 Yeah, welcome back folks we got the dollar index rock and hire right now great day to talk to our man Teddy keg stat market We're gonna talk to Teddy All right folks. Let's jump over to our man Teddy keg stat You can check out Teddy's Tiger 4x report every Monday and today we got a webinar and Teddy It's gonna be an adventure man because we got Tommy the fourth joining us. I know hi Tommy. Hi, little T Did you see the fireworks? I know did you say hi to Teddy? Say hi Teddy There you go. Hi Tommy So Teddy we're gonna kick it off man. You got a great webinar coming up tonight Tommy What are we gonna say? Are they gonna have to sign up say go sign up for the webinar? I know we got to do it. That's right. You tell them folks Tommy So Teddy, let's kick it off man. You have the webinar coming up tonight Capitalizing on time with calendar stock option spreads if you could give the viewers a brief preview of what you'll be talking about tonight, man Well, we're gonna be talking about that particular strategy strategy, which is a calendar spreads So a calendar spreads can be used in equities. You can use it on ETFs on stock indexes as well, you know So it's something that's a very versatile Option strategy. It's also very simple to implement It's not something that you have to be a very experienced option trader to use or understand how to put on So it's very definable as far as your risk also very definable as far as your Potential profits as well, you know, and it's a way of also trading the market where Direction is important, but it's not necessarily the whole thing that you have to worry about unless it goes really extreme against you I mean, obviously markets will go in the directions that they will so but calendar spreads is a really good way of taking use of time You know, like there's all kinds of ways of trading options and people get really scared when you start to mention the Greeks You know, so time is a factor of option pricing and calendar spreads take advantage of that Particular variable so when you use a calendar spreads you're trading closer month options and also further out options So you have two legs to the spread and the main focus is on time more than direction so it's a very interesting easy strategy to Implement and I will show how you figure out the setups where you use the broad market to give you an idea of direction Immersor is what side you want to be on and then how you when to take the trade whether it's a good option trade to put on or what? Sometimes, you know just because you have a strategy doesn't mean you put it on So we'll be going over highlighting that as far as how you enter lay out your risk and also your objectives And when you enter those Teddy is that something and I know you're gonna dive into it for an hour tonight So you don't have to give it all away right now But is that and I know it's two different time frames Is it something that you you can can you sell the closer leg and buy the longer leg and do advice a versa? Or is it usually one way or the other because I know you roll the shorter term option as well occasionally, right? So does that go both ways or is that one way or the other? Well, you're always short the front month and long the further months because that's what you're trying to make money off of time decay So obviously both options will decay, but the further out month decays at a shorter rate So that's where your money is based off of time if the direction like if the market's flat This is a flat to direction trade if it stays flat You're making money on time if it goes your direction then you're making time plus directions Okay, so there's two factors involved with that Obviously if it goes the wrong way then you're losing on both on times the only times the only thing you'll make when it when the market goes The opposite way so it also pads your loss So because you already when you enter the trade, you know what your defined risk is The worst thing that can happen is you actually pull back a little bit of money if it goes the opposite way And you actually get some of your money back so you lose less than when you enter the trade, you know So and as far as rolling them that's for instance like one of the situations You use is like a head and shoulder or when you have like an a wave pattern where you're trying to trade the two in the Four wave where you're going to trade back into the trend That's where you would roll because if all of a sudden you starting to catch that move You know because the shorter month after expiration month as you come into that and that expires Then you would flip the other one So then you would all sell out the the one that you were long to go short And you'd buy out a further month to keep the trade on if you were trading that trend or that or that chart pattern Like for instance like a head and shoulders pattern where you're looking for a big market correction or a big You know rally or something like that. I Appreciate it man. I know you're gonna have a lot to talk about and Yeah, it's always interesting myself in terms of how things Can change in that spread you're gonna be talking about because I love you know It's very simple for me to understand, you know a call spread or a credit call spread a debit call spread But what I look forward to tonight so much is just how things can actually change because you have a shorter term duration You have a longer term duration and then you can manage that sometimes throughout that month correct I look forward to it. I know we got some people signed up So it should be a good crowd out there folks four o'clock tonight check out Teddy's webinar right on the front page of TFN Tommy should they go sign up for the webinar tell Go sign up for the webinar. That's right Thanks, Tommy. All right, let's jump into some of the market action man. What do you think about this dollar index? Well, you know what I think right now what you have going on is market cycle 101 going on and one of the things the currencies are Great for is they confirm when yields are driving the markets, you know And if you picture equities gold and interest rates Those are the three major markets that control everything ultimately But if you picture them and going like in a sine wave, they're going up They're going down and this is how they go all the time Okay, but they don't go in tandem and typically gold leads the stock market and yields lead the other ones Now when gold is going down and equities start to go down that means yields are going up It's always how that relationship goes in the in the trend basis and vice versa if you're going Down in yields and then up in the up in gold and up in equities So that's where we're at in the market cycle right now and it's showing that I mean the dollar made a multi-year a monthly Month high. It's the high of the year right now is where we're on actually, you know The dollar has been going up now for what is it seven eight nine weeks straight without having even remotely a Only slightly higher week, you know, so there's a lot of strength and that's because of the yields You know, we've been talking about this for months that yields were the market yields were trading at a discount You know, so I mean they needed to be higher I mean worked now finally the treasury bonds and the tenure notes are trading where they were a year ago When we had it before we had a bunch of hikes and we know that there's still a Upwards of a half a point in the market consensus coming up over the next few meetings, you know Going ending that going into the end of the year in the first quarter of next year So right now yields are on that chair. They're trying to find their equilibrium to their coming to fair value is what it is Once they hit that fair value point, that's when we should see a correction, you know So I'd be very careful like today the bonds in the tenure are up a little bit So yields are coming back that's a profit-taking move. I'd be very cautious the trend right now is still a bear for bonds It's a bear for gold and it's a bear for for equities, you know So this also means it's a bull for the dollar, you know, and as a whole Dollar is crushing what the euro the pound the Swiss actually is making incredible highs and also we have the yen But then when you look at the Australian and New Zealand dollar now They're so beaten up and they're in a range trade, you know, and then the US dollar Canada Ironically where we're having such strength in the dollar. It's faltering. It's it's coming off of a swing low But it's having a really hard time rally, you know So I think we're gonna get into that digestion phase, but I'd be very cautious over the next couple of sessions because We're we I don't think we found quite the bottom and you know the bonds are high in yields yet And that's gonna drive gold lower S&P's lower at least in the short run I think Yeah, and just the move when I was talking to you man the tenure even since I came on the air at 9 o'clock We just traded down six seven basis points. So chopping around a bit, but boy those moves pretty quick Well, I appreciate it man I look forward to the webinar tonight folks right on the front page of TFNN I got it right up here capitalizing on time with calendar stock option spreads with Teddy You just heard a brief part of the conversation man. We got plenty to talk about I look forward to it today Teddy Myself look forward to quite an education All right, we're gonna say goodbye to Teddy See you tonight awesome and Teddy will see it four o'clock man. Thanks Tommy. Take care. Thanks. Check it out the front page folks We'll be right back to finish up the program