 What's up navigation traders welcome to this week's video update today is Friday July 5th. Hope everybody had a safe and Happy 4th of July for those of us in the United States and For those of you outside the United States, I still hope you enjoyed your day off of trading This is the weekly video where we recap all of the week's trade alerts as well as an update on all the different positions So let's jump in and actually actually have completely just now realized Usually we start this off by if you're new to the navigation family We start off by going to the community and talking about who got caught being hot Meaning each week we recognize one member of the community for helping other traders and I got to be honest I completely dropped the ball on on a on a winner this week so With the community with the holiday week. It was a little bit quiet, which is maybe why I kind of forgot but We will resume that next week. How about this America? You got caught being hot this week for allowing us to trade the most liquid active Best markets in the world America you get the hot award this week. Congratulations All right, let's jump into the alerts and we'll pick that up next week starting with Monday July 1st Okay, so our first trade of the week was a closing adjusting trade in FXI We had an we had an iron condor on we closed out the put vertical side as Price had breached our upside break even there was very little value left in the put verticals Put vertical side. So we just closed that out. Here's FXI now Here's something interesting too is okay. We've got all this trade war stuff going on with China FXI is the Chinese large cap index It's basically like the Dow or the S&P of China and look at this the implied volatility the IV rank and IV percentile is zero So apparently there is just no fear no uncertainty around that whole trade Around the whole trade war as China is concerned but anyway Anyway getting to our specific position. Here's where price is currently We took off the put vertical side, which is over here price had come through and breached So we're just looking for some downside to get back into range there Now we are in the July options here which have 14 days to expiration So once we get down into expiration week That's when we'll really you know kind of force ourselves to either do something either close it out or Roll it to the next cycle to extend duration with zero implied volatility rank zero IV percentile We're definitely not going to add to this by selling some more premium around the current price So we're just in a kind of a wait-and-see game right now if we can get a little bit of a downside Action movement in FXI next week great We will potentially close this one out or look to roll It depends on where we're at with the rest of our portfolio at that point For you new members just to and just to kind of refresh the way that we manage our portfolio is We always like to keep a little bit of short delta a little bit of a short bias because the velocity of a market move to the downside Is greater than that of a upside movement. It's kind of like you take the Stairs up and take the elevator down and so we want to protect ourselves from the downside by carrying a little bit of Short delta and the way that we manage that is we beta weight our delta to SPY so we want to kind of change all the different apples and oranges and bananas and make them all into apples let's say excuse me and And and that way we can kind of get an idea of what our overall portfolio Directional bias is and so then we look at so we look at that that we beta weight those numbers to SPY and Then and then we measure that against our theta because that gives us an idea of you know, what kind of You know potential profits we have going on and so it helps us manage and we look at it as a ratio We and we want between one to one and five to one on a ratio of short delta Versus theta so right now we're at about three to one so we've got about six hundred of short delta and about $200 in theta going on If you're newer and you and you want to learn more about that just check out our blog There's some different posts how to trade options like a professional and how to manage your portfolio using delta Just search for those on the blog and you'll you'll get a better idea of what I'm talking about So that's where we're at right now. We're about three to one We like to be in between one to one and five to one so we're in good shape on our overall portfolio balance and And anyway, so that's that's the plan on f the X I Next trade was a rolling adjusting trade in zB that is the bond futures And so the reason that this looks a little bit different than your typical typical equity is because on the trading platforms You can't roll futures in one transaction so essentially we bought back this one and then we reentered by selling this one and you're buying that back for 442 selling this one for 547 so that's a net credit on that roll and So what we are doing is we are just rolling this out from August with 24 days to expiration out to September with 52 Now keep in mind. I always post the days to expiration when we're trading options on futures Reason being is because for example toss calls this one September whereas tasty works calls it August So that's just the display name always pay attention to the days to expiration So that's so you'll know that's the cycle that we're actually trading Anyway, we got down to a point. There's very little Value left in the puts so we wanted to roll those up roll them up from 151 up to 154 and with 24 days to expiration We didn't want to stay in that same cycle, you know, once we get start getting down to around that 21 days to expiration We want to roll that out to the next expiration cycle or close it And in this case we wanted to keep that exposure and so we extended duration by rolling from 24 days out to 52 Rolled our puts up from 151 to 154 and and so that's where we're at in ZB So let's go to ZB On our platform here, and so that's what this looks like you see prices hanging out right here So hasn't really moved too much since our actually it moved up and then back But pretty close to where we put it on and so we're just looking for a little bit more downside in ZB to benefit that trade to get back to center and And then you can see that there's another one that zeroed out that we actually closed out today And that was a another short strangle that we had on we booked over 30% of max profit in that and just to Had only had that on for a couple weeks. And so now we're still just left with this one piece So if price, you know does continue higher In the next week and implied volatility is still nice and high We might add another kind of centered piece around the current price But right now we're just holding on to this and if we get a down move in bonds a Continuation to today's down move big down move today So if we could have a little bit of a continuation to the downside in bonds We will just go ahead and close this and book a really nice profit. So that's the plan there Next trade a closing adjusting trade in IYR, which is the real estate ETF We closed out one set of our iron condors booked over 30% of max profit on that piece of the trade And now we're still holding our other iron condor Which is right here so you can see a price is hanging out near the upper end of the range And so we need some downside to get back into center here If we take a look at the charts of IYR you can see implied volatility is decent I mean IV percentiles 42 IV ranks 33, you know Technically we like to kind of be above that 50 level to sell premium But if we're in the 40s because there's such low implied volatility everywhere I wouldn't mind potentially adding another piece to this kind of centered around the current price But we'll see where things are, you know, if we get a sharp move lower back in the center We'll just kind of hold and wait if we get a up move and And implied volatility is somewhat decent. We will look to add add to this piece These are this one's in August. So we've still got 42 days to expiration. So a ton of time so not looking to To roll out in duration on that one at this point Next trade was an opening adjusting trade in ZW. So we added an iron condor in ZW Which is wheat we did this out in in what toss displays is the September cycle with 51 days to expiration Targeting between 30 to 40% of max profit on that one. So let's take a look at ZW. We've got two different pieces on here Let's go to the alert that I just mentioned first Just so you know what I'm talking about Here it is. You can see price is still fairly centered right here So just playing the waiting game waiting for some theta to decay some time to pass on That and then the next piece of the trade Is another iron condor, which we have not adjusted yet You see prices hanging out in the lower end of the range We need a little bit of upside movement to to benefit that one So right now just holding steady with both of those pieces Next trade closing adjusting trade in SPY so we closed out the put vertical side of our iron condor and SPY Price breached our upper upper break even and there's very little little value left in that put vertical you can see we bought it back for just two cents and Then we're still holding another set of short call verticals that we had from another iron condor so we've got two sets of short call verticals now in SPY and So here is one of them and you can see you know, this is pretty far out of range here So next week and we've got several positions like this where you know price moved Significantly out of range So we're kind of holding to see if we can get a little bit of a pop back down to the downside Before we before we do anything but next week or as we get closer to expiration We've still got 14 days left in July so over the next, you know call it seven to ten days We will either be rolling or closing this one out depending on where we're at with our short delta exposure at that point If we don't need the short delta, we'll just close it if we do we might consider rolling And then here's the other one. It's just barely out of range So just need a slight movement back into range and we can close that one out and we'll end up booking a profit on that On that iron condor. So that's the plan with SPY Closing trade in McDonald's so we had a pre earnings long straddle Which you can learn more about those in our earnings course Booked around 20% profit on that trade. There was some chatter in the community We're actually down on this trade. I think it was earlier this week Then it made a nice movement implied volatility expanded And we booked a nice profit of 300 and I think it was 380 some dollars Which related to a 20 profit on the trade. There's some chatter in the community though about everybody needs to get out and buy some hamburgers and french fries make this thing work for us and Apparently we did that over the fourth of july because it it worked. So out of that one for a nice profit Next let me go to the chart real quick on McDonald's Just wanted to show you that as well Remember on these pre earnings long straddles We need to get a decent price move Which we got and then We put this on when McDonald's was just I mean Literally no movement for a while. So the consideration was a implied volatility was still decently low And you know a stock's not going to trade sideways forever at some point It's got to break out or break down and in this case we got to break up Uh a break out And at the same time we got this expansion and implied volatility And so that's what you'll see leading up to earnings a lot of times is this implied volatility continues to climb And so by uh buying the straddle we got the movement We needed as well as the expansion and implied volatility and so that's where why we were able to book a nice profit there Next trade rolling adjusting trade in the qqq So we rolled one of our sets of short call verticals from july with 14 days out to august with 42 And this was one of those just like i mentioned that was kind of well out of its range We wanted to keep that short delta exposure in our portfolio. So we just extended duration on that one And so here's what it looks like now So still just looking for some downside to benefit that and then we've got this other one that is um right here And you can see this one's closely, you know right in in range as well So just looking for some downside there. That's part of our short delta exposure in our overall portfolio And uh, so we'll see what happens there in qqq Next trade was a rolling adjusting trade in nat gas. What a move in natty gas today So we bought back one of our strangles which was in um August with 21 days and we rolled it out to september with 53 days So just like i was talking about before once we get down to that 21 days to expiration when we're trading Uncovered options naked options like strangles and straddles Uh, that that's kind of our point to to make an adjustment or close or roll With defined risk. We'll let those go closer to expiration down to expiration week if needed Uh, but we just so we rolled this one out and then we just adjusted our call strike from 2.55 down to 2.5 And collected net credit on that roll And uh, and then we're still holding our other one with 21 days to expiration So I didn't want to roll both of them in one swoop And so we just rolled this one here so you can see prices hanging out right here So we still need a little bit more up movement in natty gas to benefit that Hopefully it is uh, kind of hit a bottom and it's going to start turning up because that would definitely benefit us And then here's the other one that's still back in the cycle 21 days to expiration See prices hanging out right here And if we can get a little bit more up movement there that would benefit that one as well In fact, we might consider if we get if we get a continued upside movement early next week We might consider just closing this one out Reducing our overall exposure in that gas and then just continue to manage this one As needed. Uh, we'll see we'll see where we are overall. We're still down Uh, I didn't check exactly. We're still down a couple shekels on the on the old natty gas trade. So Um, we'll see what happens, but big move today up 5% in our favor. So that was That was a uh, very welcome move in natty gas if we can get just a little bit higher that will definitely benefit us and uh And do good for our portfolio And then lastly Today we did a closing adjusting trade in zb So that's the one I already mentioned where we had a it was our other set of short strangles Booked over 30 of max profit on that piece of the trade and then we're still holding the the other one that I showed you So those are all the alerts. Let's take a look at some of the other positions starting with oil forward slash cl We've got a short strangle on here. We've got some profit about 478 bucks gear take Looking for about 30 between 30 and 50 percent of max profit before we do this So if we go up a little bit more you get a little bit more implied volatility contraction Have the potential to book this one early next week, but we'll see what happens Uh, yes, another one that we're holding for that short delta exposure You can see this is well out of range here And so we're just looking to get some down movement Before we do anything there, but this is one that we've continued to roll for that short delta exposure In gold we've got two different pieces on here in gold. First of which is a full iron condor. You can see we've got a Prices right here. So we got a little bit of profit on that one And then we've got this other piece that was part of an iron condor We closed out the untested side that was over here So we're still we've still got the short call vertical just looking for price to move down a little bit In gold to get back into range on that piece I mentioned natty gas. I mentioned bonds. I mentioned wheat apple Apple made it has made a big strong move higher. So again, this is one we'll address in the next seven to 10 days as well And decide if we want to roll to keep the dream alive Or just close it out and take a loss, but you know, apple's just been super strong here You know, we put this on, you know, I had a huge down move It bounced we were looking for a potential continuation to the downside But that is not what happened and it just ripped higher So we'll we'll see over the next seven to 10 days. We'll decide what to do with that one And the exact same thing on john deere, uh, you know, big move down that it popped up We were looking for a potential rollover, but it just caught fire to the upside Now we're starting to get a little bit of relief the last week But if you know, we'll see what we need to do over the next week or so with de DIA the dow ETF We've got two different pieces here. We've got an iron condor or prices hanging out Up here in the upper side of our range. We haven't adjusted it yet. There's still a tiny bit of value left in the puts It's not very much. Uh, so we could have made this adjustment at this point But just going to give it over the weekend, you know, if we can get a sharp move lower We'll just close that out for a profit And then we've got a short call vertical here That was part of our other iron condor which had blown out that side So just seeing if we can get some downside back into range there and again Just like kind of the common theme with a lot of these we will address that As we get closer to expiration Into next week and and keep in mind the reason we haven't done anything with these yet We like to spread out our role. So we like to do it at different price points We don't like to do it all in one day because then we get no diversification as far as our The movement of price we like to spread that around Different price points in the market and let it move around as we do that So, you know, each day we might roll one or two and and just kind of gradually do it that way So that's the plan in all of these that are kind of outside the range Uh, I mentioned fxi goldman sacks This one again need need some downside to get back into range there You can see a chart of goldman sacks. They've got they do have earnings coming up on 716 So we would prefer to be out by then but uh, you know, we're not not scared to hold through earnings either So we'll just it just depends on where we're at with our portfolio prior to earnings But we will kind of give you an update on that before doing anything Intel we've got this uh short strangle adjusted strangle here We're pretty much at break even on the trade after adjustments and rolls So into next week if we if we're profitable, we'll probably just close it out Even if it's a fairly small profit You know that way we don't have to deal with earnings on that one But if we can just get a little bit more sideways movement for a couple days that would definitely be helpful Uh, it looks like implied volatility does want to start popping its hedge kind of increasing into that earnings announcement So that works against short premium like we've got on so if we can get out of this one with a profit early next week That is the plan IWM I think I mentioned that one Did I anyway we've got this iron condor. So just looking for a little bit of downside to get back into profit on that Uh, potentially would like to add to this one If we can get implied volatility a little bit higher, you know, it's got an ivy percentile of 21 ivy rank of 12 That's just it's pretty low to be adding new premium. So We're just going to hold off on that and then, you know, hopefully we can get a little bit of downside to benefit that piece If it continues higher, we'll close out that untested side and deal with it from there I mentioned IYR mentioned the Q's smh We've got two different pieces on here and smh one is this short strangle prices hanging out right here We've got some profit not quite enough to take off yet. And then we've got This one here, which is an adjusted strangle and just looking for a little bit of downside and some more theta to decay in that piece Both of these are already out in august Which have a 42 days to expiration. So a lot of time left on those I mentioned spy and then lastly xlk This is another one what we've been holding for that short delta exposure With the strong price of stocks has busted out of our our range there So again another one of these within the next seven to ten days that we'll be looking to either roll or close So that's it. Uh, the other thing I wanted to mention is, you know, we're right now We're using under $30,000 in capital for all of our positions, which is pretty pretty low And with implied volatility contracting and as closing closing out winners and closing out trades Uh, you know, that's just gonna happen when you go from a period that was a little bit higher ivy Down to a lower So we've definitely got some cash to add some new positions once we get the opportunities We might start getting a little bit more directional, you know playing some short positions and some long positions Uh, you know just to kind of stay active and add positions to take advantage of the different, you know Movements in the market, uh, as opposed to just selling straight premium with implied volatility as low as it is It's not something that we that we want to do too much And then the other thing I wanted to mention was, you know, we had our We had our newest strategy course on The uh, July 2nd there was some technical difficulties a little bit of lag time with the With the uh, what you're seeing on your screen and what I was, uh, saying and so we I ended up just Completely rerecording the entire thing the next day and I posted that so if you haven't had a chance Make sure you jump in there and watch it. It's all about Trading weekly options. It is gonna be phenomenal and starting next week We will start integrating that strategy into our alerts So look for that next week. Uh, in fact, let me just give you a quick sample of one trade that I've got on in my personal account This is a double calendar in spx And you can see, you know, this was one where we put this on on I think it was monday And you know double calendars calendar spreads benefit from implied volatility expansion well implied volatility just got crushed this week Uh, and so this trade, you know, theoretically should get crushed now the the p&l didn't suffer But what did happen is look at the look at the max profit at this point It's only like 300 bucks when I first put it on the max profit was a thousand dollars or closer to 1200 dollars Now you can see prices moved out of range of this break even but look i'm still profitable By over 150 dollars 161 bucks And so monday is the last trading day for the the expiration cycle that i'm in so a couple things one obviously if the market Blows up to the upside and opens monday morning. I'm going to lose money and take this off Um, which could very well happen Uh, or if the market goes down Uh, that's probably also going to make implied volatility go up So what you see now is a potential 300 some dollar max profit That could easily double or even potentially triple, you know, if implied volatility spikes So these calendar spreads are interesting I just point this out just to kind of for those of you who have never traded calendar spreads Especially these weekly ones they they are interesting animals and how they move and and and it's not it's not normal for and the market's closed right now while i'm recording this but It was like this before the market closed too, but the profit line right now is actually above The p&l at expiration and that can happen With uh with calendar spreads like that. So they're they're a little bit different than your Some of our other premium selling a you're buying these for a debit b You're benefiting from implied volatility expansion not contraction like the other premium selling strategies We use like iron condors and short strangles But so we'll see what happens Just looking for a downside down movement to benefit this one This is not an official trade in the alerts portfolio This is just done in another one of my accounts Because we have not been trading these in our alerts until we put out the actual strategy course So if you have time this weekend make sure you go through that And I look for an alert starting uh next week either monday or we might wait till tuesday On that just depending on what's going on. So That is the plan everybody. Have a great weekend. Look forward to a good week of trading next week. See you then