 What's up everybody? I am here back again with our contest winner Matt King. What's going on Matt? Hey, what's up, man? Glad to be back. Let's make some money today. Yeah, so we are looking at our monitor tab and just to get a kind of an idea of where we're at with everything We we're up money on everything except for that little thorn in our side the Nasdaq So you can see P&L year-to-date, which is also the you know the total time we've been trading in this account That one's down a little over $1,600 and so we've we've got two positions on there We made a couple adjustments that we recorded in the last video so you can go back to that one and check that out We're getting a nice down move in the Nasdaq today down about three-quarters of a percent. So that's helping us out Getting some money back for us. The Nasdaq owes us some money. So it's giving us back a little bit today. So that's good Looks like it's putting the looks like it's putting the whole account down a little bit So we'll get that down movement. We'll make some make some money back. Yeah So we're down overall we're down a couple hundred dollars and we've got four different symbols on right now Like I mentioned, we've got two positions in the Nasdaq. So go ahead and click on the Nasdaq on your current account Screen there and go to your Analyze tab Yeah, so here's one of the positions you can see prices is nice and Almost centered in our range there. We just need some more time to pass Some more premium to come out of those options to benefit that piece and then if you Click off that one and click on the other one And you can see that one's hanging out a little bit more to the upper upper range of our of our range But again need a little bit more down move a little bit more time to pass and we will We'll get we'll get some money back in that now if the Nasdaq continues higher Then we'll need to make an adjust another adjustment and manage Mechanically as necessary, but that's where we are on the NQ Next next position we've got is the bonds Ford slash ZB we've made an adjustment here Prices come down in bonds a little bit today too. So that one's nice and centered And we just we want a little bit more profit in that one before we before we book that one Okay, and Then EEM That one's down over three quarters of a percent today as well. So that's Acting nicely for us. We've got some profit there and then go ahead and click on XRT real quick XRT is the retail ETF. So it's retail stocks and even though the market overall is down today XRT is strong. So one of the few sectors that's up today It's up over almost 2% and so that's getting us back in the profit in XRT So the one thing I wanted to do today Matt is if we look in the upper left-hand corner in our total count values A little over 49,700 We are using or we've got available funds of a little over 25,000 We don't like to go over 50% of our account value in capital usage and the reason is we've talked about this before Options use leverage. We're utilizing Vehicles that operate under high leverage. So we don't want to get overextended if we had a huge move in the overall markets You know, we don't want to we don't want to stick ourself get stuck in a position where we can't make any additional moves Where we can't put on any other positions And the fact is especially with this contest for you because we're trying to make you some money during this thing is We do not want we want to we want to use our capital in the most efficient way possible. I Agree. Yes. So yeah, you want to make some money, right? Yeah So so we've got XRT and EEM These are ETFs the other two are futures and in the ETFs. We're using about $8,000 worth of buying power for each of those and So while and you can see that's reflected in the bottom right-hand corner mat If you go under it where it says BP effects, that's your buying power effect So you can see we're using almost $8,000 on XRT and it's about the same on EEM We've got about 10 con we've got 10 contracts on for each of those each of those trades and So what I'd like to do is and I typically I don't do this a lot But for for a situation where I get in a position where I need there's other things that I want to trade and I just I'm up against that wall of kind of that 50% usage of capital and I want to put some more trades on This is something that I'll do from time to time not very often But what we can do is we're in the profit a little bit in EEM and XRT and so what I'd like to do is I'd like to just take off five contracts of EEM book that little profit that we have and Then also take off five contracts of XRT book the profit book a little bit of profit that we have in XRT And and what's that and what that's gonna do is like I said It's gonna it's gonna free up some capital and so then we're gonna have some money to put on some additional Positions and in fact the one position I want to look at and we can go to this in a minute But you know the implied volatility as we'll look at in a minute in UNG or in natural gas Is is fairly high right now and so I want I want to get a position on in that gas the the other the other reason for doing this that I think is a prudent thing to do and A very calculated thing to do is remember we've got positions on in the Nasdaq Which are stocks? We've got positions on we got a position on an EEM Which is emerging market stocks and we've got a position on in XRT Which is retail stocks? So all of all three of those are stocks And so what I'd like to do is I'd like to trim down our exposure in the in the equities in the stocks And I'd like to reposition some of that buying power some of that exposure into an uncorrelated asset That's not it. It doesn't have exposure to stocks or bonds and that gas fits that perfectly for us Okay Does that all make sense? Yeah, that makes perfect sense I'd you know just freeing up some some additional funds there making a little bit of money and freeing up some funds So we can put it in you know, what could be a pretty good winner there? Absolutely So we're on XRT right now. So why don't you do this go to go to your position there down below the graph? Click on that and then shift and click on the next leg below it And then you're gonna right-click and close position create closing order There it is This one. Yep. I'm not one there And so that's gonna bring up our order bar and it's gonna show that you know If we wanted to close the entire thing out We've got ten contracts, but what you can do is you can just adjust that down to five and Then we're not gonna get filled at 78 cents. Let's kick that up to 80 cents. We'll probably get filled at around 80 And hit confirm and send Damn done got filled at 80 So so now you can see boom that automatically kicks that down to five contracts And so you can freedom buying powers now down to a little under 4,000. So that's perfect That's what that's what we were looking to do. Yep If you go up to the upper left-hand corner now, you can see we have over 28,600 in available funds for trading so that freed up some freed up some capital there. Nice Okay, now it now keep in mind had we just left that on and We could go in I mean we have we had before we did that we had, you know around 25,000 of buying power So we could have put on trades, but I really I really want to emphasize in you know And I talk about this in my courses. I talk about this in almost every video and that is keeping your position size small keeping your Real that you're buying power in check relative to your account value and what I mean by that is just make it a practice It's a best practice to keep that buying power under 50% always keep at least 50% in cash Because that's really gonna help you in the long term You know, you can you can fight your way out of any big moves or disasters that happen when you do that If you if you start extending yourself and using 60 70 80 90 percent of of your capital That's those are the only times that I've ever gotten in trouble trading with the method methodologies that we teach Okay, so I don't hey, I don't want to I want you to make money We've got a small window of just three months to do that here So I want to I want to do that and like I said use a little bit more efficient use of capital to get on a Get on another uncorrelated position. So The same thing in EEM, so let's go ahead and book five of those contracts there same way okay closing order and And we're at 48 cents. Yeah, I kick that down to five. Let's say let's kick that up to 49 and see if we can get filled at 49 Okay, trading up about right in the middle there, right and Confirmance and send Bam done. There we go So we cut those in half you can see the buying power effect over there in the bottom right is a little over 4,000 and now in the upper left you can see our total Available funds for trading is over 32,000. So that's that's that's good. That's what we wanted awesome All right, yeah, let's go to Nat gas and see what's going on there So if we if you click on that and go to the chart pull up the UNG chart here Yeah, UNG is good because remember with Nat gas with natural gas the implied volatility indicator is just it's not accurate If you use it on the Nat gas futures However, the corresponding ETF is UNG and so that's the one you want to look at To to get a reading accurate reading on where implied volatility is on those options And that's pretty much the the same with all the futures just for clarification but I mean if I go to any Any of these futures I can it's probably safe to not trust the IV It's it's actually it's just it's different for everyone like that when you're clicked on the forward slash 6e That's the euro and that's actually accurate on that one So figures I would do that. Yeah. Well, it just has to do with each of them have a little bit of nuance And that's one of the things that I go on Go over in the in the course that we just released about trading options on futures I break down every symbol that we trade and all the little nuances for for each of those You know like the grain so the ones you're clicking on there soybeans wheat corn You just can't use the IV indicator on those and they don't have an underlying ETF to to track it with So that's one that I actually I like to trade those in periods of when everything else has low implied volatility Because you always get a pretty good bang for the buck with trading those But that's something that I have to kind of manually track and just from experience in trading them I kind of understand what type of credit I should be getting where those at the money options are typically priced and Just kind of track those and see if if they if it looks like a good good time to trade it or not So I know that's not a very good answer But and I've tried to come up with a solution to those grains, but unfortunately the way that those options are priced we just Yeah, Eric Vogels calling you Yes Anyway, so so that that's just the deal there and each of those symbols has a little bit different Different nuance about it. So Anyway, that's that's the deal there Well, all righty then I just have to watch through your new futures course learn all that stuff One piece at a time So So, yeah, go go to Nat gas forward slash NG so oh, yeah on UNG you can see the The IV was at 69 the IV percentile, which is well above that 50 level, which is what we're ideally looking for We know that those options are priced higher than they have been over the last 12 months And so that's what we're that's what we're that's when we want to sell is when those those options are priced higher So, yeah, go ahead and click on forward slash NG and go to your trade tab Okay, that's on the right one I'm gonna give you a few minutes and why don't you kind of walk through walk through the process here of the different things that we need We do yeah, I mean we're looking at the I'm looking at the 47 days You know just right around the range because we're putting on a new position. So 47s right in that range perfect perfect fit and We'll probably go in with the financial here You got it. So just kind of kind of roll through here Generally looking for something around that a 20 20% or 20 delta mark Yeah, anywhere from the kind of the 16 to 20 delta range Just remember the the higher the delta that just means the closer you are to price. So it's kind of more of a narrow Range when we when we put up our graph the the smaller the delta That'll give you a wider range for price to move around in But what but our so the wider the range is what you give up is your potential for profit So you have a little bit lower potential profit If you get closer to the money or a higher delta that range is a little bit tighter, but you get more potential for profit Okay, so I mean really I don't see Made us like splitting hairs basically at this point You know depending on which one we were to go with but just to pick one that's in that range I'd probably just pick a 20, you know 21 Unless you have any other Unless there's something I'm just not noticing here. Nope. Nope sounds good Okay, and that one said a 385, but that's gonna pop up when I do Oops, actually clicked on the wrong one We are selling Strangle right answer a strangle And then here 385 So we got this one right there for now Yeah, so we got our we got our call set at 3.85. So now we got a scroll up on the put side and And figure out which one we want on the put side Yeah, and you like staying you know staying around the same area. So I mean if we pick 21 You know that one's gonna be around to 295 Yeah, and what you what you actually did is you accidentally clicked on that I Messed up in it populated below, but go ahead and go ahead and right click on that 295 again This this one here. Yeah, right click on that and just sell strangle again strangle Okay, so now we have our 295 puts it now we got to go back down to the call side What was that? I think it was 3.85, right? Yeah, so that's 385 Yeah, so don't click on it, but then you just reference it's 3.85 so you can change it there 385 so I got 385 and 295 on the put side. There we go It's good to know those little corks. All right, and then you just wanted to do one Yeah, let's just one contract on that one. Yep. Okay. Yeah, the futures are bigger bigger contracts than the ETFs typically so Let's just let's just do one for now Okay, and price that like I mean normally we kind of go in for you know something in the middle like one 126, I don't know if you want to try and knock it down and look for something like that Yeah point one two six is probably where we get filled so let's go ahead and just right-click and analyze that before we shoot it in Where we at unless We've been too busy doing all those adjustments and I'm Forgetting all this stuff all the basic stuff putting one on in the first place I know it's been a while since we actually just put one on right. Yeah Let's look at this remember you're setting your slices to break even by date and then See if I can pull this together Yeah, and since that right side was off the screen go ahead and set your slices again and should should set up correctly There it is. There we go So you can see we've got a nice almost 70% probability of Making money on this if it goes all all the way to expiration However, we're gonna be booking a profit way before expiration or rolling so we will Our high our probability is gonna be quite a bit higher than that more than the 90 90% range I like that So what you can see here is now we've got a max profit on this if you hover over the the graph there 1260 So this is another kind of a piece of why I wanted to put this on is because You know with the EEM and XRT You know, I think our max profit on those were like 600 some 800 some so you know in booking profits of 40 or 50 percent of that You know, we were looking to make just a few hundred dollars on each of those Well, this one just with one contract our max profits 1260 So we're gonna be looking to book a profit of five to six hundred dollars So more profit potential and we're using less buying power And that's one of the that's one of the things that I really like about futures is that you're using a lot more leverage And so you're able to put on positions for less buying power. I like it. All right All right, so let's go ahead and ship this order go ahead and right click down on the bottom and Confirm and send It's like it filled. It's like it filled right away I've filled right away. So we are in it. So now we've got a Nat gas. We've got a Nasdaq. We've got a bond. We've got the EEM, which is emerging market stocks We've got XRT, which is retail stock. So I like that diversification. We've got a lot better We took some chips off the table in two of our ETFs. So lessened our exposure to stocks added another Uncorrelated asset in that gas and so I like I like where we're at here Sounds good to me. It was an easy day You know, I understand what's going on and why we're doing what we're doing and You know, I'm glad we could I'm glad we could diversify that like that Very good. Well, Matt, we can sign off from here. Have a great day and we'll talk to you next time Sounds good, man. Thanks