 Welcome back with us, folks. Tonight, I want to show you two very, very good setups, probably my favorite setups after the bell. Right after the bell, when you look at something, you know it's been very bullish after the bell. It's breaking out. You want to get in. Here are two very good examples that I really like to play. And obviously these two, you'll see, I didn't alert anything. I didn't play them. However, these are two very good setups. So I'll see, firstly, the theory. And after that, I'll show you in the chart. One is calls, and one is put. Both of them are exactly the same, and you'll see, and I'm sure you'll be able to identify them. So let's say you've seen this is the Facebook chart. See, it's been on a rise. You realize that on the morning, let's say the previous day had a double top, then ended up the day like this. And then pre-market, it goes to here. There is a little pullback. Remember, this is pre-market right here. Here's a little pullback. And right at the gate, what it does, does this. It breaks above the pre-market line. Now, you'll see a lot of profit takers right there when it comes back to this support. So when this is resistance, pre-market, and it gets now support, and it comes back up, that's the entry point for calls. Because the old resistance that was pre-market is now acting as support. Now, so this is previous day. This guy here, double top, rejected. And now we're above it. And at the gate, this is the bell, we get above it, above this pre-market resistance, come back to support, and now up. You'll see a lot of these. And this is probably my favorite setup. Now, on the opposite side, let's say, ticker has been going down like this at the bell. Closing bell, it ended up at the lows. And it tanks overnight, and it opens up here, and then it drops at the bell. Now, if it retraces all the way to what, previous day support, and then it will tank lower. The reason for this, all the shorts have no reason to leave past where bulls probably showed up the day before, where you often see the same thing. Let's go on the way down. Here's the bell. Probably trading flat. Here's the opening bell. It tanks at the bell. And then it comes back up to this old line where we had buyers. And then it rejects it, and then it'll come down. So that is the point of entering puts, because that is the old resistance from pre-market. And this is where we don't find any more buyers. If this line breaks, you are on the buyer's side, because everyone, the selling pressure here, if we get on the other side on the way up, meaning that all these guys now are less in volume than people that are actually buying. So your stop loss will be your entry point. So this is for puts. And what we just saw before was the opposite. Exactly the same, same thing, but going up. So basically, the day before is like this, ends up with resistance hitting a few times. Pre-market, it's going up. At the bell, it just gets even higher. It comes back to support from old resistance, and then it takes off. This is your entry point, and it's also your exit point. If it breaks under, you're noticing that it's bouncing on the slide. It's not going to try it many times, right? It's going to bounce on it. So if you see it bounces, well, that's time to get in. And if it loses it, eventually, well, that's the get out part. Now let's look at two different charts to expose exactly what I'm saying. Now this is Facebook. This is Facebook on Friday. Look what it did. I'll show you exactly the line I'm talking about. See what it did? This is a previous day. Went up to a certain line, right? This became resistance. This is trying resistance again, and look what it did. This is the 930 line. Right here, you know where to see this big volume bar is the 930 line. The opening bell. We move higher than the previous resistance, which was pre-market. Look what it did. Came down. Now this is acting as support. So when you get in here, let me blow this up a little bit. When you get in here, you see the next candle, next candle. It's all pretty flat. If we break under, well, you still have this little support right there, but this is probably, you're probably better off exiting there and try it again a little lower. However, this is what I was saying. Look at this. This old resistance pre-market is now support, and we rise. Now this applies when, in this particular case, Facebook was opening higher than the previous day. We're opening higher. This resistance was broken at the gate, acted as support, and then moved up. So you have a few things to look at. First, higher than the previous day. Two, it opens higher than support, then resistance. Opens higher than pre-market resistance. See? Higher than the previous day. It opens up, and it breaks the pre-market resistance, and then three hits support, which is the old resistance as a test. And after that, it's just smooth sailing to the way up. This is the call side. Look at the put side. This is the same day. This is Netflix going down exactly the same theory, same technique only this time puts. Check this out. I'll put the line on first. Here it is. This is the previous day. This was the previous day before Friday. Look what happened. It came down, and it hit this yellow line, which was support, and it just stayed there. And then we got some buyers. And after hours, not much. And then look at what happened when it opened. It just flushed below. And this is at the gate. We open. Where? Lower than the previous day's support and lower than the pre-market resistance. It's exactly the same thing we just saw on Facebook. However, this is opposite. Remember, Facebook had a higher pre-market, and then it broke through to where? Broke through, came back to test it, right? And then it tanked. Same thing here. So we have a low, lower. So we're breaking lower. All these guys are out. So we're looking for more sellers. And they sold to a point, came back to test what? Previous day support. Look at this line. Taking all those blue lines off for you. This yellow line, see this support? Now it hits it right on the head, and it becomes resistance. Sometimes you'll see that we flush. Then we find a lot of buyers. So all this is coming to an end. You know, it's day after day after day coming down. Eventually we flush, we find buyers, and then we start moving up again. Now this would be your stop line. If we start finding buyers again, the last buyers were right there and rejected it. This could be your really last exit point if you were buying the stock short or put on a longer expiration. But if you have a short expiration, as soon as you cross this line, this line here, it says, you know, you're now entering the buyer's side. You don't really want that. So again, same thing. We had a lower pre-market. We opened lower. We came back to test. Back tested the old support and rejected. Same thing. One is put. One is called. Same theory from using pre-market support, pre-market resistance. And this, both of these situations, you'll see them very, very, very often. So I hope you guys can use this in your toolbox for long puts, long calls. It could be used on a day trade. But the idea is to recognize what's happening if you're opening higher, if you're opening lower. And you can clearly see where you can put your stock loss. Hope this helps, folks. Keep me posted. Have a good one.