 Hey everyone, welcome to another video lesson from navigation trading calm in this lesson I want to talk about health care stocks. So right now Today is April 17th and a couple days ago United Health Care came out and announced earnings their CEO Made some statements about different politicians pushing to do things that would disrupt the health care industry and cause some issues and so you can see some pretty extreme volatility going on in United Health Care and implied volatility which usually crushes After the earnings announcement has stayed pretty high So United Health Care would be a good candidate to to trade with the high implied volatility But I always like to trade ETFs First and then stocks as kind of a secondary thing if there's nothing to do in ETFs And so if you look at all the health care stocks United Health Care signa etna all different major health care stocks, they're all uh, they're all Taking a little bit of a beating right now And so what I like to do is go to the corresponding ETF In this case it would be x l v Which is the select sector spider trust sbi health care etf And what you can see is the entire health care sector Is moving down and while the price is moving down The implied volatility is popping higher, which is what we like to happen to sell premium Okay, and so what i'm looking at x l v is you know, this is just a statement made by one health care provider ceo As you know from us teaching over and over and over that implied volatility is almost always overstated Fear is almost always overstated in the market And so what we can do to take advantage of that is when we do have what could be an overreaction to a statement Or to a certain issue in this sector Implied volatility popping higher. We want to take advantage of that by selling premium And so like I said, I would prefer to do it in x l v which is an etf more of a broad Sector etf as opposed to one individual stock Because when you trade one individual stock, you do have some additional risk, right? There's different things that could happen just within that one specific company That may be different from the rest of the sector. So In selling premium selling these range bound strategies, we prefer to do etfs if the implied volatility Warns doing so So here's what we'd be looking at in x l v and here's what we did this morning is We put on an iron condor and what we're looking at here Is we sold the 185 put And the 189 call and then we bought the wings to define our risk You could look to do a naked strangle as well It just used a little bit more buying power than we wanted to use for this specific portfolio So we went ahead and defined our risk to trade an iron condor As you can see it's got about a 54 Probability of success if we held it all the way to expiration But in this case we'll be closing this at about 25 to 35 percent of max profit And so that's the that's the way we're trying to take advantage of this Now what we anticipate seeing or what we want to see happen is to price just kind of settle down The market to digest what was said what's being what's going on in the healthcare industry and then implied volatility at that point would also contract And we would benefit from that. So that's the plan And you can follow along to see how we do this was also an alert that was sent out to our pro members If you want to learn more about what's going on and what we're doing at navigation trading Just go to navigation trading dot com and we'll talk to you soon