 Hey, all right everybody Lee Lowell here smart ops and seller comm welcome today is Saturday, June 5th 2021 I'm back took the weekend off last weekend for making a new video For the Memorial Day weekend holiday here in the US So we're back and we are ready to go with another Saturday YouTube video of options trading strategies as well as our Saturday synopsis where we take a look at the stock charts See what's been happening over the last couple weeks and try to make an assessment of what may be coming down the pike as You can see on your screen. We will be talking about today Selling in the money put options here at the smart ops and seller That is all we do is we sell options Specifically put options and put option credit spreads. That is our bread and butter. That is what we do the best So obviously we talk mostly about selling put options and other strategies from time to time as And if you are a watcher of my YouTube videos You know that we talk about buying deep in the money call options or selling spreads or how margin works lots of different topics on options trading strategies, but We mostly concentrate on selling put options because we feel that is Probably one of the greatest option trading strategies out there very high probability of profit And it brings an infusion of cash into your account and offers you the ability to potentially buy a stock of your choosing at a Price of your choosing so we love the strategy But today we're going to be talking about selling in the money put options Typically we would sell out of the money put up and so we'll explain that a little bit I get questions from people all the time Lee we know you like to sell out of the money put options, but can we sell in the money put options? If so, how does it work? What kind of return can I see how does it different than selling out of the money put up? And so we will talk about selling in the money put options today And one other thing I just want to bring to your attention here is that you know I continue to get questions and emails from people all the time about learning more about selling put options You know, they really want to go deep into the into the subject So this summer we will be launching our very exclusive very personal deep dive seminars in Selling put options and how to do it and we'll go from it in a to z deep dive into selling put options And this will be a very small group. We're only taking 10 students at a time so we can get real personal We can answer all your questions. This is something that we we see You know lasting anywhere from two to three hours in time. So we're going to go we're going deep We're going deep into selling put options everything you ever wanted to know about selling put options This will be part of the you know, the classes the seminars of webinars, whatever you want to call them We will be doing it online. We only taking 10 students at a time So we get real personal. This is a little different than than our one-on-one coaching Which you can talk about anything you want there. This is specifically for put option selling So if you have an interest in learning You know everything there is to know about put option selling at least from what I can teach you You know stay tuned for more information on that because we're going to be doing this I don't know how many times we will be doing it because you know if we go three hours It takes a lot of time and effort So if you're interested you'll make sure you sign up on our website for the for the put-selling basics guide Let me let me run that real quick by you here put selling basis guide Go to our website smart option seller comm up here put selling basics right here You scroll down put in your name and email address in addition to getting our free put selling basics guide This will get you on the list for any other information that we put out there So if you're interested in this deep dive strategy, you know 10 students at a time Probably do a couple a month at most You know make sure you sign up and if you have any questions about it email me as well All right, so let's get back to our our Topic of the day of selling in the money put options now for some newcomers out there the the The strategy of selling put option. Let's just go over the basics here. So we all we're all on the same page In options trading there are two types call options and put options We only we only discuss put options here mostly and there are buyers of put options and sellers of put options We concentrate on the selling side of put options When you sell a put option contract What you're doing is obligating yourself to potentially buy a stock at a specific Price sometime in the future. What price is that? Well, that's called the strike price and you can sell a put option contract at any strike price you want Okay, if the stock's at a hundred you can sell a $90 put option You can sell a $50 put option. You can sell a hundred and twenty dollar put option So you can choose all these different strike prices and they have Names for these strike prices for the stocks at a hundred and you sell a 100 strike put option That's called an at-the-money option strike because the strike price is Basically the same as where the current stock prices if you sell a put option at a strike price at a level lower than the current stock price That's called out of the money put options the stocks at a hundred you sell an 80 strike put option That's an out of the money put option That's what we concentrate mostly on here at the smart option seller And if the stocks at a hundred and you sell 120 strike put option, that's an in-the-money put option Okay, that's what we're going to focus on today in the money put options So what's the point of choosing? You know a different strike price like that and remember when you sell a put option you get the money from the put option buyer They have to pay you so it's a great way to earn income off of the trade now just remember In the end you you might have to end up buying shares of the stock And you'll have to pay out the money to buy those shares of stocks So you have to make sure number one It's a stock that you like and number two that you have the cash ready to go if you're in fact called upon to Actually buy the shares. How does that happen? Well if you sell a if the stocks at a hundred and you sell 100 Put option strike and all of a sudden the stock drops down to 80 That means you're gonna be called upon to buy the stock at a hundred dollars per share when it's currently trading at 80 So you'll be locking yourself into a loss a $20 per share loss So you have to make sure you're comfortable with the stock and that you can ride out any short-term fluctuations What we do at the smart option sell at the stocks at a hundred We always choose an out-of-the-money strike because we want to give the stock leeway and and room You know to move around in a normal trading range. Okay, so we like that protection on the flip side Let's go over what selling in the money put options can do for you If you're going to sell an in-the-money put option, that's where the strike price is higher than the current stock price You have to be extremely bullish on that stock Extremely bullish because if the stocks at a hundred and you sell a hundred and twenty dollar strike price as long as the stock moves up Above a hundred and twenty dollars per share by expiration That option will expire worthless and you can make a lot of money by selling in the money put options Because in the money put options pay a lot more the buyer has to pay a lot more for an in-the-money put option It has value right off the bat. So it act. So what's worth is more? Okay, and we'll look at some examples, and I'll show you what that means I know this might be a little confusing for some of you But the number one thing about selling in the money put options is that you must be very Bullish on the stock because you think the stock is going to move up. That is your goal Obviously if you buy stocks or you're bullish on a stock you think the stock price is going to go up One way to take advantage of that other than just buying shares of stock is selling in the money put options It's an extremely bullish strategy. So let's make sure we're on the same page there So if you're going to sell it in the money put make sure you're very bullish on the stock Now the benefits of that if you're correct, and if the stock does move higher Then you can make a lot of money Very quickly almost as much as you could make if you bought a hundred shares of a stock Okay, and number two here. So in either direction the option price will move very quickly The higher or lower. Okay, and that's because in the money options have a large Delta I've talked about Delta in the past Delta tells you how Far the option price will move or how much the option price will move in a corresponding move of the stock So if the stock moves x amount the option price will move x amount Okay, that's what the Delta tells you so you'll always know how much your Option price will move in conjunction with the stock moves That's what the Delta tells you and in the money options always have larger Delta's Delta's range from zero to a hundred and You know in the money options have Delta's, you know 70 80 90 percent their their their measured in percent so zero percent to a hundred percent in the money options have very large Delta's 70 80 90 percent so that means that the stock moves the option price will move as well And if you're bullish then the option price will move in your favor very quickly and in a large amount So you have to be prepared for potential large swings in your option position Okay, and so profits and losses can occur very quickly right here So remember if you buy a hundred shares of stock or however, however many shares of stock shares of stock Your your portfolio value with that position will fluctuate higher or lower just depending on where the stock goes It's the same thing within the money options because they have large Delta So the option value will fluctuate in large Ranges as well. So you need to be prepared for that. Okay? As I mentioned earlier when you sell an option specific specifically in this case a put option you get money right off the bat from the option buyer and In the money options will have larger premiums Then out of the money options or at the money options. So you're you're you're dealing in larger amounts here Large premiums, which a lot of people like because they're like, hey, I can collect all this large amount of money This is a good thing But you also have to remember the stock has to continue to move in your favor in order for you to keep that money Okay, so there's always a downside to every strategy Now one thing that I will say is that When you sell put options, you are collecting large amounts of cash and that cash Goes into your cash balance in your portfolio So if you have a broker that pays interest and I know interest payments these days are extremely minimal like almost non-existent But a larger cash position in your account, of course will create a nice Interest credit, you know at the end of the month when the broker if the broker pays interest They'll pay you a little bit more because you have this larger cash infusion Now when I was trading in the commodity pits in New York in the 1990s, you know Interest rates were five six seven percent back then short-term interest rates like T bills and you know 90 day T bills Whatever or you know three month T six month T bills We were we were required to you know hold a certain amount of cash in our account And when we would sell options whether there are call options or put options We would bring in large amounts of money and that money Was sitting into the cash portion of our account and our our brokers would pay interest on that cash and back then in the 1990s that was a large amount five six seven percent interest on Hundreds of thousands of dollars of cash sitting in your account for you know three month trades you get a little bit of interest payment So that's a good thing, but in today's market, you know interest rates are so low You really won't see much of it of a difference, but even still if you have if you're selling lots of put options You'll have extra cash sitting in your account until it expires And you know, maybe you'll see a couple extra dollars in your account if your broker pays interest Now the other thing about selling in the money put options is there is a there is a much higher chance of assignment Assignment means that the the option buyer is going to force you to buy the shares of the stock Okay, when you sell a put option what you're doing is obligating yourself to potentially buy shares of that stock and It's called assignment at expiration or even before expiration You might be called upon to buy shares of the stock and you have to pay for those shares in full So you need to make sure that you have a cash ready to go Now, you know, there's a very rare chance that you will be assigned before expiration That's just how it works. Even if even if the it's profitable for the option buyer to exercise their option They most likely won't do it until the expiration date. That's just it's not smart for someone to exercise an option before expiration but on occasion it can happen. So you always have to be aware that You can be assigned at any time. So when you're selling in the money options Just be prepared that assignment could happen early and you'll have to have the cash ready to go to buy those shares of stock So make sure you it's a stock that you want at a price that you want And we're gonna look at the strike prices and see what our break evens would be so the whole the whole gist of selling it in the money put option is Because you can get larger infusions of cash when you sell that option But you have to be super bullish and if the stock moves in your favor Meaning it moves higher than that option position will give you quick large profits, so you have to be sure about your stock picking abilities and Making sure the stock moves in your favor over time It doesn't have to be a one-week trade or a one-month trade It could be a six-month trade the longer the expiration the more money you will receive and If you give yourself more time It allows you to be correct in your stock assessment on a day-to-day basis or even on a week-to-week basis Stock prices are so random. You can get caught up in a bad move one week But you got to give yourself some time for the stock to recover So if you're selling, you know in the money options consider a longer-term trade What do I consider a longer-term trade? I don't know maybe three to six months out in time to give the stock an opportunity to move Okay The other thing within the money options is there's not a lot of downside protection There's not a lot of wiggle room for the stock to move lower When we sell out of the money put options at the smart option seller We allow ourselves at least a 20% fluctuation gap Stocks here we sell our put options down here We have all this room for the stock to move around but when you selling in the money put options strike price up here You don't have a lot of wiggle room So you have to be pretty sure that the stock the stock is going to make the move in the right direction for you Okay So so we've gone over the the basics of you know what in the money put options are why you would want to sell them Let's talk about actual numbers. Let's take a look at some you know an example here And I'll pull up another page here and we'll write down some numbers. So let's take a look at let's go to our Option chain here Now let's take a look at a stock like It's already on Oracle here. So let's just say you're bullish on Oracle. Okay, Oracle is currently $83 a share $83 a share and You know, you're thinking Oracle's going to go up in price. I'm just I know it's gonna go up in price I like the fundamentals of the company. I've looked at the stock chart stock chart looks good I think Oracle is ready to run. I think it's really ready to keep going higher So, you know, if you're not willing to buy the shares of stock at $83 you can sell and in the money put option Collect your cash and wait for the stock to go up now Here's put options on the right-hand side bit ass calm is all we need to know that will show you the most current price of The option at that moment in time today is Saturday, June 5th market is closed right now, but we're looking at the December 17th 2021 Options on Oracle. So these are roughly a little over six months six month option. Okay And we can look at September 2 but if you're looking to sell in the money option Here's the the delta column as well. So we can see what the deltas are Oracle's at $83 you think there's a chance it could get up to 100 by December six months You think Oracle Google can go from 83 up to 100. So you're looking to sell the 100 strike put option now This is not Investment advice. This is just purely an example. So don't please don't take this as a as a trade a real trade or a real recommendation But your thoughts are Oracle can get up to a hundred dollars a share By December so you want to sell in in the money put option with Oracle at $83 the 100 strike Here's Oracle at 83 the 100 strikes up here. That is an in the money option. It's in the money by $17 per share. So the $100 put is worth roughly $18.50 per contract. Here's the bid. Here's the ask We always want to do something in between the bid ask numbers So let's just say it's it's worth $18.50 per contract now with the option multiplier You have to multiply all these numbers by a hundred to get your actual dollar Amount that you will receive. So when you sell something at $18.50 per contract, you're going to get $1,850 in your account per each option that you sell So let's just say you sell one contract. It's worth a hundred shares and you'll get $1850 right then and there in your account for selling this put option So what do what you've done here is that okay now you're on the hook to potentially buy 100 shares of Oracle at $100 a share By December now you're thinking to yourself. Well, why would I want to buy? Oracle at $100 a share when it's currently at $83 I can go in the market and buy it at $83 a share. Why would I want to buy it at 100? Well, because you're being paid You're being paid this premium which lowers your potential buy-in price So you always have to know what your cost basis is or your potential buy-in price here Let's pull up a let's pull up another sheet here and so we'll write down some numbers Oracle at 83 Sell 100 put for 18 50 Per contract cost basis equals 100 strike take the strike minus the option premium equals 80 150 per share Now, let me just check my calculator. I want to make sure I did that right 100 minus 18 50 equals 81 50 per share. So this is what your cost basis would be If you had to go ahead and buy the shares if the option buyer decided to exercise the contract You will be forced to buy a hundred shares at $100 per share because that's the strike price But since you're getting $18 and 50 cents per contract upfront That makes your true cost basis 81 50 per share. Okay That's a dollar It's a dollar 50 per share Cheaper Then oracles current price 83 So this is what you're getting You're getting to buy or a potential you're you're potentially getting to buy Oracle at an 81 50 Price tag while oracles currently at 83. So you get a dollar 50 off the dollar 50 per share discount Okay, that's your cost basis if you had if at expiration you were forced to buy the shares Now let's go back and take a look at the option chain So Once again, why would you opt to sell a 100 in the money put it has a delta of roughly 85% So that means For every dollar that Oracle moves up Oracle stock price for every dollar that Oracle stock price moves up Your put option value will decline by 85 cents per contract or 85 dollars So that's what you're hoping to happen. You want Oracle to move up in price So your option price will go down. That's how you will make a profit as a put option seller You're selling the put option at 1850 per contract. You want that value option value to go down So sometime in the future you can buy that option contract back at a cheaper price That's your goal here Your goal is for the option value to decline just as you sell any other kind of option You always want the option value to decline so you can buy it back later at a cheaper value That's how you lock in a profit so if Oracle moves up the in the money put option value will decline very quickly by 85% that's the Delta, okay, you're looking at a high Delta here 85% a high Delta Now the one way to tell will you say well, how how how do I know how far down? The option price will go. Well, number one that depends on how high or how high Oracle stock will travel Okay, one way to kind of calculate that it as a you know ballpark is Oracle's currently at 83 you look at the most current at the money strike Which is the 82 50 puts that's the closest strike price to the current price of Oracle And that's worth roughly, you know somewhere between five dollars and seventy five cents to six dollars per contract somewhere in that range That's what the current at the money put option is worth. So if Oracle travels up to a hundred if Oracle travels up to a hundred Then the hundred strike price becomes the at the money strike. So if Oracle would jumps up $17 This hundred strike, which is worth currently 1850 will now be worth roughly what this one's worth Somewhere between five seventy five and six dollars a contract because Now the hundred the 100 strike is at the money if Oracle jumped up to a hundred dollars a share So you can kind of ballpark what the value of that option will be it'll probably be Lower than this because time decay and expiration moving ahead Options lose value. So it's a good easy way to ballpark. So if if if Oracle jumped from 83 to 100 You know in the next week, you can look at this 82 50 strike to see Oracle will probably be worth about That the 100 strike will go down from 1850 of drop all the way down to six dollars per contract So you're gonna make yourself roughly 12 dollars per contract 1200 dollars in actual dollars Okay, so that's a that's a easy quick way to figure out how quickly or how much the option will be worth if Oracle jumped to your You know to where you think it would go Right, so it's at 83 if it jumps up to 100 All you have to do is compare the hundred strike to the 82 50 strike to see where that option would be worth and What you can do is you turn around and buy back the option for let's say six dollars You'll lock in a $1,250 gain or $12 and 50 cents per contract. That's pretty good in one week time, right? It's a good. It's a good. It's a good return on your money So you're hoping that the stock moves up not only moves up, but moves up quickly will allow you to Make your profit very quickly as well so you have to be very bullish on the stock and The stock doesn't have to move right away as long as it moves up over time You'll make money. Okay, so In the money's option cells in the money put option cells number one are hoping for a big move in the stock So the option value will decline and then you buy it back for you know a gain That's how you make the money by selling in the money put options now on the downside What happens if the stock drops? Instead of going up. Well in that case you're gonna hold a losing position Just if you bought just as if you bought shares of stock if the stock declines You're going to lose money same thing with selling in the money put options if the stock drops You're going to lose money very quickly if Oracle drops a dollar Your put option value is going to go up by 85 cents a contract. Okay that remember that's the Delta 85 percent So for every dollar that Oracle drops You're going to lose $85 Per contract on your option position. Okay, so just be aware. Let's just say Oracle. Let's just say Oracle dropped ten dollars So you'll lose roughly eight dollars and fifty cents on your option contract. Okay now. You're in the hole by eight hundred and fifty dollars That's if Oracle drops by ten dollars So you have to be pretty sure that the stock's going to go up And if the stock goes down you're going to you're going to have a paper loss a larger paper loss So you have to be prepared for those larger swings if you want to play with 85 Delta options You're going to deal with large price swings. So you have to make sure you're comfortable with that Now what happens if Oracle drops down to 70 dollars? Which is $13 lower and we're getting close to expiration Well the option buyers going to come in and say you know what I'm exercising this option You need to buy these shares for a hundred dollars a share while Oracle's at 70, you know, that's a that's a you know A loss right there. So you have to be sure that you want to do this trade and So we've showed you how to calculate your cost basis What about stop loss like how do you protect yourself? What what is your what is your defense defensive plan? Well as with any other Investment what's what's your what's your defensive mechanism? Most likely it's you set a stop loss Okay, do you and you can there's two ways you can set a stop loss You can set a stop loss based on where the stock chart goes. You know if Oracle's at 83 now What do you set a 20% stop loss? So if Oracle drops 20% you can get out or you look at the chart patterns if it breaks Support you get out or you can set a stop loss based off the option price itself So if you sold the 100 put for $18 and 50 cents a contract and you saved yourself, you know what? I'm not willing to lose more than $1,000 So then if The option price runs up to 2850 per contract that'll be a thousand dollar loss So you can watch the option price or you can watch the stock price and see, you know How it fluctuates and you know make your decision there because that's all about how you can protect yourself Let's go back to the original document here Down here stop loss you can use the stock chart to gauge Where you might want to get out or the option price stop level It's it's it's being smart, you know, you have to protect yourself So just remember selling in the money put options You're playing with larger numbers which could give you a larger profit But the stock has to move in the right direction Very quickly if you're not very good at you know looking at charts or picking stock direction Playing in the money selling in the money put options could be a little bit Riskier or a little bit too aggressive for you. So make sure you're comfortable with the strategy That's why we only sell out of the money put options here because We we err on the side of caution I'm always thinking the stock's going to drop So I want to give myself and my readers a lot of cushion a lot of buffer And but the but the offsetting that is that we we collect Smaller amounts of premium. So there's a trade-off. Do you want more premium? Well, you're going to have more risk Less premium less risk or larger buffer for downside movement. So it's all a trade-off options are all a trade-off Okay, so if we go back to the option chain here If you looked at September options Those 100 puts are worth. Let's see what those 100 puts are worth when the numbers filter in Okay, so 100 puts are worth now maybe $17.50 a contract. So it's about about a dollar less you'll get And let you know get three months less in time So you decide, you know, how how much time do you want to give yourself when you're when you're trading these options? all right, so That's your lesson on selling in the money put options. Please be careful if you use this strategy It's it's a very bullish strategy. Make sure you're you're bullish on the stock and make sure it's a stock That you would like to potentially own make sure you know how to figure out your cost basis cost basis Once again, take the strike price minus the amount that you're receiving that gives you your cost basis Okay, let's move on to the next part of our saturday synopsis which is The we take a look at the stock charts We look at individual stocks. We look at the indexes. We'd like to see where the market has been and where it may be going I like doing this. I like showing My watchers, you know, how I do technical analysis. It's Technical analysis. It's all about chart reading. It's all about looking for patterns support and resistance levels to see where The stock or the index might be going next. So we always start with our SPY, which is the exchange traded fund the sp500 We open up the chart here. This gives us the broadest measure of the market as a whole Now what we're seeing here is and I if you've been watching my videos, you know, I've been bullish very bullish for You know all the future that's just because that's the way the stock market goes But I like how things are happening here in the u.s. At least The corona virus is is you know on on the down On the downward the vaccines are rolling out. We have about 40 of the u.s. Population that has been fully vaccinated Summers here people are getting out people are feeling good They have a a lot of disposable income to spend. So that means you're just going to buy products that you the individual consumer You know is is responsible for it close to two-thirds of of the u.s. Is GDP I think that's what the numbers right so The the u.s. Consumer is pretty much pretty much moves the the economy in the u.s And when people have a lot of disposable income summers here, they're feeling good. They want to go out They're going to be buying products and that in turn spells larger profits for companies and better earnings during their earnings announcements Better future guidance from companies and that just drives stock prices higher And and in addition to that you're not going to get a return on your money anywhere else You know not your bank account not CDs not bonds gold You know maybe real estate, but real estate is very liquid and you can't just click your mouse and get in and out So the stock market's where it's at that's where the returns are So let's take a look at the sp500 and why i'm still very bullish We always take a look at the daily chart first I have the open high low close bars Each bar you see is one day's worth of trading and on the chart I have a 20 day simple moving average a 50 day simple moving average 200 day simple moving average and the 14 day rsi overbought oversold indicator down here But we like to look at the chart action We like to look at the prices themselves to see what's happening As i've been saying over time When stocks are in an uptrend or whatever whatever movement they've been moving In this case uptrend they will typically bounce off either the 50 day or 20 day moving average Now you can see the index here. This is s and p 500 Has been nicely tracking the 20 day moving average or the 50 day moving average when it pulls back It will bounce off of either one of those lines and you can see here It's been it was bouncing off the 20 day moving average these two occasions It it dropped a little below the 50 day but bounced back very quickly here again bounced off the 50 day right here And then most recently again right here bounced off the 50 day. Here's the 20 day Looks like yet Thursday had a nice bounce right on the 20 day moving average line Okay, and yesterday friday june 4th 2021 You can see the little dash marks on the right side of each bar That means the closing price of the day the closing price is the most important price of the day Because it gives it can give momentum for the next day Close right near the high of the day and it looks like we may have tagged an all-time new high Uh during the day Now the top of the bar is the intraday high the low of the bar is the low of the day so the s and p 500 Right on all-time new highs here Which I really like and what we also look for on the charts are the patterns that they are making One of my most favorite patterns and one of the most bullish patterns I think is the ascending wedge or the ascending triangle. What is that? Well ascending means something's ascending going up So what you can do is you draw your you can draw your trend line as the ascending part you can see And then what you do is there's what's called the flat top. Okay the flat part of the triangle So we got this pattern right here I'm going to show you a couple of the charts that I like that have either blasted through or getting ready to blast you So this is called an ascending wedge ascending triangle Whatever you want to call it when It's building this upward momentum that keeps getting knocked back down by this resistance line This is the resistance line. I mean resistance means the stock is having a little trouble getting through to that next phase But it's got this bullishness behind it. So the more times it It hits the resistance the more pressure it is for it to finally pop through So we're watching the s and p 500 try to get through maybe the 423 level if it pops through the resistance line gets up to 423 And moves above this resistance line for a couple days It's off to the next leg of the bull move. Okay, so I like the pattern ascending triangle pattern The the s and p 500 looks ready to just bust through this and and move on to the next leg of all time new highs So I like how the s and p 500 looks. Let's take a look at the dow Jones dow Jones here same thing It's it's moving up. It has been moving up bouncing off either the 20 day or 50 day had the bounce here Had the bounce here now if you're if you're you know If you're you're wanting to get long and you're waiting for that timing mechanism The timing mechanism is wait for the bounce off of one of the lines and then get in Okay, the bounce here was nice. I don't know, you know, people start to think all the stocks Market's moving down. Here comes the next bear market. Here comes the next leg lower It doesn't happen it happens. Yes, but for a short period of time until it bounces and so whenever You know a stock index makes an all-time new high and then starts to come off people think that's the end of it It's never going to go higher again And people are afraid to jump in they'll say well, I'll get in when you know after it sells off for a while Well, here's the sell-off. Did you get in? Nope. Here's the sell-off. Did you get in here? Nope And and people just remain on the sidelines because they're so fearful of the bear market and that's understandable But you have to look at the history of the market The stock market just goes up over time And you have to be on board if you want to have some long-term wealth Okay, so if you're looking for that timing mechanism, you wait for the bounce And the Dow is not as strong as the s&p 500. Here's the all-time high back here. This was on May 10th. So but it's on its way. It's on its way. You can also look at potential You can also look at a potential ascending ascending triangle Um, you could possibly draw it like here and draw this line here No, so these are just patterns to look for that's all Uh, and I'll show you where you can look for these Um, there's some websites you can look for I'll show you those again. So that's the Dow Dow looks strong. Everything looks strong. Looks like it wants to keep moving up Let's look at the NASDAQ because that's been the weaker of the three main indexes Have been having trouble getting through To new highs. So the NASDAQ's been sort of trading in this Larger channel that I drew in the past. I drew this down-srending channel Didn't last very long popped out. So we we can kind of see the w pattern forming Okay, the w pattern is a bullish pattern once it gets above the resistance line So here I'm waiting for it looks like the NASDAQ's ready to move back up to the resistance line And the key will be If it can pop through then it should start to make all-time new highs But a lot of the tech stocks have been having trouble for the last, you know A couple months just kind of been churning around in the range So it was it was definitely the leader coming out of the pandemic But now it's you can see the sideways action Compared to the the s and p 500 Which has been just mostly moving up Mostly moving up While the NASDAQ is just kind of churning All right, you can see you can see the pattern here So a little sideways action. So we're waiting for it to get up through here Okay, so let's take a look at some individual charts. Well, let's let's let's stay on that theme of the ascending triangle I want to show you a couple stock charts here oracle, which we just talked about actually Had a nice beautiful ascending triangle. I don't have it on this chart It's on the other computer that I use but I want to show you what I was seeing And now you have to you have to Condition yourself to look for these patterns had this beautiful ascending part right here Right, you draw the trend line from the bottoms of most recent action And then you draw across To the resistance And it made this beautiful Pop out just the other day Thursday it started to creep out I had bought some shares when it was just in here. I was kind of anticipating a move Got a little ahead of myself But but oracle had the nice pop out all time new highs for oracle like the stock And so you need to look for these patterns. How far back do you go? It depends. This is a daily chart, you know, just my real estate goes back a couple years But the ascending triangle doesn't need to be more than maybe You know a month or two three months if you want, you know, I could have drawn this line from Could have drawn the line from down here Okay, it all depends what what you're seeing on the charts So the ascending triangle pattern is very bullish um also on Was it sysco sysco is also sysco sysco not the food company sysco, but this sysco company Also has a nice little ascending Pattern here take away that one long bar that one long down bar You can see start here make another line here Okay, so these are all ascending triangle patterns So sysco could maybe turn a little bit more in here and then look for it to pop out. That's that's the ascending triangle Let me bring you up to the Website where you can get some more information on this Let me pull it up. Is this it the okay, so I've shown this this stock this this website before chart patterns.com Chart patterns.com it'll show you all the different chart patterns right here. This is the ascending Triangle you click on it and it'll give you an example. It's exactly what the charts I've just been showing you and once it moves above the The resistance it's off to the races. Okay, so we go back to the chart. You can see sysco looks like that oracle looks like that I think was it mcdonald's Has sort of Not as much not as much. Maybe depends not as crystal clear trying to think what other might have been murk. Was it murk? No, not murk procter and gamble. Maybe yeah procter and gamble was something So I had this pattern on maybe from a couple weeks ago Was making was making a nice pattern it dropped below it. Let me blow this up here um Dropped out of it. So it's it's better to wait for it to pop out for a day or two because you can get a false move which procter and gamble was fell back out, but now it's starting to move back in It's starting to move back in so i'm waiting on procter and gamble. Okay, so it's all about looking for patterns Seeing what you can see on the charts Let's take a look at some some individual stocks. We always look at apple Because I talk about apple it's one of the positions that I hold apple has been very frustrating for me Obviously, you can see as part of the nasdaq. It's just been It's just been churning in this Range here not doing much not doing much Right now it's sitting right on the 200 day moving average About holding holding support want to see it move On friday got just on the 20 day moving average. Okay, I like to see apple start to move higher It's just just an ugly chart not really doing anything. So I need apple to get going again. Let's look at tesla tesla also is is testing um The bulls right it's it here's the 200 day moving average This is the the big line in the sand the 200 day moving average tesla Is hovering right around it hovering right around the 20 day the blue 20 day as well So we really need to see tesla You know get off its butt and start to move higher. There's a lot of news out there about tesla elan mosque and all Just there's always news swirling around the company. So if you're going to play this company, you know get ready for the volatility there's just There's just a lot of a lot of information Happening with tesla. So be prepared for the the ups and downs It's it's just hanging on that 200 day moving average. It really needs to get itself back up there amazon amazon still still in this super wide Channel here still not really going anywhere. It's just been hovering around that $3,200 level goes up down Not a lot of not a lot of momentum in either direction. So so amazon's just been not really doing much We'd like to look at amd I love amd as a company, but it also has been sort of stuck There was a couple w patterns that we we did here, but they never really materialized Just kind of trading in this range here between 75 and 85 I'd like to see it get above $85 It's it bounced pretty good off the support area, right? This blue line is the support area We drew a long time ago. So it definitely bounced there found its footing So amd is still kind of churning around and this is what you'll probably get during the summer months You get a lot of churn, you know people go away in vacations. So there's not a lot of direction. There's a lot of chop So it's hard to really get a gauge or hard to find stocks that are moving in good momentum Walmart is another walmart. Okay. So walmart sort of made this ascending triangle pattern But still kind of hovering still kind of hovering Um around 140 141 dolls just kind of hanging out there Once again the churn. I think there was another was it was a colgate. Let me pull up colgate Yeah, so colgate's got potentially the The ascending triangle. Okay connect the lows and then you draw the line at the resistance So colgate's got a little bit of time here. It could potentially Um, you know hover around here a little bit but look for it to pop above maybe 85 86 dolls To to move on to all-time new highs. All right. So that's what I'm seeing here. Let me see if there's any other any other Microsoft is still in this channel. We drew this channel A long time ago. You can see it a channel the stock will bounce off the Bounce off the bottom and hit resistance and come back down. So it is kind of trading in this channel But still in an upwards trajectory So the next move for microsoft could be to move back up towards the top end of this channel If you're looking to be bullish on microsoft, there's some chart pattern you can look at What else what else disney anything at all? So disney's sort of been in this little bit of a down trending channel that I drew don't remember drawing that But you can see it moves along the channel So disney's sort of in a in a bit of a downslope So watch for it to bounce and move within that range Anything else of note pepsi Pepsi might have a might have a ascending triangle Potential let's let's draw the lines. We'll keep it on the chart for a while. You can draw it from here Connect the bottoms and then you look for a little draw resistance line or straight across the top So right there you got pepsi potential potential upside action This is pepsi and then the the bitcoin stocks we have riot And had the the triangle waiting to bust out in either direction the downside But is bouncing off the 200 day moving average riot and marathon Mara Same thing was in this uptrending channel, but fell out. Here's the 200 day support The others like these meme stocks amc. I'll mention these a little bit amc Just blasted higher. It's unbelievable. Uh, how these stocks can make the move Game stop still Had the triangle finally blasted out What else we got blackberry These are the meme stocks blackberry bedbath beyond Yeah, I had amc Okay, um another one on the short the short ratio A short interest as workhorse is another stock that had a lot has a lot of short interest Meaning there's a lot of people selling this thing and when it gets into a Short squeeze stock could really rally you can see what happened went from like eight or nine Dollars up to 17 18 dollars Uh workhorse could could rally back up if the wall street bets the reddit people get on this one see the high short interest shot high short interest Could could propel this thing higher. This is not a recommendation. Just saying these are these are some of these meme stocks Okay, we're at about 50 minutes here. I'm going to call it on this one. That's your your Saturday synopsis once again the market itself The the stock index is I'm I'm I'm bullish here. Um, we got the ascending triangle pattern for the sp500 looks good So that's my assessment once again. Let's let's go back to our website Smart options seller. Don't forget put selling basics. Put your name in here email We'll send you a free guide and also if you if you're looking for future information about our small exclusive Put selling deep dive seminar webinar coaching whatever you want to call it. We're looking to get going on that this summer I'll have more information soon. All right. That's it for me I hope everyone has a great weekend. Don't forget to hit that subscribe button in this youtube video Give me a thumbs up if you like this content. Leave me a comment. Send me an email. Love hearing from you All right, that's all for me today. I hope everyone has a great weekend and a great week ahead This is lilo signing off