 Can you guys hear me now? Perfect. Sorry for all the troubles. Still having some difficulties here. I think my resolution is not sized correctly. So I'm gonna need to play around with that a little bit. Alright guys, how's that? Can you guys see it? Can you hear me? Can you guys see it? Okay, perfect. So we're just gonna get started then. Again, sorry for all the delays and stuff with everything going on. First time on Twitch for me. Again, this is Timehawk from Xtraits here with a snoram based on options today. So what I'm planning on do is that every two weeks I'll be doing a essentially a course on options, sharing what I know about options and how I use them, when to use them, etc. And at the end of every session we'll have opportunities to basically do a Q&A. You can ask me things. But feel free to send messages or whatever in the chat if you have any questions about what we're currently talking about and I'll try to go through them as we move along. Again, first time on Twitch, streaming in general. So just bear with me. I'll do the best I can. And let's hope that today is gonna be pretty fun. Thanks. Didn't realize the date was wrong. I'll fix that for later. All right, let's get started here. So just a quick introduction again. Who am I? I'm Timehawk. I'm top analyst with Xtraits, which is the trading community. We have a Discord. If you're not a part of that, go check it out. And I've been trading for about a little bit more than seven years now and I've been with Xtraits for about four and a half to five years. So most of my time trading, I've been part of the Xtraits community. And like most of you, you know, trading at the beginning was pretty rough. But I think I have a hang of things now after seven years and I hope that I can share some of my experiences with you so that you don't have to go through the same thing. So I focus primarily on swing trading and I do scalp and day trade when I have time to watch the charts. What is the purpose of this course or what the goal is? So I'm planning on covering, you know, everything about options from basics to advanced options strategies. Just trying to give you guys the tools you need to become more effective traders and give you that edge in trading because options are really complicated. And when you use more advanced strategies, you can make any situation profitable. Right? It's not like, oh, you can just be long or short on the stock or asset. You can be neutral too. And you can still make money. So options are great. You can use them any time. You just have strategy and when to use it. So I plan on going through basically everything about options throughout this series of course. For the purpose of today's course, it's mostly going to be covering more basic stuff and then I'll go over the calendar spreads that I was doing earlier this week and how I used them and what to look for and how to identify those kinds of setups. So more basics today and then one advanced strategy. And then throughout this course, I'll be trying to give you guys practical applications as mentioned. So at the end, when you have Q&A, you want me to look at a certain stock or you think a certain stock might be good for a certain play, we can go check that out. So table contents, what are options? So we're going to go over the basic definitions and we're going to go over the Greeks of the options. And then some of the beginner options strategies, those are probably the ones you guys are most familiar with. If you guys already know all of this, feel free to tune out a little bit. But I think it's still good to go over the basics. And then we're going to be going over the calendar call spreads at the end and then we'll have a Q&A session. So what are options? To me, I basically view options as they're basically insurance, right? You pay a certain premium to have a contract for an option. And then you're just going, okay, is the stock going to go up or down below this price? At the most basic level, that's how we see it, right? So we're paying insurance. Mostly if you're an equity holder, so you hold shares in a stock and you want to say, protect yourself from downside, then you can use options to do that. But for most of us traders, we like to use options to trade them. We like to capture those momentum movements and capture that premium value. And then we sell it back before expiration date because we don't want to actually buy the shares. The textbook definition for options, their financial derivative for an underlying security, okay, stocks, right? That offers the owner of the contract. I didn't proofread this but contract the right to buy or sell at a pre-specified price. So that would be the strike, right? So there are two types of options. You have calls and puts. And the calls give contract holder the right to buy and puts give contracts, sorry, not contract holders. The contract holder is the right to sell. And why do we do options? I like to think of it as the three Vs. They're versatile, volatile, and valuable. Why? Because versatile because with different options and linking into them differently with advanced strategies, you can use it in any situation. Volatile, why is that good? Because it's, you know, you can quickly capture movement in the underlying asset and make a lot more. You're basically leveraged, right? Of course, this also means you can lose more, but more on that later on how you can limit that risk and valuable. So breaking down the options components. So these are just some basic definitions here. So everybody's familiar with them. And let me take a look at the chat for one second here. Yep, I'll be uploading the slides. I just realized I did not need to type that out. I could just talk to you guys. All right, moving forward. So the format for options alert at X traits, right? So you have your action. So usually this is just going to be buy to open, sell to close, or sell to open, buy to close. So they're all the same thing. You're out of buying or you're selling a certain options contract. So then after that, we have the ticker symbol. So, you know, like Amazon is AMZN, Apple is AAPL, PIN is PINS, et cetera, right? And then we have the expiration date. So this is when the contract expires. The most recent week was two five. It will always be a Friday. Or the last trading day of that week. So there's a holiday or something that it might be, you know, Thursday or something like that or Wednesday. And then if you're trading something like spy, those have expirations on Monday, Wednesday and Friday. And then you have your strike. So the strike. And then I wrote down below, but it's basically the price that you think the underlying asset may reach or exceed, right? And then you have the ad symbol and then we have the price paid for that contract. So the expiration date is important because that's basically when the amount of time you have or your move to play out on your underlying asset. Once we hit the expiration date, if your contract is not in the money, in other words, the strike price is still away from the underlying asset price, then that means it's no longer in play and expires worthless, right? So explain those definitions below. In the money, ITM, when the price of the asset is past a strike, and I say past a strike because for calls we want it to be above, but for puts we want it to be below. That's why I put past there. At the money is when the strike is equal to the price of the asset and out of the money is when the price is not past the strike. So, again, for calls, for example, if I had Apple, I don't know, 200 C, so 200 strike is a strike and is a call. Then if it's 150, then it's going to be out of the money, right? But if I had, say, Apple 200 P, which would be the puts, and the strike is 200, and it's $150, then that means we're $50 in the money, okay? So I think you guys all mostly understand this. This is pretty basic information here. So I'm just trying to quickly go through it. If you guys have questions about any of this, you can show me a DM or something. And, all right, option writer. So this is the entity who is selling the contracts, and you can be the one selling the contracts as well. So usually we think of the option writers as being more of the larger players in the game, and usually retails the one who's buying up the contracts. But we can also sell those contracts, and that's what we did earlier this week with those calendar call spreads. So it's intrinsic value. So when a contract is in the money, it has intrinsic value because it's basically the difference between the asset price and the option strike. So like earlier in that example with Apple, if for some reason Apple was $180 or something, and your strike is 150, that means that our intrinsic value of the option is $30, right? That's the difference between the strike and the asset price. And then you will notice that the options are not going to be priced at exactly $30, because there's still a premium that we are paying for a chance, right? There's still a chance that Apple will continue to go higher or even lower. But basically that chance is calculated and figured out into the options pricing, and we're going to be paying an extra premium. So say that it's worth $40 or something. So we're paying an extra $10 on top, and that's what we call the extrinsic value. So that's the extra premium we're paying for a contract. So again, it's basically whatever is left over of the price of an options contract after we take out the intrinsic value of the contract. And I consider basically insurance premium. It's just like a car insurance or something. When people write options, they write a lot of options and they expect that some of them will pay out and some of them will pay out big. But overall, if they write a lot of options contract, eventually they will collect a nice and steady return. This is what we call basically an income strategy to write options. And I think it's pretty profitable if your account is big enough and I recommend people to actually sell options instead of buying options when your account is really big. You can always do both, of course. So more definitions here. For advanced strategies, we have what we call legs. And so each leg is a call or a put option that is part of our more complex strategy. So when we open different parts of an advanced strategy, we refer to that as legging in. So for example, with a calendar cost spread, one leg is going to be, we're going to open or buy a certain contract. So for the PINs example that we had earlier this week, we bought PINs 2 slash 12, right? I already forgot what the strike was. I think it was ADC. And then we bought at $1. So that's one leg of our play. And then we opened the other leg of our play, which was the short side of the play, right? So we're long PINs right now with 2, 12. But now we want to short the other to create our advanced strategy. So the other leg was 2, 5, and we sold ADC, right? So those are respectively called the legs. And you can always open those separately, right? You can also open them at the same time. And there's different pros and cons to doing it each way. For advanced strategies, I usually prefer to just open it all at the same time. But if you are confident about a certain movement in the stock, like say, for example, you know that the stock is moving up right now. So then maybe you'll just open up the call side or the long side of your play. And then once it reaches the peak and you're like, okay, I think this is the highest it's going to go, then you can leg in and you can sell the other side. Because that would be that would give you basically more premium value to take advantage of on the short side. So this is a way that you can, you know, maneuver around strategies, different strategies for options in order to be more profitable. But usually for advanced strategies, I just like to open it all at the same time. And spread, a spread is a multiple leg option play, and they usually help you limit profits. It doesn't help you limit profits. I mean, it just limits your profits, but it helps you in that it reduces the risk of the play because it makes it cheaper. Taking a look at the quick chat real quick right now. What counts as a big account? Okay, napalm. So a big account, you know, I think somebody said below as well, but they said 100k plus. You know, I think if you have, you know, 50k plus, you can already start writing some options, right? It just depends on the ticker you're looking to play. If you're talking about something like Amazon, frankly, it is pretty much, you know, you probably have like a million dollar plus account because 100 shares of Amazon is going to cost more than $300,000 right now. Probably like 300, I forgot what the price was, but at least around $350,000, right? But you could play something, you know, like a mid cap or something or even Apple, which would be Apple's at about 120, right? So that would be a lot cheaper to sell options or write options for that. But yeah, about 50k is where I would say you can start doing some of that. You know, you just use a portion of your account to do that and then a portion of your account to do other kinds of plays. And about the option chain and provide visuals, later I'll be going through a calculator and basically going through some stuff as well on there. And you know, if any of you guys are like good at sprucing up PowerPoints and stuff, show me a DM because I could use some help with making these look better. I didn't add a lot of visuals in it. I just kind of went through it. So now we're going for who are the Greeks? You know, why are the option Greeks? So you might have heard of these before, but basically the variables that determine the value an option contract has. So when you see an options contract in your broker, they should be able to tell you what each of these variables are delta, gamma, Vega data and row. Okay, so I know on Robin Hood, they don't show it to you on mobile, unless you are already in the contract. That doesn't really help too much. And I think most people are probably going to be on Robin Hood. However, if you are on the desktop application for Robin Hood, and then you go to, you know, buy options or select options, and then you can scroll through the option strikes on that. You can actually see or open up the tab for it for each strike and it will show you all the variables, what the high and the low of the day is, etc. Right. So, you know, I recommend doing that if you if you really want to take options seriously because it is important to know these Greeks as a determine our profit and loss, right. And understanding these Greeks will help us better to know certain types of advanced option strategies. I'll explain a little bit more about that later as we go through actual real examples so you can understand that a little bit better. But for now, let's just go through the definitions of each of these. Oh, side note before I do that, you can also use an options profit here. One of the free ones out there is called option profit calculator calm and might have an SNN. I don't remember baby Google that, you know, you can find that and you can look at basically all the details of the options contract on there as well. There's also another calculator I really like to use and it's called options strats. Okay, and that's the one I'll be using later today when I show you guys some examples of what I do. So, now going back to the slide here. Delta, so Delta is basically the change in our stock price right and when the stock price moves delta is what affects how much the options contract increases by. The closer the option price or sorry the closer the stock price moves to our option strike. The closer Delta will be to one. And that is basically where we get our essential intrinsic value from right because once you pass the strike price delta and will be so close to one that basically your options price and your stock price will be moving more closely together right. So, that's delta. And I guess quick example of that is if for example the delta of options contract is 30 cents so be 0.30. That means that for every single dollar that the underlying asset moves. We are moving our options price by 30 cents. So if if you're in calls for example then delta will be positive so it will be 0.30 in this example. And then if you know the price increases by $1 for the stock, then our options contract value will increase by 30 cents. If the options. Sorry if the stock price decreases by $1 then it's basically the same thing right it would just go down 30 cents right because it will be negative one times is 0.30. So, basic math there and for puts delta will be negative right so that's because we're shorting gamma. Gamma measures the change in delta when a stock price moves. So delta is not static. As I mentioned earlier the closer you are to the strike the closer you will be to a one to one ratio for delta and stock price right. So, you know, usually we don't really think too much about gamma when picking up options but it is important to know about because your delta does change as the options price draws closer or further away from your strike price. It matters a lot more when you start doing more advanced option strategies. Vega Vega is the measure of a change in option price when volatility moves. So, when a stock is really volatile. So that means that the IV is going to be really high right so IV is implied volatility and you'll see that listed in your broker as well. And Robin Hood if you scroll down is along with the other Greeks. I'll show you IV in the percentage. But basically when IV moves up. Usually your contract should be gaining more value. And that's because some options are more profitable or have a chance to be more profitable when volatility increases right. So if you've been, you know, in the markets the past month you've probably heard about what happened with GME. You know, GameStop has been going up on a rip right and the stock price is extremely volatile. So right now the options price for all those contracts either calls or puts they're extremely high. And it doesn't really reflect the intrinsic value of where the stock is at right now. And but that's because the volatility is so high that basically the insurance company or aka the options writers are increasing the value of the premiums because there's a more something big to happen. And so they need to they need you to pay more premium to get this insurance because now they're like oh for sure there's going to be an accident happening right. And we don't want to, you know, pay out big bucks unless we're pulling in equally big bucks. That's basically how I think of it. That's not actually how it works, but it's essentially like that. Data is a decay in price option for your options contract every day as experts expiration gets near. So if your data is say $1.40 or 140, that means every single day your options contract is going to be dropping $1.40. As you get closer to expiration data actually increases because the chance of your underlying asset to move big is getting smaller and smaller. So that time value is basically exponential curve right it decays a lot faster once you get closer to expiration. And then row is just actually I think this definition is this definition is actually off. I didn't actually check that first. But row is actually related to interest rates. I think someone in the chat mentioned that earlier. But yeah, row is related to interest rates for our purposes. We're just going to ignore it because it almost never affects the options value. There's such a small factor in row that it basically won't affect your value. I'm going to catch up with the chat here. One sec and a blue low or you or is it not blue low. Yeah, row is the least important one. You're correct. Sounds good. Flutch. How can you tell if an option is overpriced? So basically when Ivy is really high, usually that's when you kind of know options are overpriced because they're expecting an outsized move. And of course you can still pay out. But chances are against you. For the Greeks with a ticker, I will be going over examples more towards the end basically to sum up basically everything we talked about today. So, you know, give me a moment to get there and we'll take a look at some actual examples. Okay, so some novice option strategies, we have long calls, long puts, we have covered calls and protective puts. So most people are probably going to be most familiar with is, you know, just the basic calls and the puts. So here I have a table just listing the sentiment when you take the play, the max or the profit as well as the loss potential. So, you know, long calls, pretty straightforward here. If you're in calls, you're bullish on the stock, you expect it to go up. In this case, you have unlimited profit because, you know, the sky is a limit basically, right? Your asset price can keep increasing up. Unlikely. But technically, yes, your profit is unlimited. As your asset price continues to move up, you'll make more on your calls. And you have limited loss with a long call because the only thing you can lose is what you put into the play. But of course, be prepared for it to go completely to zero. And that's why options are risky because they can go to zero. Long puts. For this one, you're bearish, so you expect the stock to go down. You have limited profit because the absolute bottom for a stock is zero dollars. It can't go below that. And it's a difference between, you know, your strike price and where the stock currently is. So you have limited profit, basically whatever downside there is up to zero dollars. And then you have limited loss again, same thing with the long calls. The only thing you split the long put is the premium paid covered calls. This is a neutral bullish strategy and cover calls are usually used more for income generation. They move a lot slower. They earn you a lot less. But I know that Daniel S, one of our top traders in X trades, he uses cover calls very well. He, I think on average, he's up like, you know, eight to 15. And, you know, you may be like, oh, eight to 15%. That's not a lot. I can get 100% on my naked calls, right? But the thing is with a cover call, it's a lot safer. You have a much higher probability play. You know, you have limited loss because you can't, unless your stock goes like, if your company goes bankrupt and your stock goes to zero, you're probably not going to lose that much value. With cover calls, the way you play them is that you have 100 shares, right? So you have to have 100 shares and this is basically your option writing, right? You're writing calls out. You're selling calls. So you have 100 shares of, say, Amazon or something and then you sell, say, 4,000 C for this week. So every single week, as long as Amazon doesn't go over $4,000, you're basically collecting that premium for free because you're already holding the shares long. It doesn't cost you anything to hold because you're bullish on Amazon. You want to hold Amazon. So cover calls is basically when you like a stock, you want to invest in a stock, you're bullish on it, but you don't think that it's going to go above a certain price. And then you just basically collect the premium every single week from this strike sold. On the other hand, with cover calls, you have a limited profit because if the asset goes up to your strike or past the strike, you're no longer going to gain any additional value. With cover calls, you won't lose anything if the stock goes up because your stock will gain value up to the strike price, right? And you also gain whatever premium you sold the strike at. It's just that when it goes over your strike, then you have lost that potential because now you have to sell shares at the strike you sold because whoever bought those contracts at 4,000 C, for example, they're going to exercise their call to buy Amazon at $4,000, 100 shares at $4,000 if it's in the money. Because if Amazon is saying $4,100, they're going to be like, oh, I'm going to buy, you know, exercise this call $4,000 or $4,000 times 100, right? And I'm going to profit that extra $100 immediately, $100 times 100, right? So that's 10K, instant 10K profit. So if it's in the money, they will exercise it and you will lose your shares. So that's the only, that's the major risk of cover calls is that you can lose your shares, but there is no big drawdown. Because, you know, usually you'll sell far out of the money call, and you're just going to be collecting a little bit of premium while the stock price slowly rises up. Okay. So in the trans world, what's generally a low versus high IV? Great question. Because, you know, sometimes contracts can have 20% IV, right? And that's normal for it, but you have other stocks that are regularly over 100% IV. You know, I think Amazon this past week was probably like 150% or something like that. So there's no, the best reference to find out what a low or high IV is. It's to compare what IV for that stock normally is, because we want to know what the normal is for that stock so we can have a relative gauge of how high or low the IV is relative to how it normally trades. Because there is a reason why stocks, some stocks have higher IV than others on an average basis. And that's because certain stocks move a lot faster than other stocks. Like I remember I used to, when I was a kid, I had, I had Disney stock. And Disney, like in the five years or so that I owned it in a joint account, it barely moved up and moved up like 5% or something, I think. So it basically didn't move. So you would expect a stock like that to normally have low IV. Of course, Disney is different now, because now it's kind of a tech stock and tech stocks usually have higher IV. And that's why you see Disney's popping up so much in trades these days, because it actually moves a lot faster now. Because it has Disney Plus making it a sort of a tech stock. And the best way to determine again, high IV or low IV is to compare with average. And the way you can do that is by finding out what IVR is, which is IV rank. I'll go over that with a website in a bit, just to show you how you guys can figure out if it's high IV or low IV. For GME, 3-day, let's see, you say 1,000 shares of GME, should he be selling January 22, 500 C? So the thing about GME is that, as Pathway said, you would do that if you're bullish about GME. Because you have to be at least neutral or bullish on it to do that. And the reason is because GME can still drop, right? And we know for a fact that GME, where it is at, is not exactly fair value. Of course, it was suppressed for a long time, and that wasn't fair value either. But we know that it should be somewhere in between. And right now, it's still on the high side. That's just my opinion. You know, take it for what it's worth, right? But I think that GME is overpriced right now. So it probably calls on that kind of position. You're going to be losing money if, because in reality, I think that the price should be lower than what it is. So if you had a thousand shares, say $70, and it drops to say $40, then you're losing $30 per share, right? And your 500 C contracts might not hit or whatever, but I bet the premium is high enough to cover that kind of a drop. But basically, you can plug all these things in into a calculator to see where the break-even points are to determine whether you should take a play or not. Always use these calculators with an actual chart to determine what your predicted range of stock is so that you can basically cover the max drawdown as well as the max upside. That's how I like to use these calculators. Okay. Protective puts. So that's the next strategy here. So this is when you're bullish on a stock, so you still want to hold shares of a stock. But you aren't sure and you think that maybe the stock is going to drop down. The cover calls is different because you are long on a stock, but you're still kind of bullish on it, but think that it might just be stagnant for a while or not move up as much as you want to. Puts are basically when you expect to drop down. So this is what you do when you want to hedge your portfolio. If you have a big account with a lot of shares and you want to make sure that you're not losing too much in case of a market correction or a market crash, that's when you would take protective puts. And so with a protective put, basically what you're doing is you're buying a put at a certain strike because it gives you the right to sell your shares at a certain price. So basically, you know, you still have unlimited profit here similar to the cover calls because as your asset value increases, you will still gain value because you're holding shares. But the downside to this is that you basically paid an insurance premium because you're like, oh, maybe the stock is going to drop. So I'm going to get these protective puts here so that I can make sure I can sell at this certain strike price. And if it drops below, I can exercise that put so I can sell, sell my strut or sell my shares and be protected from additional downside. Right. So that's the point of a protective put, but you of course, if the stock keeps going up, basically you just lost your premium. Right. And but it's just insurance. You basically only you're paying insurance to protect yourself from it from a market correction. That's when you would use protective puts. If you own 100 shares with one broker, is there any problem with selling an option with a different one? Or is that essentially a naked option? Yeah, I mean, it's basically you're basically naked shorting an option at that point because your shares are on different broker. I mean, realistically speaking, it was still act as say a covered call in that scenario. But because you don't have the shares on that particular broker as you sold the contract on, you don't have it's not covered on that particular broker. So that broker would probably require you to have a lateral in order to make sure that, you know, if things go belly up on you on that options contract that you sold that you have the money to pay them back. So, you know, you would do it on the same account. Otherwise, you would need a lot of collateral in order to do those kinds of plays if you have it on separate counts. Okay. Yeah, advanced option strategies. So when we're talking about advanced option strategies, the previous one were called novice option strategies. And the reason why is because they all have limited loss. Okay. All of them you can only lose when you put it. And they only have one leg to the trade. What makes an option strategy advanced. You know, by our basically our textbook definitions is when we have more than one leg to the trade. And if you remember earlier, that just basically means we have multiple parts, multiple contracts in the same play. So the benefits of using advanced option strategies is that you can have very versatile place and make every situation a profitable opportunity. I'm not going to go over all of them today. There's dozens probably even, you know, hundreds of different strategies out there for advanced option strategies. But some of the more well known ones. And these are more like intermediate strategies are going to be iron condors calendar spreads, diagonal spreads, butterflies, strangles and straddles. Okay, those are probably going to be your more intermediate level types of advanced strategies. And for today's purpose, I'm only going to be going through calendar spreads. You know, when we have our next course, as we move along, I'll go over the other strategies as well. And when we use them do these advanced strats require a margin account. So that depends. But yeah, typically you would want to have a margin account in order to do advanced option strategies because it gives you more flexibility. Because I don't think you can sell or option right without using a margin account someone correct me if I'm wrong. But yeah, I trade these advanced option strategies on a margin account. And for cash account, which is the only cash account I have actually is on Webull. I only do, you know, calls or puts on that. But yeah, I use margin. When you are day trading and trying to scalp, how do you quickly check all the Greeks and calculate because most of the times the price moves very quick. So, so that's the thing for day trading and scalping. Usually you wouldn't be using an advanced option strategy, because if you're day trading and scalping you're just trying to immediately capture on a quick volatile movement. Right. And for quick volatile movement, the things that are going to gain the most are just going to be your calls and your puts, your basic calls and puts. So, for example, if you're day trading and scalping calls and puts are going to be your bread and butter. You can still choose to do a more advanced strategy. For example, you can do a bull or a bear spread. So basically you, you, it's what we call a vertical spread. You have same expiration date, and you have two different strikes. So you buy one and you sell the other and basically limits your risk, because you have you pay less for that play. And then, you know, for advanced option strategies, it usually is something I plan out beforehand. When I do advanced option strategies, because they usually are going to have a more a longer time frame kind of play. So usually I don't worry about the Greeks too much if I'm just playing momentum momentum play, because as long as the stock moves up, we're good or as long as it moves down, we're good. But if you want to quickly check those things out, you can always plug it into a options profit calculator or options strat calm. Both of those you can use to calculate on your profit or see the Greeks. Sorry. Okay. Oh, seven. Are you are you on the extrace account? Nice of you to join us today. All right, so now we're going to get to the advanced option strategy I wanted to talk about today is calendar calls. And if you remember earlier, we talked about covered calls, right? So you have to own 100 shares to do a covered call in order to sell a certain option strike, right? A calendar call spread is basically a poor man's covered call, because we don't actually have to own 100 shares of the stock. Because we have a long contract that basically acts as our long position and then we sell a shorter dated options contract, which is basically what you do for a covered call. So you actually use them in very similar situation by calendar call spread is a lot cheaper to play. Of course, it also has more risk than a covered call. But you know with greater risks, we also get greater rewards. Okay. So this is one of my favorite option strategies. And normally, okay, normally when do you use a calendar call spread? Normally you use it when you are neutral bullish for a stock. So again, same as covered calls. Going over to Greeks. So, don't remember what these mean. Let's take a look at that previous slide. I'll have this PowerPoint uploaded somewhere later today. But basically with the Greeks, you have your delta positive on a covered, sorry not covered call, a calendar call spread, and it is slightly positive up to the strike, right? Then gamma is negative. So as a, as the underlying asset or stock price increases, your delta value actually decreases as well, because you are short on the closer contract and long on the further dated contract. The shorter dated contract has a little bit more volatility or reacts more strongly to changes in price. And that's why we're gamma negative here. You're originally delta positive, because your further dated contract should have a higher delta than your shorter dated contract. But then once we pass the strike price or get really close to strike price, this flips around and we become delta negative. And that's again, because we're gamma negative. So when, say for example, for Amazon calendar spread I played earlier this week, 3400 C anything below 3400, I will be delta positive. Any gain up to 3400 strike is good for me. Anything above 3400 strike is bad for me, because, and if you if you think about this, just from the perspective of buying and selling, we sold the 3400 C for two slash five. If it's above 3400, we have to buy that contract back, right. And now it's going to be worth more because it's in the money. If it's below 3400 strike, that means that that contract we sold is going to be worthless on on, you know, Friday, which was yesterday. And then we just collected the full premium. If it's in the money, we actually have to pay money back. So that's why, you know, understanding the Greeks is important here, but you can also just think about it logically, right. So we want it to close exactly at 3400. Because that's the point of inflection where we go delta negative from delta positive. And again, delta is is that measure for the gain in your options pricing based on the underlying asset Vega. What is Vega? Again, just a refresher for in case you guys don't remember already, but Vega is for volatility. The higher the volatility, the more options contracts are going to be worth. And with a covered, sorry, not covered call, keep reading covered call for a calendar call spread. You are still Vega positive, even though you're short on the shorter dated contract, because a Vega on the short dated contract is going to be less than Vega on the further dated contract. So we benefit when volatility increases actually normally. Okay. Data. So data is at time value again, right. Every single day, data is eating away at those calls. So we are actually positive data on a calendar call spread because data value is higher on a shorter dated contract, because there's as we get closer to expiration date. There's less chance for the underlying asset to move. Therefore, data on a shorter dated contract is always going to be higher than a further dated contract. And this is what we mean by collecting premium, right. So if you have two contracts on a covered calendar, sorry, on a covered call or a calendar call spread actually is the same thing. We get more value as time moves on as we get closer to expiration of the front dated option. So how you profit from it. So I kind of mentioned this earlier, but basically you achieve max profit when the asset is exactly at the strike price that you picked when the option expires, the front dated option. And basically you're collecting premium on the front dated option while the back dated option retains value. Yeah, I will share one example of a calendar call spread in a bit calendar call spread more on it. Okay, so how do you actually open a calendar call spread. Basically you're selling to open the front dated contract so we're short on the closer contract and we are long on the further dated contract or the back dated contract. So for example, we can sell to open to slash 19 ADC on pins, right. And then we can buy to open March 19 or 319 ADC on pins, and then you close it by doing the reverse which means that I'm buying back to 19 pins at ADC and then I'm selling the 319 ADC on pins. So when do you use calendar call spreads. Again, you're supposed to use it when you are neutral bullish right. So according to Google right. This is why I found out when I first started looking into these advanced option strategies. You're supposed to use calendar spreads when you expect low volatility or sorry, maybe not when you expect low volatility but when there is low volatility. And this is true for your normal everyday activity. The reason for this is because if you remember we are Vega positive, our back dated contract will rise more sharply with increases in volatility. So that means that if you know that we already have low volatility chances are volatility will increase in the future and that increases our profit margin or our options play. And then the other side of that is for a regular calendar spread or even covered calls. What we're hoping for is that basically not much is changing with the underlying stock right. We wanted to stay at a relatively low price close to our strike because we are data positive. We are long data. We are collecting money. As that front dated option loses a value faster than the back dated option. And so if we have low volatility and nothing's happening to the stock. That's great for us, because we don't have to worry about, you know, losing profits on the stock going too high or too low. We just basically collect data. And this is, you know, an income strategy right. And that's why, you know, you might see some people who are like to say like data gang or whatever right because they're playing a lower risk kind of play. In order to create or generate income consistently over time. Now here's the caveat. Why did this week was opposite of this right. We had very high volatility. So how I use calendar call spreads. For those of you in the x-rays trading discord. You know that this week we use calendar call spreads to profit during earnings reports. So er or earnings report, they're typically highly volatile events. And this is reflected in the implied volatility of the option. Right. So you can look up these numbers you can look up these IV values of the stock. And remember again, the way to know that if it's high relative to normal or not is by using IVR, which is IV rank. Now, again, Google said to use in low volatility. So why was this strategy effective, even though ER is a Hollywood to the highly volatile event. Sorry. This is because we are capturing the IV skew. So basically there's a difference in IV between their front data contract and the back data contract. This will always happen when we already know that there is a big event coming up. So for example, if it was, you know, Amazon, maybe they they have Amazon Prime day or something like that. Usually you might or you expect like numbers to come out for Amazon. Right. Then maybe IV is going to be really, really high for that week because people are expecting like, oh, they're going to report blowout numbers or they're going to say and announce a new project like Apple day or something for Apple. They'll have a product launch right and it's the stock is going to skyrocket because the product is so good. The expectations IV is very, very highly elevated on the contracts nearest to those kinds of events and ER is one of those right because we know the event is coming. We know that, you know, this underlying asset may move a lot because of ER. It can drop 20% can go up 20%. Who knows, ER can do anything. People are uncertain about the markets during ER. And that's why we have IV skew the front data option is going to have very high IV because of anticipation of the event. The back data option or further data option is going to have lower IV because it's further away from that event. So there's more time, more time for that contract to regain its normal value whether the stock goes up or down. And that's why with ER we have that big gap in IV spread. So because of that, this strategy was actually effective in high volatility because there's a skew because of expectations of people and all we're doing is we're trying to profit on that IV crush after ER. This is why you see a lot of people often ask, you know, how come Apple or whatever stock at a blowout quarter to have an amazing ER and the stock price is also rising. Okay. And I have calls, but how come I lost 50% of the value of my calls. This is because of IV crush. Basically, we're trying to capture on that IV crush of people who are actually buying those contracts. And we have the back data call to protect us. The cons here is that there's a different Vega between front data and back data, right? So your back data benefits more from Vega or implied volatility increase. So we're betting on an IV crush here. In the case that the back data and the front data for some reason drop both drop dramatically in IV, which is unusual. And we're actually going to lose value because we're long Vega, but I don't typically expect it to happen because with ER usually your skew is just really, really high and we can profit off of that IV gap difference. So some examples, you know, if you were in the discord chat, you probably saw these already. I'm going to catch up with chat real quick here one second. Okay, so just for fun. Is it better to get calendar spread on tickers, which have events on Thursday after hours for Friday early hours to get max IV squeeze value. And the answer to that is actually yes. Oh, I see double seven already answered that. But basically because the closer you are to the expiration day of the front data contract, the faster you will the faster that front data contract will lose value right because it's an exponential decay from faith data as well as IV crush. So there's an event on say Thursday evening, which is, for example, the pins play that we had earlier this week and I have it here right. You know, we can get a lot more out of out of it. If it goes our way. So the two plays I took this week for a calendar spread ER places Amazon 3400 C. I sold to open the two five 3400 strike and I bought to open the two slash 123400 strike. It cost me $1500 per calendar spread and my gains were between 70 to 110%. Those were where I exited the play. I checked and followed up on it on Friday because I sold it on the same on the day right after the ER earlier this week. I checked it again on Friday just to see how they were doing what would have happened if I had kept it or whatever. And I saw that they actually reduced to like about 40 or 50% value. And that's because the price moved away from my strike. So that's why we have to be aware of both time factor and our strike, the possibility or remain near a strike by expiration. So, so again going back to our pins play. This was actually a little bit easier to do because the event was on Thursday evening. So we only have one day to play out to expiration so it's easier to see if that price will stay within that range right. So it cost me 97 cents to take that play 80 strike I sold to open to five and I bought to open to 12. And, you know, it opened up at 40% up. And then by the end of the day it was up about 110%. So, you know, it gained a lot more value throughout the day because the front dated option was expiring quickly. So there was a lot of time value that we could capture on that. So now I'm just going to visit an options calculator and we can play around with it and see some examples of stuff we can look at. So if anyone has any plays or tickers they want to look at, just put it in the chat and we can take a look and see if we can find any plays for it. Okay, so the website I'm using is option strat.com. You can also use option profit calculator.com. I prefer option strat, but you can take your pick. I like this website a lot because basically they have a strategy. So for those of you who, you know, aren't familiar with options as much and aren't really sure when to use what type of strategy. This could be a good option for you just to play around with to see what the perspective stuff is. And I'm just going to go in real quick to show you guys. So for example, here's a ticker spy, right? Let's just pick something else. I guess we can use spy. It doesn't matter. Here you can pick, you know, your sentiment. Are you bullish, bearish or neutral? So depending on which one you pick, they're going to change the strategy and they simulate the traits and they tell you what your percent chance of profit is, how much you risk, what your profit is and percent return that is. And they tell you what to buy or sell. So bull cost spread, bull put spread, a strap. And I think this is pretty useful tool if you're not familiar with option strategies already and just need, you know, like I wanted to play this this way. I want to see what my risk and reward is and how much I lose. What's the percent chance that I will hit it based on, you know, standard deviation movements of the stock. Remember to always have your own bias though, because if you know something like you, you know, you try it out, you know, it's going to rise. We think it's going to fall in the certain range you use that kind of bias, right? So that's how we win with options by using our knowledge and our bias in order to find profitable traits. Here you can select the strike or not the strike, the expiration date for the play. So, you know, you can, if you want to play a shorter data contract or a lot longer data contract, you put that here. Again, shorter data contracts are usually going to return more for the same cost if you expect a big move soon. Longer data contracts are going to have better chance. It's always going to be a risk reward kind of thing. I use to play a lot of weekly. I still do, but when I play weeklies now, it's literally a lot over me. Most of my plays are going to be further dated out, at least monthly contracts, right? So there's going to be like February 19th, March 19th, and I forgot what April was. I think it was April 16th. I played those contracts because it's less risk for me, more likely to be profitable. It gives me more time for my plays to play out. It says what the target price here, and that's just based on your sentiment. So I picked neutral goes to 387, which is the same price that it's currently at or spy, bullish 392 and very bullish 397, right? So you can actually enter in your own price here as well. And then that's basically what your expectation you are, and it calculates these option strategies based on that target price you set up here. Okay, taking a quick look at the chat here to see what tickers you guys are suggesting. Give me a moment, please. Walmart has ER on February 18th. Interesting. How do you determine the ratio of sell to open and buy to open when playing spreads? Great question. So normally when doing spreads, I'm going to be doing a one to one ratio usually. But sometimes if you have a certain bias, you may change that ratio, say two to three or something. Or you want more downside protection, then maybe you get more of the short side. But usually that's where you would take those kinds of plays and change the ratio, sell the open and buy to open. Normally, I'm usually just taking them in a one to one ratio. Got a lot of tickers here. Currently in a bull call spread, this crazy C203 for TTD 716-900-960 spread. You got it at $17 per spread. You're bullish on TTD, especially going to ER, but not sure what my best exit strategy is. Actually, let's take a look at that. So here they have the selection for all of the different strategies. And if you hover over them, they actually tell you, is this bullish? What's the profit look like? What's the limit loss? And they show you the graph of the profit and loss based on the strike price. And once you get in there, you can mess around with the graph and play around with the numbers to see what the actual profits and loss look like. But yeah, and they have a slight description of when you would take the calls or take that play. Let's take a look at TTD first though here. So you are in a bull call spread. So let's pick that. And we are in TTD, trade desk, and you are in 716-900-960. So that's July 16th, 700. So there's a slider here. And if you click on the flag for the options contract, it will pop up this tool box or toolkit. I don't know what these are called. Actually, I forgot what they're called, but basically it pops up this box here with all the details of the options. You can see the bid and ask. Do note that option strut is delayed by 15 minutes. So it's not going to be accurate to the current time. But it works for us if we're doing research after hours, which is usually when I'm doing my research for advanced strategies. So then we see all the Greeks here, delta, theta, gamma, vega, and row. Again, usually I ignore row. Low volume. So there's actually not a lot of interest in this strike. And IV says 64% here. Then we got our bottom, which is the one we're selling. So we're selling 760 in this example, right? So here it says negative one. That's how you know that cell always check this when you're doing your profit calculations just to make sure you didn't actually accidentally flip your play around. You can also switch this to negative as well, right? So just showing you guys how that works. And you can also change to put if you want by clicking this button. And if you want to add or make your strategy more complex, you can add options here by cell calls, by our cell puts. Usually when you do these kinds of things, you're just trying to reduce or minimize risk, but that will also reduce your profits. And then here you can flip it. So basically it goes to show you what that does here, right? And then this is middle or middle, or bid ask. And so usually I pick bid ask because I want to assume that I'm getting the worst possible price. And even if I assume I'm getting the worst possible price, if this chart still looks good, then that means that, you know, it's probably a good play. But you know, usually it's more reasonable to be something in between, but just know that for options, sometimes the spread is really, really wide. And at those times, you're not going to get an ideal price. But look how big of a difference it makes if you just hit the ask. You're paying $4,100 for this play. But if it's the middle, it's about $3,440, right? So that makes a big difference. There's a chance of profit here as well. And it's just based on the variables of the options contracts. How profitable it is, you know, actually depends on how it moves. And then it shows you here if you click on the lower right button, it shows you what your Greeks are total for the play. So you see here that Delta is 0.032, right? If we just look at the 700C, we see that Delta is 0.75. Okay. And we look at 760C, we see that Delta is negative 0.6. And the reason it's negative is because we're short, right? We're minus one. That's why it's negative. So the difference here is 0.032. That means for every single dollar TTD moves up, we're gaining 3 cents on this spread play. If you were full on bullish and you were not afraid of downside risk, then you would prefer to just get a naked call because you benefit more from that Delta. But usually, you know, we always, there's always downside to be expected. And if it takes a long time for a play to hit our price targets, then a spread is a good option because it reduces our data risk, right? Because data is only 2 cents. That means every single day I'm only losing 2 cents on my play. If I just had this 700C, I'd be losing 36 cents a day if TTD isn't moving. So that's a big difference, right? I'm not going to go over the rest of these gamma, vegan, row. We kind of already talked about it. A lot of times I think I'm just beating a dead horse at this time. But, you know, all these variables are here or these Greeks are here for you to look at to see how your play is going to play out. Okay. I'm going to catch up on chat again. Just give me one second here. When I sell a covered call and the stock price immediately increases and my broker shows I have a negative return. Does that mean I'm losing the premium? So when you do a covered call and you sell the strike, you've already collected that premium, right? So it's not debit play. It's a credit play because you already collected that money for selling that strike. If the stock continues to increase, that means that your strike is probably increasing in value. And when you, you know, if it goes into money, that means you have to buy it back or you're selling your 100 shares. So yes, you are losing a little bit on that play. But how should I say this? If you're considering the whole play of the covered call, you're probably not losing money because if the stock is going up, that means your equity is also increasing. And the point is that as long as it doesn't move above your strike for the calls that you sold by expiration, you're just going to collect that premium. Even if, you know, the stock rises, say $10, but it's just right under that strike, maybe that premium for that contract you sold will increase and you're losing money currently on that covered call play. But as long as it expires worthless, then you're fine. But even if it goes past that, you won't necessarily lose on the play and that's because you're covered by your shares. I'm not sure if I answer your question there. Why, but you know, let me know if I didn't clarify that. I see a lot of you folks are helping out in the chat here. I see a lot of people answering your question already. How important our volume and open interest super important. The more high those are the more basically essentially interest in those options and therefore your spread is probably going to be smaller. When there's not much interest in that option, then the spread is going to get a lot wider and it's going to be hard to get fills. And then you're going to have to hit the bin asked to quickly get in or out if you if you really want to get in or out. So volume and open interest is really important. Oh, the play was 960. Sorry. Same principles applied though. Let me change that real quick here. Yep. If you want a beginner resource for option trading that link by three day is pretty good. Investopedia has a lot of good information when I first started trading. Investopedia was my resource for everything related to trading. You know, they give you a pretty good overview of everything and they pretty much have all topics covered there. It's a really useful resource to check that out. But, you know, otherwise I plan on going through options as a whole every two weeks until we basically finish or dry up my knowledge of options. All right, going back to this TTD play here. We have July 16, 960 spread. So, you know, really, when would it be best to get out? Take profits. Essentially, you know, the higher if you expect the value to continue to increase as in the stock price to continue to move up before your expiration date. That's where you would take profit right when you finally think you've hit the peak. So the higher it is the more money you make right and there's a max profit at some point three thousand nine hundred five and that's capped because of your spread with right. So with a nine hundred sixty to nine hundred see this is a bull call spread. Our max profit or sorry not max profit the max value of the contract. This contract play is going to be $60 or $6000. So that's what you see here. Your net debit was two thousand ninety five because that's how much you paid for this play. And I know you didn't pay this much, but that's based on current price value right. So two thousand ninety five. So then you have six thousand minus two thousand ninety five the max profit you can gain is the remaining value up to six thousand. So that's three thousand nine hundred five. Your break even is nine hundred twenty ninety five at expiration. So if you expect a stock to continue to move up then you would just hold it right until you get close to max profit. Normally what I would do is I look at percent of entry cost. And I see what you know what it looks like. And you know I never expect to hit max profit hitting max profit is highly unlikely. In fact, if you wait until max profit chances are the trade is going to turn against you and you will lose value. So usually I would just pick something reasonable like you know at most I would expect like maybe a hundred percent at most right. If I see anything higher than that then I'm lucky and I'm selling. And with spreads usually with advanced option strategies you gain more value as you get closer to expiration date because the volatility of the difference between these starts decreasing and it's more likely to remain in this range. And that's why you hit max profit closer to the expiration date. So even though we're at you know one thousand dollars on February 8th for example. And this is above our nine hundred nine sixty C. So in reality we should be having six thousand it should be worth six thousand dollars we should already be at max profit based on intrinsic value of the play right. But it doesn't work like that because there's still a chance that before expiration these contracts are going to lose value and maybe TV goes down. And that's why as you move across the board you see. So really want to exit this play is it's just going to be up to you based on your own chart analysis. Once you think you've reached a peak in the price and it may start drawing down then that's when you would exit the play. And then if you think it's going to remain neutral but it's you know above above nine sixty then you can just hold on to it for a little bit longer and try to collect a little bit more premium value on it. But just remember that there's a lot of opportunity cost here by holding on to this because you could be entering into a different play instead of just waiting for this time value increase right. Yeah. But usually if there's a large increase in the short term. And we're already like deep green say like it goes up to. One thousand one hundred fifty or something and we're up like seventy percent which is right in between here. I would just take the profits right away because there's I mean like you can wait. But you're waiting going to be waiting a long time in order to just collect another maybe like thirty percent or something. And by the time it expires you don't know if it's going to be in the money or not right. So it's just a matter of balancing risk and reward. You can also use this graph here to see how it works out. So there's a slider here days until expiration. Right. So this is the profit and loss based on expectation that is Friday July 16 which is when your spread expires. So you just use this dragger. You can change it to how many days until expiration and you see you can visually see how your profit and loss changes. Right. Let me go back profit and loss and numbers. So yeah again you can just play with this around. See see when you would like to take profits again with trading. I think the most important thing is to have a target or goal in mind. They're not just going to hold something and just be like oh I'm just going to hold it until you know I make max money or something like that. You should always set a goal for yourself and be like you know if we hit fifty percent I'm going to take half my position off. If I hit one hundred percent I'm going to take half my position off or something like that. And then you'll have your position covered your initial invested amount is returned already and you can just let it ride. So those are the things I would do if you have multiple contracts in the play always set target prices. Of course do it based on your expectations or price. So like you know if my expected price is only a thousand dollars and you know just take a profit there. I don't think I probably answer your question that well honestly speaking but you know I hope that helps a little bit. What adjustments could I make to that TD bull call spread if I'm bullish on the ticker. I mean if you're really bullish on the ticker you could always just buy back this ninety nine sixty C right. And just let this run. That's if you're really bullish. I mean otherwise you could just you can always add another call or something but basically at that point it's a different kind of play. A bull call spread is used when you are bullish on the stock but want to protect yourself from too much downside risk. I played pins calendar this week. Two questions please. You mentioned pick the one with high IV was conferred high when selecting ticker pins we picked ADC and hope it did not fluctuate too much off ADC. Both Amazon and Google stock can jump a lot higher. How to pick the right strike. So I picked the strike I did because I was bullish on pins. I expected pins to go up. Okay. Part about this calculator is I can't go back. I can't. I can't simulate past trades anymore so I can't show you what that looked like. So let's just do instead Walmart because I know Walmart has ER right. This one's Walmart's ER actually. All right. Yep. Walmart's ER is February 16, 2021. So the closest strike to that would be the February 19th strike right because that's the week of the ER. So we will look at February 16 and it's going to be a bull call spread. It would be a sorry calendar call spread here. Pull that up. So February 19th. So okay. And here back the option can be you know anything you want. So I'm going to pick a week out. So I'm going to pick a week out. And usually for these kinds of plays, I play more aggressively and I choose that like the closer dated option. But if you want to be more conservative with the play pickings, something further out like 30, 60 days out is. Usually going to be better. So you see here the chance of profit. 57%. If I just pick one week out. Basically pick dated option has more chance to recover any lost value. If something, something weird happens, right? But yeah. I'm just going to look at 19 and 26 for, for the example here. So in order to figure out the strike. What we do. What we do is we take, you know, our chart here. And we kind of project what we expect it to be. For pins, I picked ADC again. Why? Because I was bullish on pins, but not super bullish. It ended the day on Thursday. I think it was around 77 or 78. I don't remember the exact price. And I expected to go up by expected it to be within a certain range. And so I picked ADC. Our spread, right? Our spread allowed me to cover a very wide range. So it was green exploration, which was yesterday. I don't know if anybody has a picture of that. Calculator image that they want to post up or upload somewhere. But basically we had a very wide range from. Let's just pull up the chart here. I think it makes it easier to explain. Pins, right? This is super zoomed in here. Okay. So pins. We had ER, right? And a spite all the way up to $88 and after hours. And they came back down. So usually I always earnings reactions is pretty volatile. I was bullish on pins because so many people were bullish on pins. So I felt pretty confident that it was going to move up. And one of the reasons I picked ADC was actually because of this. So if you look right here at this pre-market, the day before we took the day before ER, right? The top of the pre-market was 79.70. So I felt pretty confident that pins was going to have a bullish ER report. And so it was probably going to go up. But I also saw that it wasn't able to pass pre-market highs. And so I kind of picked my ADC based off of that because I was bullish and not too bullish. And then as for the rest of it, you know, I wish maybe I should just load up my regular chart here. So I can see those lines. One second, please. And I'm really slow at hitting back to you guys on chat. Apologize for that. So we've got pins here. And did I not chart this chart? Maybe it was this one. All right, I can't find which chart I actually charted pins on. But basically I had levels drawn out. And then I saw that the pre-market high was about $80 on the previous day. And then I also charted out the regular patterns, you know, like I put in my trend lines and stuff. Notice the tips below that there. I think there was a better trend line somewhere. That's interesting. But then we had this over here. So that's not valid. But basically we were in a bullish channel. I can't find the chart that actually charted pins on anymore. But basically I had a bullish channel and I had a projected price. Or maybe it was this I was looking at. But I projected that the price would, you know, probably not exceed $100. And if it dropped, I didn't think it would drop below say $76. I felt like there was a high probability it wouldn't go below this peak right here, right? So I had my support and resistance lines and I had a projected price. And then I looked at the previous ER, which was October 28th. And I looked at what the price did. And I was like, oh, it went from $48 to $70. That's a big jump, right? It went up like, I can't do math right now, about $30. No, $22, right? So it's $22. And I think it's maybe like 40% or something. This is just some quick mental math there. And we see the same thing the previous ER. So it went from 25 to about 37. So that's a 12 point increase again. So I'm not really sure what percentage that is, but it's close to 50, 40 to 50%, somewhere like that. So I looked at all the previous ERs and then I looked at this one and I was like, oh, it actually dropped. And it went up to 15 from 22 or something like that, which is again, about a 30% decrease. So considering all of those things, I factored in what, you know, what my expected price range was based on that. And that's why I picked ADC. But I think 007 also brings up a good point. I don't know if he mentioned it in chat or if he's still here. But you can also look at expected move or an underlying asset. And the way you do that is, I'm not really sure how you calculate it, to be honest. But if you're on, like, tasty works or something like that, you can figure out the expected move of the stock based on the options pricing. So options pricing and the interest in it and stuff like that for that month or that average, it will give you an expected move that the stock will move. I think I'm kind of going all over the place here. Let me look at chat for a second. So three day, you said you have a PLTR spread for this week. He closed the 35 call leg when it was at the 31 support and sold the 34 call leg when it hit 34 the next day. What other exits are there for a spread? You don't always sell both legs at the same time. So yeah, that's correct. We don't always exit both legs of the spread at the same time. If you, if you're confident in, you know, predicting a certain movement, then you can always exit out your position of the spread when it's most profitable for you, right? Like, for example, on pins, for example, if I expected that, you know, the bottom was going to be 6450 or something like that. And if I had a bull call spread, for example, so say that I bought to open, I don't know, 60C and I sold to open 80C, then I can buy back the sold to open 80C at 64 if I expected to bounce from there. And then when it rises up again, I can sell my long side call, right? So really you're just doing it based on what you expect of the chart movement. And this is why having legging in and leaking out with option strategies gives you a lot of flexibility in your place. And you can do all this, you know, without using a day trade, because most people just, you know, they only buy or sell one call. But in reality, if you use a spread like this, you can take advantage of both the up and movements in a day without using a day trade, right? I'm a little bit wary of recommending this to people though, because I think that a lot of people might over trade with this kind of trick, and they find themselves in a lot of positions, because they keep, you know, they buy to open, say a call here at 6450. And then when it goes up here to 76, they think it's going to go back down. So they're like, okay, let me sell the strike above it. And now they collected all their money back and they opened another play and they keep doing that. And pretty soon they'll find themselves in like dozens of different contracts on the same ticket, right? So I'm a bit wary by recommending that. But it is out there if you're interested in using spreads like that in order to avoid day trades. I often use this leg-in strategy to protect my profits and to give myself a continued bullish bias on a free play. So like for example, if we bounce over here, and that's when I bought, and then when we reach over here, if I sell a higher strike for the same price I bought my lower strike at, that's basically free money. Because my spread now can still continue to go up in value, but I've already locked in the profits because I took my premium back by selling a higher strike here, where I are the same or more than what I paid for down here. So that's just basically a free running spread. That's why you call them. What are the blue-yellow bars on the right side of this? I assume you're talking about this try over here. I just realized I have Bitcoin on here. Let me get rid of this. Okay, so these yellow and blue bars here are just volume profile. They show where the stock is most strictly traded. So if you look at these volume bars at the bottom here, you have red and green volume bars. Wherever these are, that's basically where you see the most volume. Like when you see these volume spikes, where this price range is, that's where the most volume is. Volume profile basically figures that out for you without you having to manually figure that out. Like, oh yeah, there was a lot of volume here or traded for a long time over here. Maybe there's a volume shelf over here. So usually I use these as potential support and resistance areas, like rough support and resistance areas. The more volume there is there, the stronger it is going to be. If there's not much volume traded in a certain area, it's when it goes past this area in terms of price, chances are it's probably just going to go straight through because there's not really much volume traded there before. This is what we look for when we talk about gap fills. So this is the same principle as a gap fill principle because in reality there's a gap here, right? Or for ER, a gap on this day and that's why there's not a lot of volume traded here. We see that it tried to fill the gap over here already and it bounced back up and that's why we have some volume here now. It's still a relatively volume dry area and will likely blow it through whenever we reach this zone. That's how I use volume profile anyways. I hope that answers your question about that. So buying on February 5th versus February 8th, Friday versus Monday, one buy option for weeklies, keeping in mind data. I mean, I don't think there's a one size fits all answer for that. It really just depends on what you expect for the price to move. I mean, in the end, if you're just taking a weekly play, you're expecting momentum, right? You're expecting high movement. If you want expecting high movement, it'd be better to take a spread, for example, or some other kind of advanced option strategy that mitigates, you know, that data risk. Because if you're not expecting it to move, there's no reason to buy on Friday. So basically it's just if you're expecting it to pop up over the weekend or something, or maybe you know something like, oh, they're probably going to drop news this weekend or something that's bullish for it. Then that's when I would take calls or something. I'll take it Friday at close. It's better to take it at the close of the day because data does affect throughout the day, right? You know, data is how much value your options contract loses every day. But in reality, data is decreasing throughout the whole day. Okay. And you can see that on the graph here. So, for example, on the options strat, you can see it says days until expiration zero here. But if I move this slider over it, see it says 0.8 now, okay? Or one day. So throughout the whole entire day, the options contract value is changing and data is eating away at the contract too. And that's why you get this more sharp outlook once you get closer to expiration date because the extrinsic value is basically gone, right? The premium is gone by the end of the day. And yeah, in regards to the data question about where it kicks in, you know, usually on Friday you'll see a bigger drop in your data. But, you know, over the weekend from Friday closed to Monday open, you will still see some difference, right? And you can just, it's just like regardless of where is the weekend or not. Basically, if I have this ticker here, it's at two versus 1.9, right? It's always moving. It's, but Friday is when you will see the biggest, like we see the biggest drop by close of day. So if you're going to take something over the weekend, take it at the end of Friday is best. But again, you're just trading based on your bias for movement over the weekend. If you don't expect anything to happen over the weekend, then you just wait till Monday. It'll be safer. And that's just because there's a lot of volatility possible to happen over the weekend with, you know, any news, right? You have basically have two days of possible events to happen that can shake up the underlying price, not because of the options price contract itself, but because of, you know, the broader market. So that's what we're looking at there. Which app is this? This is options strat.com. So for a question from just for fun, do you suggest getting a spread for NVIDIA and 5050 call from fund trades selling front month option for same price. So the thing about that is you only do that if you expect the stock to not move that much, or to go up slowly. That's the only time you would do that. Another way to do that would be to just take a regular spread, right? If you want to avoid data from a slow moving option, then you take a spread and just take 550C and sell 560C or 580C. Basically, you base it off of where you expect the max price of that underlying asset to go by the expiration date. So usually I wouldn't do that unless you are actually not bullish, like you're actually neutral on the stock. That's the only time I would use a calendar spread. And of course the other situation you use for calendar spread is for when IV is we have IV skew because we're just trying to capture IV crush. That's the reason why our play is profitable. So profitable even if we, if it moves up or down a lot, and that's because we're just capturing IV crush on that pins calendar spread we had earlier this week. So looking at Walmart for the calendar spread, ER is the week of February 19th. We're picked February 26. I'm most in the book of Walmart chart. So I can go over what I'm looking at here. Again, sorry if I got sidetracked a lot here. So Walmart, what's going on here. So I always look for support and resistance right lines, right? First thing I usually do is I draw in the support resistance lines and I find a trend. I always put in the trend. Oops. Interestingly enough, looks like Walmart broke down from the trend. A couple of weeks ago, that last week. 26. So that's kind of not looking that great. But as a trend we have there. I'm just going to quickly try to plug in all the support resistance, but support resistance we're always looking for tops and bottoms any pivot points as long as there's multiple touches of it. It's usually a good point to use. And that's how you basically determine it. And you also look for any like all time highs or peaks. Right. General areas of possible resistance. I feel like there might be some kind of head and shoulder here actually. I don't know if you guys can see it or not. Let me put it in here. So if you look at here. Right. You guys see this head and shoulders. This is a neckline. But on the other hand. You know, maybe you'll go back up here. That's because I would still be a head and shoulders pattern. Right. You would have the head here. Left and right shoulder. But that would be a very ugly looking head and shoulders, but it will still be one. Anyways. Possibility but who knows. Yeah. Okay. So looking at this part here. It does the support. We have one touch here to touch here. Right. It went down a little bit below as well. You can also use fibs to identify more areas of support and resistance. And I do that fairly regularly. I'm just trying to be quick here. It's interesting that. The one more on Friday re-j connected back to this top level right here. So. Not feeling too confident about Walmart here actually, but. I mean long run. It should be, it should be good. So. We'll take a look at it and impossible. Possible consolidation triangle right here. Right. So we could go up to here, do this. Bounce up. Break out. That's what I would be looking at. Yeah. And also with a trendline break, usually what you see how you break the trendline, you usually return back to test the trendline. So I pretty much expected to go back at least up to here, right? And then reject again, if that's confirmation of a breakdown, right? That's what we look for when we play breakout plays. I always look for the confirmation before playing, playing it. Because otherwise I would be buying over here as support, because I would think that the trendline would hold. If it breaks down, I would wait. And so it retests and it rejects again. That's when I would short it. Getting off the topic again, just talking about things I look at. So for ER, ER is on the 19th. See what I did on the previous ERs. 148 to 154, $6 move. This ER over here, 137 down to 129. So $8 move over here. We see a massive candle here. 131 to 124. So it's about $7. So yeah, let's look at this one too. Here, 105 to 115. So that's $10. So I would expect that on the day before, if I'm taking this play the day before earnings report, which is February 18th according to trading view. So I'll take it on February 17th. You can take it earlier that week if you want to. If you're confident about what the range of the movement is, then my expectations would be that it wouldn't move more than say $10, right? And in reality, what I would expect is that it would follow my patterns. So I'd be like, okay, so if it breaks out instead of rejecting at this trend line resistance, then maybe it'll go up to 151 or 152. And then at the lowest, I expected to at least maintain support down here at 133. So that would be the range that I'm looking at. And again, you can look at the expected value of the move based on this, but you can also look at the expected value move based on the options price contracting. Yeah, you can Google that. I have to look into that myself on how to calculate that. But I know some brokers actually provide you with that information. And it's just based on the options pricing. That's how they calculate it. So based on that, I forgot why I said already that I say 151, 152 to 133 is my max expected range right now is 144. So if we look at this February 19 and February 26 contracts, we're looking at the IV, right? The IV is 29% on the backdated contract. And the frontdated contract is only 31%. So you see here our range of profitability, our break-even. I think they usually tell you, yeah, so your break-even is between 139 and 151. So that's at the point where I would be at zero, right? Like I wouldn't make any money, but I wouldn't lose any either, which is okay. Your chance of profit is 57%. So that's not too bad. But of course with ER, you never know what won't happen. So I expect 151 to act as a resistance, 133 to act as support, right? So that means I'm pretty much covered for the upside here. To the downside, I have some risk, percent entry costs. I could lose almost all my value if it actually goes all the way down to the support here. The reason why this play isn't as, I'm going to say, easy to take as a pins play we had earlier is because of IV. It's 31% versus 29%. There is only a 2% IV difference between the front spread and the back spread. That means this is basically a regular-covered call play. In other words, we just want neutral movement, no movement, and we just want to collect on data the difference between the data, right? So we see here data is 1.7. So every single day I'm collecting 1.7 cents until it gets closer to expiration date then it will increase, right? But yeah, basically with this kind of play because there's no IV skew, there's only 31% versus 29%. Basically, there's no IV crush we can capture on this play. So it's not a very high risk reward play for an ER calendar call play. Instead of doing a calendar call play, I would play something else, right? Because a calendar call play for ER is I just want to capture the difference in the IV to capture IV crush, and that's what makes it profitable. So not a good example here. Does anybody have another ER they think is a little bit more hyped up? I'm going to try to catch up with the chat real quick here. Yes, IV crush is when IV goes down. Usually IV crush is what we refer to when we have an ER report because before ER, we basically have high volatility expected. After ER, the result is already known. Therefore, the volatility sinks because we already know what the results are. There's no more surprise factor to drive up the value of the options. Of course, volatility can still continue to increase after ER but that's only in very unusual situations. Usually, we expect that after the event, IV is going to drop because the event is known. There are no more unusual factors that will cause IV to increase. A good example of this would be GME, right? You saw all the Wall Street bets, the Reddit, right? They went all in on GME and the IV of contracts shot up because there's so much demand for it. So that's not even related to ER or anything. Like nothing fundamentally changed on those particular days. There were some fundamental changes. They had board stuff changed. They had co-in is on there, stuff like that. But there were no other real changes other than just suddenly there's an increase in demand because of Wall Street bets. So sometimes you can't predict possible events that can cause IV to rise. But usually with ER, we expect IV crush to happen because after the ER, the results of the ER are already known and we no longer have that increase in volatility because the biggest thing that was holding stock down or up or whatever is already known. So that's that. And thanks, 007 for answering a lot of questions in the chat. And I know a few others of you like Young Bulls helping out to appreciate that in three days. Okay. PLTR, DKNG. Okay. Let's take a look at DKNG, maybe. What is DKNG's ER? Very soon. Couple weeks, two weeks out. Every 20, every 23rd. This almost looks like a double top, but we'll see. I feel like it should break over it. I clearly rejected that on Friday. Tested it. See if it breaks out later. So just drawing in trend lines here. Usually when I see a trend line break down, I expect it to return back to the previous long-term trend line and that's why I do this. That's how I trade anyways. So this is a pretty good previous resistance access new support. Okay. So you'll see this or hear this adage a lot. Everybody says it. And this is proof of that happening right here. I'm going to draw in some fibs just for the fun of it. So fibs are fibonacci. Why do they work? They're just natural numbers that we look out for. And I think it's mostly because of how it goes and stuff too now. But you know, with any kind of trading strategy and things like that, they work because it's kind of like a self-fulfilling prophecy, right? We expect double tops to happen because everybody's looking the same thing. They're like, oh, we're back at all time high. Maybe we'll go back down. And then because people think that and if they decide to sell, we go back down. That's kind of how trading works. It's just a game of mental psychology between you and other participants in the market. 1.72. Interesting. All right. Anyways, not really sure where D-King is going to go to be honest. DraftKings, let's take a look at those contracts and see if there's any IV skew we can take advantage of. So February 23rd. So that would be February 26th and we can take March 5th. Again, as I said, you can always take a longer one to increase the likelihood that you will remain profitable. And remember what the calendar calls spread? You can actually, if you're still bullish on the stock after the front-dated option expires or you collected a premium profit on it, you can just buy back this front-dated option and leave your back-dated option if the stock continues to rise and then it'll just be like a regular long naked and you'll continue to profit off of that, right? So that's also an option for people if you are still remaining bullish on the stock. Or mostly for my purposes though, usually I'm just trying to capture the IV crush because, you know, it's just a safer play, more highly profitable, more likely to be profitable and I just close both of them at the same time. But if you're still bullish, you can definitely, you know, hold onto it. A good example of that was Snap this past week. Snap dropped a lot, but then by the end of the day it just kept rising, right? So if you had a calendar call on that for some reason, then you know you could have just gotten rid of the front-dated option when it was worthless basically because they dropped it on the day. Quickly pull up the chart here. We can't see that because it was intraday. So basically the previous day was at 50A and then it dropped down to 53. So it survived all the drop after ER. So that front-dated option was probably like not worth very much. So at that time, you probably could have bought back in and then you could have just rolled your call up, right? So that's just an option for people. If you remain bullish on a stock, you can lig in and lig out like that, right? Back to DraftKings here. So ER calendar call play. What's the difference between IV? Again, there's not much of an IV skew here. 807, if you're still in the cat, do you normally notice IV increase as we get closer to expiration as more people anticipated? Because maybe we're looking too far out to see that IV skew. That's what I'm thinking right now, but I'm not sure because I don't normally pay attention to that and so it's like the actual week of ERs. So I didn't really notice if IV increases before ER. Just right before instead of being two weeks out, that's why the IV is so similar right now. No idea. Anyways, currently there's no IV crash to be had here. The IV skew is only 2%, so there's no real profit there. Unless you are just neutral on DraftKings and you think it's just going to stay at $64 a whole time, I would not take display right now. So I'm having troubles finding something. So now I know a lot of people asked earlier and in chat and DM me as well, how do you find these plays? How do you determine what is high IV, what is low IV? Stuff like that. So right before ER is definitely a good time to capture that IV skew, but here's another way to find that is to use some screeners or scanners and a free one available to you is barchart.com. Don't go to barcharts.com. No S here. If you go to barcharts.com, it's like a website for selling like study tools and stuff for like cheat sheets, that kind of thing. But barchart.com is a useful free resource. You can also subscribe to them and it'll provide better data, more real-time data, et cetera. But you can just use this tool for free at the end of the day to do research if you want to. And this is usually when I would do research because during the trading hours you don't want to do your research during trading hours because stocks are already moving, right? So we always do it after hours anyway. So I don't really find a problem with just using the free version which is available to everyone without a sign-in. So you can look at IV rank and IV percentile. All of these tools are useful depending on what you're trying to play. Unusual options activity is basically like, you know, options flow, stuff like that. If you see a lot of people buying a certain option strike, maybe you can take a look at that stock too to see if it's worth playing the same side, you know, follow the money, right? So that's an option. But for our purposes of our calendar call ER plays or just calendar calls in general, we want to capture an IV skew difference. So we're going to look for things like percent change involved. So let's see your IV rank and IV percentile. So here you see IV rank and it actually gives you the definition here if you hover over them. So IV rank is the at the money, average implied volatility relative to the highest and lowest values over the past year, past one year. If IV rank is 100%, this means that IV is at its highest level over the past one year. So that basically means that there's a lot of interest in a certain ticker right now if the IV rank is at 100% compared to usual. This is how you know if it's high relative to usual or not, because every stock will have different IV levels. You see here that, you know, 8% on Apple, 19% on Tesla, 91% on AMC. What's going on there? Well, I think we all know the answer to that already. You know, it's related to GME and all those other sort of squeeze pumps kind of things. But yeah, there's a lot of IV in AMC and actually I might have, I don't remember if I told the boys seven or not, but I know I told some people when AMC was at $2, 250 or 260 on Friday, I researched AMC over the weekend to try to figure out what was going on with it. I saw that AMC, I'm just gonna pull up the chart here. I saw that AMC's bottom was like about $2, right? Or I mean, I need a daily chart auto. So it's the bottom, absolute bottom for AMC has been about $1.94. So I was pretty confident that, you know, it wouldn't go any lower than $1.94. So what I did is when I saw this high IV spike on AMC, I actually bought shares of AMC. I bought 800 shares of AMC, you know, just $1,600, $1,800 or something like that when I bought it. And I sold covered calls on AMC because the premium of those AMC calls was so high relative to the cost of the shares. Like I pay about $250 to $280 per share, right? And, you know, the option contract is like $3 or something we're out of the money call for like $350 or something. So basically, like when you see that your options contract that you're selling is worth a significant amount of the underlying asset price, I think it's worth taking that risk to do that because frankly, it's a good risk reward opportunity. At the lowest, I only expected it to go, excuse me, go down to about $2, you know, but I have the covered calls premiums to cover me for part of that move. And chances are it was more likely to rise. So I actually took the opportunity to do that. But the way I found out about AMC actually was last month before, you know, before GME completely blew up. It had already moved a bit, but before it completely blew up and it went to all these other stocks like AMC, Nokia, BlackBerry, those kinds of stocks. I was using this bar chart to screen and scan and I was looking for percent change in volatility. And I noticed that AMC had a huge jump. And so at that moment, I decided to jump in because I was like, I'm bullish on AMCs. That's why I'm buying shares and I'm selling the covered calls because it protects me from down possible downside of AMC. Suddenly, I renounced its bankruptcy. But to cover calls premium to the share value was so high. Like if you can get 10% 15% back on covered calls for shares and you, you know, you have a well-defined support that you don't think is going to go down below. I think it's a good risk reward opportunity you should take. So bar chart.com again, useful tool, take advantage of it. So we're going to look at IV rank now. So 100%. So these are things that are really, really high right now. You know, you probably know a lot of these. I think I feel like double or seven probably cover some of these, right? Like SPACs and stuff like that, right? I know some of these are we have CC IV here, which is another EV play. You can see that IV rank is 100%. That means it's the highest IV. It's at for one year, right? Remember, that's the definition. And currently IV% is 90%. So these are the kinds of things I look at if the IV is high. So and then I just go and put it into the calculator and be like, okay, CC IV, what's going on with it? Maybe February 19th. CC IV only has monthly contracts here every 19, March 19th. Is there IV skew? There is no IV skew. And that's because there's no, so normally you wouldn't expect an IV skew. But when you do see an IV skew, a calendar call spread can be good. Anyways, I sidetracked a lot again. I'm going to catch up with chat here one second. Thanks double or seven for your answers to the question. So yeah, IV does tend to increase right before a big event, right? That makes sense. And yes, you can track the IV slider on the call or the play. So, you know, when IV increases, premium contracts for all contracts goes up, puts calls, whatever. If IV increases, there's more chances of some kind of crazy move happening and that's what the options are pricing in for. So when your IV goes up, you become massively more profitable. If IV drops, then you become massively red, right? You know, usually you don't expect such a drastic change, but you expect some change. And the reason why the calendar call spread works in this case is because the front dated has more IV than the back dated by a lot. So there's an IV skew. So even though IV is dropping, the front one loses more faster than the back one and that's what we're profiting off of there for that calendar call play. Thanks double or seven. You can take a look at Twitter or something. Twitter, ER is on February 9th. I assume that's after hours because, oh, nevermind, that's Tuesday. So that's fine. But I guess we'll take the play on Monday or Tuesday then if we do that. Twitter, Twitter, Twitter. Where is just going up, huh? Cup and handle. This is so far back 2015. I think this is a cup and handle, right? I think this was a cup and handle, but I don't know. Not really. You can see it back down here, but this is kind of a stretch of a cup and handle. But anyways, plug into resistance points here, previous. You can see that I rejected at all the previous resistance, right? Previous highs. And that's why usually I use these as possible price target areas when I do plays and stuff. Of course, this is so far back and it's probably going to take a while to move up to these price levels, but we're just going to put them in anyways. I can't put it at the top here. I give up. It's supposed to be over there, but it's fine. Zoom in back to our current levels. I think this drop on Twitter here was related to all the stuff happening at the capital and stuff, right? And Trump being banned and all that stuff. If I remember correctly, I think that's around when it happened. So we got this perfect trend line support here from March Lowe's. Great support. This was a good buying opportunity, honestly, right here. Because it dropped down badly on news and usually news reactions are overreactions. It hit support and so that was a perfect time to buy actually. I missed that opportunity. I don't think I've ever traded Twitter maybe once or twice. It's not a ticker I normally look at. There's nothing there. I'm probably going to do a fib. So for fibs, low point, high point, right? This is a retracement fib. Normally you expect levels to possibly act as either price targets or possible resistance. A lot of times it would just blow through too. But I always put them in because it gives me good price target areas so I know I can take profits at a certain point. And that's probably one of the most important things when trading is like a stock can always go up and keep going up. But you have to set goals for yourself because if you just keep holding and you don't set targets for yourself. A lot of times like sometimes you might hit the home run, right? A lot of times you'll just find that it goes back and it goes against you if you don't take profits. And then you might trade emotionally or something and prevent trade, etc., etc., right? So it's always good to trade with a plan and have certain price targets in mind and be like, I'm going to sell 50% here. Doesn't matter what it does after that, but I'm going to sell 50%. So yeah. Just general advice. Something like that. Justice a little bit. I guess I could use this. So if I was a bear, I'd be looking at this as like a possible falling or sorry, not falling rising wedge. And I'd be like, oh, it's going to keep going up. And at some point it's going to break down. That's what falling wedge is doing. It's supposed to be a bearish reversal pattern basically. But there's so much room here for it to go up still. You know, honestly, I'd wait to see what it does over here because I feel like this could be a possible resistance area. If it blows past it, then this pattern is no longer valid, right? But currently this matches up pretty well, right? We have top three touches. It kind of broke past it and then they rejected back in and then it had to drop all the way back down to support of this pattern, right? So, you know, my projection would be that we're going to have a dip by opportunity. But at the same time, we'll be on this next week. I have no idea what's going to happen. It can do anything. Does anyone have any insight? Tuesday after hours? Yeah, thanks. When you draw a chart, trend line, support, resistance, Fib, price, target, et cetera. Do you pick daily chart for an ear or one minute or a day, et cetera? Good question. So I always do my basic charting on a daily first. Then I will move into lower time frames when I'm actually trading. So if I'm looking for entry on something, I'll be on like the 15 minutes because I'm primarily a swing trader again, right? So I'll be on the 15 minutes and I'll be like, oh, maybe we're going to see resistance over here. We're going to drop back down to 53 and then I'll enter over here for a player or something like that. If I'm bull bias, for example, right? So you always on the 15 minute, then I'll, I'll recharge it, right? So I'll be like, oh, there's actually a trend line on the 15 minutes and let me get rid of the extended hours. I don't really like to use extended hours when charting because the volume is lower. So I can be like, oh, like there's a trend line here on a shorter time frame. Maybe we don't go all the way down to 46 for my perfect entry, right? Maybe we just go back down over here to this Fib line and also matches up, you know, with the trend line. So I'm like, okay, maybe I'll take it at 53. If we go back to 53, maybe we'll just bounce up here and then we'll go like this and then we'll break out. If we reject down here instead and we break this trend line here. Once we break this trend line, I'd be like, okay, we're probably going to go back down here. So I only look at this information on the lower time frame charts like the day of like pre-market or something like that. When I'm going to take a play on a certain thing or if I'm just day trading and then of course I'll be using these shorter time frames. My favorite time frames are like three minutes or like scalping day trading kind of thing. 15 minutes if I am looking at day trading, but also considering maybe a possible short swing into like the next day or something like that for the next couple of days. But yeah, always chart on all different time frames because if you look at it on the daily, like that time or that trend line looks great on this 15 minute chart. You're like, oh yeah, probably just going to bounce off of here or whatever. But if you look at the larger time frame, you're like, this is actually a really, really steep rise. Feels like it should get some kind of pullback and then it can keep going, right? You know, it's really steep regardless, but you expect to see some kind of pullback when it rises sharply. So hope that answers your question. But yeah, I always chart first on the daily time frame. Stronger patterns are always going to be found on your higher time frames versus your lower time frames. And this has to do with the volume because on your daily chart, your volume candles are more thick basically, right? Whereas on the 15 minute, you'd be like looking at a lot less volume on your patterns. So it's less likely to play out as expected. Still valid though. Twitter, I think Twitter is probably going to be bullish still for long term. But anyways, taking a look at this chart here and now you can see how messy the chart is. On trading view, here's a little trick you can use. If you right click on your settings of your pattern, your line or whatever, you can go to visibility for it and you can be like, oh, I only want to see it on hours or minutes. I don't want to see on a daily because it obstructs my view, right? So you can get rid of this in a daily view so you don't see it. So we can do that so we can see better. And this, remember this timeline or trend line? Sorry, that was on the 15 minutes. So it's probably not very useful for the days. I don't need this line here on the daily chart. It didn't really tell me much, right? It's just going up, right? So I'm going to hide it on the day because it's useless for the day. I might keep it on the hours just because it might still be valid on that level. But yeah, I always hide those things if they're not applicable to the time frame I'm looking at, right? So we see here that we passed over 55. My next price target area would probably be, you know, probably around here 59 or something. Horizontal ray, that in. That's not the top. Yeah, okay. I think that's pretty close, about 59. So that's the level I'd be looking at if we break out past this turn line. The first. So maybe we hit this, we bounce back into the trend line and then we go back up again to confirm breakout. But honestly, this pattern is so steep that I feel like it should correct at some point, right? And this is a rising wedges are a bearish pattern. Once it completes, right? It's bullish up until, you know, a certain point. And then once it breaks the falling wedge support trend line, it should be traced back down. And usually the way you find out how much it's going to move by is a measure move. Every pattern has a measured move. So we see here 39 or about 40, right? Down to about 20, 19. I'm just going to say 24 for ease. So the difference between that is $20. So when this point breaks, wherever that point is, I would measure be like, okay, we're going to go $20 down. So say we go up to 60, then I would expect us to go back down to like maybe 40, 45. Usually I don't expect the full move. So I usually multiply this difference by about 50%. And that's my actual price target. So we go up here to say 60 or something. And then we are 58, where this resistance is. And then we actually break down. Then maybe we'll go back down to about 45 or so, which would be basically match up with these highs over here, which I would expect to act as some kind of support, right? See some support here too. So that's how I would look at that. And because this is a new chart layout, I have zero indicators on here. So let me pull up some indicators. Ppvr, see that volume profile. Not very useful here because it's not very heavily traded in this recent area timeframe. Basically all the support is down here in terms of volume, right? All right. Anyways, going back to our option strat calculator here. So February 12th, that would be for this week because the ER is on the ninth after hours. Then we would sell February 19th. So there's actually IV skew here, right? Notice IV on 212 is 121%. And the one on 219 the week after is 90%. So there's a 31% difference in IV. And if you remember all the other contracts we looked at that didn't work out, the IV difference between the contract was like about 2%. So that difference is really small compared to what we see here. And again, that's probably because we're getting closer to the ER and people are buying up these contracts because they expect some kind of big move to happen. As the below seven call this, I don't remember what he said actually, but I think he said premium chasing, right? So, yeah. So there's actually an IV skew. We can take advantage of here. This IV skew isn't as big as PINs. For PINs, I think we had like over 100% IV skew. So that's why PINs was such a good call because I was confident that even if it wasn't close to my ADC strike, which is what the strike I picked, like if it went up to 100, we would still be okay. Like we would be breaking even, about breaking even at about 100, but we would still be okay. And then we could go all the way down to like mid sixties and still be okay for PINs. And, you know, we got lucky and we hit the nail on the head and PINs closed at $82, you know. So we made really, really good money on those calls because we got lucky. But even if we're not lucky and we, you know, predict wrong essentially and it goes further out of our range. It was still a highly probable play because the IV skew was so great. Twitter still has an IV skew and we can take advantage of that because it's 30% is still decent. But basically we're looking at the chart here. See what our profitability range is. So sometimes I'm not really sure how this calculates the break even stuff because this is the 1.09, which is correct. But there's also a top, a top to the break even and it didn't put that number in. So I'm not sure how this calculates it. But yeah, just use a chart here and probably better. So we can have a range about 70 to 51, right? Maybe even 71. I think it's close to break even around that point. Right 71 to about 51. That's basically our range. Normally you would probably prefer to take profits the day after ER because IV crush is already happening at that point. If you wait longer at that point, you're just almost like playing a regular calendar call spread, which means that you're net neutral and you just want to collect time premium. This is a time premium that additional time premium you can collect as you wait over time. However, we just want to try to chapter the IV crush of the event and you know, we don't basically I don't want to risk having the stock move suddenly big up or big down from that day that we take profits at. So that's why usually I do it after sometimes is still profitable to hold it on through all the way out and what the front data option expire at that point. It just be a data data premium collecting play. So see here 71 to 61, right? So this definitely covers our upside. Right because I mean, it could go up a lot. I forgot how much we said. Did we ever look at how how much Twitter usually moves? I forgot 38 like 50 says $12 move. Here we we see like maybe a $5 move there about $5 there too. Here we have a bigger move 33 36. So that's about $6 $7. This one was a lot bigger here. 40 down to 30 says $10. So yeah. This was probably the biggest one $12. So that's kind of what I would expect right $12. So that would give us time to 44 and it goes up to 68. So if it goes on to 44 we actually lose quite a bit. Most of our options contract premium if it goes up to 66 we're good. So basically at this point you have to determine what your bias for the play is and this is for 60 C. So if I'm feeling less bullish on it. Then I can move down to 58 C for example. And for calendar call spreads I do recommend using out of the money. Strikes I wouldn't get in the money strikes. So like I wouldn't pick 55 C. The reason for that is because of extrinsic and intrinsic value. If if I pick in the money strikes then there's less more of the contract value is going to be intrinsic value and less of the value is going to be extrinsic value. Right. And what we're trying to do is again with these calendar ER place we're trying to capture that extrinsic value play. So if there's more intrinsic value because it's in the money then I have less to earn from data data premium basically data decay and I have less to earn from that difference. Right. So I like to play out of the money kind of call spreads for ER. Just explaining that. So we look at 58 C compared to 60 C right. We see that it shifts the play down a little bit. So now our break even is 49.84 so I moved about a dollar dollar 16 cents or so I think. So that gives us a little bit more downside leeway. Yeah. Frankly I'm not sure about how I would play this though just because I'm not sure what Twitter is actually going to do here if it breaks out it could go really far and with ER acting as a catalyst that could easily happen on the other hand you know the downside of this trend line is all the way down here at 47 like this pattern is very much valid. Right. We have multiple touches 1 2 3 4 touches on the bottom. This one got close right 1 2 3 possibly 4 touches here on top to so you know I would expect to to go back down to this bottom trend line at some point and that's a lot of downside risk and with the ER I don't know what how the ER is going to do right. That's that's not the point of this calendar play is to predict what the ER is going to do but to try to just capture on Ivy crush right so you know if it's bad and people react badly to it it could go all the way back down to the support 46 at that point this this play is not going to be very profitable at all. So yeah I'm not sure if I would take this play but yeah that's basically what I look at and how I assess where I'm going to take a calendar play or not if I'm really bullish on the stock or something then I'll take a play. The real reason why I took pins is again because of that widespread that we had on pins when I analyzed it and that I saw that basically we would there's there's almost no way we would move out of the side of that range so we would be profitable no matter what and that's why I took that play and I also took Amazon earlier this week 3400 C and the reason why I took Amazon 3400 C is because we were trading in this consolidation zone right and I think we broke above this before ER. I don't really remember anymore. I think we broke above it before ER right but I actually took the calendar call spread before that happened. I did it when it was still inside this consolidation triangle. Why is my chart so weird? Oh there we go. I'm all along. So you know Amazon been trading in this zone for like I don't know six months or whatever five months but for a long time. So my expected range was that I was expecting it to be landed between 3300 and 3130 and that it would be within this area pretty much no matter what ER and I expected it to continue for another month or so before I broke out. And so that's why I took Amazon is because I had a more confirmed idea of the price range that where Amazon could end up which is why I could take a calendar call spread on it with confidence and then when we broke up above the trend. I was like usually what happens when we break above a trend as we go back and we retest that trend line. So I was like I'm still okay holding these plus based on the calendar you know the profit and loss. I'm still okay like even if it goes up. I think my range on my 3400 C actually went all the way up to about 3700 and it went down to like 3,160 which is almost the bottom of this triangle and that's why I took that play because I was like even if it has a major beat you know 3700 that's that's above all time highs that you know where was it at 3500 ish. So I was like I'm going to be in the money pretty much guaranteed and then if we drop I expect that this area to hold a support and it's unlikely we drop all the way down here. So that's why I took that play but basically that's how I says these plays with Twitter. Unfortunately I'm not really that sure not that confident about it. I do think that you know we're going to retrace back to this bottom trend line here for a touch. I don't know if it's going to happen with ER or after or before but I feel like I see strong possibility of that happening there. I think all these major drops here that brought back down in this trend line were related to news related items so ER might actually be a catalyst for that. But you know who knows just guessing here. So for calendar ER plays I take them only when I have very high probability of success for that. I think for the Amazon and pins play it was like above 90% actually chance of profit. So I hope that answer and clarify some questions about calendar call spreads and options that we talked about today. You know the tools I use to find these things and the calculator how to use it just play around with different ERs and stuff and see if you can find something with a good skew the higher the skew the better right. So if this IV skew was higher we would be more profitable right. So you increase the IV and usually you would hope that this IV difference is increasing as well and not just the average IV which is what this is right now. But yeah just try to find those good good. Risk reward plays chart it to figure out what your expected price range is based on chart patterns. If it breaks out where do you think it could go that breaks down where can it go does your profit and loss analysis match up with that. Is it a high probability play don't go all in on any of these plays because with ER anything can happen. You know with pins. I think I took 50 total and you know for me that's not a big size right. But you know that's about half of my usual size. So you know with ER anything can still happen even if you're you know your problem probabilities are with you and highly likely to be successful. You should still always make sure to size inappropriately and if you do that over time with multiple ER plays eventually you're going to be rolling consistently that kind of ER profit in but yeah I think Twitter could still be a decent play though but yeah this pattern just makes me not sure any questions. Guys I have to read the chat to figure out what's going on in the nor and you guys in chat for a while. Let me scroll up. Yep. Disco King for patterns longer time frame patterns always hold up better than short time frame patterns and the bigger pattern is more likely to play out than the short term frame pattern. If you're playing on a for example 15 minute chart you should expect your move to happen you know within 10 15 candles or something like that right. If you're playing on a daily chart you're expecting you know one two weeks out for your pattern to fully play out stuff like that you know with every time frame we're looking at a different time frame for your play so but yeah longer time frame patterns are always going to be better and more robust than your short time frame patterns. Option calculator yeah I'll put that link in one other thing I really like about option strat is that you can save your trade right so I can I can give this a name and be like Twitter ER on their play to I think it was on the ninth right and that can be like I don't know I'd be crushed or something has some downside risk right because I don't know if it's going to go back and retrace down to this wedge right and that makes this play not profitable right and then it gives you a link and then you can share it with people right so go here so that's that's a link to my play essentially and then the best part is that if you create an account I don't remember what my account details are right now but basically if you log in to your account it will have all these saved trades in your profile once you click into it and it will track it throughout the duration of that play so even if you just theory crafting theory testing you can just put in that play go back to here right you can save that trade on your account and then you can refer back to it anytime and be like you can see if it was profitable or not how much a loss what percent it was etc so I think it's a really useful tool if your doesn't matter what your experience level with options are it it's helpful for you to be able to test out new strategies or even test out you know old and tried and true strategies just to back test and theory test to see if a certain type of play works out as you expected without having to risk you know your money on the line of course you can also paper trade that works just as well but I think it is really convenient because you can just save that trade here you don't have to worry about going to your broker or your program or whatever and entering in those trades on the paper account you can just see the profit and loss here and attracts it in your saved account so useful tool definitely check them out I'm not paid by them by the way they do have they will have a sub soon and that's just because they're dead right now is currently delayed by 15 minutes again not applicable if you're doing research after hours right so the other website I want you guys to remember is bar chart dot com here useful tool for researching those IV differences or just options in general like a what's the most active options is changing open interest open interest is how many people are still holding certain contracts at the end of the day and there's a lot of volume on that that means there's a lot of interest in it right so it's called open interest but yeah you can see pretty much everything here unusual options activity I use this tool a lot again to find good options to play if there's a lot of activity in a certain call basically what it does is it just volume divided by open interest because it shows that there's an increase in people trading a certain certain options contract in a certain ticker then you know usually maybe there's there's something going on with a certain ticker and is worth taking a look at so I use this to help me identify possible tickers to look at to play and then I chart it out see if I agree with this possible idea and then if I do agree with it I'll follow them you know that's how I use that so I'm going to link that as well bar chart dot com and guys if you aren't in X trades they're ready be sure to join us we do have a free trial I believe it's 20 days great community I basically learned how to trade from start to finish with X trades again I've been rating for about seven years and with X trades for about five and so you know a lot of why I've learned over time has been with this community right it's a great community just to bounce ideas off of and to learn and to grow together so hope this video helps yes this is near the end of the seminar so unless anybody has any questions going back to these slides here yep so thanks for attending our first lesson in our options trade strategies trading course if you guys have any questions just put it in the chat or anything you want me to take a look at session will be every every two weeks is what I'm planning because it does take some time for me to basically prepare the material right I'll just be going through different strategies every single time we go through one of these seminars and then I'll be I'll be going over iron condors and maybe some bull and spreads next time so thinking about it if you guys have anything that like particular strategies that you'd like to see I want to know how I use them or when it's good time to use them you know just DM me and we can take a look at those for next time but yeah what broker using to trade with MVP Empire so I use tasty works for my options strategies one second sorry about that so yeah I use tasty works as my primary options broker I also use Robin Hood and we both like most folks probably do because you know it's phone quote free it does come of a cost though mind you but yeah I do like to use tasty works for their options and they have good fills the platform is pretty good and you can see they show you a lot of the numbers and stuff when you take your options and they give you like if they basically show you this kind of stuff without having to use options probably calculator I don't know if I can find some images or something but this is what it looks like so for example yeah it's kind of hard to see should probably open up the image right so basically you have your the same thing you can open up a spread or a butterfly in this case and it tells you you know your max profit your max loss where are you green where you read yeah it tells you to IV percent things like that but I like tasty works I've always find that I have better fills on them than when I use say Robin Hood it does charge commissions I think a 65 cents if I recall correctly but yeah I do use tasty works for most of my options trading and then I use a lot of Robin Hood and we both as well so let's see yep thanks for joining us three day we'll see you next time when is the next session I think we answered that already I'm going back now let's see welcome back 007 the whole long-term positions are always on the move I do hold long-term positions I have some mostly those are equities but I do have some leap calls as well but for purposes of I guess trading you know is always going to be on the move right I'm always looking for the quick profit place essentially so like ER plays I'm only holding it for one day for those calendar plays that we talked about today things like that but I have most of my portfolio in long-term positions I think I only traded with about this is just roughly about 20% of my count that's rough estimate there is there a lower bound for volume open interest where you would not answer strike because of illiquidity or no liquidity or fear you can't get out yes I basically usually when I take a play I mean when you see the spread is really wide that just means that probably isn't very liquid so usually I don't take those plays because the recent reward benefits changes greatly if your spread is like for example $2 wide or something you'll see a lot with like a lot of the bigger tickers too and that's just because they're so you know they move a lot like Tesla or something like you see a really really wide it but if you trade something like spy you'll notice that it has like basically a one cent with say basically you can get in at the price it currently is marked at and I think that's really important when you take your options so volume is important open interest is important I don't know if there's a lower bound to it but if I notice that my spread is too wide as a result then I'm not going to take the play and this is also usually why I prefer playing like larger cap tickers instead of smaller tickers because usually those have more volume on them this is like looking inside a photo of a photo of a photo yeah you're right I think I still need to figure out how to properly set up this streaming so that I'm not like showing you guys everything I think I think you can change that but I'm not really sure how to I'll do better next time with tWitch guys sorry for all the delays today too yep vicious shots how big of a position young bull answer that he said 5% or less of your total account site that's that's reasonable you know it totally depends on your own account size and how much risk you want to take but yeah smaller smaller sizing is better I think definitely no more than 20% of your account and at that point it's it's a lot right but I know some people have like really small accounts in that case that's when I recommend you to take more spread type of place instead of like just naked calls or puts because I can reduce the cost of your place yeah does it help to get around PDT having multiple accounts yes the more accounts you have the more day trace you have but to be honest I actually intentionally trade under 25k because it makes me trade less on each of my accounts so the only account I have more than 25k on is actually my long term account and the reason for that is because I find that if I have the ability to day trade I at least when I first started I over traded and even though I had like massive gains on one day say like I went from you know 10k to 25 or 30k and like one or two days and then suddenly the next few days I find myself back down at like 18k or something you know I get it all back up when I when I trade too much so that's why I prefer keeping my trading accounts below that level so that I'm not over trading yes for finding stocks to look at again newsbar chart.com I use that a lot to basically scan for things that are moving and if those pop up on my radar then I go and take a look at it on the charts and see if it's worth a play I also have my own personal watch list of stocks that I really like to trade that I kind of have a grasp of the general movement for one example that is chewy I trade that a lot is probably my first or second most alerted ticker and X trades and it's just because I've done it or traded it so many times that I have a better grasp of how it usually moves so it's more likely be profitable for me so once you find your ticker that you really like to trade stick with it you know and then of course use a scanner to find those other tickers occasionally when you want to play something else or tickers you normally look at aren't showing good setups that's what I would do that's what I would do for Twitter if I am bearish is there difference in selling 65 seed or buying 50 p if you're bearish on it let's see and thanks guys for all your comments and stuff happy to be here for you guys and help out let's take a look at this Twitter okay so if you're bearish on it so basically you're saying that you expect Twitter to drop right let's open that up here you were saying 50 oh wait selling 65 C or buying 50 p well if you sell 65 C it would mean that you're bearish right because remember a calendar call spread is actually a net bearish position the only difference is you can treat it as basically you're buying a discounted longer call so I'm buying 65 C 2 19 I'm bull on Twitter basically right at that point if I buy that and I'm selling the shorter dated contract to give me a discount on buying this one that's basically what that is so it's a cheaper way to play the bull side while expecting the stock to remain relatively flat or only move up a little bit right up to the strike price you want it to expire 65 so 65 would actually be pretty bullish and then looking at the calendar put spread did you say what was that 60 p or 50 p let me change the dates here so yeah I mean if you're taking the put spreads that means that you're basically you're essentially your base sentiment is bearish on a play but you have a neutral bearish stance whereas a calendar call spread that is above you know out of the money above the current price has a net bullish position so if you're net bearish and you take a calendar put spread with a strike below the current price that means you're a net bear on Twitter but you're expecting some neutrality right you're expecting some neutrality and like you're like maybe it might rise a little bit but not too much so if you're bearish on Twitter getting a calendar put spread is actually a good idea let's try here if I expect this to act as resistance right on this chart pattern this rising wedge and I expect it to go down to 47 okay and it doesn't I don't know blow up out of this pattern for some reason this put spread will be a great play because that gives you leeway for example up here is my resistance right I don't expect it to go any higher than 60 immediately I don't know never know right but then it can go all the way down to 46 then over here if you see your break even on the both side is actually above that point you have some leeway all the way up to 64 by expiration chances are you're not going to hold it all the way to expiration you probably take profits to sorry not to say once a year or Thursday right because at that point you don't really want to hold for additional risk of having it move to fire range so this is actually a great play if you are bearish on Twitter as opposed to this which is super bullish comparatively right both patterns or sorry both strategies are neutral we would prefer it to be close to our strike I think you're looking at 50 actually I would do something like a little bit when I take when I take ER plays I prefer only having a little bit out of the money because I expect the price to move but I expected to move from here so my expected move from all the previous ERs that we looked at you know maybe you might get $10 $15 move at most right so it'll be from that point so the closer I am to being the current price of it with my strikes the more leeway I have on that range to get me to where I want so yeah if you're bearish on it I think a 55p could be good for Twitter and it gives you some range up to this major resistance point right from 2015 or whatever it was 2014 so you would expect that this is act as resistance because we see here that this peak right here acted as resistance once here and that's when it rejected back down in this rise in which we're at a peak 2 all same thing we reject it down here if you notice that every single time it's hit these peaks it's made a major correction so peak 3 even if we hit this with the 8.86 I think there's a pretty good chance that it was going to have a sharp reaction back down so yeah I think this calendar put spread could be a pretty good idea if you are bearish on Twitter and it matches up with what the charts projecting right now so might be a good idea personally myself I prefer playing long side and that's just my general market bias and that's just because you know markets go upright so I usually prefer playing call side I hope that answers your question okay yeah don't bad the whole house on alerts guys and if you're playing on the markets make sure that it's money that you don't need if you're trading to make a living or something and make ends meet usually you're going to be trading emotionally and you won't be able to be as profitable if you had a more clear mind with playing with money that basically doesn't matter if you lose or not right so you can just trust analysis and trust the system let's breath see Marisky on a rising wedge play it could dip before 212 and bounce up before 219 you have to take the profits as a bottom of the channel to the bounce yep that's correct yeah so you'd be betting that back on twitter again before 219 that we really retrace back to this bottom of the channel which is very possible right so that's an advantage of playing a ER play early on in the week is that even if it moves against you or out of your range if you see something on your chart that tells you that it could possibly pull back you can you have some time let it drift back closer to your strike price and then you can close your play and then you will win from that premium collection as well as being close to the strike right okay any other questions from you guys if not I'm ready to close out for today and also guys make sure you vote on vote for the weekend report figures ticker analysis I only had like 14 or 15 votes when I checked uh last night or this morning like midnight I think a lot of people missed the post because I usually get over 100 alright guys enjoy the rest of your weekend thanks for tuning in I'll be back probably in about 2 weeks for another seminar session I'm considering doing alternate weeks of either having a session and then maybe just like a play review slash charting on the weekends but yeah for now just expect the next stream from me Timehawk to be in about 2 weeks from now but you know 007 is here every day of the week he's doing ERs every day so you know come and tune in for his streams as well he's really helpful and you know he's probably one of the greaters I look up to he's really good at charting and he's always ready to explain things definitely check him out too nope I am from the west coast alright enjoy your weekend guys and enjoy the Super Bowl until next time yep I'll plug in the link to vote one second here but he has that up already because I don't have anything pulled up right now voting link real quick alright that's the link to vote for the weekend report so if you're part of our discord you know every week I post up a weekly report basically what I expect of the market conditions I analyze S&P 500 NAS Tech a little bit of Dow Jones I look at a few different indicators I think what is going to happen and why I feel the way I feel you know just my opinion really and then I go through some tickers and chart analysis technical and fundamental analysis for a few tickers that you guys vote on so if you guys want to see that join our discord and also vote on this form so yeah guys any tickers you want to look at put them up have a good weekend guys and thanks for coming again