 I'm going to get the slide up right now. And let me know if you can see the slide. Welcome, everyone. Today I'm going to talk about making money trading options. So options are really fun to trade. Why? Excuse me. Because you can get big overnight moves with limited risk. And that's really the best thing about trading options. So we're going to talk about that today. If you have questions, you can email me at melissathestockswish.com, or follow me on Twitter, Facebook, YouTube, Pinterest, or Skype. So who is trading for? It's really for anyone, anyone that wants to make fast money. Because when you're trading, you're in and out, in and out. I call it chunking it out. You're not investing long term and holding something for weeks and months and years. So it's anyone who wants the opportunity to make a lot of money. Because the only thing that's limiting you is the amount that you're risking for how much you're making and your skill set. You have to have the right skill set and the right strategy, which I do. And it's also for anyone that wants to work from home and anyone that wants to be their own boss. I don't think I could ever go back to working for anyone again. So I'm a very independent person. If you're like me, you know exactly what I mean. But really, options are different than equity trading because you don't have to sit all day from 9.30 to 4.00 in front of a computer. And you can have a trade on, and you don't have to babysit it and let it do its thing, let it work for you. And also, another nice thing about options is if you don't have a margin account, you can trade options. You can open up a cash account at a broker with as little as $2,000. Now, you would set your risk accordingly whether you have a $2,000 account or a $200,000 account accordingly for how much you risk-portrait. And if you have questions about that, you can ask me too. So can you earn a living trading option? The answer is yes. In fact, some people have made a lot of money doing options this year with me. I've had some really huge calls. It depends what you like. I say learn it, I'll do it all. It's really about what works for you. Again, how much time do you have to spend in front of the computer? Are you someone that likes to be in and out quick? Are you someone that wants to hold overnight? How much money do you have to put at risk too? But you can do this for a living. And only this if that is what you want to do. You don't have to do the day trades. I like to do both. They're different, same strategy, but my money's working in different ways. Also, I get this question, can you trade options with no prior experience? The answer is yes. Yes, you can. I'm not doing very complex options trades. I'm doing just in, out, buying calls, buying puts. Very simple. I'm not doing any fancy, dancy things. So there are people that have done the half day options course with me or sign up for the newsletter that I've had no experience at all. They take the trade. They set their risk. You can put an order out to fail you. When it gets to 50%, return an investment or 100%, whatever you decide to do for the management of it. Again, you don't have to babysit it. And my trades, I let them play out my options. They either win or they lose. And that's how I look at it. I don't put it in a halfway stop, OK? So is it hard to trade options? What are the pros and the cons? Well, the pros or the benefits of trading options are you can capture overnight moves in stocks with limited risk, which can be sometimes huge. What's another benefit pro? Well, if you are in a trade with the market, it can really benefit you by getting a move. Well, it will gap in your direction that you're ready in and something. Say you're in a putt and the market gaps down and it follows through lower with the help of the market or the stock just moves lower with news or earnings, OK? And you get dream targets sometimes in things. Also, as far as the stock price, well, you don't have to worry about if the stock is something like Amazon that cost a lot of money per share where you're doing the option. You're not paying the share price because, again, you're not doing a margin with options. So you get to trade very expensive stocks and going to have really, really big moves with a limited cost, OK? What are the cons? I don't know if this is necessarily con, but sometimes people think it's a con where you have a fixed amount of time in an option. So in other words, the move has to go. The stock has to go. The trade has to go. The movement, the momentum has to go whether up or down, depending if you're in a call and a putt. It has to go within a specified time frame. So there's something called time value. There's time associated with the option. So the faster it goes, the better it is, OK? You can do them out for one week, two weeks. I usually do. I rarely really do anything out very longer than that, OK? And another con you could say is volatility. Some people don't like that, where they move and it goes boom and it moves really quickly. Now that's something for me I think can be work to our benefit. The market had news it was out last week. Gosh, I only remember the day now. Every day runs together where it had a crazy move down really quickly. And if you were in puts, it was a benefit. If you weren't along, it was a con. Again, because volatility is something that comes in quickly, just like we're seeing now here in the last 24, 48 hours of the market. So I think if you follow someone, even if you don't have experience, you can learn from someone with experience, which is me, OK? And you learn from someone, and you listen to what they say, and then you do the trades, and you gain the skill set. So it's about how, what, and when. And I don't care what you do, how you trade. You have to have a strategy that works, a strategy that's profitable. So my strategy is based on gaps. That's how I'm making the options picks, OK? I'm trading momentum, momentum in the gap. Where am I getting the picks? From stocks that are gapping in the morning, I rate them using my 26-point rating system, OK? That's what I do. And sometimes I do long, sometimes I do short. So a call is buying. A call is that I'm betting that the stock price is going to move higher. If I'm buying a put, I'm betting that the stock price is going to move lower. It's like a short is a put. And I'm taking the train, the option, and the gap in the direction of the gap. When do I do them? Well, I could do them all day long. But I tend to do most of them in the morning. But sometimes I will call trades later in the day. I did that today. We did a put today in RCL. It was late. It wasn't right of ways into the open. It was a beautiful call. Went right to the target. It could still even be in it, OK? It was a put. Stock fell today, all right? So when I'm doing trades, I'm looking at the momentum and again, the gap, the momentum that's coming into the gap, OK? And we're going to go over some charts here. So I'll show you what a gap is if you don't know. But that is the strategy. That is what I do. And that is how I make the options trade calls too. You can use this strategy to even trade and do nothing else. In other words, you don't have to have a margin account. You could just trade options if you want. I think having a margin account allows you to get in and out of margins. Like you could have done the RCL today and closed it before foreign made money. But I still think that's lower. So I think you have more flexibility with a margin account. But the nice thing is, if you have a small account and limited funds, you can trade options and still get the move. Still get the move and the overnight move without having to have thousands of dollars in it to worry about what the cost is of the position. For example, it took 1,000 shares of something like RCL at $62 a share, for example, which was roughly around the price that I had called the drop, OK? 1,000 shares, you need $62,000 in margin. Not cash, but in margin, OK? Whereas you wouldn't have needed that for an option trade, OK? You could have bought it for less than a buck, $0.90, OK? So you could have bought 10 contracts today, 10 contracts for $900 and made money. So again, you see how the benefit of something that is getting a move and a stock price that's medium, I'd say RCL is a medium price or even more expensive, like I said on the Amazon, and getting a move in something without having to worry about margin. And if anyone is here that doesn't understand what margin does, please ask me. Please ask me. I'm thinking that people here do, but if you don't, then ask me. Anyways, one quality strategy is all you need to pay yourself at a regular basis. I do options not every day, but I do them enough a week. In other words, today I did a bunch, OK, a lot of them. So either I tend to do them in groupings. I might not do anything in a Monday, and then I might do 10 in a Tuesday. So they're not always stretched out, but they're certainly enough during a week that you can pay yourself. Knowing a strategy you can replicate over and over and over for profits can change your whole trading world. And having one powerful strategy that pays you will open up your eyes to the true profit potential to market. A lot of times, people don't understand. They just don't know how much money you can really make doing this. And I think people are surprised. Tesla was one of the ones we did this year. Just a massive mover a couple of times we did it. I mean, people just don't even realize how much money sometimes they can make with options. And again, it's a huge benefit. The market can offer you a real lifelong career if you have a strategy that makes money consistently. And again, it is my reigning system. That's how I do it. That is how I make the choice, OK? So let's look at the top 10 reasons why it's a great idea to trade options. Number reason number one, to trade options. You get big moves fast, OK? And again, sometimes that is on what? Earnings, OK? Right now, it's earnings season. Today was the first day of earnings season. We had some nice trades today. We did Boeing. We shorted Boeing. We shorted Dow, OK, which was Delta Airlines. Two nice trades. They moved fast. Moved to the same day. And I also told you about the RCL. So that moved fast today too. Went to the Target and one day boom, OK? Reason number two, to trade options. You get a good return on investment. What is that? 50% to 100%, sometimes way more. But I would say, if you have $1,000 and you can make 500 bucks in a day, that's good. If you have $1,000, you can turn it over and make $1,000 a day, that's good. That's 100% return on investment, OK? So that's way more than you're earning at any savings account or money market or anything right now if you invest your money in a bank. To turn your money over one, and you can do this multiple times. Because again, I said, we're doing many, many trades a week. That's how you make money. That's how you take a small account and build it up. And that's how you take a large account and make it huge, OK? There's a trader with me. He's a construction worker, actually. He has not done the course yet. He did the gap options course. He started out with a very small account. And he's building his account up to get to the point to have $25,000 to be a margin account. He's at that $20,000 mark. He's got five grand more to go, he has to make, to get there. He will get there, OK? He's on the newsletter. He's taking the trades. You chunk it out. And I think one of the other things, too, with people when they come to me is they have to listen to the things that I'm saying. When I'm talking about the charts, which we're going to talk about here some of the trades in a minute, when I'm explaining things, you have to listen to what I'm saying. It is critical. I'm the one that created the system. I've been doing this longer than anyone. I'm the one that made everything that I do up. It works. When I say something, if you don't get what I say, you can ask a question. But sometimes, when you're in a trade and the trade hasn't gone yet, and then you listen to something on the news, or you get an email, or somebody else says something, if it gets in your head and messes you up, it's going to hurt you. It's going to hurt you. Very, very often, I'll call something, say something's going to happen, it seems impossible. And then it goes, OK? And I see some old timers here. You know what I mean. If this is you, I'm talking to you, OK? Old timers and new people. And a lot of times, people have been trading for a long time. And they know things that are the wrong things to do. And you just got to let it go and have an open mind about what I'm doing and the way that I'm looking at the chart, the way that I'm looking at the gap. No reason number three to trade options. Get the overnight move in the morning. So sometimes, we'll do a trade. It'll start to go. It'll be positive. It'll be up. And then it gaps in your direction in the morning. And then you can tell that you're going to be up a lot before the day is even up. That's a fabulous feeling, OK? Fabulous feeling, fabulous way of trading. In fact, when we're done here, I'll pull up the charts. We'll look at the market. We'll look at how we closed here today. And we'll look at the RCL. That is the best days. And again, I was talking about Tesla. That was something that happened this year that was just terrific. We weren't calls in that. And then it moved in our favor, like big time overnight. That's very exciting. And it's a fun way to make money. To get up in the morning before you even press the button in a trade that you're in, that you're ready in, that you took before the day before the day before the day before, and then you, boom, and then it explodes, OK? And again, that's volatility too. Reason number four to trade options, big, big profits, large profits, OK? Again, I said 100% is normal, but you could take trains and make 500% of your money in a trade. And how does that happen when it goes and continues in the direction of the gap? And that is how it continues. When it continues through the strike, or what I call the dream target. Now, here's the spy. This was earlier today. And this was a trade that I called here. I'm going to go to the trade first. Wednesday, September 23rd, I called the 327 puts. It expired the 25th. I called it super tight. OK, so this was I called a trade at 12.25 on a Wednesday to drop fall by the Friday, OK? So it was a really, really tight call. So the Wednesday, the 23rd, I'm just going to show you here, take it up. I called it. It was dropping, fell, boom, gap down in the morning. Here's the move. Take it here, get out, take it here, get out the next morning, boom. Here's an example where it closed, gap down. Now, I've been talking about gaps. What is a gap? A gap is a difference between the close and the open. That's it, OK? There are bullish gaps. There are bearish gaps. Here's a bullish gap. Market, again, this is a spy, close to your gap up, OK? What's a bearish gap? Well, let's look at one here. This close to here, this gap down. This is a bearish gap. So again, it depends what you're looking to do. Buy a put or buy a call. I do both, OK? But I'm timing it with the momentum. So this was a nice call here where it just dropped. So we got it into the momentum. The momentum was what? The selling. Because again, when you buy a put, your betting at the stock price is going to fall. Drop, sell off, selling. And any questions, write it in the room. This is a great cost here, $240. 30 contracts was a $7,200 risk sold at $560. 133% return on investment. Your profit would have been $9,600. This is just a 124 hours boom. Now, intermediate risk, 10 contracts risked $2,400 sold at $560. Again, a beautiful drop. Profit was $3,200. So again, it depends. Well, you could have taken one. One, you could have risked $240 and made $320. OK, that's a move. That's a trade. Again, turning it over, flipping it around to book in your profits, OK? This is the newsletter you would receive if you signed up for the newsletter with me. The trade comes through your inbox here. Here was the time of the day. You get it, you take it. You don't mess around, OK? For me, I'm playing momentum in options. So you don't have to be so picky-poo about the price, OK? You just take it because you're getting it into the momentum. And if it's going to work, it's going to work. Whether you pay $230 or $242 or $245, it's neither here nor there. It's the idea that it's supposed to move. It's supposed to drop. You follow me? And again, that's why you shouldn't be a pig even about profits and sometimes given with the RCL. If you got out of that today, it was a good exit. One to the chart day, OK? Reason number five to trade options. You can make a lot of money with a small risk, OK? There are some trades this year. And again, I keep talking about Tessa because that was one of the ones this year. I have this chart in here. You, in fact, it might happen here. No, it isn't the one. There are days that sometimes things happen. Again, could be news, could be earnings. Well, Skyrocket, Disney. Disney, that was another one we did. Where you can risk $2,500 and make $12,000. I mean, people have done that with me this year. People have. Some of you that are in here have. I see some old timers. You know the way I cost up. So that doesn't happen every week, but it can happen. And it happens often enough that that's what makes it so fun and so exciting. And again, if you can afford to risk more, then you're just making even more, OK, which is really, really exciting. Because if you've never had double digits in a trade, five numbers in a trade, two numbers before a comma, I call them comma trades. If you've never made thousands of thousands of dollars in a trade with a small risk, it's very exciting when it happens, OK? And that is possible with options because of this idea of the gap, OK? And the gap going very quickly with the momentum and the panic. Now, this was Apple. This rally yesterday fell today. I didn't look at where that closed. This same day, September 23, same day I call this five, but it was earlier in the morning. I saw this was going to fall. We did the Apple strikes of 1-tenths, OK? This was so cheap, too, for Apple. Again, $110 stock, or thereabouts, whoever it was before we did it, $1.40 is all you'd have to pay per contract. One contract equals 100 shares. So you see the benefit of not having to worry about margin in something like this. So $1.40, 60 contracts, risk was $8,400, sold at 375, 168% return in investment, profit $14,100. Same here, again, same cost, less risk, $2,100, profit $3,525. Now, let's go look at what happened here on this day. So this was in the morning on the 23rd. Here you have it, caught this earlier. You see where it was. It was right above the strike fell into the strike plop, and then gap down the next day. So this was really a beautiful sell-off here. Again, a gap down. Stop close to your gap down, fell, gap down again. See it? And again, whether you get out here at the low into the day, or follow it through in the morning, this had a nice bearish move on a gap down that happened here, and then I called it. So sometimes I'll call them into the strike or above the strike, or sometimes I'll call them at the strike. So it's so easy to make money trading options when you get the momentum. Do you see here, this is the momentum down, this back here, this spy. Where's the momentum? Down. OK? So you're getting the momentum. When you're buying a put, you're sharding. You're paying the cost of it. And that's it, OK? Very, very easy to do once you get the momentum correct. Reason number six to trade options, long-term trading. Long-term trading, what does that mean? Well, if you think the market is going to move higher, the spy or whatever, say in 2021 or even 2022, you can do a long-term option out. Again, you have a fixed cost, so you don't have to worry about what the market's going to necessarily do as far as, say, if it drops off or whatever. So it's not like buying just shares, like 100 shares or something. If the market would happen, we'd have an unlimited risk. You can buy a call, if you think the market's higher, add a strike out for 12 lines if you want. So it's a way to make money even long-term. Now, the longer out you take a trade, then you're going to pay up. So the idea is to obviously get that longer-term move if you think it's going to continue, and then get in it with the move with the fixed price because it's like the insurance. It's the cost of it. You don't have to worry about a stop. The risk is the stop in a long-term trade or even in a short-term trade that's an overnight and an option because even if something would go crazy, I don't know, they do other lockdowns, who knows, whatever, you would only lose if the market went against you. For example, if you were to call on the spy, you would only lose the amount that you have at risk, all right, if it would drop off. So it's a nice way to do long, long, long-term trading out if you want to be in the market and not have to worry about a really unlimited exposure, okay? Reason number seven to trade options, work for yourself from home or the office. So some people working from home a lot are. Some people are back at the office now and they can't really focus on day trading like 24-7 at the office, but you can go look at lunch, look at what's happening your phone, look on your laptop, what's happening, you don't have to babysit options trades. You could do the trades, put the trade on, go back and check it, see where it's at, put the order out. Again, you could do it from home, you could do it from the office and that's convenient too. Now this was one here that we did as well. Amazon had a big move up and it dropped off today too. This was the 23rd. Same day again we did the 3,000 strikes. Now this is an expensive stock, obviously $3,000 a share plus, but to buy it, to buy an option trading to get this for one contract at 19 is so cheap when you think about the fact that you need even to buy one share in it or 100 shares in it, the margin you'd need for this. And again, if somebody doesn't understand margin ask me. So anyways, this was really reasonable this day. Four contracts risk was 7,600 sold at 50, profit 12,400, 163% return investment. And again, I called this late on the Wednesday, I'm gonna go back here and show you that was the same day. See I called the spy, I called Amazon, I called the Microsoft, I called, what else, the Apple was a bunch of things I called. This closed here, this gap down fell, okay. So here we are. So I called this in here above, above the 3,000 mark fell, dropped, gap down the next day. You see it? So again, the momentum, the momentum to the downside. Now, if you did one, still a beautiful profit. And this is cheap for this really to be honest with you. $1,900 was one contract sold at 50, 3,100. Again, really, really, really, really nice move, nice profit, okay. You get the email, you take the trade, you put it on, you manage it how you want to. What do I mean? You could put an order out to fill you at 50% if you can't watch the chart live or you put an order out to fill you at 100% or if you can watch it, then you watch it live and you look for the targets. What do I mean? I mean the targets in the chart, okay. And I go over all of that in the class but that was a good move. That was one you could have held overnight. That was one you could have gotten out of on the day. And even that, again, momentum, momentum, momentum. So I called that super duper tight because again, called it on the 23rd, expired the 25th. It's not ideal to hold a trade into the very last day. Sometimes I do, but it's not something that I do that often. Any questions here so far? And again, every option has associated with a time value and a strike. Reason 8 to trade options. You don't have to babysit the trades all day. You know, when I'm doing a day trade, you know, I have a limit order and stop, it wiggles and jiggles, somebody said something, news comes out, somebody tweets. You can't, I really, you know, I need to watch what's going on when I'm in a day trade. When I'm in an option, again, you let it play out. It can't lose any more than you have it. I don't ever stop in. If it goes, it goes. If I'm worried that it's gonna go and I can't watch it, I put an order out to fill me. You know, even if you get wiggles and jiggles, it's not the same thing. You don't have to babysit it. And actually everyone has stock prices on their phone. You can just say, oh, it's at, you know, Amazon's at 2,900 or whatever. My trade's gonna be up. It broke, it fell through the stripe. Then you go to your desk, boom, and you get out, okay? So it's really, really nice that you don't have to babysit it because you could do other things with your life. Reason number nine to trade options. You don't need a margin account and you can trade with a small account. I think this is a huge factor for people wanting to trade, wanting to get involved, wanting to start doing, dipping their toe in the water and start making money. Everybody's doing these Robin Hood accounts with really small amounts of money, but they're doing them as day trades and they're getting beaten up. They're getting eaten alive, okay? With an option, you know, if you're following me, you're on the letter, okay? You have a higher chance or a better chance of seeing success because I have a strategic reason for placing the trades, for seeing the gaps, for calling the newsletters, for looking at it that way. I'm doing the rating. If you take the class, you'll learn how to do it too, but you wanna grow a small account into a large account. Options are a good way to do it. It's a great way to do it, okay? Because again, you can get these nice moves and these follow-throughs overnight. And reason number 10 to trade options as dream targets are possible. Now here is Tesla. This is a current chart. I wish I had the old one, I don't. The stock split, so it's kinda hard to show you the right numbers here where it went, but I will show you the gap. We were in this long. We had calls in this. And again, these numbers over here to the right are not right because the stock split. But anyways, here was one of the ones of so many of them. Actually, now let me show you this one here. You see here how this moved, ran up here, then gapped up. So again, these numbers aren't correct, but from where the stock closed overnight from the, this is a call, okay, we were in it. Then where it opened the next morning, it was a huge. And this was a big bark here even if it got out of in here. But do you see how this can happen overnight? How does it happen? It happens in a gap. This closed here, this gapped up. Then it ran up, then boom. This was a gap over here, closed here, gapped up. Closed here, gapped up, rally. So all of this is happening overnight. The space between these bars is happening in a gap, okay? And that's how you get more money out of a trade. In this case here, if you were long. Now over here was a putt, this closed here gapped down, gapped down. So if you were shorted here, you made money overnight. Or you could do a new trade here. You made money in what? The sell-off, the red. So again, I'm looking at the gap in the daily chart. Everything I do is based on technical analysis, technical analysis in the gap. And then I'm just doing a straight putt or I'm just doing a straight call. So it's based on what I call a strategy that I invented called golden gaps. I go through the process and rate them. And if you're someone that is in the room with me in the trading room with me, or if you're someone that has done the class and you learn it, you can rate them too. So golden gaps are qualified professional gaps. What is a professional gap? A professional gap is a gap that moves in the direction of the gap. That's how it's getting the volume. That's how it's getting the momentum. It is called a professional gap because professional traders and investors are making and creating the gap, okay? And I'm seeing that ahead of time, not before the gap occurs, okay? I'm seeing it ahead of time before the day opens, before the start, okay, where I'm looking at the gap. So in the case of a bullish gap, professionals are buying the stock, moving it higher, okay? Therefore, the stock moves higher in the trading day. In the case of a bearish gap, like RCL, which I talked about earlier that we did today, professionals are selling at or shorting the stock or they're selling it or dumping it, boom, okay? Therefore, the stock moves lower in the trading day and then you would buy your put. So I prefer bearish gaps for those of you that have been following me for a while. You know this, if you've heard of me, I prefer to short. Now that being said, I still go long and I would say this year has been a mixed bag from 2020. We've done a lot of puts this year and a lot of calls. We've probably done more puts this year than we've done calls, which I can say for 2019, 2018. We've had some very bullish years in the market, but this year, because of COVID, we've done a lot of puts. It might be 50, 50. I mean, I'd really have to count them up. So I think that shorts are great. Why? Because you get sell-offs, moves that happen fast and sometimes panic just takes over stock and comes in and pushes it down where no one's panicking to buy something. Now Tesla was unique. That was panic buying. People were panicking, I gotta get in, I gotta get in and they bought it up, but it's rare to have panic buying. Okay, most of the panic comes in in the shorts, but we do calls as well, okay? So let's talk about large institutional money. Gaps are created with large institutional money. That is what makes the gap. Okay, that's how I'm doing it. The professional gaps that happen and play out in stocks are formed by one thing and one thing only, large institutional money. Therefore you need a way that will help you pick the correct direction to play the gap. So that's what I'm doing every morning, like clockwork. And why do I do it? Because not all gaps are gonna work in the direction of the gap. So I'm doing some reverse. So sometimes a gap up will sell off. Sometimes a gap down will rally. Okay, so you can't just short of a gap down and buy a put in every gap down. Some are good and some are not. By having a formula to rate and qualify the gap, you get confirmation and conviction that the large institutional money is on your side and then you play it. That's the only thing that I'm ever looking for. I'm never looking to see what retail traders are doing. I'm always following the big money. Gaps create a sense of urgency. That's an action is being forced by participants of the stock. And this is why gap trading is incredibly powerful. And options are powerful too. Again, because you're with that institutional money, it flows with it. It can happen big on the day or overnight. And that's how you're getting the profit. And then that's how you're getting the balloon that comes into the option that makes the volatility that takes the trade that you might pay a buck for to blow up and be worth 250. That could happen in an hour or it could happen in a day. Trading gaps is a powerful and profitable to trade because you're trading on the side of power money. And that is how you get the move. That's how you make money. That's how you can take a small account and make it bigger, okay? You have to get to the point where you understand when you're trading that it's all about odds. It's high odds or low odds. So I take trades that are what? High odds. High odds are working, not low odds. But I think it's low odds and I don't do it. So that's why the rating system, the 26 point rating system tells me 20 points or more high odds. High odds, it's gonna move that the professional traders are with it. We're gonna get the move. Low odds is it rates under 20. 18 or 19 is a 50-50. 17 or under, not touching it. Not doing it at all, okay? Low odds that it's gonna follow through in the direction of the gap. Not that I flip in a reverse, but very low odds. So I don't do it, okay? So gaps offer a payout with good risk to reward trades. There's just no substitute for learning what to do. A lot of times people come to me, they wanna sign up for the options newsletter. I say, fine. I told you about the construction guy, who he's doing it. He didn't do the class yet, but he would do better if he did. So learning what to do will help you do better. And that's just a fact. When you're risking your own money, you're better off knowing everything you can because you wanna take whatever amount of money you have, whether it's $2,000 or $200,000, like I said, and you wanna make the best money and the most profitable trades that you can. You wanna be perfect if you can. And that needs to be your goal. Doing the best you can. So that means learning everything, understanding and doing it, gaining the skills. This is a skill set. So I have a skill. It's like juggling, okay? Some people are skilled athletes. Some people are skilled attorneys. Some people are skilled doctors or dentists. I have a skill. My skill is I can predict where stock of the market's gonna go based on the gap. That's a skill. Okay, it's a skill that I use to make money. And if you come and you get my trade calls and you do the class, you will learn the skill. Then you apply it to make money for yourself, okay? And the more you do it, the better you get. Any questions here so far? Quiet group tonight. Eric, I see you here. Any questions from anyone? So anyways, gap trading. It's very lucrative, okay? It's about making money. It's about chunking it out. And as fun as trading is, it's really about making money. You can't look at this as a video game or you're gonna burn through the cash that you have. You have to take this seriously, okay? And it's a good time to trade right now because it is earning season. So I use a checklist. It's a 26 point checklist. I go through this and rate the gaps we do the options with. So if you wanna sign in for the newsletter, then you'll know I rated it. You'll know I rated it, you'll know it's high odds. You come to the class, you'll learn the rating system yourself and you can do it, all right? So what am I looking for in the system, in the rating system? I'm looking for a number one, high probability of directional bias for the entire day, preferably, like RCL. Boeing we did today. We'll look at that too later. Big move of the day. Again, RCL had a big move. Early confirmation of the bias and the gap in the move between 9, 30, 10. So I wanna see a break early. I don't wanna see a break late, okay? Precise entries with follow through and a good to restore target potential, which is obviously what I want. Now, how much should you risk to make how much? I say one to one and break it down. I'm calling a lot of trades. I'm doing a lot of trades this year for the people that are with me, they know that, break it down. So you say, well, if I call 10 trades in a day and you don't have the money to do them all because you can't risk your whole account in one day, guess what? Do two, do three, okay? So I tend to call trades in buckets. Risk what you can afford and let the trade play out. You'll build up your account over time so that you can do them all eventually. You say, well, what if some don't work? No, the way that I tend to call them is directional biases that go in groups. So while I might, I can't say I never did, I might call a call on a put on one day is very, very rare. In fact, I can't even think of a day that I have this year. So I'll tend to call all calls or all puts. Do you follow me? So if they're gonna work, they're gonna work. You're not gonna miss out. You're not gonna miss out, all right? A lot of times people wanna do the high flyers, the Amazons, the Chasas of the world, they're expensive. If you can do three trains for everyone Amazon, well then do three different ones, okay? So you take what you've got and you make it work. Everyone wants something they don't have. And in today's day and age, what I've realized just so much and it's just even more so, it's just being a magnified right now, magnified because of COVID where I've noticed how people are acting like everyone wants to be a piggy and everyone wants everything yesterday and everyone is kind of like being greedy and this and that, you have to be normal. I know we're not in normal times, I get it, I get it. But in relationship to the choices that you're making specifically about your finances and money, you have to be normal. Just breathe, take it easy, look at what's happening right now, go through the process and do it. And again, a lot of people are having difficulty planning for the future or they're putting off things that they don't wanna do. Listen, if you've wanted to trade and you've been waiting to do it or you wanted to take my class or sign up for the options letter, don't wait, don't wait. You never know what tomorrow brings, okay? You have to just kind of jump into things when you're doing it. I remember when I started out trading, I had another job, I was doing mortgages. I knew I wanted a different career. I didn't know what I wanted to do. Then I met somebody that was trading and then he told me about somebody else and then I ended up making a class and I had no idea how I was gonna change careers. I just didn't know. I didn't know what I was gonna do. I had no idea how I was gonna make it work. I said, I'm just doing it and we'll see what happens and I figured it out. And I ended up trading and working a full-time job at the same time. And then I even learned from the class I didn't learn how to trade. And then I had to create my own system and I didn't know what I was doing with that. I just rolled with it. Sometimes you just gotta move forward. You just gotta keep moving forward. You say, I don't know exactly how all this is gonna turn out. I don't know every single step along the way. I can't plan everything that's gonna happen out but you know what? I'm gonna keep moving forward. I'm gonna keep my eye on the prize. I'm gonna keep my eye on the goal and I'm gonna roll with it. And with your flexible and you can go with it and you believe in yourself. You have confidence and you keep your eye on the goal. You will get there. Trust me when I say you will get there. Sometimes people are their own worst enemy. They think very, very negative. They do not take risks in life. They wait forever. They wait too long. They wait too long. So sometimes opportunity comes and it goes. Not just in real estate but in life. You have to just say, this is the thing that I wanna do. This is what I wanna do. And you just jump into it, you go into it. And that's what I did. And it worked out for me. So that is the best advice and it's advice we should take to heart because it's what I did a long, long time ago. So this is Facebook. This was another good one here. I called this. And actually, this was a quick one. October 6th, let's find the day. I called puts in this 262.50. This was this day here. Again, good timing here. Closed here, gap down, rally broke. This was a put, boom, dropped. You see where it dropped in here? So again, I called it the 262.50s, dropped into it, fell through it, fell through 260, it was a nice move. So $5.50 cents. This wasn't cheap but I did it out for the following week. Risk was 80 to 50, 15 contracts, sold at 10.25. Really nice trade, super duper trade. Profits, 71.25, almost 100%. But a very quick move within 24 hours and a nice sell-off and a nice drop. So this was Facebook. And again, the faster you can book the money, whether it's 50%, 100%, guess what? Then you take that money, when you book the profit and then back in your account you have the money that you originally risked to take another trade. So when you take a trade, say you risked 2,000, you're using up that money for the trade that you have. It's taking it out of your account, okay? So you're up in it. Again, take it, book it, take it, book it, take it, book it. And again, because I'm gonna call another trade, I'll call 20 more trades, whatever. So it's the idea of actively trading. Can everybody see the RCL? This is what I call it today, it was good timing. In fact, let me look up the exact time that I called it. I wanna say it was like around lunch. Just hang on a second. I think it was around lunchtime. And again, I didn't see this in the morning earlier. We would have done it as a day train. Yeah, 11.59 here. Does everyone see this? So I call this 60 puts, expiring Friday, 11.59. So I saw, go back to the chart that this was gonna go to 60 today. Show was around here, right there. And it just sold off. And you could have done a day trade in this too, it was really nice. And it just immediately sold off. And again, we caught this late. So I saw it this morning when someone mentioned it, but it was late, we didn't do the day trade. And then I said, you know what? This isn't too late. This is not too late. And then I saw it was gonna go to 60. So it was, boom, nice drop. And again, this was really cheap today. You could have got it for under a buck. Really, really nice. So again, what I'm looking for is the gap. Here's the gap. This closed up here the night before 69.83. Boom, open in the morning here at 64.19. Beautiful train. And again, you could have done multiple strikes in it if you wanted, and you could have done a day trade. So that was a nice one. Let me go back to the PowerPoint here. From anyone. Fast means fast like that RCL. They can go super, deeper, quick. So again, I think that continues lower this week for sure, but you could have got out of it today if you wanted to just book some money. And I never will fault anyone for booking money quickly. But if you're looking to make money for yourself, even if you're working from home, but still working, or working from an office and still working right now, making extra money on the side, doing this part time, you can trade options part time. And that is the benefit I think of doing this because more money, it's good to have multiple sources of income. I've said this before and I'll say it again. Sometimes people have rentals, they have properties, they have investments, they have a full-time job, they have a business, and have as many sources of income as you can. Because the way that the world is working right now, it only benefits you to do that. But you've got to put a plan of action in place. You have to put a plan of action in place what you want to do in order to succeed. How are you going to get there, okay? Again, taking the class is the first start. If you don't want to learn, you can sign up for the options newsletter for one year. You don't have to take the class, there's no prerequisites. I think you will do better taking the class though. We did ourselves an option, Eric. I just showed you the train. Silly Billy. Didn't anybody see that? I just showed you the put. Didn't you people see that? It was 90 cents. You could have got it for 80 something. It was ridiculous. It was a beautiful train. Anyways, put a plan of action in place, okay? So if you want to make six figures a year doing this, again, work it back. If you have a small account, you've got to grow it. If you have enough account to risk at least $1,000, $1,500 a train, do it, okay? You can do it with the options. You can wish more if you want to. One of the reasons I like risking more in options is because I feel more secure, because again, you can't lose any more than that. I don't have to put the stop in. And then I get the overnight lose in some of those big, big trains. But once you become more experienced, you can add, you can take more risk, and then you can hold to bigger targets if you know the things that I know, which again is the benefit of doing the class. Sign yourself accordingly. Now, I didn't create what an R unit is, but this is how I determine my risk. Your risk should be the same or almost the same in every trade you take. So if you're gonna risk $1,000 in every option, then if I call Amazon and it costs 40 bucks for one, you can't do it. Why? One would be $4,000. So you have to set your risk accordingly. You can't risk four trades in one trade. So you have to decide what you can live with. Again, which I was talking about before, I'm calling a lot of trains, but size yourself in a way that you can live with taking equal amounts, okay? That's how you're gonna get consistent results. A risk unit is the amount of money you're risking per train in dollars and cents. A risk unit should be sized according to the size of your cash balance in your account and your buying power. So for example, say if you risk 5% of the cash balance risk per day, you can divide that into five trades. This is if you want to, okay? You don't have to. You could only do one trade a day if you want, but if you wanna do multiple ones, and again, this is being conservative, you can risk more if you're experienced and you know what you're doing. That's up to you. But the idea is to get the payout of it turning over one to one, okay? And again, this our unit concept I didn't create, but if you have the goal to make 10 grand a month, 20 grand a month, knowing that, I would back it up by saying, okay, I have to risk this much and I've gotta turn it over this much. So if you wanna risk 2,000, exit every trade at 50%. If you wanna risk 1,000, you're putting the orders out at 100%. And again, you saw some of those were right under the 100%. Well, if I do a trade and I call it on a Wednesday and expires on a Friday, I wanna get out of it by no later really than Thursday. So some of it is the timing too. I don't wanna give that a lot of wiggle room. I don't wanna hold into the last day. And again, 50% is profit. If I call it on a Monday and it's up 70% on the Monday or Tuesday, well, I might let it play out a little bit. I've got some time. But I've been calling things lately pretty tight because I'm trying to get them move really, really, really quickly, okay? So if you can't afford to risk $500 a trade, $1,000 a trade, you can take trades like I said, like today in RCL, you could have taken one contract and risk $90. That is something that every single person here should be able to afford. And it's a good way to start out, okay? And you can turn it over. You can turn it over. You take the trade and you chunk it out and you build your account up. That's how you get to the point. Don't be so starry-eyed that you don't follow the structure and the plan and think about what you're doing. You can't risk the farm in anything. You can't take one trade and risk five amounts of what you have. You can't risk your whole account. You have to think of this as a process. You're gonna get there. It doesn't have to take forever, but you have to think of it as the goal and the bigger picture. Because if you're not thinking of the bigger picture, which a lot of people don't, to be honest with you, I've had the business for a long time now. I know how people think. And it's one of the reasons why people fail. They don't think of the bigger picture. They don't have that end goal in mind. Like I talked about where I just had that goal in mind. You don't know how you're gonna get there, but that's the goal and by golly, you're gonna get there. And that's how you have to think of it, okay? What do you mean out of the money? It was, I called it when it was around 62 and dropped into 60 that RCL Erics. I could have called the 62s if there was a 62s. I think there was. But you know, they were really, really cheap. And so I'll call varied strikes for people for that. Cause I have people on the list of small accounts and big accounts, okay? But don't think because if you can't afford to take Amazon, you're gonna miss out on my trades. That I would say those types of stocks, Amazon and Tesla and Google that are expensive, I would say less than 5% of the trades that I call make up those stocks. Eric, I think you just get frustrated because you can't do this, but there's no reason for that. Over 90% of the things that I call are affordable, even in one contract, okay? So how can you achieve the income you dream of? How? You have to have a goal and you have to work towards it. And you have to be willing to do whatever it takes to get there and having patience as part of that. It doesn't mean it has to take years, but it might take you a couple of weeks, a couple of days, a couple of months. But so what? I mean, if you look at this year and how the year started, and then you say where we're at right now, who would have ever thought this 2020 year would turn out this way? And the year has seemed now to gone by like that. But I mean, who would have ever thought? Things sometimes go much faster than you think, but they take forever if you never get started. And again, you have to keep your eye on the ball. So think about what your dreams are, whether it's retiring early, whether it's trading full-time, what are your goals? Whether it's having more money in your bank account, more money for retirement. One of the reasons that I'm successful is I think outside of the box, that's how I created my system myself. I had extremely high goals for myself when I started. I was able to achieve those goals through hard work and thinking outside the box. You know, if you're trading like every other trader out there, you're gonna lose. Many people are doing many things. They buy support, they short resistance, and in the end, they lose. Not that those things never work, but they don't consistently work to trade. So what I do is very, very, very specific. That's why I'm looking at 26 things in the morning when I'm determining what I wanna trade, okay? It's very specific to the gap and that's the benefit of coming and learning for me. Yeah, if you have questions in the room, you can just plop them in the room. So have a plan of action in place. You have to make $1,000 a week before you can make $3,000 and so on and so forth. But the most important thing is the focus on the right information. Going long, buying calls when it's rallying and buying puts when it's dropping and not doing the reverse. You won't make money if you're in the wrong direction. That's how options work, because you'll run out of time, okay? The right information to focus on is in the charts, is in the price, and that is the gap. It's the price and the gap. Gaps show you price at an advanced level which allows the trader to predict the move the stock will make before it doesn't. The most valuable information for people to trade can be found in reading price action and gaps. Understanding chart reading of gaps and how important the patterns of price are in the market will assist you in being profitable. Trading gaps is a high-paying strategy because gaps are created by institutional money. Knowing this helps you give you conviction to trade and take the risk you need to make profits. Learn how to see gaps clearly and how they're creating trends, changing trends and making momentum. Trading gaps is a powerful, powerful strategy and this is how professionals trade. You can use a sophisticated level of price information to enter trades and take sizable positions. Taking sizable positions will help you attain the income level you dream of. I don't think anybody would be dissatisfied in making 15 grand or 20 grand in a day in one trade. Now how are you gonna get to that point? You gotta build your account up and by golly you have to know what to do because even if you had 100 grand in account, would you risk $8,000 if you didn't know what you were doing? No, you shouldn't, you should not. You have to have what I call conviction and it's 100% conviction and that is something that I have. Now while I have it because I created the system that I do, I have it because of the number of years I've been doing this and the skill set and that's what again is a benefit of being with me because I explain it, I go over it and then hearing me talk helps you get conviction too to risk your own money. But reading gaps is a skill. It's a skill you can learn and it's something you can learn from me. So the Golden Gap course teaches a 26 point rating system to find the best stock to trade each debt. The course also teaches you how to enter and exit the stock on the debt. The course teaches price analysis and technical analysis on an advanced level. You can use it for options or you just sign up for the options newsletter. The course teaches a more proficient way to read support and resistance in the right direction, not the wrong one. And the course teaches you to focus on one strategy in a detailed manner so you can become a good trader and I've made a lot of good traders this year. I really have had some people that have been doing extremely well. They've really gotten into it. Green, green, green helps. The more green you make, the more conviction you have, the better you're gonna trade and the better decisions you make. People that make bad decisions and you know this if you've been there, tend to do so when they have a losing attitude or when they're just losing in general. The more money you make, the better decisions you're gonna make because you're not so stressed and you don't have to feel like you've gotta take one trade to make up for a hundred bad trades and chase all the profits and hold the piggy targets and do stupid things. You'll be happy making 50%. You'll be happy making a hundred percent. You'll be happy making money because you're making money so often because I'm calling trades and I have a high win ratio that you don't have to hold to the piggy targets. You follow me? So you gotta get that winning attitude. The convent's a conviction and that's what the system helps you in the class. So the 26 point checklist tells you what to look for. So who is the golden gap system for? People that wanna make money working from home, sizable money and you can even make this kind of money just doing options and that's what I wanna point out. There's people that have done the class and are in the live trading room with me. They're not day trading, they're doing options. They come to the room every day even if they're not doing the day trades because I talk about the options too in the market and they wanna see where I'm calling where the market's gonna go, which is invaluable, invaluable, okay? And if you want to have more freedom going forward into the end of 2020 and 2021 where you don't have to work for someone else which has really been very difficult for people this year because a lot of things have happened this year with people's jobs, the industry, the state they live in, the shutdowns, everything. When you work for yourself, you will control your own destiny and you will get there and the sooner you, the longer you wait, the longer it's gonna take to this point. I know a lot of people wish that they had come and done the class with me January, February, even 2019 because of what's happened this year, that they're ready to be up and going and trading and know this or on the newsletter, getting the trades. It's never too late. It's never too late to learn it. It's never too late to do it. So you have to learn the system. You have to book money consistently. It is a complete system to learn to trade. I teach the targets, I teach the entries, I teach the gap rating system. This is in the two-day course, okay? The golden gap course. It's all that I use. It's one of the reasons I read the market so well. If you can learn how to read institutional money, you predict where it's gonna go. I predicted the banks were lower. They gapped up today on earnings this morning and they sold off like hotcakes. We didn't go long them and I knew they were lower. We did other stuff but you know, again, well they gapped up and the earnings were good but guess what, they sold off, okay? So how can I tell that something's gonna go somewhere like that? And the banks actually pulled the market down today, okay? It's because of my way that I read a chart. So I'm doing a friends and family sale this week just till Friday, 10% off all products and services and classes and subscriptions. This is an awesome deal. The class is 69.99. If you sign up by Friday, it's 6,300, 10% off. This is October 24th and 25th. It's the class nine to five. It ends Friday. If you wanna sign up, email me. If you wanna sign up for the newsletter, this is 69.99 a year, 6,300 for the year, great deal. Ends 10, 16. Gotta email me if you wanna sign up. It says the 700-hour savings, totally worth it for the class of the newsletter. So I'm offering this to help people out, get up and running and again, trading. If you wanna trial for the room, I don't call the options trades in the room but again, I go over the market in the room and I call the day trades. You can trial the room this week, email me if you wanna sign up for that. And then all the other classes and services I offer are 10% off and the gap options course which is normally 2,500 is 2,250 includes one month of the options newsletter. The trends course includes one month of their room, okay? No prerequisites for the trends or the gap options course. And then I have mentoring sessions as well. So if you're thinking about learning, you gotta discount this week's on it by Friday. If you wanna sign up for the newsletter as well, that's a good deal. Let me just look here at the market really quick. See where we are at tonight after hours if there wasn't anything reporting tonight, really? 5.30, let's look at the spy. Any questions from anyone? You can email me on the list at thestockswitch.com if you wanna sign up for the Friends at Family Sale. You can email if you wanna trial for the room. Let's look here. Looks like we're down. Just slightly. Yeah, we're down. We're down tonight a little bit. Low to day was 3.49, 10. So this is a wild time people. Wild, wild, wild. I have no idea where we get tomorrow, but it is a wild time. Bank earnings, more bank earnings out tomorrow morning. Again, I pointed out that the banks sold off today. Let's look at JPM. This gapped up, dropped. Had a nice sell off. Okay, thanks Kathy. Yeah, I don't know if anyone has any questions. I see a lot of old timers here. Does anyone have any questions? So, Al, a lot of old timers here, boom, boom. Not trade this market at all if you don't know what you're doing, I'll tell you that. People are getting killed. They don't know what they're doing. And I'm not saying I get it right all the time, but man, I get it right a lot. And I've been so focused this year. So focused this year. I've been focused like a laser. Part of it was COVID. Part of it is I'm spending an enormous amount of time inside so I'm looking at charts more than ever before because I'm not going out in New York and everything's closed. Still, even in October here in the city, it's nuts. But I mean, I have been laser focused this year. So it's benefited me. It's benefited the people that are trading with me. Well, here, Eric's saying, how do you know when to get out? If I call this trade today, would you have gotten out of this or not? Like, I'm just seriously, I'm just asking you. Would you have needed, like, you would have not known to get out of this today? Well, and actually, I'll just tell you, you couldn't have aired. If you got out of this today, you made money. If you waited till tomorrow, guess what? You would still be up. This isn't going to reverse tomorrow. I hate to tell you. You couldn't have screwed this up. If this drops tomorrow, you're going to make more. If you get out today, you had a good trade. I think at one point, it was all the way up to two. But I had a good exit at 160. That was a nice trade. But if you're in it till tomorrow, you're still going to be up because you paid 90 cents for it or 80 something. You can't screw it up. How could you screw this up? The only way you can screw this up is if you don't get out of it. Like, you wouldn't have needed me to tell you to get out of this today. But guess what? If you didn't get out of it, you'll still be up tomorrow. It was a nice call. This isn't going to reverse any way tomorrow in some way that would ruin the trade. But if you're in it for another dropdown, still you're fine. You don't need me to tell you what to do with this. And by the way, as I said before, if I call something above the strike, guess what? The strike is a target. And it went there. Lower the day was $0.6003. Three cents from the target, out. I mean, beautiful. You're overthinking it. You're overthinking it, Eric. You're overthinking it. You and Gala had should have a big party. Together, buds, don't overthink it. No, get out of your head. Just get out of your head about it. Just get out of your head about it. It's a trade. It's done. You make the money. Boom. You made 70 cents. Beautiful. Give yourself a pat in the back. You're like, oh my god, what if I get out now? And what if it goes tomorrow to $55? I'm screwed. No, you're not. You're not screwed. You're screwed if you're up $0.70, more than 50% in the trade, almost $100. And then you lose all the profit. That's you're screwed. I mean, it's so funny. You're not screwed if you get out of something too early. And it's not too early. It's a trade. I said, get out 50% to 100%. That's it. It's a trade. You're overthinking it. You're overthinking it. Well, the trades will lose lose, but this was a winner. So you can't overthink it so much. You're so worried about you want to piggy target and everything, which this could go to a piggy. This could go to a piggy target. I don't know. But it was a trade, a trade you could have just got out of and made the money and called it a day and done another trade. Do you know what I'm saying? So it's like, you have to book the money. It's called chunking it out. That's what I'm saying. Because the ones that lose lose. And the ones that win, you've got to make sure you book the profits. You don't need me to tell you what to do with this unless you're a complete pig. And you can't be a pig. Now, what if this goes to 50? Will I look back and say, oh my god, I should have held it? No. I'll probably do it again. If I think it's going to have another extended move like that, I'll probably do it again. I got plenty of time to do it again. Do you know what I mean? And maybe I'll do it out till next week or something. I don't know. If I see a setup in here that I think it's going to go to 50, I still have time. And I'll probably do a different trade, different strike, different cost, different date. Do you know what I mean? But so you can always do another trade. Do you know what I mean? So book the money, get it in, wait for the next call, do it, see what happens. Follow it through. But this is the lower. I mean, I wouldn't be surprised if this goes tomorrow to 58 or 57. But I called a bunch of trades today. I called quite a few trades today that I did not get out of. That I did not get out of that I called late. So this was one you could have done in book. Listen, good lecture here tonight. Email me if you're interested. Eric, you've got to get back on the options letter. And Gala had, hopefully, you will too. You've got to get back to trading. Now's the time. So we'll see what happens the end of this week. Email me if you want to trial for the run. Email me if you're interested in the friends and family self. Thank you for letting me stay later, Kathy. Very good. Have a good night.