 What's up everybody we are back with Matt King today is Monday, October 23rd Taking a look at his account Matt. How you doing today? Hey, I'm doing pretty good. How are you doing? Well doing well So we've got we've got these four positions on we're sitting here on your monitor tab We've got a position on in gold position on in natural gas We've got a couple strangles on in the NQ which is the NASDAQ and we've got a position on in ZB Which is the bonds and if we if we kind of slide over to the P&L You can see we're up a we're up a little over 500 bucks today and in total we're up over $1,100 so not too bad than your first 23 days of trading Matt Hey, awesome. Yeah, I wouldn't have I don't have anything to go on So I'll just take your word for it that that is awesome for for me a beginner trader. Thank you for your help Yes, sir. Yes, sir. This is about so what I wanted to do today Is we've we've got some trades that are in the profit and to a point where we can actually book those profits and take them off and so if For those listening if you've taken our course how I maximize profits trading options, which is all about short strangles You know that there's kind of an optimal exit point for these types of trades and essentially what that what that means is you know, we're typically looking on a Strangle, we're typically looking for about 50% of max profit, right? So that's kind of our that's kind of our standard where we want to take take those positions off and then redeploy that capital But if we get profits fairly quickly and I and I outline that in the course where if we get profits of 30% of max profit within 10 days of being in the trade you book those profits and run every day Same thing if we're in the trade for 15 days or less and you have 40% of max profit We're gonna take those profits and run because that there's no reason to wait for an extra little bit of profit If we get it that quickly we're gonna take that money out Book it take that risk off and redeploy that capital into other high probability trades. I like it cool, so Let's go to your first Position there, which is gold click on that and then click on your analyze tab just to show everybody where you're at And if you yeah, move that down a little click that little arrow with the line to move that order entry tool down So you can see if you hover over the little hash mark of where price is trading right now you can see we're up about Over there in the middle of the graph. Yeah, there you go. We're about 400 plus dollars on this trade So let's call it 418 So I've just got my handy dandy little calculator. I know you can't see it But if you take 418 divided by the max profit, which is 1190 That gives you over 35% of max profit right now And we've only been in this trade. How long have we been in this trade Matt if you go to the monitor tab Monitor and then go to account statement There we are So you can see we put this on on October 11th Well today is the 23rd. So essentially we've been in this for about 12 days, right? mm-hmm So like I said if you're in in a profit of 30% in under 10 days or 40% under 15 You want to go ahead and book those profits in this case. We've been in it for 12 days We're at about 35% of max profit. So this is this is one that I would just book that profit and and run All right, I'm ready to to book that profit and and take off Mix go to your tab All right, so we're gonna go ahead and close this out Okay, let's go to Crap where was it? So we're gonna go down to these here. So puts in the calls. We're coming here. Yeah We're gonna right-click Create a closing order and over here to buy and Plus one on the put and the call So we're just here. We're buying back the 1335 call and the 1255 put because remember we we sold those for a credit To start with and now we're buying them back at a lower price And it's it's green green for good Red for a Red for risky. Yeah green means money, right? We're booking some money So although if we take it off for a loss, it's still gonna be green, but in this case, we'll go with that Yeah, that's true. I got you Did you need me to change price limit or we're not gonna get filled at 770 most likely So kick that one up up one tick to 780 Okay, there you go, and let's let's just see if we can get filled here Okay, and then here That's it son And what I would typically do in this case Matt if we weren't recording and kind of showing every showing everybody is Is I would I would put that order in and I'd probably say I'd probably just let it set You know, even so even if you're not at your computer, you could just let it sit all day And eventually, you know, you'll probably get filled Barring a massive move in gold And so I'd probably just let it let it set and get filled for the case of this video and just for efficiency of what we're trying to do go ahead and Bring that order box back up. Yeah Right-click and let's cancel replace Can't cancel cancel and replace And pop that 790 confirm and Price is moving moving on us a little bit, but yeah, we got filled. All right Yep, if I went through So if you go to your monitor tab now Okay Now what you'll see is this is the this is our this is our order so you can see we entered it on 1011 and we sold It for an 1190 credit Okay, and then we bought it back for 790 so what that what that says is we made four dollars on that trade, right? Four dollars per Share per contract. Yep per per contract And so then you multiply that four times a hundred that equals 400 so we made right at four hundred dollars on the trade total Okay, that's kind of where I was going with that so it would have been the hundred shares is under one contract So seven dollars or the four dollar difference times a hundred would have been about four hundred And and that's the kind of the quirky thing about futures and one of the things that we will teach in our upcoming Course all about futures is there's there's little nuances and multipliers for every different futures contracts So they're all a little bit different. So in this case in this case the multiplier is a hundred so whatever that profit is you just Excuse me multiply by a hundred and that's your actual dollar profit or loss Got it. Okay. All right, so hey, what do you think first winner, right? It is and so I Can come here at any time would add is obvious if I come here it still shows up on my GC still shows up on the monitor And after that after the close today or when you open your platform platform tomorrow morning Gold will be gone because you no longer have a position on it Okay, but that money would just go back into our available funds basically. Yeah, okay. So it already did. Yeah All right, I got you. Okay. It's not actually on our current account here So yeah, it already it already wiped off our current account. So you're out. Yeah Ready to go on to the Z ZB one one more thing real quick Okay, go back up to the top and click on account statement again Count statement, okay, and you can see down below Where it says on the GC You can see that you P&L today So you you made a hundred ninety dollars today on that one and then year to date because this is only We've only been trading this account, you know since we started here So year to date you've made four hundred which I which obviously is your the total profit you made there So that that's awesome. They're just reference point for you Okay, this is all right I'm thinking there's got to be a good way to like organize all this stuff But it probably happens all right here in the thinkorswim platform for me. Yeah, sure does. Yeah, that's it all for you Good. All right. Yeah, before we before we go to ZB Let's let's check on the natural gas and just show everybody where we're at on that one Okay, obviously, we know we're up just a tiny bit but go to your analyze tab Just to see where that's at So you can see we're up, you know 40 38 bucks not enough profit to take off yet So we're just gonna let that one sit and brew for a while. Okay, so go to your NQ So we've got two different positions on here This is the second one we put on you can see price is still very centered in our in our graph I've got a little bit of profit, but again kind of same story not enough to take off yet So we'll continue to let that one Decay on a decay for us before we take that off Okay, and then if you go down below to the positions and click off those check marks that are checked And click on the other ones This is our this is our the first position we put on in NQ and same thing rep rep 262 bucks Excuse me, but again not enough to take off yet We want at least 30% max profit But looking for as long as we've been in this one now, we're really looking for more around 40 50% at least Okay, and Then lastly, let's go to ZB our bond position. Okay So you can see we're up about 390 bucks on this one out of a possible max profit of 1031 So again, I'm just doing this on the side 391 divided by 103 1 We've got a profit of about 38% So same kind of situation if you go to your monitor tab Okay monitor You can see we put this one on on 10 6 So we've we've been in this for about what is that? about 16 17 days And we're at we're at basic almost Basically 40% of max profit. You don't have to be exact on that But again kind of same situation We don't want this thing to move up on us in price and kind of take some of that profit away So once we get to that point this quickly I'm an advocate of of booking those winners and and moving on We've got another tray that we can put on so let's go ahead and Book this winner just like we did in our gold All right, let's do that. So go back to the analyze tab and Put some our calls what Let's know what I was shooting for and then right click closing order by and Are we gonna do the same thing with the price? These are only one tick wide So let's try to get filled at 42 and see if it see if it hits for us Okay, if not move it up a tick That was fast and got filled. So that's where it's trading. So We're we booked we booked in bonds So if we go to our monitor tab there You can see we made 375 bucks total profit in bonds. So yeah, we we sold it at 102 We bought it back at 42. Now those are this is where Futures get a little bit funky. So those are actually To get to one point that's actually those are actually 30 seconds The bond market still works in fractions So we're it's kind of a legacy deal going back to the 70s where even stocks and ETFs and a lot of things Didn't work in decimal places. They worked in fractions And bonds is kind of one of those that have that are still working in fractions. So it's on 30 seconds Um, so in this case as far as an actual dollar amount you booked 375 dollars Okay, and this is where you're looking at that 375 just to make sure. Okay. Yeah Okay Shoot got another winner got another winner All right, so now um, we we kind of scanned through some of the different symbols before we started the recording and and Really everything everything's still kind of low implied volatility But we did find one that was over 50. Which one was that you remember? Uh, it's like it was x xrt. Was it correct? 52 So we've got an id percentile of 52 and xrt. So kind of highest on the board So let's go ahead and put a trade on an xrt Um, just to make sure that i'm That is the one that we want correct. That's right. Yep. Okay I just make sure So We will do is it threw me off because the slash wasn't there. So I was like, that's not a future Which is what we'd been doing. Yeah, that's right So we all the all the trades that we've done to this point have been futures But with everything kind of so low and implied volatility. We've got something that's that's uh a little bit higher So we're going to go to an etf and and xrt is the retail etf. So this tracks This is kind of a a basket of stocks that tracks retail so you've within that etf you've got stocks like wal-mart and target and Best buy and and any kind of any kind of retailer that you can think of is kind of makes up that that index xrt awesome awesome So trade tab so we've got Oh, i'm gonna i'm gonna let you kind of go through this. How many days to expiration do we want? So ideally around 45 up between uh 30 and 60 and we don't want the we want the white ones here not the the weeklies so it's got Kind of far out there, but we could do uh the 15 december of 53 Here you got it and All my strikes are set up Oh It's not too much to work with but so we can come in here looking for our normally around 16 to 20 delta In this case, so here's here's the thing with xrt. It's it's only a 40 dollar Stock it's only a 40 dollar etf And so you're not going to get the same kind of premium you would in a higher higher priced etf or a future But that's okay. It's you know, we it kind of is what it is so we would Exactly. I go with 23 13 is just a little bit too small So so 23 is what we would go with good all right, so and that's going with the The higher probably probabilities, correct? Actually, it's it's going for a little bit higher profit potential a little bit lower probability Yeah, I got you I got those confused. I'll have it down by the time we're three months is up so 90 days. All right, so We'll do that. We're going to sell And that was going to be another Strangle Yeah, let's just stick with the strangles. I mean, um, you know for one on a low price stock like this You can't really do an iron condor because you just don't collect enough So you really got to use naked options on a low price stock like this. So we'll we'll stick with the strangle Gotcha All right, so we'll come over here and look On the Put side Where to go delta This one's around this one's got an 18 and a 26 in our area those ones are Probably go with the 26 Either one is fine. Um, you're just you're getting a little bit closer to the money with the 26, but yeah, that works Okay And then come over here and check the the strike be 39 on that 43 39 and I'm missing something. We wanted to do the analyze right set our slices Go work, right? Good to go 63 percent there Yeah, so you can see where our probabilities are a little bit lower than what you know With some of the other trades we've done because we had to get a little bit closer to at the current price But it's still you know over 60 probability of making money at expiration And obviously by the time we Managed this at 30 40 50 percent max profit our probabilities are going to be much higher than that. So Okay, yeah in it Sorry, go ahead. No, no, go ahead. I was just going to say so Do you notice anything different about this when you're looking at your max profit? um I know there's a couple different things that pop out at me the first thing it popped out was these The the left and right margins. I'm already on the outside of it Uh for one, but the other thing was it's not quite a rigid over here on the The far right side. I don't know if that has anything. Maybe it's just the way that it looks Yeah, that that's um, that's just the way it is and and one thing to point out on those little red Hash marks in between in inside there those will those will move around So those those you don't really want to pay attention to those It's really the red hash marks on the outside where your hash where your dotted lines are There's ones. It's probably just my OCD getting to me. It's off balance throwing me off those those middle ones Those are going to move around so as your profit line moves up and down That's just showing kind of where the pink line hits the zero line inside there Okay, and so there's there's really no relevance there. It's just more of a kind of a visual thing to give you an idea of the the max profit it looks like is If i'm looking at that, right? It's 88 88 dollars. It's a little lower than what we're we're used to being at but I don't know that That's something unusual or strange. It's it's not unusual, but that's that's exactly what I was getting at is For one contract, you know our max profits only 88 bucks. Whereas on a futures contract You know our max profit was in some cases over a thousand dollars for one contract Yeah, and so that's when I say that You know one of the reasons I like trading futures is because you have to use less capital for more profit Because you're using more leverage. You get a lot bigger bang for the buck. You get a lot more leverage with the futures In this case, we're going to have to kick this up quite a few contracts to kind of Mimic what we could do in the futures, which is okay We've got a little bit more transaction cost got to pay a little bit more commission But that's the difference And and especially with its uh etf like this. That's only 40 dollars You just don't get as much Juice in those options. So you got to put on more contracts To to get your trade size up a little bit. Okay So let's go ahead and kick this one up to probably 10 contracts Oops, what the wrong way 10 10 contract negative 10 contracts Yeah, so then if you go hover now now you're looking at 880 bucks And that's more in line with kind of a similar size as we've been doing with the other trades All right. So it really would come down to Uh, your available funds and your buying power how much money you have in your account and are willing to put on As well. Yeah, so this so this max max profit 880, you know, that looks good That's that's fairly comparable to our other trades But the next thing we got to make sure of is if we right click down on the red and hit confirm Don't send it yet, but just hit just right click and hit uh confirm and send We want to make sure that the amount of capital we're using isn't Too high for what we're what we're trying to accomplish now You can see it's gonna it's gonna take over $6,200 out of our you know of our balance to put this trade on But that's okay because a we've got the capital to do it And and implied volatility is so low across the board that we don't really have any other Positions that we want to put on So in this case we you know, we go ahead and do this The only thing to keep in mind is you know, if you didn't have the capital then you want to scale that down Gotcha Yep, I get that if you don't have it then Don't spend it if you don't care. That's right. That's just kind of money 101, right? Yep Um, it's amazing that uh some newer traders don't quite get that though. They get they get over leveraged. They're trying to Maximize all you know, and I think it goes back to you know traditional investing Uh and financial advisors will always tell you keep you keep all your money invested, right? And the difference is Hey, it's not their money. So of course they want all your money invested because then you're paying fees on all your money but secondly They're they're typically not using any leverage What we're doing here is using leverage With options. Um, so we need to we need to keep cash in our account and we need to keep Enough capital available so if opportunities present themselves, we have the cash available to to take advantage Yeah, I get that that's you know, and that was kind of a question You know, it's like awesome. We're putting $50,000 into an account. We're kind of invest at all and get it back but You know, but like you said, you know, we don't want to put um All of it every single dime into Into the investment because you you know, you want to have some of some available to to play with if that opportunity arises So I think right now we're it. Well, we just made that's probably some back Uh, I think we're 43 000 out of the 50 At this point. So that's what we still have. Yeah, that's what we have available. Yeah, yep Cool. So go ahead and send that baby in Okay So I hope I think I did everything it needed to be done Yeah, and I figured we wouldn't get filled but so we'll have to adjust this one So go ahead and bring that up and let's uh, right click on that red one cancel replace And let's take that down to 86 Okay, go ahead There goes So you see what happened there. We put it in 86 and we actually got filled at 87 Okay, which is good, right? We want we want to sell it for the highest price possible And so that's that's that's the efficiency of the markets and that's you know, like I said the um, the theoretical mid price What they were giving us was 87 and that ended up being being right a lot of times in XRT You got to come off the mid price a little bit But in this case we got price improved and actually got filled at a better price than what we what we put our order in for So that's the efficiency of the markets and that's that's the beauty of liquid efficient markets Got it I like it it's uh You know learning something new and playing with some different variables and uh, I'm making it happen Very good. Well matt, do you have any other questions? If not, we will sign off for today and and check back in when there's more opportunity to put additional positions on Or if we need to book some more profit Uh, I think that I am probably good for right now today was a good educational day so great All right, sounds good matt. We'll talk to you later and see everybody next time All right. Thanks for your help. Appreciate it