 Hey everyone, welcome to this week's video update today's Friday, April 24th Let's jump into the alerts and check out what we did this week starting with Monday The 20th was our first trade. Let's scroll down here. So first trade was a closing trade We had a bunker on in XL I we got down to under, you know, right at 60 days to expiration We we like to take these off So we start to avoid that real theta decay that starts coming in at that point And so we took that off close that for a loss and we'll probably reestablish another bunker or two next week Just to continue to add in some of that short delta protection in case we do get that downside action That that I think will eventually come next trade was a Trade in CL so we added a short strangle in CL now what what happened a few days later was Think or swim came out and said due to the market conditions do the oil Conditions going on in oil. We are requiring Everyone to close any trades that they have in the June May June July cycles of CL so we ended up having to just take this one off and take a loss Nothing really we could do about that if we take a look at at oil So, you know, unfortunately, it's coming back a little bit in our in our direction And if we go to the oil futures on the thinkorswim platform What you'll see is the I mean look at the difference in pricing here We've got in the in the June cycle. We've got 17 dollars a barrel Then it jumps up to 21 and 23 25 26 And it continues to escalate up to 30 dollars a barrel out in, you know, February and beyond and so It's just such a huge difference and with everything going on with the You know, there's the 23 country agreement With OPEC that was supposed to slow down production to help prop up the price of oil That didn't work The the the amount of demand for oil right now is just so sparse Because of everything going on with the coronavirus that You know, they there's just a A very high risk situation going on in oil and what happens in that situation is the broker in this case TD Ameritrade Came out and said, you know, obviously if if we have the risk in our account and we're not able to cover it Then TD ultimately holds that risk. And so they just made a decision That they didn't want that risk. And so they they literally made everyone close out of any oil options or futures contracts. And so I've actually never seen that happen I've I have heard of that happening in the past in different markets, but Never had it happen to me. So that was a another new one, you know, last week We also saw, you know, the may the may cycle, which is obviously expired, but it actually went negative in oil So the the futures contract in may was actually turning turn negative, which has never happened Uh in in history So this is some crazy stuff going on there. So unfortunately had to we had to close that one and so we are no longer in oil Uh next trade was an opening trade in SPY. So we put on a new weekly double calendar did this one with four days to expiration and Price had moved around on our SPX a little bit. And so we just wanted to kind of add into this So did 10 contracts here. So we had one in SPX and one in SPY and just kind of layered into those and then Those expired today this friday was the last trading day. So we got out of one yesterday and then one today I'll get to those alerts here in just a second Next trade was another closing trade Another uh, bunker trade in win Again, this one just getting down to that 60 days to expiration starting to sag in the p&l area. So we we wanted to get out of that Um with the 6e so we have a short strangle in the in the euro And we adjusted that we were down to 18 days to expiration So we rolled that out to 46 and then just adjusted our call slightly from 1.115 down to 1.105 Kepa puts the same. So we're slightly inverted. So if we go to the platform take a look at 6e You can see the price is hanging out right here on the lower end of the range So we need a little bit of up movement to to get back to center In that in that 6e position. So just working our way back to profits there Next trade was an opening trade in SPX. So we finally put on a new duck We had been kind of waiting for a little bit of a downside action to To get a little bit better premium on these ducks, but obviously with the market continuing to grind higher We we wanted to get some on so we put on one in SPX with 10 DTE We've still got that one on And prices run up a little bit since we put it on so you can see prices right here We've obviously got Beak profit here, but remember as we talk about in the course We want to hold this, you know in case it does come back down because there is A chance that it goes below that beak and into that duckhead You know, we've got until May 1st is when these options expire And so the day before that's the last trading day. And so, you know, obviously is still a A decent chance that or possibility that price could come back down and Into the duckhead and and look for a potential max profit. So Obviously no risk to the upside but we've got that big potential if we get a little bit of downside and having a little bit Downside buffer right now. I don't think it's a bad thing at all. So we're going to leave that one on A little closer to expiration. Obviously if it continues to run higher, then we will just End up closing it out And then here was the the close of that oil trade I mentioned Closing adjusting trade in zb. So we also closed out one set of short strangles in zb. Just wanted to reduce exposure Um, yeah, it just felt like our P&L was swinging way too much just based on the movement of bonds and oil times We just wanted to reduce exposure get down to one. So we need a little bit of down movement in bonds get back to center there We had already rolled this one out Oh, no, this was the one. Yeah, we're 28 days So late next week or early the following week we'll roll this out to the next cycle But we've got another week Hopefully we get a little bit of down movement in bonds before that happens So we can get a good price on our roll Next trade we did an opening trade. So we opened up a new bunker in smh this one with 121 days to expiration As I mentioned, we'll exit near 622, which would be 60 days before these expire way out in august So if we take a look at smh We've got this short strangle here. I'll get to that in a second. But the bunker is right here So you can see prices hanging out right here. So we need a Move lower to benefit from that and then while we're here, let's take a look at the short strangle Now this one has 21 days to expiration. So we certainly could have rolled it today But we're doing several other rolls So we went ahead and just we'll hold this over the weekend if we can get a little bit of down movement That'll benefit us and then we'll do the roll But certainly early next week we'll be looking to roll that out to out to the june cycle Next trade closing trade in spy. So we closed out our weekly Double calendar in spy. Unfortunately, vol kind of got crushed. So we didn't book as much profit on this. So we ended up just taking a Small winner out of that You know, you can't predict these vol crushes We know that you know taking these off between one days and zero days to expiration is going to maximize our profits over time But you are sometimes going to get caught when the vol crushes and Takes away some of your potential profit, which is what happened here, but we still got out at a tiny winner Next trade opening trade in spy. So we added a new weekly double calendar here and this one Eight days out. So front week eight days back week 11 So if you take a look at that now this one got hit with a little bit of vol crush today as well Um, but we've still got some time left So you can see how the the p&l and the tent is kind of drooping now under the zero line Because of that vol crush and that's what can happen. That that's kind of besides obviously the massive move in one direction That's a little bit of the risk here. So it's a you know, it's a vega We're long vega on these trades as you can see here And so when the vol gets crushed Then then that can happen now remember it's not just if implied volatility goes down though It is it's the difference between The the ones that you're selling and the ones that you're buying. So if you see here Prior to today There was there the the volatility in these seven day options Was higher Than the 10 day and I would just pop back up a little bit but But it was about two to three percent difference These were two to three percent higher than these and now look at how how that is narrowed where the The back week is now 28 and a half and the front week is only 29 and a half So it dropped a full percentage as far as that differential And that's what's causing this because remember we are selling the front week. So we want call Volatility to contract faster in those options and we're buying the back week So we want implied volatility to contract slower or even expand And so that's why we're that's why we're seeing this. So that's the That's the reason when we put these on that is the main thing that we're looking at is not only the I mean the overall volatility matters But but it's really the differential between these we want to sell the ones that's a little bit higher and buy the ones with Not as high So that's what's going on there Next trade those that the oil trade I mentioned Closing trade in spx. So today we closed out our weekly double calendar in spx And again, just took a small profit on this one just over breakeven because we got hit with that vol crush So we're out of the spy in the spx and then we put on that that new spy Opening adjusting trade in gc. So we added an iron condor in gc So we've got we had that remaining short call vertical from the iron condor and we added to it And we'll take that one off early next week. It's only it expires monday. So we'll take that off on monday but we added This new iron condor to collect more credit And and keep this going implied volatility still nice and high So we're getting some good premium there and then the uh, short call vertical you can see the 16 95 17 10 This pretty much at max loss. So we're just going to close that out on monday next trade Closing trade in xrt. So we had two bunkers in xrt Obviously down under 60 days to expiration like I mentioned P&L we we held this one a little bit longer because the p&l was holding up well as far as the The kind of the sag over death valley, which I'll show you But we went it with a contraction today started to come down a little bit So we went ahead and closed out of that one and we're still holding Our our other one. So you can see it's way back here. There's a very slight chance We're gonna, you know, make a huge move down to book a profit But not in a massive hurry to take this off just because you know, we can't really lose lose much here We're gonna lose about 119 120 bucks on this one. So we'll take this off early next week And again, we'll we'll start adding Adding some additional bunkers. Maybe another one in xrt. It's a fairly low price symbol So you can get, you know, we're at eight contracts with this one a four by eight and six 1700 dollars is kind of the Buying power so you could certainly do, you know Any any level of this in in pretty much any size account? And so with these lower lower price symbols that allows you to Do smaller size and still get that downside protection that we want from the bunker Uh rolling adjusting trade in de so one of our Short call verticals in de we rolled from may to june We wanted to get this back to a positive theta position and You know, it's pretty far out of our range. So we just rolled that out to june adjusted our strikes So we've still got two sets of de So here's the one we rolled And then we've got the other one which is still in may Which is just outside the range So just holding these for that short delta exposure if we can get a little more downside in john deere that would benefit those And then lastly xbi so we had a short strangle and xbi was inverted and we just rolled it from we down to 21 days Expiration so we just rolled it out to june kept the strikes exactly the same so we kept stayed inverted and And collected the credit to roll that out to june So if you take a look at xbi I can see prices hanging out right here Just waiting for you know some more time to pass now and you know potentially a little bit of downside to get back into center So that is all the alerts if we take a look at some of our other positions. Yes We've got two different sets of long put verticals Most of these remaining ones are going to be short delta plays We've got these two different sets of long put verticals and es one is way out of range So we'll be either rolling or closing that one next week I mentioned gc natty gas We've got this was a strangle adjusted into a straddle You can see implied volatility has popped up a little bit since this roll So we're down a tiny bit but but well centered in that one I mentioned zb wheat we've got this iron condor price hanging out right here Just waiting for some more theta decay there Apple we've got this long put vertical prices hanging out right here for that short delta exposure DIA we've got these two sets one in may getting this one's way out of range So we'll probably roll or close that next week and then this one in june Uh, which is prices hanging out right here inside the range IWM kind of a similar story. We've got two sets one in May And these are long put verticals one in may just outside the range one in june Just inside the range And then same story with qqq. We've got two sets of short call verticals one way out of range and one Inside just inside range. So again on that may one we'll be looking to to roll Roll or close that next week As far as our our short delta goes we're at about one to one on our short delta versus our theta ratio So, you know in good shape there certainly could use a little bit more short delta But but definitely in a good spot on that whole situation And then lastly xlk another long put vertical that's out of range So we'll be rolling or closing that one next week as well. So If we take a look at the overall market just to kind of get get a little idea of of thoughts going forward Uh, obviously Mark has just been on this real, you know steep up. Well started up steep But now it's just being kind of grind in sideways in the last week and a half two weeks And so, uh, you know, we're just gonna we're gonna stay mechanical You know, I still think we're gonna see some more downside. I don't think we've seen the last of this volatility by any means But uh, but we'll just you know, we're gonna continue to stay mechanical We're not gonna get too short, but we are gonna add in some more bunkers for the for the situation of a potential uh, big downside move and we'll continue to layer in some ducks and double calendars and and strangles and and uh Iron condor. So that's the plan for next week. Everybody. Have a great weekend. Talk to you then