticals, you know, yeah You've got some good short term downside protection, but you also have the similar amount of risk to the upside if price continues higher so we'll just continue to manage as Still continue to manage using verticals short call verticals long put verticals and bunkers but You know, just kind of staying it We're just trying to stay kind of in that one to one to two to one range as opposed to getting all the way up to five To one now if if this thing continues to rip higher at some point We will accelerate our short delta amounts And and and get some more on but for now I'm pretty comfortable kind of having that one to one two to one range at this point RUT we've got an iron duck in the Russell 2000 you can see prices up here in the beak This expires on eight eight. So that'll be next week Still got a decent little chance. It could get back to the duck head So we won't take this off too early, but if price continues to run higher We will do so SMH we've got this adjusted strangle you can see prices hanging out in the upper end of the range here If you get a little bit of downside movement, that would be a real big benefit to the to that position SPX I mentioned SPY I mentioned XBI I mentioned lastly XLK a Long-put vertical and XLK also holding for that short delta exposure. So that's all the alerts. Those are all the positions Let's take a look at our day trading results for the week super excited to Get this out to you all remember it's it's coming up this Thursday So if you have not already registered make sure you do go to navigation trading comm slash day trading dash registration sign up save your spot Thursday August 6th 4 p.m. Central is well where we're going to be sharing Our strategy called the mighty 90 and this is where we're just trading for the first 90 minutes of the day After the market opens and then you're done. You don't want to trade past that with this strategy It's the best time to trade and you don't have to be glued to your computer. So Been very good very profitable for us. This is this is all of our day trading positions for the week I love our eleven hundred dollars I'll go through kind of the details here and what I started doing this week is I started breaking out the strategy because I'm testing some strategies Which did not do very well at all this week in fact And so I broke it out with the mighty 90 these test strategies and then also some pairs trades if I I did add up just the Just the mighty 90 strategies and just if I just just showing the performance of the mighty 90 It would have been over 2,200 bucks for the week But I but I just want to include everything just to just see guys kind of know what I'm doing I'm not you know If I'm showing you losses, I don't I don't really care This is not this is not to show you how how great I am or how how awesome But you know, I'm not trying to just pump you up with performance I'm really just trying to be transparent to kind of show you what I'm doing because this day trading thing is really This is an evolution right this I'm not you know, this is not a You know, I'm definitely not 100% expert in day trading, you know, it's not something that I've I've done for a long time I mean I used to do it back in the day and then I pretty much wrote it off for a while And so just getting back into it. So this is really just more posting For you all's benefit to see what I'm doing and then for our benefit just to really track it and get it down to a science So that when we do start rolling out some of these new strategies that mighty 90 is Golden but some of these new strategies just trying to get our feet wet and and test and and doing it with real money just because Paper trading is great, but we also want to have that emotional connection to it Good or bad Anyway, long story short. Here's the results for Monday. So Monday overall, you know down a couple hundred bucks But as you can see the mighty 90 did really well as well as I had a nice Paris trade in ES versus NQ Next day just did all mighty 90 is a little Didn't have time to do much else and so nice nice day there for 21 And the other thing I'm doing is you know, Amazon's a big stock, but you know BA and Roku I mean these can be done in small accounts So one the other thing that I've been doing this week is really doing more trades in smaller symbols Because I know that's what you all when you first start out for sure are gonna be wanting to use smaller symbols You're not gonna be doing anything in Amazon. It's just it takes too much buying power too much risk For somebody starting out. So and then also, you know, trading in some of these micro futures So these this is not a Paris trade. This is actually the mighty 90 strategy on the futures, which can be done as well Same here all mighty 90s Roku little loser 20 bucks. The rest were winners All these could be done in a in a smaller account as well On this day really I kind of over traded especially on the test let let this one kind of go But again, you know, the Paris trade worked out really well all the mighty 90 trades were winners a nice one in AMD and that was It was a mighty 90 trade, but I did have a bullish bias because of the You know, we had that post earnings trade So that was the day after earnings in AMD and so you can kind of take a look at that and have that kind of a bullish bias and And then I was so I really focused on getting on a mighty 90 trade in AMD after earnings and that worked out well This was Friday. Yeah, so we did I did a Paris trade in ESN queue That was a loser then did a Paris trade in NQ versus the Russell. That was a nice winner Did a bond versus note pair? That was a nice winner and then some mighty 90s couple few losers in there and test those a nice winner overall 731 25 So for the week, like I said a little over 1100 bucks total and that includes all the testing so Look forward to this Can't wait. We're gonna have some fun on Thursday 4 p.m. Central presenting this class I've we did do a beta of this class with a handful of our members who had been showing a lot of interest and and We're kind of excited about it and and I've gotten to kind of know over the years And so did a handful with a handful of members and they've been they've been testing it on their own And it's been doing really well for them as well So really excited to share it with everybody can't wait everybody have a great rest of your weekend. We'll talk to you next week