 Almost time for the bell, how many options will you sell? Fire up your platform, get ready to enter But first, let's get the mindset centered Listen, trade it, have success, find what works for you and forget the rest Stats and probabilities is what we're a dismiss, greed and doubt Focus on the process, not the money and the big honey Power our lives, let's start the show, come on trade hackers Get ready to go, zero day options, time to make bank Get locked and loaded, then be ready to play Hey everyone, welcome to Power Hour Live Today is Wednesday, October 25th S&P down 65, NASDAQ down a bloody 2.6% 390 Russell down 26 and Dow down 134 Dow's down less than a half a percent Gold and silver mixed, notes and bonds lower, 10 year yield back up to 4.95 Oil and natty gas up, grains down Bitcoin up a couple percent and VIX up 10.5% back almost to 21 And we are approaching lows of day, low today and SPX is 4181 Currently at 4183 I did an AM ratio, got stopped out of that I did an early quiet lunch, kind of massage the back test based on the current parameters and it still looked good Got stopped out of that I had an iron duck on and when SIBO had issues I literally shouldn't have gotten stopped out but I ended up getting stopped out for a small loss Which in hindsight ended up benefiting me, so thank you SIBO I guess And then I put on a little gap and go PM iron condor that hit 40% and I've got my remaining half on still here Yeah, in hindsight, I'm not filing a complaint So for Power Hour, looks like we might get 10 wide, maybe 5 wide By the time this thing shakes out here in the next couple minutes Go ahead and buy some longs for Power Hour Tronch 1 Yeah, I was hoping with a drop like this we may get 15 or 20 wide, but not so much today Looks like it's going to be 5 wide Give it another minute, got about 11 and a half point expected move left for the day Got my 5.7 that I still need to close We actually could use a little bit more downside to benefit that Do that here in just a moment Yeah, saw Murph dog So you end up closing that one You know, I mean my back test it shows either closing at the end of day At one DTE or end of day zero DTE so I opted to It's kind of in the middle I opted to hold it for today so End of day is what I was waiting for and I mean we just happened to get a nice down move I kept on going and going and going It was up closer to $1,300 it's up about $740 right now With this little bounce Alright, 5 wide, 90s and 85s Tronch 1 5 wide Trying to get 8.35 Filled at 8.35 on the 90s, 85s This is where my 5.7 is at right now I don't want to take a loss on it so if it starts to push up much more I'm just going to take it off, book a small profit See if this thing is going to go back down Dick K told me we're going down so I got to hold it Because when the machine speaks you listen Dick K, do you like the Dick Kelsey meme this morning? I enjoyed that, I had a few chuckles out loud to myself on that one I like to laugh at my own jokes, I don't know if you guys know I'm pretty much the funniest guy now So I had a couple people ask about the VIX and Gap filters in Option Omega So I just wanted to go over a little bit of that while we have some time Kind of in between trades here So let me just give you an example and then you guys can ask whatever other questions you have on this So for example, here is my reverse iron condor test And so one of the filters I have on here is Actually I must have accidentally changed that to 1% That should be .25 Hang on a second, I must have been messing around with it and accidentally saved it Alright so So I have a VIX overnight moved down minimum of .25% So what I'm doing here is essentially On a reverse iron condor, for example, you're essentially buying premium You're buying an iron condor as opposed to selling it So when we buy this, we want to do it after volatility has contracted So the filter is used to say, OK, if the VIX opens up down, meaning volatility has contracted That's when it makes this more attractive to get in And so that's an example on a reverse iron condor The opposite, when it comes to like, let me look at like a AM ratio My Monday, Wednesday, I don't use a filter, but like AM ratio Friday, for example So on this one where I'm selling an iron condor I want volatility to be Expanding to sell premium, right? We want to sell high and buy low We want to buy low and sell high So on this one, I use a VIX overnight move of a max of a quarter of a percent So in other words, if volatility is contracting more than a quarter percent This doesn't back test well So I want volatility to be down very little Or to be expanding for me to put this trade on So it's just it's regardless of zero DTE It's, you know, really any timeframe you want to you want to sell premium when the options are expensive when implied volatility has expanded And you want to, you know, if you're going to buy premium, you want to do that when when premiums low looking for it to expand from there Does that make sense? JBPR and then Wally World, are you in here? So the in option omega, which is the software we use for back testing They don't necessarily have an implied volatility indicator filter It's just VIX So you're just looking at VIX If VIX is down more than a quarter of a percent That's that's kind of the most common VIX overnight filter we use Yeah, VIX is VIX measures the 30 day at the money options of SPX So it's a measure it's a it's a measure of implied volatility So the VIX is going up implied volatility is going up But again, it VIX specifically measures the 30 day at the money options of SPX So like, you know, I also have this implied volatility indicator that I measure where implied volatility is based on a percentile and IV rank version And I look at it, I look at it on an annual basis So where's implied volatility compared to where it's been the last 252 trading days and the last 21 trading days are essentially a month to get an idea So for example, obviously the VIX is up today so you can see the volatility indicator is going up as well Hey, Wally World, I see I'd see you just posted on the zoom chat All of our when we're streaming live go to the zero live chat channel in discord Let me know if that made sense to you Wally World Oh alpha options Maybe I didn't miss maybe I misunderstood your question as VIX rises does its IV rise or fall and the answer to that is yes as well So for example, you can look at our implied if you have toss you can look at the IV indicator on VIX So typically when VIX is going up the volatility on volatility is also going up So the volatility on VIX is going up as it's going up As it's going down the volatility is typically contracting Is VIX still a symbol? Yeah, so VIX VVIX is a symbol and that's the actual volatility on VIX So you can look at that as well All right SPX coming back down 4185 ish I added a downside vertical spread to our single put calendar and SPX just to protect the downside We do have Mr. Powell taking the stand after the after the bell today So I just wanted to protect the downside if it bounces I will I may add another calendar to help with the upside But I just wanted to protect the downside I wonder if the market's going down because it just it knew Jerome was taking the stand after the bell It's like yeah, let's just get this out of the way Let's just go down before you before even gets in Yeah JBPR so that So those are some indicators that Atenra one of our members created just to give you a quick easy glance So basically what this shows is you've got gap minus 0.36 so SPX gap down 0.36% today from yesterday's close The move is the current move from today's open So S&P is down you can see you know SPX is down one and a half percent from yesterday's close but from today's open It's down 1.15% that's what that one is And then the VIX 90 ratio that's VIX versus VIX 90 I don't I don't really use that for anything but that's on there as well That's another filter you can use an option Omega And then it shows the max move and max max move up and max move down on the day and that's from the open today's open So it's really handy to just have on your chart to kind of take a look at and you can find those in the zero DTE course channel You can see the toss shared links posted there My PM iron condors looking good so far let's see I've got to hit my 80% I'm looking for four bucks It's currently trading at 640 a trunch one I got in at 835 I'm looking for five bucks to reduce my stop on trunch one trunch two and about six minutes I don't know if Wally World ever made it in Wally World. I just tagged you in the correct channel zero live chat Just want to make sure you understand everything was clear that I mentioned to you Yeah I saw him and he said he's on the he's on the zoom call so I told him where we were Runch one currently trading at 715 There he is Did I answer your questions Wally World does that make sense? Are you PMMers that PM time flies getting a little close to the edge I may close that one before the end of the day Well welcome Wally World glad to see you're dipping your toes in the zero DTE land Yep JBPR correct Just protecting the downside you know Jerome's taking the stand after the market closes so Who knows what he'll say could get a little wild so I've got a lot more room to the upside And if it does bounce then I can adjust with another calendar tomorrow There's no tutorial Aten Raj has created those chart labels but what questions do you have they they're pretty self-explanatory You got gap move and max move the gap is what the S&P gap overnight The move is where it currently is from the open and the max move and max max move up and max move down are the maximum amount they've moved from the open today There was the tutorial there you go All right trance one still pretty centered here trading at 680 Trance two here in a couple minutes buying my longs Looks like we may get 10 wide could be the same strikes Going with the 90s 80s Well no 90s 85s or 655 Build at 655 on the 90s 85s the same strikes Looking for 395 to reduce trunch to a J. B. P. R. That was from this morning That was at the open the expected move was 2026 points from the open Obviously we smashed through that I always mark the expected move on my chart so see this dotted yellow line here That was the downside expected move at the open we smashed through that It's about a two and a half standard deviation move today And if you look at your option chain every every option chain has the expected move for that period so Do we now in the end of tomorrow the one DTE see the expected moves that move is plus or minus 38 and change Expected move at the end of Monday is 70 and change Okay you holding your five seven right up until 10 minutes to the bell Are you already bounced? Yeah I guess I do I'm supposed to close half at 50% I did not do that It's supposed to close half at 20% I mean Let's see I got into my five seven 1345 I'm up about 12% right now No I don't I don't have profit targets on my power hour trades If I get to 40% I reduce the stop on tranche one and two But I don't I don't take profits early Launch one is it 585 I'm looking for five bucks to reduce my stop Ken that should not be the case you must be doing something My PM iron condor trading at 440 I'm looking for four bucks to close my last Last portion Are you on toss Ken with that one five seven Did you click on a wrong leg or something Sometimes when I have accidentally messed up Sometimes the easiest thing to do is go back to the order and toss Find it in your past filled orders and then just do an opposite order That way you know you got everything correct Sometimes if I'm you know if I'm clicking on legs from the analyze screen And then right clicking to close the trade Sometimes I'll actually like you know click on a leg that doesn't belong to that specific trade Launch one down to 560 Coming up on tranche three Launch three in two minutes Looks like the 95 85s possibly Launch one still hanging around 550 Give it another minute Alright looking at the 95 85s for tranche three Launch three 10 wide We get filled at 350 Build at 350 on some of them There we go Build at 350 10 wide 95 85s And a little bounce here The five seven just went to scratch I could have would have got I didn't I should have had a profit target to close half at 20% Like my Like my plan says to do I just totally forgot Price to come down just a little bit to get out of my Rest of my PM iron condor Tronche one trading down to 4 540 530 And out of my PM iron condor 80% nice Tronche one gets down to five bucks. I'll change my stop to $8 515 I'm down to around 87. We'll definitely get there Another point another point lower. We'll do it Looking around 515 520 510 Just a little bit lower 505 Five five flash there we go Reducing stop on tronche one And tronche two which is the same strikes I need 395 so I need another buck Little buck little bucky buck to come out of it Reduce that one Alpha options to your earlier comment on Vivex Realize we are using back test data but it would seem Hypothetically worthwhile to watch Vivex if it moves Up for days like today Pending Fed global conflicts could be help on when to add The calendar or take it off like you did today Not routine but situational Add the add the calendar Which which calendar are you talking about When I added the vertical to my calendar No I don't I definitely don't add calendars On days when implied volatility is spiking I enter calendars on days when implied volatility is contracting Unless it's like this morning I traded a one two Which I just do every Monday Tuesday Wednesday But For maybe what I was talking about here on the stream was I had a I already had a Calendar in spx Which was this one here It's trading down near the the lower end of that calendar And so I added a vertical spread for protection to the downside So now it looks like that Is that is that what you were talking about Is that what you were referring to I guess I should say But yeah I don't I don't necessarily look at Vivex Just because I I have my Navigation trading implied volatility indicator So I can see what the volatility of VIX is doing If I just click on VIX and I can see the volatility on VIX And kind of where where it's been relative to where it's been the last year The last month so that to me that's that's how I look at it Yeah I kind of during power hour I mean once I get my trades on I kind of jump around other positions So sorry that may have been confusing What I do for power hours trunch one two and three so I'm in all three trunches I reduced my stop on trunch one Waiting for trunch two to get down to three ninety five I'll reduce it So what did they manually did they close it for you can Okay What am I gonna do with my five seven A really nice profit going and then this little bounce happened That's the problem with the old gamma When you get down to the wire Power hour trades could use a little downside as well Yeah when I set up my Quanteo When I set up my This thing push When I set up my OCO orders it has a stop And a ninety percent limit And that's just so I can easily adjust that at the end of the day So if I want to get out with five minutes to go I can just adjust that up so it's already there Or if I decide to take it to the bell I can get rid of it Or lower it down to ten cents which I do sometimes Trunch one stops at eight bucks currently trading at seven ten Need a pullback Elliot all out not feeling it today huh Oh yeah you hate Wednesdays Wednesday has a it has betrayed our trust hasn't it the last few weeks It's gonna come back and redeem itself today You got Wednesday in a timeout Alright I'm gonna give my five seven ten minutes before I pull the plug I got so discount if you're looking at my screen On this little push up right here Let me get it bigger On this little uh on this little bounce I survived the whole initial flush Then we we got this little bounce right here About an hour after the market opened I got stopped out somehow And it was because of the SIBO issues going on All of a sudden it just took me out so it stopped So which ended up being in my favor Because I would have gotten stopped out for my normal loss Instead I got you know I got in at seven sixty stopped out at nine ten So it was a small loss But that data issue must have Must have just triggered it Trader Jim's on the Wednesday is sketchy train Closed out of a time fly today Just for a little scratch profit to protect the downside And then jumped right back in in the same cycle Repositioned it Put on a duck earlier today Market wasn't down nearly as much as it was at this point VXX closed out half yesterday Came all the way back up to basically break even on this remaining half I'm gonna wait to reload though I wanna see if we get another pop above these recent highs You know if VXX gets above twenty seven twenty eight I'll be jumping in with some more Back down below ninety please Anywhere between eighty five and ninety is good for me Market on close Twenty six million sell size is the early indication I don't have any stats on it Chris I've just been watching it So far I don't really think there's anything to glean from it I just know that if it ends up being a big number Or if it you know switches from sell to buy in a pretty major way Then you get some market movement But then you know as far as there's nothing really you can do about it at that point So I don't know it's just something I'm kind of watching Trunch number two is trading at five fifty I need three ninety five I don't do anything different with it There you go come on back down It's nice and warm below forty one ninety Wuga what are you doing here I thought you were getting a root canal You already done? After the market okay good planning Trading in the chair You don't you probably don't want to be trading You get a little happy gas going on Alright there we go Brunch two down to four seventy Four forty Four thirty Four twenty five I need about thirty more cents It's right in the sweet spot between eighty five and ninety Just got to sit here for a few minutes I've looked at the gamma is that spot gamma I've looked at it I don't I mean to me it's just like any other level It's it's really how you trade around that how you manage your risk How you manage your position around that level So I don't I don't I don't use it Down to four fifteen Four ten Four oh five Three ninety five alright reducing my stop on trunch two Just like fibs right decay You know I don't I say all the time I don't have anything against using any of that stuff It's just You know We all perceive things differently so whatever gives you the confidence to Help you manage a trade better Go for it fifteen tell So I'll get out of my five seven Build it fifteen twenty Alright so the five seven ended up being a nice little winner Could have made more if I've got out A little bit ago but It's alright I was up around twelve hundred bucks at one point at the lows of day But of course you're never gonna Hit the hit the exact best I'm good with it I stuck to my the only thing I did wrong was I didn't I should have closed half at twenty percent And I just didn't even think about it Trunch one trading at three fifty Trunch two trading at three fifty Trunch three trading at two dollars and twenty cents Elliot put how much money you left on the table Because of your hatred towards Wednesdays Hundred and twenty four million sell side Final number coming out in two minutes Just need to chop around right between that eighty five and ninety No need to get excited Jerome's not here yet Save your little Dog and pony show dance for after the market My one two from earlier today is up My three four from Monday is Struggling This is my three four Right in the valley Need Jerome to say something to move Move the market one way or another Up or down Sixty points should do it Taking that off in the morning Less than ten minutes to go Trunk one and two trading at two eighty Trunch three trading at a buck twenty So alpha options whenever premium gets When implied volatility gets low You know we're looking for a specific credit on each side So when implied volatility is low We'll end up just doing an iron butterfly Essentially we'll you know we're buying the wings And then we're selling this selling the straddle At the money So we end up We'll end up doing plenty of those We prefer not to We prefer to be wider As far as double goes You know you're just really using more contracts Than you need to Double butterfly the risk profile graph Will be similar to an iron condor Get the little bat wing bat bat ears But I think you're better off just doing an iron condor Yeah so once I once I buy the longs All I'm doing they're basically dead to me From that point on I'm just focused on Managing the shorts because the the longs are worthless And I buy them for five or ten cents You can see they're all worthless at this point So they'll just expire All your risk is in the shorts And all your profit Well I guess I'll keep my PM time fly Tomorrow you keep in yours I'm doing whatever you're doing Keeping it alright go down together Market bounces will be in business If it goes down We will wish we closed it At five minutes till I'm going to close Tronche 2 Tronche 2 I've got an order at $1.50 I've got $1.60 Build it $1.60 on Tronche 2 Four minutes to go Tronche 1 I've got an order at 80 cents Need a little bounce Tronche 3 my order is at 35 cents 85 is the low strike on both of those Need a bounce A hold above 85 please Final number 230 million to the sell side Pretty low Tronche 3 down to 57 cents Tronche 1 should get filled at 80 cents If we bounce just a little bit I said if we bounce just a little bit Starting to get filled at 80 cents Got three contracts filled Four, five, six, seven, eight, nine, ten Alright, out of Tronche 1 at 80 cents Tronche 3 at 10 cents Currently trading at 55 Still need a little bounce Still got to stay above 85 835 Tronche 2 I got in at 655 Tronche 1 I made 7,555 Tronche 2 I made 7,920 And Tronche 3 Is trying to give me another 3500 In 10 seconds Hold your head up buddy Hold it up for another 10 seconds Ding ding ding pin on Tronche 3 Very nice Alright, let me see 350, yeah 35, no 350 times 14 Is 4900 on Tronche 3 So 4900 plus 79 20 Plus 7,555 Equals A little over 20k today my friends Not bad on a Wednesday It owed us It owed us from the last few Awesome Alright my friends tomorrow Where we got on the docket for tomorrow Tomorrow is the 26th Yeah so I'll be streaming live At the open tomorrow morning And then we will be back for Power Hour Live Alright good stuff my friends Have a good night Talk to you soon