 Welcome back folks and thanks for being with us on this long Thanksgiving weekend. We are here to discuss a play we took on Friday. Friday was a down day for spy following the news from South Africa where a new COVID variant was found and it's supposed to be very contagious. Now this new variant called Omnicron, I wonder who comes out with names like that, but Omnicron is supposed to be very contagious and no one knows yet if we are immune with the current vaccines that we have. Nonetheless, this is what spy did at the beginning of the day. If we look at here at this level, which was the end of the day on Thursday night, that's the level that we had a drop on Tuesday. We came to that and then we bounced on that level. So as soon as we lost it, well, spy is really looking for a support. Now what happened right at the gate that started rising, this green line that you see across moving down is the 200 EMA and you will also notice that we're not quite reaching that line as resistance and as soon as we get close to that, we get to the downside. Now this video is not about downside, it's about finding support for play that will push us to the upside. Now this is the intraday, the pre-market support and I told you guys this pre-market support right, it bounced. I wasn't quite convinced because we're not crossing this even this resistance, right? We're not moving back above this line. We're not into the bull's territory, no more we're still in this pre-market activity. Pre-market activity is not really convincing in this case because it was kind of flat. So this red line is 50 EMA. I'm only using the EMAs as guidelines. I'm more into the price levels like the ones I'm drawing on this chart just to show you where the levels are but eventually we came down and we lost this level. We lost to what? Now this is when it's interesting because eventually we'll get someone who will be interested in buying a spot because you know I will not go down forever. So you have like I said, you have to look back and zoom out. On this screen right now, there's nothing showing you a hint of possible support, right? So let's get out of here and zoom out. You zoom to the one hour chart, right? And you zoom out to the one hour chart and eventually you'll see that you might have support and let me just put this line here. Oh, there you go. See this where we had a double bounce on the left side of the screen. I'll show you right here, right? So I came down here up there, it had a double bounce. See this double width there? Double bounce and it's a bounce on a full day. This is the one hour chart, right? So on one day it tried to get below it and then didn't. So this shows that there is support right there. Now if we lose this line, we'll go further down but you see on the entire way down from where we were on Tuesday until there, there's nothing else. That's the next line down. And this is what we intend to play. So you have to wait for it. Let's move back to where we are while we were when we started to play. And you look at the play. It says 458.15. It's pretty close. So when you see that the play is coming down, basically you are ready for a bounce very near that 458.15. Now, are you going to play 458.15? Are you going to play for next week? What I like to play is, and I've shown you this before and I'll show you again, it's something that is safer and we expect to go for 100% move. So here it is. Okay, I know it's a little cheesy but you guys have to laugh. You know, it's all about having fun, learning, trying to teach you something, trying to show you what I see and enjoy and have a good time. So the idea is GSS is Guru Special Sauce. We could talk a long time about where that came from but it's just a funny inside joke with all people at Xtrades. The idea is something that is already deep in the money that already has value that even if it goes to the next support line, it will remain with a value and we look at something that has a possibility to hit 100%. So you're like, okay, it's a lot of content but here we go. We're here at 458-ish, right, 458.15. While it's coming down, you will see this candle was coming down and then this one was very close to where I wanted and it had to dip and then it started rising. But you know, we bought this, we bought this play at 1121. So it's pretty much on this candle, you know, because it's 20. So basically it's when this was the dip and as soon as it started rising, we were very close to the level of the second one here. This is when we bought. Nonetheless, we were on our target for the bounce. This is what we are looking for. Now 458-15 and we took the 456 calls. These are in the money already. I've shown you this before. If we were to close right here when we bought, right there when we bought, if we were to close there, what would be the value of it, 456 will be worth $2.15. Why? Because that's 456 plus 215 equals 458-15. You guys all see this because it's the right to buy the stock at this price at expiration. Would you pay a penny more if it closed lower than that? You wouldn't pay a penny more than 215 because you would buy the stock instead, right? So this is why the idea is to find an equilibrium between something that has value at expiration here on our support, right? Because if it just stays here flat on our support, it will still be worth 215 when we bought one at expiration. We paid 259. So this little extra compared to the bottom, I believe we were a little higher. But this little extra we're paying is for the remaining time that we have until expiration. So we're taking a risk. Obviously there's always a risk, however, we're at the bottom and we believe that we can go for a rise on the ticker. Let me get rid of this here and show you what I mean. Where is possible resistance? You guys agree with that, right? I mean, we went here, oh, this is a higher low, right? Low, higher low. Obviously, if you're looking at this candle by candle in one minute, you go nuts. That's for sure. But if you stick to the plan, this was the bottom, same support, oh, it's a higher low. It's not a lower low. Imagine if it had flushed, if it had to flush, it would go like this, right? Go like this, up, test, sometimes even lower. It could go again and then flush, right, or what it will, other things it will do, bounce on it, bounce on it, drop below, tries to get above it, and then below. So you have a chance to get out here when it tries to get above it to pretty much break even, right? Or when it flushes through, you're like, okay, I'm out. No good. But in this case, a low, a higher low. So plan is still intact. And what are we aiming for? We are aiming to the same people, you know, these guys bought here and they sold there. No one wanted anything higher than that. So the same line here is where you want to exit, right? So what did we do at 12.31, which is right here, is where we stopped. We were happy with the play because the play worked, but look at this. We are at 4.61, right, or a little above. So the 4.56 are now five in the money. So basically, they are worth almost $5 at expiration, right? 4.61, you know, we paid $259 and we are looking for five in the money. So five in the money is five at the end. So this is what I was saying, I'm looking for something that can give me 100% with minimum risk. Why minimum risk? Because decay will be much lower, much lower because we are already deep in the money. If I had taken the 4.60s or 4.61s from the bottom here until there, obviously there would have been decay, a lot of risk and probably more profitable play, for sure. However, a lot of risk and here, between here and there, the decay would have been so bad. Remember, we only had a short day on Friday. Decay on 45 minutes on same day expiration would have been extremely bad. You know, we could have been down 50% at that time. We don't want that. We want something that is kind of safe. We know what to look for. We are deep in the money already. Some people say, you know, deep in the money is not a good way to make money. Well, it's risk management and the idea was this, you know, your guys are asking what the GSS play is. So it's deep in the money, paying pretty much the fair value of what it would be at expiration. So let's call this fair value at expiration, right? Here, we paid 259. The fair value is 215-ish at the lowest, but I believe we were close to 240. So basically, we're given 20 cents for the extra time that we're applying with. And looking for a good profit, good in this case, you know, it's 100%. I was looking at that 100%. We played a similar play on Netflix. It never reached target. But if you look back at the play, the target would have netted us exactly 100%. So, you know, if it had gone only up to here, which is the other 50 EMA, you know, the red line, we're still in profit because we're, you know, we're not quite, we're 460, we're now four in the money, we're green. And there's very little decay. It's almost a one-to-one move. So it's a lot more, a lot less stressful to hold and a lot easier to get towards our target. Obviously, it could take next week if you plan on holding longer. But in this case, I wanted to show you what a GSS play was. So we entered here, 259, we exited there at precisely 521, which was, if I recall, somewhere in the neighborhood of 80 something percent. I'll have to look for it. But I'm sure you guys, yeah, 88% total on something that we took for an hour or so that we believe that is a little more risk management for a zero-day trade than if you took anything out of the money or something very risky. So there you have it. You guys can look for this on zero-day trades. The delta is very close to one delta being the amount your premium will change on the rise of $1 on the stock. I'll repeat that. The amount your premium will change on the rise of $1 on the stock, rise or drop, right? So if your delta is 90.90, it means that your premium will rise 90 cents when the stock moves $1. So the closer you are to one, the more you are basically at one to one. However, when you get closer to the money, if you're out of the money, the closer to the money you are, the higher the delta will be, closer to one. So as the stock rises and gets closer to your strike, the delta will rise as well. However, in our case, we are already deep in the money. So the only thing that it does is just pretty much a one to one move. Stock move $0.10, we move $0.10. So I hope this is all clear. If you have any questions, please ask DM and send comments. Please make sure to either like it or subscribe. And you'll get more of these alerted in your box. Thanks for watching, folks, and keep smiling. Happy Thanksgiving.