 Welcome back X traders, and I'm Marci Coco with X trades, and I'm going to be reviewing the November Last week of November trade plans that I posted in the watchlist channel So after we review these plays very quickly, we're going to move over to our trade plan strategy and we're going to look at one of the random tips that strategy covers with a Vertical spread that I Took with Netflix. Okay, so let's start with reviewing what we did this week. So this is November 28 and this was Monday and this was our We had remember we had the bearish and the bullish trade plans I remember the way we come up with these trade plans is there's Basically half technical analysis and half fundamentals now if you recall in October we did Neo and We were basically fundamentally bearish on Neo The general market sentiment the Chinese economy the Neo Trend the economic data coming out of China the EV industry as well There were no upgrades or downgrades, but basically this pointed to a bearish general market sentiment for Neo and we couple the fundamentals and this is the basic trade strategy We couple those fundamentals with the technicals. So we looked at the ticker trend. Okay, this was obviously not for Neo This is for a different ticker which was bearish we Learned how to draw support resistance levels using different tactics. We learned about price patterns and we we looked at we actually didn't find many price patterns on Neo and We looked at indicators that we did with the Neptune trading system the moving averages and the RSI Which by the way the Neptune trading system highly recommended on the X trades app online you can get it and So we coupled basically the technical analysis with the fundamental analysis and we came up with Neo in October where, you know, basically all the overvalued tickers were getting We're experiencing all these outflows of money and that money was was obviously going either to the sidelines on cash Or into value tickers So we took advantage of that and we played Neo to the downside and in November We actually did something different Because money was still probably not going to be flowing into, you know, the high-tech overvalued high-tech industry we We decided that in November we were going to look at defensive stocks So we basically drew up trade plans for defensive stocks And like I said, those trade plans come out of the technical analysis and the fundamentals analysis So let's look at what we came up with Bank of America, which is the financial it definitely a defensive stock and this is This was our plan we came up with again And a bullish trade plan and a bearish trade plan just in case you never know So this was our bearish trade plan and so far up to yesterday It worked as you can see Monday was pretty red So that was that was that was a pretty good run right there if we would have bought the puts And on Tuesday, we actually reached our lower target, which was Some around thirty six sixty four. Okay, so we would have actually gotten out of that trade Probably and left a runner if anything for today Wednesday Let me break into the four hour just to take a better look here. Yep So on today Wednesday, which is starts here. So these are the three candles for today Wednesday Or two candles rather This one is after hours. So we definitely would have as you can see here reached the The low price target and would have gotten out of our trade and probably Like I said left a runner for the rest of the week out of which of which we would have gotten out of obviously Well, actually no because this is after hours. So it probably would have We would have had to get out sometime tomorrow So we'll see how that plays out But this would have been a win for sure right here on Bank of America. We also looked at Pfizer, which is another Defensive on the health care and this one we had the bearish and let me go back to the daily here See here here. This was we actually played this from the beginning of November, which was somewhere Over here and it's been very bullish and we definitely would have Reached our price target today. Actually the end of the day so Pfizer worked out well oxy was another one and oxy actually broke into Into our This is I believe yeah, this is about mid-November it broke into the downside or the bearish Trade plan around the middle of November and look how well that would have done and then today We're again a lot lower We're probably looking to bounce off of the bottom of this channel so this one would have worked out quite well and then The last one that I believe we looked at was AT&T and AT&T was the one that didn't really do much As you can see it barely broke into Into our Entry level and it didn't go very far now. We still have a Couple of more days left here up to December 2nd and it might actually turn green or greener Into tomorrow and Friday given the very good news today And so that might actually end up driving AT&T higher so I think it's pretty clear that our trade plan or our trade strategy Sorry the strategy that we've developed and tested Over a period of two months so far on different types of tickers Has yielded some very good trade plans and very profitable trade plans So we basically combine the technicals with the fundamentals and if you guys need more pointers on this You know you can DM me on discord or we can set up a tutoring mentoring session Sorry to go over some of these And like I said the other thing that I wanted to cover Other than the general trade plan strategy was a few were some of these random tips, okay? There's a video recently out on risk management Which is in the video lessons channel, which I highly recommend you guys check out But which talks about you know how to size your trade You know and instead of taking like 1 300 or 1 400 dollar call, you know take a few take a few 100 or even 75 dollar calls and that way you can Basically, you know exit at 15% exit at 30% exit at 75% and then maybe leave a runner if you want but runners and sizing of a lot of contracts instead of just one big contract Which is basically putting all your eggs in basket is definitely one of the more important tips on being successful And we mentioned focusing on percentage gain, you know, we want to Follow how much we make in a trade Looking at the percentage of how much you put in not the absolute value Because it's very easy to get You know to get Up to like 10 or $20 if you only bought one contract and then you're thinking to yourself Well, but 10 and $20 that's not a lot. I want to make like a hundred bucks or I want to make like 500 bucks on One contract what that's probably not going to happen in the beginning and definitely not with the smaller Option contracts that you might want to be able to trade in the beginning So you got to focus on percentage, you know, as soon as you make 15% Then you get out, you know, and if you made 15% on one contract and that only represented $15 The solution is not to get a more expensive contract. The solution is to get more of those cheaper contracts and Exit them with a runner strategy and a percentage exit strategy And that's how you're gonna make a hundred three hundred five hundred dollars on one trade Okay, so those are some of the tips that we covered very quickly in the first video that we did and Then we'll go over some of these other ones later But when I when I make the actual Video of all of these topics But the next one that I want the last one that I wanted to cover on this video was something that I did this week with one of the trade alerts that one of the analysts put out and it has to do with This one right here naked versus spreads. So normally what's alerted in the discord channel Is a naked or a single options contract? So it's either, you know VTO buy to open this call or buy to open this put. Okay, there's seldom have I seen but I have seen some Cell to open normally it's just buy to open. So you either buy a call or you buy a put now the attractive Quality of buying a single, you know, whether it's a call or put is that you can make a lot of money But the downside to that if you are not a diamonds hand professional trader then you are probably going to get Jittery, you know, you're probably gonna get paper hands like I do and It just it happens. It's normal. You know, it's psychology. You can try it out if you go and paper trade You're gonna be taking Tesla calls Amazon calls, you know, and you're gonna be riding them all the way to like a hundred or two hundred two hundred percent The minute that you actually put your own money, you're like real money into a trade Then you're like, okay. No wait, I'm not gonna take that, you know, a thousand dollar call on Tesla You know, I'm not even gonna take that five hundred dollar call on Netflix I'm gonna go for like a hundred dollar call on, you know, something else and then that's a problem because you start trying to get cheaper calls Which have a much smaller probability of ending up in the money So what you want to do is instead of going for cheaper calls, you want to use a spread So I have here actually let me switch over real quick to Netflix because this is the call that was alerted Somewhere I believe in Here yeah, it was like mid-November. There it is. Okay, so it was a Netflix call and It might have actually been somewhere here It was a Netflix call and it was a 330 strike now Let's take a look at what Netflix has been doing So far Okay, so it's been trading in this channel So it hits the top of the channel it bounces back down it hits the bottom of the channel bounces back up It's the top here. It ran into some support right there at 254 It headed back up balanced off the top of the channel and started heading back down now somewhere around here a Netflix 330 call was called out or alerted to the idea I wasn't the analyst that alerted to it But I'm guessing that his idea or her idea was that it would bounce off of that this middle line right here Which you can see acts as a support right here and then support here again And then broken then that it acts as resistance and then resistance again and then resistance again It and then the only reason why it breaks over it is because it gapped But then it acted as support again and then once again here It acted as support again. So the analyst was probably thinking okay. It hit this thing. It's gonna act as support It's gonna go back up to the top of the channel. It's probably gonna go all the way up to 330 So they made the alert for the 330 call and they gave themselves Quite a bit of time because it was for December expiration So I went ahead and I bought this call and I have it. I believe right here Okay, so there's the December 330 call. So normally When you see an alert like this, you'll see five hundred and sixty seven dollars. You'll be like, no I'm not touching that thing. It's five hundred and sixty seven dollars that could evaporate just like that okay, if You don't have any idea of what that trade plan might have been and that's why it's so important to Read or to study technical analysis if you can't look at this chart and say actually Let me go ahead and bring this in and use it to cover it up You know if the alert is made let's say that it was made here You know which kind of makes sense it bounced with a bullish hammer off that middle trend line you're thinking okay if This thing bounced off of this support line, which was also this price level support right here Then you're probably not even eyeing 330 as a possible as a possible target So what happens is you look at five sixty seven you've got no clue where this thing is going You have no charting experience. You don't you haven't you don't have any Support and resistance lines. You don't have any trend lines any channels and price patterns actually I didn't see if there was a price pattern on here and Doesn't look like much But basically you look at that and you say to yourself if you're like me, you know a jittery paper hands trader Hmm five sixty seven. That's a lot of money to lose on a call. You'll be like nah, I don't think so So this was actually taken I believe oh no Unfortunately, this was taken today. Let me see if I can find the same picture that I took of that No, I don't believe I have it unfortunately when I took this yesterday it was I was down like eighty three dollars Okay, so I had the call and this call went from five sixty seven and it had gone down to like I believe it was something like Sixty-six dollars okay, so I was down like four hundred and nineteen dollars something like that right here Or more I can't remember The point is when you see a naked call a single call alerted to in the channel one of the things that you can do is Go ahead and take that call and that's going to cost you five sixty seven But then go a strike up above and sell that call Okay, now let's think about this for a minute what you're saying is I expect this to go Above three thirty, okay So you're gonna make money if this thing breaks and runs over three thirty, but you know what? Three it's not gonna go higher than three thirty five So anything below three thirty five I make money okay, so What's gonna happen is that you're basically gonna be trading in a range And that range is gonna be between three thirty and three thirty three thirty five You know that it's definitely gonna be like in this case. Let's say that it it ends up at three oh five It's not above three thirty so this Single call loses money, but it's definitely below three thirty five. So this one makes money Okay, and they don't make and lose money in the exact amount, but it definitely limits your Loss now, let's do a quick calculation right here This thing cost 567 and It made me when I sold it 467 okay, so that's a hundred dollar maximum loss. That's what I paid for it. I paid a hundred bucks for it Well plus fees or whatever, but if this thing Goes from five sixty seven to zero Okay, because it didn't reach three thirty Which it didn't that's if we're assuming that it stayed at three oh five then I will have lost 567 dollars, but if it didn't reach three thirty it definitely didn't reach three thirty five So this thing will expire out of the money and I keep the four sixty seven Because I sold that call Okay, so the five sixty seven minus the four sixty seven Gives you a one hundred dollar Entry okay, or a cost, but that cost is your limited Loss your limited risk the more the most that you're going to lose is a hundred dollars That's the more the most you can lose on this trade. So yesterday when this thing was The numbers aren't gonna You know obviously make a lot of sense now, but I was basically going over I'm probably not gonna go over all of those numbers because I went through like the Delta and the Gamma and As you can see I looked over like ATR, which is basically how much a stock moves You know like in a certain range So it basically gives you how much it move it will move per day So I came up with a number somewhere between like nine and five And then I actually ran the ATR indicator and it gave me something like eight So I was thinking because I was right here yesterday I remember this is the daily charge of this bar right here didn't exist yesterday But I'm looking at again what sort of looks like a bullish hammer because it's definitely more movement to the upside than there Was to the downside it looks like it's rejecting whatever this level might have been here Okay, which for all intents and purposes is probably this level over here to 82 so it looks like it was rejecting this and Again, it might be the same strategy that the original analyst Was looking at when he saw this thing bounce on the middle line. So I Was down about a hundred dollars yesterday because this thing was going down remember the strongest Contract here the one that's gonna Let's say the one that could make or lose most amount of money is the bought call at 567 So this has been going down. So ever since I bought this at a hundred dollars It has been going basically it went up a little bit the first day and then went down down down three days in a row It just kept going down Okay, so I was losing up to a hundred dollars yesterday. So my idea yesterday Which I set up on this text note here, which I'm not gonna, you know read through the whole thing because It'll be kind of boring but basically what I was thinking was okay So I have to manage the spread now because I definitely didn't lose it even if this was a hundred it wasn't 567 okay, so that's the first takeaway that I want you guys to have here is that when you take a single You're risking a lot more and when it gets to be five hundred and sixty seven dollars worth of risk Then you think it twice, you know, you think you think it over and You end up probably opting not to take the single Okay, but it might end up being a good trade, you know, it's just that it's a lot of money So what you do is you like I said you sell the strike above in the case of the call on the put it's different and You end up instead of paying five sixty seven you end up paying a hundred dollars, which we just calculated right here So a hundred dollars is a lot more Acceptable risk, you know depending on your portfolio size and five hundred sixty seven so Once you make it to like minus a hundred dollars, which I was looking at down here So I was starting to think okay this thing might keep dropping a little bit But eventually it's gonna have to bounce back up, you know And so there's a couple of things you could do one of them is okay So the one that's making money is obviously this sold call this one is in the red And it's probably gonna be at least up to yesterday It was probably gonna be in the red for a lot longer So I was thinking mmm. This is you know pretty much lost But I can take this and I can sell I can buy it back. Okay, so I'll make a hundred seventy four dollars I'll buy this sold call back and Just see if write it out as a single which is very risky in the sense that you could lose a lot more Because there's still some value left in this. Okay, it's worth two ninety right now But you could still make those two ninety two From now until expiration if this thing goes completely to zero but the point is that one of the strategies that you could take is To basically take the profit on this one Because you're expecting it to actually bounce back up, you know and this minus one eighty four as this thing keeps riding up You know it was down here at minus one eighty four. It's gonna be like minus, you know Hundred it's gonna be like minus eighty four eventually. It's gonna be like Minus, you know one and What whatever happens from here on in if this thing takes off then you will make money because you will have collected a hundred and seventy four dollars and This thing let's say that this was it is a hundred eighty four dollars So you're in the red but if you sell this one right now or buy it back sorry and You hold out with this call basically in your hand the single call This loss is gonna reduce from one eighty four to one hundred to eighty four to fifty And that means that you will have made a hundred and seventy four Minus a much smaller loss maybe ten twenty bucks So one seventy four minus the twenty buck loss is only one fifty before you still make money Okay, so that's one option that you can do with spreads the other one you can do is that you can sell You can buy this one back. Okay, so you already took one one seventy four and you can sell another one again For December but with a lower strike Okay, and so I was looking at this yesterday, and I could have bought the three hundred one here It is for four hundred and twenty five dollars. I could have sold sorry, but about that I could have bought this one back made a hundred and seventy four. So let's Punch that in our calculator here. So you make one seventy four Yeah, you're still losing one eighty four but one The the other thing you could have done is okay now sell the three thirty Which yesterday was three. It was four hundred twenty five dollars. So I could have Sold the three thirty for four hundred twenty five So if I sell that for four twenty five, then I'll make the one seventy four a pocketed right now. Oops about that Okay, so I pocket one seventy four right now and then Add to that four hundred twenty five of them of the other sold call and that's six hundred bucks Okay, so even if this thing Goes all the way down. You will have lost five hundred and sixty seven Which means that you're left with thirty two dollars a profit if this thing like I said Doesn't reach the three thirty, but it doesn't go past the three hundred which would be somewhere around here So those would have been to Two different Options that I would have had or two alternatives that I would have had in case that this thing just you know It reaches a point where it's negative and you're trying to salvage it. There's two ways to do it. Okay? You either just get rid of This one and then you keep this one in and basically hope that it's gonna go You know from a big loss to a smaller loss or you actually take another sold call sell that against it and Hope to profit out of that again in both cases you need technical analysis to give you an idea of how far this Thing could go now. This was obviously not normal This thing went from the open of 281 to the close of 305. That's 19 dollars in one day if we look at the ATR Which I'm not sure if it's still in here No, I don't think it is But I know I have it in here or did yesterday anyway ATR I'm actually gonna favorite that that's how you favorite and trading view by the way, okay? So go ahead and click on it and add it to the chart. Okay, so here's where it was See it was that look about at about 11 and then just today it moved 19 You know in one day, so now it jumped back. It's up to 1284 practically 13. Yeah, so this was obviously not a normal move but and then now my $100 loss is down to $10. Okay, and this is looking quite well for the end of the week So I'm gonna basically stay bullish on this one. I'm gonna leave it open But what I wanted to basically cover was when you see a big, you know a very expensive alert, you know made in the alerts channel and You know 567 you're like no, I don't want to take that. That's too much money I could lose 567 dollars go ahead and buy and sell the next strike Above that same contract Okay, and that way you're collecting some money if it stays below that number Which it definitely will if it doesn't blow past the 330 Okay, so this is just one of those tips. It's not so much a tip. It's actually a strategy. It's vertical spread It's a combination of options contracts that it does cap your gain because you obviously cannot make So much because after this thing shoots past 335 then this one is gonna lose a lot of money Basically all 467 and basically you Whatever you made on the upside gets reduced or limited or capped by whatever you lost to the downside So it does cap your gains, but it also limits your risk quite a bit because If you know if basically if somebody asked you would you prefer to lose 567 dollars or a hundred dollars? I think it's pretty clear That we would much prefer to just lose a hundred dollars So vertical spreads are a very good strategy for people who get into a trade. It's really expensive You don't want to be that expensive because you probably don't have enough time to be monitoring it and waiting for this thing to go You know, maybe it goes up to five. I believe it did it did go up the next day This was the the next day after I bought it. It did go up and it was you know, probably went up to like, you know 580 or 590 and so again used percentages So if it went up to 590 out of the 567 that it cost that's a 4% gain You know, I didn't have time to be watching it all day So I figure, you know, if I don't have the time and it's a very expensive trade But it's a very good ticker with a you know, and I have the you know The trading the technical analysis tells me that it's a good strategy. It's a good alert Then I want to take it. I just don't want to risk 567 dollars so verticals are a very good strategy if you don't have the time to be glued to your monitor and You know keeping tabs on a $567 trade because when it does go down it goes down, you know And you lose quite a bit less than if you would have taken the single, okay? So that's basically what I wanted to cover to end the month of November and in December I will probably be looking at More of these spreads in detail I'll try to take those take the ones in from the discord alerts and basically make those into spreads and That is what I'm going to be looking at for the month of December. Basically the I'm gonna recap this whole Trading strategy in in one more video and I've got some examples here I've started to work on some slides, but it got like too long. So I kind of don't want to Make it such a long video. So I'm gonna basically gonna in the month of December I'm gonna recap the trading plan, you know, how do you do technicals? How do you do fundamentals? How do you put them into your trading plan and then you know these tips that will probably focus a lot more on spreads? Going forward the month of December should be a Santa rally especially after Powell's gift today. So I'm I'm gonna be bullish for the month of December, but that also means that it's going to be a good month to hedge any trades To the downside, okay, because if this thing is gonna keep going up not Netflix, sorry Well, I do expect Netflix but spy in general if this thing is gonna keep going up and oh look at that It just actually hit the top of that trend line So tomorrow is gonna be very decisive what I had was this rising wedge Which is gonna hit the the top of that down trend line So basically if this thing pops over and retest that trend line Then I'm gonna be bullish for the rest of December if this thing comes back down It's probably probably gonna hit this the bottom of the wedge right here And it's still gonna rally into December But then or at least until the end of this December So I'm still gonna be bullish for the month of December, but as soon as You know, we get a rejection off of this trend line, and I'm definitely gonna be looking to hedge some with some spy puts for the next few months the beginning of 2023 so remember to always look at the general market sentiment not just the individual ticker and then you combine that with your technical analysis And you have trade plans either to the upside or to the downside and whatever Whatever happens during that week, you know, you got basically follow your plan you know stick to your stop losses limit your losses and definitely use more than one contract keep an eye on percentage gains not absolute value gains and whenever you reach your reach your Your target prices take your profits and then leave a runner So for in order to do that you must have taken at least Two contracts for a specific trade. All right, so I hope that that was useful if you guys have questions on any other stuff Go ahead and send me a DM Online on discord pretty much every day during trading hours, but I'm also available after trading hours and Probably have more time to answer your questions But yeah, go ahead and hit me up and I'll see you tomorrow