 Hey everyone welcome to another video lesson from Navigation Trading. In this video I want to show you how you can beta weight an individual position to SPY so you know the beta weighted delta before you even enter the trade. So just to recap we like to keep a specific ratio of short delta in our portfolio versus the amount of theta that we have. So I'm looking at my monitor screen here and what you'll see is that I like to categorize these by expiration month. So we've got our March expirations, our April expirations, our May expirations, and then any earnings trades that we have on. So if we take a look at our delta to theta ratio. So here we've got our delta column. So if we just add these up. So let's take 545 plus 293 plus 48 equals 886. And I like to leave the earnings trades out of this ratio. So let's call that about 900 right? Now let's add up our theta. So we've got 67 plus 95 plus 134 and that equals about 300. So about 900 short delta and about 300 theta obviously 900 divided by 300 equals 3. So we've got a 3 to 1 ratio of short delta versus theta. So what I want to show you now is taking an individual position before you even put it on. So for example today we put on a long put vertical in TLT. So if you're looking at your analyze tab and you've got your price slice right on where the current price is and you look at your delta of this position, you can see this is a negative 148 delta right? If we put this trade on. But that's not beta weighting that delta to SPY. That's just simply the delta of this TLT position versus TLT. So if we want to beta weight that position, if we want to and actually let me click on this is an pre that that's our current position. But let's look at it. If we didn't already have that position on. So we're going to look at just the theoretical position which is marked here in green. And so what we can do is we can change this from single symbol and change that to portfolio beta weighted. And then what we'll do over here is we can select instead of showing all, we're going to hide our current positions. Okay, so we're only showing our simulation trades or our theoretical position. So we're going to hide all positions. We're going to change that to portfolio beta weighted. And then we're going to go down here and find the position we're looking for. If you're like me, you put on theoretical positions all the time. And so sometimes I don't delete them so you can see all these different ones. So you've got to go through and these are in alphabetical order. So you can scroll down and find the one you're looking for in this case, TLT. And we just want to checkmark that trade. Okay, so you just check that one. And then what you'll do is you want to go up here to your beta symbol. So right now it's on TLT. Remember, we're just beta weighting this towards itself against itself. And that's showing the negative 148 delta. But if we beta weight this theoretical position to SPY, which is what we like to use to beta weight our positions against. Now look what happens a the graph changes. But also look what happened to our delta changed from a negative 148 to a positive 11. And so that's what you'll see here is that beta weighted to spy this position actually has a positive delta, meaning if you know SPY goes down, this wasn't going to go up a little bit. And so that that's how you beta weight individual positions before you even place the trades. And then of course, as I showed you on our monitor tab, I always have this box checkmarked for beta weighting to SPY. And that kind of gets all these different apples and oranges and pineapples and bananas to line up so that you can kind of compare them theoretically, apples to apples. So I hope that was helpful. Talk to you next time.