 What's up trade hackers today is Friday July 19th Hope everybody had a great week. Welcome to this week's video review exclusively for pro members before we jump into the alerts Let's talk about who got caught being hot in the community Every week we'd like to recognize one member of the trade hacker community for helping other traders This week goes to our friend Chi Kong. So hopefully I'm saying that right Chi She's been in our community for quite a while Every day he's cheering comments. I noticed just making little little comments here and there this week started trading some share excuse me sharing some trade ideas and So keep up the good work. She love having you in the trade hacker family Congrats. You got caught being hot. All right, let's jump into the alerts for the week. What a crazy day And actually week it's been really quiet as far as the market's just been kind of Moving sideways as far as the stock market goes and then today was up about I don't know six or seven points Actually almost ten points at one point the S&P and then closed down 26 So apparently there was some news. I assume what the media is touting is the reason is the Iran Seized a British oil tanker So when the market didn't like that and and turned around so we'll see what happens Hopefully that's a good sign into next week of a little bit of down movement as well as some implied volatility spiking Definitely would help our portfolio needs them. We've got some we're carrying short Delta right now We're about four to one on our short Delta versus theta ratio For that for all you new members who've just joined when we are constructing our portfolio We like to keep a little bit of short bias. We like to keep a little bit of short Delta based on In a ratio based on our overall portfolio beta weighted to the S&P 500 so we want to take all of our different positions and Make them into basically all apples and compare those to the rest of our positions So we're not comparing all different apples and oranges and pineapples and different things So apples to apples we want to compare it to the S&P and that way we get an idea of our overall portfolios And which where we are biased and by doing that Gives us an idea of our overall direction And we like to be a little bit short because the market likes to take the stairs up and the elevator down as we saw today And so that's where we're at and we're about four to one on our ratio. So for every four short deltas that we have We have one theta and theta is our daily time decay. So that gives us an idea of how much Premium we are short versus how short our overall directional portfolio is so We've got some more information on that on our blog You go to our blog and look at how to trade options like a professional or how to Delta hedge your portfolio Search for those in our blog and you'll understand a little bit more about that concept But let's jump in starting with our first alert on Monday the 15th We closed out an iron condor that we put on on ex SPX So we we just released our newest strategy course, which is all about trading weekly options on the indices Specifically, what we'll be doing as far as alerts is on the SPX. So this is our weekly Iron condor trade that we had put on the previous week. We closed that out ended up taking a loss on this one Just never this just didn't stay in our range. So we closed that out took a loss on that one Next trade we did a rolling adjusting trade in Apple So we had a long put vertical that we've been holding for some of that short Delta exposure that I just talked about and When we get down into the week of expiration we before the options expire We want to either close these or roll them out and we went ahead and rolled this out to extend duration out to 32 days And we adjusted our strikes to accommodate for where price is currently. So if we go to Apple on Our analyze tab you see since we did this roll prices moved down So we've gotten back some of the profit Since we did that roll and just looking for a little bit more downside to benefit this trade Next trade was an opening trade in Baidu. So Baidu's got earnings coming up on July 30th Implied volatility has been declining as well as price has really been Consolidating in a very narrow range. And so with this trade we're really looking for price just to break out one direction or another and so that's what we want because typically in anticipation of an upcoming earnings announcement implied volatility is going to expand and then if we can get price movement Decent price movement out of the range in either direction. That's what we're looking for in a long straddle before earnings So if we look at Baidu Baidu did make a move a little bit higher today And so you can see we're down a little bit on this trade if you look at where we're at going into earnings Here's what's interesting is we've just I mean we put this on hoping that implied volatility would expand and implied Volatility is just really contracted and so hopefully going into next week We get some expansion going into earnings as well as a little bit more price movement and and that'll benefit our trade So that's what we're looking for into next week, but we'll definitely close this out before earnings on 730 Next trade rolling adjusting trade in Goldman Sachs. So this is one that we put on for some short delta exposure we put on the long put vertical and Very similar to the other one is this was down to three days to expiration and we rolled this out to August as well Adjusted our strikes and just keeping that short delta exposure in our portfolio. So if we take a look at where that's at now You can see again kind like the other ones come down since that roll We're up about three hundred dollars since that roll But just looking for some more downside before we do anything there So what we might do is is we may either close this one out if we continue get some downside action Or we may even roll it out to September to extend duration Capture that credit and continue to keep that short delta, but we'll see where we're at with our overall Delta theta ratio at that point So that's where we're at on GS Next trade was a opening trade. We sold a strangle in eBay So eBay had with implied volatility as low as it's been in all the indices like SPY IWM and a lot of the markets across the board You've got to start getting a little bit creative and looking for other opportunities And one way to do that is to look for stocks that have earnings announcements So in this case we looked at eBay, but instead of doing the Nearest options which at that time had two days to expiration would which would be a true earnings related play We ended up just selling the August which had 30 days to expiration by doing that you're getting more credit You're widening out your wings excuse me, you're widening and widening out your spread and And you're hoping for price to stay within that range and basically you're just treating it as a core monthly option trade Because what will happen is after they announce earnings even though you're in the strikes even though you're in the cycle with 30 days You're gonna get that IV crush It's not gonna be as dramatic as if you traded that two days to expiration But you're still gonna get some contraction and it did exactly what we wanted We we ended up Closing this out for over 35 percent of max profit within just 24 hours And so we are in and out of eBay nice trade there and You know, there's nothing wrong with doing it either way, you know two days to expiration You're gonna have a little bit more more narrow range You're gonna collect less credit, but your implied volatility crush is gonna be greater So you're gonna get that profit quicker But with 30 days you're gonna widen out give a little bit more duration and we're just looking for Positions to put on into our core portfolio, and that's why we chose the 30 days in this case Excuse me need to get a drink. All right Next trade rolling adjusting trade in XLK So another long put vertical that we were hoarding holding for that short delta exposure and again We just rolled that from July which had two days to expiration in this case We roll it out to September was 65 now remember We typically like to enter trades and stay within that 30 to 60 days But this is pretty much a directional play And so I don't mind going out a little bit further in duration to kind of diversify the time frame that we're in these trades And so that's what we did here and we adjusted our strikes from 78 73 down to excuse me up to 85 80 And just extended that duration kept that short delta in our exposure Skipped out on the August cycle and went straight to September. And so let's take a look at XLK Moved down slightly. It's pretty close to where we rolled it up a little bit of money in it Since that role but pretty close to where we where we rolled that now keep in mind Remember when we're rolling these positions, you know, we could just close them out and take a loss But in this case, we want that short delta exposure I mean this market's been very strong And so just to play the cyclicality of the market we wanted to keep short delta And so we could have closed this out But then we would just be going and looking for another short delta position So what we like to do is we like to stick with certain positions and use them almost as hedges and continue to To roll those and you know, eventually the market will get that cyclicality We might get some downside action and then we can choose to, you know, get some of that profit back and or close it at that point But at this point, but at this point XLK is one of our short positions that we've been rolling and we will continue to do so And that's the other reason we chose to go out all the way out to September is because we know we're gonna keep this For some time and so no reason to roll out to August and then a little while later have to roll out to September Along with diversifying our cycles that that's part of the the concept there Next trade closing trade in IWM. So we've had this iron condor on for quite a while We've been kind of adding positions taking some off rolling some going on and off Well, you know at some point, you know, we at this point, we just IWM the applied volatility the IV percentile is down to 24 We had an iron condor on And so and you know, you don't we don't really roll full iron condors So in this case, we just opted to close it. We took a loss You know after After some time and sometimes it just makes sense to close out trades especially if the implied volatility is low and it wasn't giving us any Specific directional Delta that we needed. We did we certainly didn't need any more short Delta We could have closed out the put vertical side and just rolled the call vertical side But in this case, we just we just took it off and took a loss and and now we have that capital So if implied volatility does spike next week, we have more capital to put on some additional positions So that that was the case in in IWM now for those who just put this on and didn't have all the past Iron condor pieces on we booked a really nice profit on this piece In fact, it was about 85 percent of max profit We're just trying to squeeze a bunch out before we close it out Worked out well and we closed that piece out so We are out of IWM at this point Next trade rolling adjusting trade in DIA again. This was down to one day's expiration We went ahead and rolled out to september with 64 Addressed our strikes accordingly. So we take a look at DIA. We've got two different sets This is the one in september that we just rolled right here right where we rolled at no p&l yet And then we've also got this other set that we had already rolled out to august You can see prices is well within range Down slightly from where we rolled it but just again looking for some Downside direction to benefit that trade both of those trades Next trade opening trade in spx. So we added another spx iron condor In this case this one had eight days to expiration remember from our course We like to do it between seven and nine days this case. We did it right in the middle Just like just like we teach we'll exit with one days to expiration or If price gets to a point where it's it's over 50 percent Of our initial credit. So we collected a credit of 21 65 Take half of that add it to that number and that's where that 32 it's actually 32 47 245 is what you get But once we get it to a price of about 32 40 if we get to that point That's where we'll exit is kind of a theoretical stop loss Now i've had some questions about hey, you know, why don't we manage these early like we do the rest of our trades And the reason is is because with these weekly options. We have this Short duration. We've got this gamma risk that we have to be more aware of That's a lot more severe than our monthly options. And what that means is smaller moves in the underlying index Can can move your p&l a lot greater. That's what gamma is. It's that is that risk of movement and so When you have this these short duration options, they they work a lot differently. And so that's why we created this whole strategy This whole course around the strategy of these short term options where The most optimal way to do this is to exit with one day to expiration or on the losing side if it gets to A price that's 50 percent of your initial credit So you add your 50 percent of this number to your initial credit and that's where this came from So that's how we manage these if you manage them early Your overall profits over time are not going to be as good. It's a very good Strategy very profitable, but you have to manage it like this You can't manage it like you do our core monthly income strategies Anyway, so that's the opening. Let's go the let's take a look at where that's at. It's pretty centered here We're up about 137 bucks since we put that on so just playing the waiting game into next week. Hopefully it kind of bebops around stays in our range and we can book a winner in uh in that one All right next trade rolling adjusting trade in spy So we had a short call vertical that was recently part of our iron condor in this case We ride yeah, we rolled from july with one day just out to august again There's nothing wrong if we wanted to roll this out to september, but in this case, we're just we're just We're just kind of Diversifying our timeframes. We're diverse diversifying our role. So in this case, we just roll that to august and uh and adjusted our strikes accordingly And so let's take a look at spy Take a look here. It's pretty close to where we roll that We've gotten back a little bit of money since we've done that roll but pretty close and you can see we're in august in this one Next trade was a closing trade another spx weekly trade in this case We had a double calendar that we put on last week with just one day in expiration We needed to exit so we went ahead and closed that out and he ended up scratching out a small winner uh Obviously if we you know if we held on a little bit longer the market moved up the next day And we could have booked an even better winner But hey, that's hindsight trading. You don't want to do that be mechanical That's exactly what we did and we went ahead and scratched out a small winner on that trade Next trade closing trade in fxi So similar to iwm. We had a we had an iron condor in fxi. We made several adjustments Uh got down to the point with this one with just one day to expiration We had a remaining short call vertical on in fxi and we could have rolled Uh, we weren't necessarily at that point looking to continue to keep more short delta And with implied volatility super low at two on the ivy percentile We ended up just closing this we had a small profit on the trade overall So we just went ahead and booked that one Next trade was a closing trade in ebay. I already mentioned that so we put that earnings We put that trade on right before earnings when implied volatility is inflated very next day booked over 35 percent of max profit Got that ivy crush, uh, which which gave us just kind of a nice quick profit on that one So good trade in ebay And lastly we did a rolling adjusting trade in es. So this was the s and p 500 futures This is another one that we've just been keeping for that short delta It's a long put vertical and we went at this one today was the last trading day And listen, we don't we don't like to keep our trades all the way down to expiration day But with remember with futures options on futures You can't get assigned the only time that you get assigned is if you hold those after the options actually expire Which would be after the market closes today on friday So we have all the way up until expiration day to do something and that's what we did on this We just held it all the way up and then went ahead and rolled it out to september And uh and adjusted our strikes to keep that short delta exposure In our portfolio. So if we look at es You see that that's the one that zeroed out that we rolled And here's the one we and then after the markets down moved today We already gained back a couple hundred bucks after the roll Which is good and then we're just holding that for some more downside exposure So those are all the alerts. Let's take a look at some of the other positions starting with oil See, we've got this strangle on got a little bit of profit definitely not enough to take off yet looking for about 30 40 50 percent of max profit before we booked that one I just showed you es Gold so we've got this short call vertical that was originally part of our iron condor and gold looking for some downside movement In that these options expired next week. We've got six days And so we'll look to either roll or close that next week In addition to that, we've already got another centered iron condor right here Which has got a little bit of profit and this one is out in september What toss displays is september, but it's the option cycle with 39 days And so we've got both of those pieces in gold Natty gas natty gas has been weak this week A big down slide in natty gas. We're hoping for just a little bit of a pop higher We're considering closing One of our one of our pieces in that gas, but unfortunately it turned on us went down So you can see prices has moved down out of range here if we look at just our calls I can see we still got a decent amount of premium left in those so we're not looking to adjust down yet at this point But definitely looking for a rebound Back into range on natty gas ZB 30 year bonds. We've got this adjusted short strangle here You can see it's it's been just kind of hanging out right here in this range. I mean it's bounced down bounced up It's just going to be bopping around in this range Well, I'd like to get another Another piece of this trade on and if you look at the options here We've got 35 days left in that in the in the cycle that we're in If if we look at the continuous contract here The next cycle out would have 63 so next week we're getting down to our Within 60 days to expiration. So we'll probably look to add another piece out in the next cycle Kind of centered around the current price now if we make a sharp move lower and we're centered We're not going to add another piece But if we stay around here or move a little bit higher We'll look to add a centered strangle around the current price in ZB So that's the plan there wheat we've got two iron condors here in wheat On this one here price had moved out of range, but there's still a decent little amount of premium left In that untested side in the call vertical side. So we just held on and now And then later in the day price moved up over 2 back into range So we're just holding steady there Then the other piece we have still in the same cycle is another iron condor And you can see it's pretty centered. We've got some profit, but not enough to take off So just playing the waiting game in a wheat. Hopefully we get some price ping pong action and we can Book profits in both of those apple We've got a we've had a little bit of down movement here later in the week Giving us a profit since we've rolled this trade still down overall But just looking for some more downside to benefit that I mentioned Baidu John Deere de we've rolled this one and just looking for some downside to benefit that DIA I mentioned that one. We've got two sets of short call verticals Goldman Sachs I think I mentioned this one Yeah, we we've we've already moved down significantly since we rolled that one So just waiting for a little bit more downside before doing anything there Intel So we've got this adjusted strangle earnings are on 7 25 Price is hanging out right here if we can get some down movement And and get to a point of profit. We're down about about 200 dollars on this trade right now So if we can if we can move down and and get in a profit before earnings, we will Most likely we won't and so we will hold this through earnings And and just you know continue to manage as necessary when implied volatility gets crushed after earnings Assuming price stays within our range. We might be able to just take it off for a profit If not it we will continue to manage as we always do mechanically IYR we've got this real estate ETF price came back nicely in a range today We were you can see this theoretical position. We were looking to set up and add to this position Back when price was around 89 We didn't because I'd rather wait until next week until these options get out until under 60 days And we'll add it in september to diversify our Our cycles there But so that's where we're at on IYR implied volatility has stayed decently high It's at 51 on the IV percentile And so hopefully we get some continuation to the downside In IYR and we may not add to it We may just book this profit if it stays in our range And we get to a point of about 30 percent or so or we may look to add to it. We'll see where we're at with everything QQQ we've got two steps of short call verticals both of which are in august Very similar strikes. These are both them combined combined. So you just looking for a little bit of downside movement in QQQ SMH I got a question on this one here. We've got in the community. I've got price out here near the break even The question in the community is why not just close this for a loss? Well, I mean you could if that's what you want to do if that's what fits better into your portfolio But we've got a tiny bit of premium left in our put side But if price continues higher, we're just going to stay mechanical And roll our puts up to about the 30 delta And then we've got this piece here It's kind of hanging out in the upper end of the range. It has breached our short strike But there's again, there's still a tiny bit of premium left in those short puts But in the next week if price continues higher, we're just going to roll up our puts We're not looking to close this out We are just going to continue to collect those credits and play the cyclicality of the market I mean you've got this massive move to the upside, you know some point SMH is going to Cycle down and so we don't we don't want to just if we get a big move against us We're not just going to close it out that you know that just takes away the advantage of rolling You know you roll your puts up if you if you get an extended move in one direction to the upside You roll your puts up you get an extended move to the downside you roll your calls down And over time that's going to be the most profitable way to trade You're not going to you're not going to be better off just closing out the trade now Are there cases when there's absolute astronomical moves in one direction where it would have been able Would have been better to just close it out Sure But that's that's we're playing the probabilities and that's not the game And so again if you want to close those out If they get to a certain area that you don't want to call uncle fine That's great and and in fact if your account is smaller And you need to do that just to eliminate large losses then then that's what you should do but you know with with putting on positions booking winners and managing your deltas and managing the portfolio like we do On a thing like smh We're going to continue to manage this and roll up our puts and collect credits roll out to the next cycle That's how we manage just like we teach in the course I mentioned spx. I mentioned spy. I believe yep Walmart so this is another uh pre earnings trade we put this on as a Long strangle so price was kind of in between strikes when we put this on So we just widen these out a little bit. We manage it Just like a long straddle just like a pre earnings long straddle So in this case we're looking for implied volatility to expand going into earnings And a decent move in direction either one way or another Take a look at a chart of walmart. I mean this thing has just been grinding grinding grinding higher So I didn't want to put on a pre earnings long call just because of this extended move higher But uh just put on a long straddle now We've gotten the expansion we wanted in implied volatility But we just haven't gotten the price movement price is kind of consolidated here So we need a price move a big price move down or a big price move up Leading up to earnings which we've got a long time. We've got until 8 15 august 15th Before that happens. So that's the plan in walmart and then last one's x. Okay. I already talked about that one So that's it everybody have a great weekend And hopefully we get some of this continuation to the downside in stocks that we saw Late in the day on friday we can that's not only going to help our uh current portfolio Which has to our delta, but it's also going to provide new opportunities to add positions. So That's the plan. Look forward to next week. Everybody. Have a great weekend. Talk to you then