 What's up trade hackers today is Tuesday December 10th Welcome to the daily update big news today is Supposedly there's been an agreement. They've come to an agreement on the trade deal. So you'd think that would move the markets, right? wrong The S&P is Unchanged on the day. So what does that really mean? Well, I mean there's been so much talk about this trade deal over the last year And and what's gonna happen and you know, there's been so many headlines and it has moved the market in kind of sporadic Gyrations, but you know, I don't know if the market's just numb to headlines now. I mean the agreement is not final It's more of a handshake agreement. And so, you know, the market just doesn't really care We'll see what happens previously that the deadline for the tariffs to take effect was December 15th But now it looks like the agreement's in place and should be in place by the end of the year if everything goes as planned Which is not necessarily a guarantee by any stretch, but that's what's going on now one symbol EWW which is the Mexican ETF. It is up about a percent and a half Obviously Mexico involved in those trade negotiations. So Mexico is up a bit, but we will see what happens the other thing obviously that's been a major headline is the impeachment proceedings and sounds like the House Democrats are gonna vote this week and Figure out what's going on with this impeachment and actual vote will take place later in the house But again, it's like the market doesn't care either the market doesn't care The market doesn't think that Trump is going to be impeached or who knows But the market is just not moving at all. And so those are kind of the major two headlines. We're seeing today So what's the key takeaway from all this? my opinion is and Actually now just in talking the S&P's down six, but the major Takeaway from this is you can't trade news. You just can't trade news You don't know what's going to happen Everything you read Everything known all known information is already priced in and so you just you can't trade on news now Does that mean you can't have a directional bias? No, of course not We take directional trades all the time and it's okay to have a directional bias The way that we like to structure that is that we just like to have a range and as long as you do Whatever you want inside that range That's cool. And so for us we like to have a directional bias a range of Between one to one and five to one on our short Delta So a short bias versus the amount of theta right now We're at about a little over two to one on our ratio of short Delta Versus theta and so we're we're well within that range So anything we want to do if we want to take a long position if we want to take another short position Whatever we want to do for that bias whether it's news related or earnings related or whatever it is I don't care, but as long as you stay within that range. You can really do whatever you want So that's exactly the way that we manage our portfolio. I mean think about this the S&P Let's just look at SPX as an example and let's go to my Year-to-date percentage. Okay, so the S&P 500 is up almost 25 percent year-to-date Well, guess what? We've been short. We've had a short bias in the market all year and we've still made money Okay, so that that's what I'm saying is you can still you can take these biases You can take these these shots based on what you think the market's gonna do But as long as you stay within your range, you should be fine now has our short Delta hurt our performance Yeah, absolutely. I mean if we would have been long obviously we would did we would have done a lot better But you also can't trade in hindsight if the market would have tanked then our short bias would have really helped our performance So that's our preference whether you have a short bias preference or not That's up to you But that's just the way that we trade because the velocity of those downside moves can be very violent compared to the up moves As you've heard and seen the market takes the stairs up at the elevator down sometimes And so just be in position for that is the prudent thing to do All right moving on a couple other things. I mentioned in last night's video azeo auto zone We did an earnings trade and Exploded to the upside now what happened to us? Well, we did not lose money because the way we position this trade We actually took this off earlier today and for the width of the call spread five bucks and sold it originally for 596 so made 96 bucks per contract. Is that amazing? No, did we lose money? No, and we made some money So that's what happened in azeo. We're gonna do a similar trade a Lulu announces after the market closes tomorrow So we're gonna do a similar trade in Lulu Just use those front week options set up a trade So we have no risk to the upside in a nice buffer to the downside Hopefully it comes down stays within the expected move The expected range for Lulu is a little over 17 and a half bucks And so if you look at where price is currently now we we haven't entered this trade So we're gonna we're gonna enter this tomorrow But if you look at where it's at they call it 230 so get down to about right here would be the expected move So still in that max profit area. So that's kind of what we're looking at for Lulu Other than that still looking for points of entry to sell some more premium in bonds and Natty gas but have not added those to our portfolio yet But our pro members will get an alert once we do hope everyone has a great evening. We'll talk to you tomorrow