 What's up everybody? I am back with our contest contest winner Matt King. What's up Matt? How we doing? So we want to do a another follow-up video. So today is Wednesday, October 18th, so we've essentially been doing this kind of coaching trading of our $50,000 account for the last 18 days, a little over two weeks, and we've got some positions on so I just wanted to kind of update everybody, share everybody, share with everybody where we're at. We're currently on the monitor tab in the thinkorswim platform and you can see we've got four different positions on. So we've got a position on in Gold Futures. We've been we're we're up about 190 bucks 200 bucks on that one currently. Our second position is we've got a natural gas futures trade-on and we're up about 50 bucks on that one. We've got the NASDAQ forward slash NQ and down about 80 bucks on that one and then the fourth position is the 30 year bond forward slash ZB and we're up a little over 200 bucks on that one. So total up around 400 bucks. So not too bad. We're in the green. We're in the positive so far. So so far so good, right? Hey, that's extra money we didn't have to work for, right? That's right. Well, this is actually hard work, Matt. Okay, so so what I wanted to do today, so go ahead and go ahead and drop down in the upper left-hand corner of your screen where it says account info. Go ahead and drop that down so we can get an idea of the buying power that we have in the very upper, very upper left-hand corner where it says account info. Go ahead and drop that down. So you can see our total count value of 50,000 for 18 and available funds for trading 39 over 39,000. So we're using a little over $10,000 in capital right now and so that's you know about 20% of the total. So we're just you know implied volatility is pretty low across the board right now. So we don't want to jump all in and put on a ton of positions because if implied volatility does spike, we want to have some dry powder. We want to have some cash available to to take advantage of those opportunities. But I think it's a good time to put on at least one more position and as we talked about in the previous sessions, you know, we're really focusing on for this contest. We're focusing on trading options on futures. For a couple of reasons. One, Matt is not that familiar with trading options on futures. So it's a good coaching learning session for him and he gets to do it with our money, which is kind of the best of both worlds. And then and then secondly, you know, we're getting ready to come out with a futures course trading options on futures. And so I think this will help kind of get people to help grasp the concept of using those and in this case With a $50,000 account, you know, I don't I don't have any reservations using naked options So all the positions that we've put on so far are Strangles which are undefined positions, you know, we're obviously staying pretty small so far We're only using 20% of our capital available And so we just we want to continue to add positions on and in this case the the position We're going to add to is the Nasdaq so instead of adding another symbol We're going to keep this very streamlined very simple and really just trade a handful of symbols But go ahead and go to the analyze tab Matt on your Nasdaq there So you're actually already clicked on it over there on your actually already good to go So just click on your analyze tab And what you'll see is this is our this is our visual graph So as you can see price is kind of in the upper upper part of our range, right? So it's it it hasn't breached our our upper short strike. So Technically it's not in a position where we would make our mechanical adjustment, you know in our inner How I maximize profits trading options course, which is all about trading short strangles remember the mechanical way to make an adjustment is to wait until price breaches that upside that upside short strike and then we would roll up the untested side and And manage it that way the second step that I that I like to do if implied volatility warrants Is I like to add another strangle So we're going to do this a little bit backwards and I want to show you just you know as you scale into positions as your Count grows and and and you want to manage your trades In this case, we're not we're not necessarily waiting for Price to breach we're simply just adding another strangle here and the reason we're doing that is is two-fold one For this case for the for this situation. We've got we've got money that we want to get working for us So that's one number two implied volatility has gone up a little bit since we initially put this position on and so to illustrate that Matt click on your charts tab and Let's just see where implied volatility is in the NASDAQ currently, so if we take a look at And remember on this one we have to we have to use the corresponding ETF So go over to your watch list there and click on the QQQ So scroll up a little bit. Yep. Click on QQQ So this is the power shares QQQ the NASDAQ ETF So you can see implied volatility the ivy percentile is at 58 So it's in a nice position where if we didn't have any position on You know, this would be a good symbol to put put a new premium selling position on because implied volatility is over that 50 level which is kind of that line in the sand that we like to see implied volatility to put new trades on That all makes sense so far Yeah, I'm good Cool So go back to go back to your current account watch list there down in the bottom left and and click on the the NQZ 7 the the position that we currently have on and Then let's go to the trade tab and let's go ahead and like I said, let's just put on another strangle and Essentially what we're doing when we do this is we are going to be widening our break evens And we are going to be collecting more credit So this is gonna enhance the amount of potential profit we can get and with implied volatility still nice at a decent level We should be able to collect some decent premium for putting this trade on So Matt, I'm gonna put you on the spot here and and ask you a couple questions So looking at the option chain here. We've got we've got we've got our position on in the cycle with 30 days to expiration what is What's kind of the timeframe that we want to be entering new trades putting them on how many days to expiration? Ideally we're looking for 45 days Yep, 45 days and and really anywhere between 30 and 60 is okay So we are we're at a we're at a point now in time just happens to be on the on the day that we're trading this We've got we've got really two choices and there's no wrong answer But we could either choose the November options and remember in the NASDAQ to stay in the ones that have the most liquid We want to do the ones that that are highlighted in white Either the week three or the regular monthly to make sure that there's decent liquidity and So we can either choose the one that the same cycle that we're currently in with 30 days to expiration or We can choose the one with 58 So we're kind of in a situation where we could choose either one and it really doesn't matter the that the things that you want to weigh when you're trying to make this decision of which one to choose is Okay, I know that if I choose the one with 30 days to expiration I'm going to collect a smaller credit Okay, in other words my potential profit on the trade is going to be lower than if I chose the 58 But the benefit is that profit could come quicker because we have less time to expiration those profit those Those options are going to decay faster so what I would say and and And so if you choose the the one with 58 days, you're gonna collect more credit Your range is gonna be wider, but those options are gonna take longer to profit It's gonna they're gonna take longer to decay does that make sense Yeah, good sense. Okay so Unless you have a preference mad and I'll I'll I'll go with what you want But you know with with because we we still have 30 days to expiration in that one I would I would probably lean towards doing the 30 days to expiration just to keep it in the same cycle And as we add new positions we can always We can always roll out to the December cycle because we've you know, we've got 58 days So that's gonna be available for the next 30 days for us to trade in as well That's kind of what I was thinking was that one seems like it's in the you know for time purposes That one seems like it's in a good spot For us to jump into and things can happen a little bit I know things will happen probably a little bit faster in there, but But you know whatever it's I think that's where we should be okay Yeah, sounds good. So open up that 30 days to expiration cycle And then go ahead and scroll down to the at-the-money options So we can get an idea of kind of which strike the different deltas are trading at a lot of strengths And so we'll set this up just like we normally do so you're gonna chew go down to kind of the Anywhere from the 17 to 20 delta range on the call side And I mean you're kind of you're kind of splitting hairs between which ones you choose So, you know just pick one of those anywhere 17 19 20 anywhere in there would be would be fine Yeah, it's definitely splitting hairs we go with 19. Sounds good medium sounds good. So just go ahead and right click on that sell strangle And so we Yeah, so we So we've got our we've got our call strike selected and then it just defaults to the 6270 on the put As soon as the the platform kind of updates will Then we'll need to go in and choose the strike that we want to utilize on the put side So, okay, it looks like there's a Like that's the information. It's coming back there. Yep So go ahead and keep keep scrolling down till we find One looking about the 19 delta on the on the put side as well. So keep scrolling there There we go. It looks like that was good. That's got a strike of fifty nine hundred Yes Changed the put to fifty nine hundred There we go, then right click anywhere on that red and Analyze this puppy you good with the one one contract. Yeah, let's keep it at one And I'd like to yeah, I'd like to keep it at one just because that's going to allow us to continue to scale scale in and out of positions and Since we're only going to be utilizing a handful of symbols Then we want to you know, we want to have that ability to keep our position size small and be able to scale scale in and out Okay, so go ahead and go ahead and click and drag that graph up a little bit so we can see our positions down below That's kind of a kind of toss is kind of finicky. He got it. You got a grab. There you go So so right now so we've got our current position and then we've also got our other position clicked on so When we have both of them clicked on together now, you can see what happens You can see that's a combination of the two positions that's depicted in the graph up above and So go ahead and click off of your current position. So uncheck all the boxes except for the red one Okay, look like that Yeah, so now this is just our new new position that we're that we're getting ready to put on so As you can see, it's just kind of a normal strangle. You can set your slices. Yep, like you're getting ready to do there to break even Yeah, and so you can see you've got about a 64 Little over 64 percent probability of profit and that's if we held it all the way to expiration Obviously, we like to book our winners before it gets to expiration So our our probability is making money on this trade are much higher than that and So So, yeah, I mean so so this is this looks good. I mean we're again. We're just kind of scaling into implied volatility adding position collecting more credit widening our break-evens on the overall trade and So, yeah, it looks good Okay, here we go a little bit easier to see like that. Yeah Yep So Yeah, so go ahead and go down to the red box there where and where it says the price of forty six twenty five We're not gonna get filled there go ahead and click that down to about let's say forty five seventy five Remember on these Nasdaq futures you have to do it increments of twenty five cents. Otherwise, you'll get rejected so Forty five seventy five so go ahead and right-click anywhere on the red and confirm and send Scent And And you can end Yeah, I was just gonna send I'm holding on to okay. Yeah, I was just gonna show it where it says buying power effect You can see we're using a little over thirty four hundred bucks In capital to put this trade on So pretty similar to what we we did before our max profit is nine nine hundred fifteen dollars and We're we're most likely gonna book this profit assuming it stays in our range We're gonna book about forty to fifty percent of that and then redeploy that capital into another trade So yeah, go ahead and hit send I Had my finger pressed on there ready to go get your finger on the trigger. Yep So not getting filled there So go ahead and click that little arrow at the bottom of the screen there and let's go ahead and cancel and replace that order Go ahead and move that down to forty five fifty And confirm and send and you know that like we like we Saw last time You know these the Nasdaq futures are not as liquid The bid ask spreads are a little bit wider than others But there you go So we got filled it at forty five fifty and I think we talked about this on the last video too But you know those that mid-price that I mean that's kind of a theoretical mid-price that toss gives you to give you an idea Of where price is trading but that doesn't mean you're gonna get filled there So you've got to do a little bit of price discovery and kind of adjust that like we did now We got filled so we are in the trade Sounds good to me is there Anything else that we needed to do with With with this one There's there's nothing else to do at this point You know you can you can just to just to look at the others Go ahead and and click on all right go back to your analyze tab Yeah And we can kind of take a look at where our other position stands so click on that one for slash gc z7 This is our gold position So so if you click on that you can see and you can You see price is still very centered You know we're up a little bit of money on that one not enough profit to to take off yet You know like I said we want to if we got 30% of max profit Within 10 days, we'll we'll book that if we got you know If we got 40% of max profit within 15 days, we would book that Or if it takes longer where we're typically looking for about 50% of max profit And and this is this is all outlined in the course. It's outlined in our e-book Kind of those optimal times to manage these trades So not enough profit in this one to take off yet, but we're we're sitting pretty Assuming price kind of stays in the nice range We'll just kind of give it a little bit more time for these options to decay before we book a profit in gold Are you looking at a 10 within 10 days or within 15 days of the time that you put that trade on or exactly? within okay, I just want to make sure it's on the front side and not like 10 days from The from expiration 15 from the expiration correct clarify. That's all yeah, just yeah The sooner you know if you get if you get profits quickly It just makes sense to book those profits There's no reason to wait around and try to get a little bit more You're better off just booking those profits and redeploying that capital into other high probability trades Okay So click on your natural gas symbol. Let's see where that one is Same kind of story. We've got a little bit of a little bit of profit in there right dead smack in the middle So nothing to do there We already looked at Go ahead reading that right about thirty thirty five dollars Be Or that's just the price that it's at yeah, no that that's where prices right now So whatever the profit line is at so you're up about thirty five bucks on that trade. Yep Okay, I just want to make sure I was reading that right. Yep, and then that would be nuts That's not real not nearly close enough to get out of right And we already looked at we already looked at NASDAQ. So go ahead and click on the bonds Okay, got a nice nice down move in bonds today. It's down 65 basis points over half percent And so that's actually helping our position if it moves down a little bit more even that'll that'll even get us a little bit more in the profit So you can so you can see where price is it's still well within our range And we've got a little bit of profit in there But not enough to to take off yet. So if you hover over the little hash mark Over the right there so you can see we're up about 180 180 bucks And the easy you know, I just wanted to kind of show this the the graphs because I'm a visual person I think a lot of people are You know the simple easiest way just to see where you're at on each position is exactly where we started our Coaching session here, which is just click on the monitor tab And that gives you the the breakdown of how much you're how much you're up on each position and then kind of your total portfolio So there you go Yeah, now just by looking at this you can't really tell What percentage of work? Can you are like what percentage you're at of profit like I would have to go into that to see okay? I'm at I'm at a hundred and ninety dollars here, but That's But I don't know what percentage total profit that yeah exactly So that's when that's where I typically just go into the analyze tab and kind of click through the different positions To see where I'm at relative to max profit. Yep Okay That's good to me. Um, yeah I like that then Aaron's kind of taking a look every day and kind of poking around to see See what it is make trying you know make decisions and as to what I would do whether it would Move forward with something. You know, even if I'm not gonna do anything You know, it's good to get in here and try and make that decision and then see if it matches up with what you would do Absolutely, and that's that's just a that's just a big part of trading is just staying engaged Kind of watching the different symbols and then you kind of get a good feel for for what you know How much they move each day and kind of what you can expect As a range and all this is priced into the the options and it's all kind of built into the platform But it helps keep you engaged and the more it's just like anything right any the more you the more you do it The more you practice the more you see it the the more second nature It's gonna become and you know before before long I mean you're just gonna be able to quickly glance at it check through in five minutes boom Add a trade if you need to take one off if you need to and be done and so, you know We talk about all the time In in in teaching our methodology and she teaching our strategies you don't have to be glued to your computer screen all day You know, this isn't day trading. We are we're I mean you can literally trade less than 15 minutes a day and be be extremely successful with the type of strategies that we teach Yeah, just wake up a few minutes early and you know jump in take care of what you need to do Actually, I guess you really couldn't do that because you have to kind of wait until you're inside of the Trading hours, I guess Yeah, as long as it's between 8 30 depending on what time you wake up Matt. Maybe you're late. Maybe you're a late bloomer I don't know You like You know, I guess you're on the East Coast. So it's 930 your time. So yeah, if you're waking up at 9 30 and that's early to you. Yeah, no problem Yeah, I was thinking yeah, just wake up at like 7 30, but I know that it's not gonna be 7 30 everywhere Where the Days are open or where it's gonna open up. So yeah now keep in mind What you know, one of the one of the advantages to trading futures is that they actually trade about 24 5 So 24 hours a day there and they close for You know a little bit a period here and a period there because they have to reconcile on the exchange and stuff like that And then they're obviously closed on the weekend and they open back up around 5 o'clock on Sunday evening But if there was some crazy situation going on where we needed to get out of a position or for some reason We really wanted to get into something and it was not in normal market trading hours Which is 8 30 to 3 central time Then that that is one advantage of futures is you can you can trade those in off hours Whereas if you're just enlisted stocks and ETFs You actually cannot trade those until the actual open market hours between 8 30 and 3 p.m. Central time Yeah, I mean I I never do I I never I oh I shouldn't say never I almost never trade outside of normal market hours just because a Lot of times you'll see the the bid ask spreads widen and there's not quite the liquidity there because there's The trading is not really going on so I you want to make it a practice a best practice to only trade during normal market hours But but that is that is one thing that is different from futures to the listed option places that Technically if needed you you can trade outside of those normal market hours Well, cool, well, let's wrap it up for the day say bye to everybody and we will connect here shortly All right. Thanks a lot. I appreciate everything and I will catch up with you on our next session sounds good. Talk to you later