 Hey, everyone. Welcome to this week's video update. Today's Friday, February 10th. Hope all is well. Hope everybody had a great week of trading. I want to talk about a couple housekeeping notes here first. I'm going to be doing some live streaming going forward. And it's going to stream directly to our Facebook page and directly to our YouTube page. So if you haven't already, make sure you go follow us on Facebook and subscribe to our YouTube channel so you get notified when we're doing that. I'm going to do it at different times and eventually find out kind of a consistent time that works well, maybe on Monday mornings when the market opens and just kind of give an overview of the market and what I'm seeing and what's going on. I'm going to be on these live broadcasts. I'm going to be doing announcing upcoming events that we're going to be doing. We're working on a couple new courses that we're getting ready to pump out to you guys. Just got a ton of exciting stuff going on that I want to keep you guys informed of. So if you haven't already, make sure you are connected with us on social media, Facebook and YouTube. And stay tuned for that. We've got a new course coming out that I'm going to announce here probably in the next week or so. So stay tuned for that. For now, let's jump into the trade alerts for the week. So starting on Monday, the first alert we had was in EWW. So we opened a strangle in EWW. We've now got two strangles on and let's see EWW. So we've got this one priced right here. We're in the profit, not enough to take it off yet though. And then we've also got this other strangle where price is kind of up against our upper side. Nothing to do yet. No need to adjust. If we get to move down, we'll be in better shape if it keeps moving up. We'll need to adjust. But I'll make sure notify if any of those happen. So nothing else to do at this point in EWW. Next trade was a closing trade in EWZ. So we had a calendar spread on and EWZ took that off for a nice profit. We got a tiny pop in implied volatility. We take a look at EWZ. Real tiny. Nothing much, but it gave us enough of a profit to get out of that trade and we got closer and closer to expiration. At that point we only had 10 days left. So at that point you really get your finger on the trigger looking to take that off for any profit at all. Next trade was a closing trade in TLT. So this was the put side of an iron condor. So we had an iron condor on and moved down past our short strike, down past our break even. So we removed the call side a couple weeks ago and we just held on to the put side, got a little bit of a move back up and we were able to take off the whole trade for a really nice profit. So that was a great trade. Next trade was in soybeans. So it was a closing trade. We had an iron condor on in soybeans. So last couple weeks we've taken off two really nice profits on iron condors in soybeans. They are an excellent trading vehicle. The only problem is you cannot use the implied volatility indicator on the grains. So soybeans, corn and wheat, you can't really use this because of the futures contracts and the way that they expire and roll. It's not the same as the stock or ETF so the data coming in is not accurate. So don't pay attention to the IV indicator on those three futures. The other future you can't pay attention to it on is in natural gas. That's not accurate. The good thing about natural gas is you've got a corresponding ETF, UNG and that is accurate. So you've got to use the IV on UNG to trade the natural gas futures and the other one is bonds. So in bonds and notes you can't get an accurate reading on the IV indicator so you have to use TLT and that gives you an idea of if implied volatility in bonds and notes is high or low. So keep that in mind. Just a couple little nuances that you've got to remember. The next trade was in soybeans. We had an opening trade in TLT. IV popped right back up at right around 50. IV percentile did and so we put on a strangle in TLT. So keep in mind this TLT is a versatile product so meaning you can trade either a strangle like I did with undefined risk. If you're in an IRA you could have traded in iron condor and used similar strikes but you're just going to be a little bit tighter in not quite as wide of a range and you're going to have that defined risk. So that's a matter of preference but the idea with these alerts is for me to alert you of the idea, show you what I'm doing and then you can make it your own. So this trade is still very centered, got a little bit of a profit but not enough to take off yet so we'll continue to monitor that. Next trade was in the cues. So we had a double calendar on in the cues after our adjustment. We had the 127 calendar here which we took off and because a couple things. One, I wanted to reduce risk so we're taking half of our risk off. We've only got seven days until expiration and so I just I wanted to reduce the risk there. If we get it if we get a move down and potentially get into some profit there next week I'll take that off as soon as possible but I've got my finger on the trigger to take this one off as soon as possible. You can't adjust this, you can't add another one, another calendar on to widen our breakevens. There's not enough time to expiration. This is all stuff that I cover in the calendars course. Make sure you go back and re-watch that if it's been a while or if you've never viewed it. Let's see. Next trade was another calendar in DIA which is the Dow Jones Industrial ETF. Ivy percentile at that time was at six so remember we want to we want to put these calendars on in times of low implied volatility and so let's check out DIA. Price has moved up since then so we've got it right here. If we get around the breakeven next week we'll look to add another calendar on here. So remember when you put a calendar on we want to look at this as potentially having to if we need to adjust we're going to add another calendar. So you need to make sure you have the capital available to do so and you've got to pay attention to it, wait for the alerts and if it keeps moving higher we'll put on another calendar here, widen out those breakevens and then look for an increase in implied volatility. So if the market moves down in stocks that's typically going to push the implied volatility up so really we're looking for a move down to both benefit us directionally and implied volatility wise. So this market strong I mean it just keeps continuing to go up. It can't go up forever but we'll continue to manage and monitor regardless of what happens. Next trade was in natural gas so I sent out two separate alerts so one for the calls and one for the puts so we had this we had the strangle on in natural gas and the price moved had a big move down today natural gas depending on the contract you're looking at about three percent drop in natty gas you can see they're pretty pretty decent size move and so what we're looking at here we first of all we've got this iron condor on in natural gas no no profit or loss at this point so just holding that but the the strangle now looks like this so price moved down our break even was was right about here at that point and so with with this contract there's there was only 13 days to expiration so I didn't want to just roll the calls down what you do when there's when there's less than 20 days to expiration is not only did I you don't just roll the calls down you actually roll them out to the next expiration cycle so what that does is you can see it increased our range increase our profit range our break evens tremendously gave us more credit so we collected a credit and gave ourselves more time collected a credit gave ourselves more time widen our break evens that that's why you do it now in UNG in natural gas the implied volatility percentile still at 54 so that's the other reason why I wanted to extend that duration IV percentile still good we're collecting good credit and it's definitely a position we want to be in especially since there's so many vehicles out there right now with low implied volatility we really got to take advantage of the ones who do have high IV at this point next trade was in gold GLD so we had a put initially put on a calendar and GLD price moved up had to add another calendar so we had a double calendar on and then price had a price had a nice move move in our direction especially yesterday and then the first part of first part of today GLD was down and so we were able to take off that that full double calendar for a nice little little profit not as much as we wanted but with GLD the position was in the February cycle so only seven days to expiration you take on a lot more risk the closer you get to expiration take on a lot more what's called gamma risk so we wanted to get out of that for a profit just in case gold were to pop back up which at the time we got out was was good because gold was down here and it since rallied back up so it was a good it was a good trade and lastly put on a trade in Apple so I try to stay fairly neutral I mean these are all income trades these are fairly Delta neutral trades when we initiate them however I also like to keep short Delta in the portfolio meaning have a downside bias and the reason is is because typically when the when the markets go up volatility is gonna contract so we're gonna make money on our income trades but we what we also need to be protected on the downside and with the extremes that we're seeing in the overall market and in particularly I chose Apple as a stock to to put some short Delta on I mean this this things just had a tremendous run had a couple members talk about man why are you why would you short Apple you know they're so strong and and that's true and and Apple's always kind of a darling of of all street and darling of investors because it has been such a strong stock just I mean over the years and in general but what goes up must come down I mean you know there's no other way to say it and and there's no additional probability that I have I mean it's still I'm just making basically a trade looking for some short Delta in in my overall portfolio and and I like to do that when stocks and ETFs are at price extremes okay so if something is rallied extremely high I like to I like to be a contrarian and go against that and look for to put a little bit of short Delta on if it's not right for your portfolio then you don't need to take the trade the trade alerts are not meant to be where you take every single trade exactly like I do you've got to do what fits your account size you've got to do what fits your portfolio and in this case this was a this was a good choice for me so that is all the trades for the week let's let's go through we've got a couple other positions on still XRT I actually tried to get filled in this trade to close it out both Thursday and Friday we were right at that 50% of max profit I just didn't get filled so I didn't want to chase it so we'll wait till the weekend but I'll be aggressively looking to get out of get out of our XRT trade on Monday or Tuesday TLT I mentioned the cues the cues I had so we had a double calendar on here and I took that one off we'll be looking for a potential little down move I left this one on because again that added some more short delta to our portfolio meaning we will benefit if it goes down so keep an eye on that IWM we've got an iron condor on right here just kind of at the no profit no loss but still well within our range so we'll continue to monitor that and then IBM you know we're getting close to expiration we've got seven days left we're in the profit here so I'm going to be aggressive about taking this trade off so it doesn't run out of our profit zone I was hoping this this expiration line would move back up if we got a little bit of pop and volatility but you can see since we even since we put it on implied volatility is even lower which does not help a calendar spread so if we do get a pop and volatility or if we don't I'm gonna be aggressive I don't want to take a loss on this trade so we'll we'll stay tuned for that FX why we've also got a strangle in a nice profit almost ready to take off we'll look at aggressively managing that potentially Monday or Tuesday FXC we've got this iron condor on got a nice profit in there but not quite enough to take off I mentioned EWW wheat so wheat we've also got an iron condor in right in our range had a nice move up in the week today which which helped us got us got us in the range that we wanted to be in so we'll continue to monitor that and take that off once the profit gets to 40% of max profit like we like to take on the iron condors so that wraps it up if you have any questions let me know look forward to another great week of trading next week and have a great weekend talk to you then