 What's up navigation traders today is Friday January 12th. Welcome to this week's video update Hope everybody had a great week of trading. Let's jump into the alerts. We've got quite a few to cover this week Starting with XLV was our first trade So we opened a new iron condor in XLV a little bit different than our typical iron condor We made this one a little bit tighter Almost almost as tight as a butterfly Partly because XLV is a lower price symbol You know anytime a symbol under a hundred dollars if you are going to do a defined risk trade A lot of times you got to make that a little bit tighter So that you collect enough credit to make it worthwhile to make it worth of the transaction costs and and the risk reward So let's take a look at XLV if we took a look at our Analyzed tab and actually first you can see earlier this week implied volatility popped up above that 50 level Which is where we want it to enter a new trade and you can see we've gotten some contraction since then decent price move up so Price is still within our range, but kind of hanging out towards the upper upper end of our range So needed a little bit of down movement a little bit more time to pass a little bit more contraction in implied Volatility to benefit that trade Next trade was in XLU. So this was a closing trade We had bought and butterfly and we were able to get out of this for about 20% Profit and so that was a nice trade if we take a look at XLU I was actually trying to get filled on Entering a new trade this week because implied volatility. It's can you continue to stay nice and high I did not get filled so assuming implied volatility stays high into early next week We'll be looking to enter a new trade probably a Butterfly or a tight iron condor or a strangle or something I'll have to check out what the pricing looks like on Monday, but look for a potential new trade in XLU early next week Next trade was in Baba. So we did a pre earnings long strangle now We typically do pre earnings long straddles, but in this case price what they Price was right in between the strikes. So Baba has five point wide strikes. So we ended up buying a strangle It worked out. Well, we booked almost 30% profit in just five days So if we take a look at a chart of Baba What you'll see here is We got in right here on the third and so price was right in this area Next few days you just shot right up gave us a quick profit. So that's the that's the that's just the way you write them up So that's a great trade Next trade was in spx. So we had a calendar spread on in spx And price in spx continues to move higher. So we added another calendar spread If we take a look at spx You know, where is it? There it is So, I mean man, this this market's crazy. I mean, it just it just cannot find a down tick But just so it just continues to move higher. So what we did is we added a second calendar And prices since even breached that that upside break even So if we had enough time left typically what we would do is we would roll this initial calendar Up and and kind of reposition that into into a double calendar, but a little bit higher in price The problem with this is we've got six days to expiration Okay, oops So we've got only six days to expiration in the front month So we are not going to make any additional adjustments But I do want to hold on to it for another couple days into early next week Now could the s&p just continue to rep hire? Absolutely If you are worried about that happening Then you can always just close the trade and you would close the trade and take about a 350 360 dollar loss On this position right now I i'm looking for a little bit of a pullback So if we can get a little bit of a pullback and maybe break even or make a little bit of money on the trade That's what i'm looking for into early next week You just you can't plan for moves like this I mean, this is just a crazy crazy move with barely any pullbacks And even a further extension on top of a big move So we'll continue to manage. We'll continue to play the probabilities Probably end up taking a loss on this if you're worried about the market continuing higher into next week You probably want to take it off right now I'm going to hold off and wait see if we can get a little bit of a pullback and maybe break even to Eek out a little bit of gain on this trade Next next trade was a an adjusting trade in nat gas So it was kind of backed back alert alerts on nat gas The first was was a closing adjusting trade where we bought back the uh Excuse me. We bought the iron condor back in nat gas there And we booked uh over 50 profit on that piece And then on this one is where we did an opening adjusting trade where we added another iron condor out in the march cycle Okay, so if we take a look at nat gas, we've got two positions on right now One is the iron condor that I just mentioned. It's fairly centered. Uh, just kind of hanging out here Uh implied volatility popped up a little bit today So he shows we're down a tiny bit but still well within our range. So we'll continue to monitor and manage that And then the other piece of this is a call vertical spread Uh where price has has moved well outside looking for some downside movement in nat gas to benefit that piece And you can see I had this set up right here as a theoretical positions I mentioned last week. I'm migrating all the alerts into a new account So as I close and roll and manage those positions, I'm moving those over This is a an actual position that we have on but I just set it up on here So I don't have to switch accounts to uh to show you the show you the visual So need some down movement in nat gas on that piece to benefit that Next trade was a rolling adjusting trade in di a okay, so here's here's the here's the mistake I made this week and I've sent out now since we've started doing the alerts I mean hundreds and hundreds alerts of alerts and I've made Maybe four or five mistakes on those alerts as far as placing the trades incorrectly call that a fat finger mistake And I actually I did it twice in a row. So I've really apologized for this. It's it's it was kind of confusing I got a bunch of emails from members And I caught it right after I did it so I had to correct it So basically what we did is we had these two Uh two verticals two call verticals in di a okay And we are rolling them as I stated in the comments from january to february Okay, so but what I accidentally did is I accidentally roll them to the next weekly Uh expiration cycle, which is january 26 the weeklies and I meant to roll them out to february So what I did and I'll skip over this alert and then come back Is I came back and I set out this correction alert and saying the the strikes The dates that I sent on these two are incorrect And what I did was I corrected it with this alert showing that we are in fact rolling to february. Okay So let's take a look at the platform and I'll show you what we have now. So in di a We've got two different call verticals one has three contracts and one has four So sometimes I'll I'll differentiate the number of contracts a because it makes it easier And b sometimes we're just we we're wanting to put on that size of a position in our portfolio So the first one that has three Contracts you can see here And you can see since then just like the s&p the dow has been very strong. So it's already kind of moved up Uh in price So we need a little bit of a down movement to benefit that But I like I like having this on I mean I like having that down downward bias I like having that short delta bias in our portfolio Uh because this market cannot continue to go higher forever Now we are we are positioned a little bit More short biased than I'd like to be But it's it's tough to also put on long positions Or take off short bias positions after the market's already ripped higher So in this case the pot odds are in our favor just to kind of hold this And so that's what we're doing. I've seen this before, you know, this isn't something that has never happened before It doesn't happen that often but in this kind of situation You've got to be a little bit patient And so we've got this one here and then this one is just just one strike different Uh, but very similar trade. So just looking for some downside movement in price To to benefit that piece as well So again, sorry for that mistake. I know it's kind of confusing. Uh, and and I am very very particular about making sure I get these alerts right But I am human and sometimes a mistake can be made. So that's what that correction was all about Hopefully everybody followed that Um, next trade was in the tenure notes. So for slash z n And the implied volatility of tlt which is the corresponding etf popped up above 60 And so we wanted to sell some premium in an index related product An interest rate related product as I said down here you could do Strangle or an iron condor in four slash zb, which is a 30 year bonds z n Which is the tenure notes, which is what we did or you could do it in the etf tlt I prefer four slash zn and the reason is is just it's kind of middle of the road zb is a very big Uh, a big product meaning it it takes a lot of buying power tlt is an etf It's a smaller product and z n's kind of right in the middle and I like trading the futures Just for the bang for the buck that you get with the leverage on futures So if we go to the platform and take a look at z n We'll see here still very centered. We're up a little bit of money on the trade about 60 plus dollars Not enough to take off yet. So we'll continue to wait on that If we take a look remember on zb and z n and tlt you have to use tlt on the charts To view an accurate reading of the implied volatility So we're always going to use tlt for the implied volatility reading But then we can trade z n tlt or zb. Okay And as you can see this has been a great trading vehicle We've had implied volatility spike up and then contract spike up and then contract So every time it pops its head up we sell some premium wait for it to contract And assuming price stays in a decent range here. We will uh, we'll look to book this profit Uh, maybe next week maybe the week after we'll keep you posted on that Next trade was another rolling trade in iwm. So we had a call vertical in iwm And and remember you guys whenever we're whenever we are rolling Whether you're trading on toss or tasty works or whatever does Almost 30 platform allows you to do these rolls in kind of one transaction. And so But remember if you are not proficient in rolling yet All you got to remember is basically that we so we're rolling from january to february and we're adjusting the strike so The we took the 151 155 call vertical in january and essentially when you roll You're essentially closing that one out And you're reopening a position in february in this case we repositioned it to the 157 161 So we keep the the spread the the wing width the same so you can see it's four points wide But we're just rolling that from january to february So if we take a look at at iwm on the analyze tab You can see this is what it looks like. So we've got the 157 161 call vertical So remember if you're not Completely comfortable with with the whole rolling functionality once Once tasty works comes out with some of the other Features and and and functionality We'll be doing some in-depth detailed videos on every aspect of each strategy and how to roll and that kind of stuff Within the within the courses. We already have Features of of how to do that on toss so i'm not going to go over that here But essentially you're just remember when you're rolling you're closing one piece out You're reopening in the next cycle and we're doing that to one Extend duration because we we still want that position on And and then we want to you know, just continue to manage the trade from that from that perspective The other thing I mentioned on this alert with iwm Is you know implied volatility is is so low here. We've got an iv percentile of four iv rank of 16 So i'm not adding another iron condor on here yet If we do get some downside movement or a pop-up in implied volatility I will add another iron condor in iwm to continue to Manage that trade but with implied volatility that low i'm not going to do it even if it got up to An iv percentile let's say of of 25 or 30 or 40 I would consider putting on Adding a new piece to that trade now at that point But with implied volatility as low as it is. We're just going to continue to manage the trade as we have it Next trade another rolling adjusting trade in the cues and and keep in mind I know we had a lot of rolling adjusting trades and I got quite a few questions by email What once we get down to that kind of under 10 days To expiration and and into expiration week. We're going to be rolling those positions that we want to keep on We're either going to close them out or we're going to roll them And in this case with the with the market just continuing to rip higher We want to keep these positions on we want to keep that short bias in our portfolio So we had to kind of similar to dia. We had two positions on in the cues. We had two call vertical spreads so we simply just Rolled those from january to february and in this case again We were adjusting the strikes from 155 158 and moving that to the 163 166 Okay, and then the next one was very similar We rolled from the 154 157 strikes to the 164 167 And uh, and so if we take a look at the cues We'll see, uh, you know two very similar trades. I just I we could have rolled this all to the same one So we have three contracts in each. We could have rolled this to six contracts with just Similar strikes, but I keep it separate because these were put on as separate pieces of the trade So I want to keep them separate. So I just simply kept the strikes one point different So you can see the first one I have checked here is the 163 166 And that's what we're looking at here. Just need a little bit of a down movement to benefit that piece And then if I check on the other ones, I've got the 164 167 Just need a little bit of a down movement to benefit that piece as well So that this rolling I know for new traders is sometimes confusing, but but don't don't give up on it It's it's once you once you start to understand that you're simply just Closing out one and rolling it to the next expiration cycle and reopening it in that further dated option cycle It will it will become second nature to you It's just a process of going through multiple roles and multiple cycles to get to understand that and that's why it's so important to stay small Keep your position size small and make sure you understand and learn the strategies and the and the rolling techniques and the adjustments Before you start loading up and doing bigger positions. So hope that was helpful We'll continue we do this, you know every every cycle every time we kind of get down to that last week of expiration We're going to have multiple trades that we're rolling to the next expiration cycle To continue to manage manage those trades. So it'll it'll become second nature But just stick with it and and and watch how we do it and you'll eventually be able to do it no problem Next trade was in ewz. So we had an opening trade in ewz Ivy percentile popped up to that 56 level. So we wanted to sell some premium You know with ewz being a lower price symbol. I typically don't do defined risk Just because like I said, it's it's under $100 in this case much under it's it's only a $43 symbol At this time So you're just not collecting quite enough credit to do a defined risk trade So we sold a strangle and you can see price is still very centered Not much to do there So we'll continue to monitor and manage ewz And our last trade was a closing adjusting trade in his foreslash zw, which is wheat So we had two iron condors on here. We closed out one of them Got a nice contraction in the options today and booked over 50 of max profit on that piece of the trade So working our way back nicely in wheat and we've still got one other current iron condor on in wheat So if we take a look at the analyze tab here You can see this one zeroed out That's the one we just took off today And then we've still got this one on where you can see price is sitting right here Need a little bit of up movement in wheat to benefit that piece and we're really close probably another cycle or two away from getting back to Getting back to profitability in wheat. So after that huge move that we had to dig ourselves out of We're working our way back really nicely So those are all the alerts Let's take a look at some of the other positions that we have on forward slash es So this is the last position that we need to roll from january to february We've got I think what six or seven days left in these Yeah, seven days left. So we'll do that early next week But we've got these two pieces. We've got this long put spread which has blown through the upside So we need to roll that again. This is just keeping Keeping this in our in our portfolio for that short bias And then this other this other piece which was part of what was in ira condor Kind of a very similar trade, but just a short call spread So we'll be rolling that Next week as well. Just remember when we are selling premium, you always have to keep a short bias in your portfolio To to protect yourself from the downside because even though the market's been continuing to move higher And it seems like it's never going to go down It won't go up forever. And so we've got to have that short protection on And while it is a drag on our performance of the portfolio while it's grinding higher like it has Uh, it won't do that forever. And so we've got to keep that short bias for protection in our portfolio So that's what we'll continue to do Next position that I haven't uh gone over is four slash zs, which is soybeans. So we've got two pieces on in soybeans One is a full iron condor We've got some profit in that not enough to take off yet So we'll hopefully look to book a profit in that piece early next week And then we've also got this short put vertical on which was part of an iron condor Came down came through our our break even here. So we took off the call side So we just need a little bit of an up movement and soybeans to benefit that piece And that's in the february cycle. So we've still got a decent amount of time We've still got 14 days left on that so nothing to do For at least another week or so on that piece And then our full iron condors out in march with 42 days. So we'll continue to monitor that one Another position costco, so We've got um We've got this short put vertical on and remember we put this on way back here right after they announced earnings And we were looking for The price of costco to kind of grind higher to sideways actually had a little bit of a dip on us And now it's coming back the last couple days So we're right at it about break even on the trade up a little bit But we just need a little bit of up movement in costco to benefit that piece Uh, let's see e w w we've got a strangle on a short strangle on in e w w You can see price is kind of hanging out near the upper end of our range But uh, no need to adjust yet. We just need a little bit of down movement there A little bit of implied volatility contraction You can see it contracted a little bit today I need a little bit more contraction and for price to Just kind of hang out hang out in this area to lower benefit that IBM so this is one that has earnings coming up And so we are and let's see the earnings date is 118 so after mark so by the 18th We need to be out of this trade. I don't want to hold this through earnings This was a this was a originally a straddle that we adjusted a couple times And uh, and we're down a little bit on the trade But if we don't get a down movement in IBM and book this profit by the 18th We'll probably close this one out for a little bit of a loser Um, I we had that huge move last week up in IBM is is acting really nicely for us In fact, I was trying to get filled to get out for a profit right around here And then it popped up here, but if we can get some downside movement And and get out for a little bit of a profit or break even we'll do that But we're definitely going to be out before the 18th because I don't want to hold IBM through earnings And then lastly xrt Xrt has been a great trading vehicle that implied volatility has been has continued to stay high We're actually finally getting some contraction here So if we take a look we've got two different positions on in xrt One is this short strangle here I need a little bit of down movement a little bit more contraction in implied volatility a little bit more time to pass And to benefit that piece And then this is one of the other pieces that is still in the other account that I have not Migrated over yet. Let me reset this so I can check that So, uh, so this is a real position that we have on I'm just showing it as a theoretical position here for the video To show you where we're at sold at 329 So need a little bit of a down movement to benefit that piece And we're actually pretty close to break even we've been we've been just in and out of these xrt positions It's been a really great trading vehicle But uh need some down movement in price to benefit that piece. So we'll we'll be monitoring that into next week as well So that's all the trades. That's all the positions Hopefully we get a little bit of down movement in the market not only to benefit some of our positions But also to give us a pop in implied volatility when implied volatility is higher That always gives us more opportunity for the for the way that we trade so Look forward to next week. Everybody. Have a great weekend and we'll talk to you soon