 Hey everyone, welcome to this week's video update today is actually recording this the morning of July 18th Saturday morning Hope everybody had a good week of trading. Let's jump in starting with the market We'll talk about the alerts talk about our other current positions And then we'll jump into kind of a an update on the day trading stuff. So to start with here GSNP This red bar here. This was Monday the 13th Kind of a crazy week of trading. I mean, we had a lot of head fakes in the market, you know, we start out here Market looks like it's ripping higher and then just does a complete reversal and ends down here at the Lowe's Next day market opens up and starts going down looks like a continuation to the downside and then rips your face off back to the Upside and then the next few days. It's kind of bounce around big up day down day up day So still continuing to get these big swings. I mean even a day like this the range is Let's see the Lowe was 3194 the high 32 25 so still a, you know, 30 plus point range in the S&Ps, which is still a decent range So still continuing to get that volatility and we'll still continue to get that volatility Going forward. So let's jump into the alerts and we'll talk more about about the market overall as we go through here Starting with Monday first trade was an opening trade in SPX So we added a weekly double calendar. We were already holding one. So at that point that we had to this one we put on with just four days to expiration and So I'll get to the closing trade here in a minute next trade rolling adjusting trade in XLK So we had a long put vertical in XLK. That was getting down to four days to expiration So we went ahead and rolled that out to extend duration If you look at XLK Which is pretty tech heavy. I can see since we've rolled that we're up about 232 on that piece. So Holding this for that short Delta exposure. We're about one-to-one on our ratio So still in a good position definitely not overly short I mentioned in last week's video that we are going to we weren't gonna add much short Delta if any this week and we didn't Just because you know, I mean we had this big push-up kind of a grind sideways And I said, you know the kind of the path of least resistance in this market is to continue higher to hit new highs We did I mean just barely hit a new high all time in the in the S&Ps and then Retracted a little bit, but you know, I still think this thing is gonna go higher in the short term And again, does that mean we just get rid of our shorts and go long? No, absolutely not I mean, we still need that protection because at any time this thing could tank You know one thing to consider is the you know all this stimulus money is is gonna be running out in the next couple weeks You've got the unemployment benefits that extra six hundred and some dollars a week that people are getting that's going away We've got You know some of these other employer, you know small business related incentives and stimulus that are going to be going away and so Does that mean that you know two weeks the markets gonna crash? No the market doesn't work that way You know, it doesn't it doesn't follow the economy It tried to it tries to project in the future what what what is going on and so You know, I think But I think I think what we've seen so far Let's just kind of break this down overall with the with the economy and the markets, you know What we've seen so far. We had a huge flush Obviously with the coronavirus right then we had this massive rally, which you know, I don't know about you guys I didn't see coming You know, I really thought we were going to you know, kind of bottom-round and we didn't I didn't expect this what they call a V-shaped recovery But you know with all the money in the system and everything going on, you know I mean this thing just the market really just took off so But but now is when you know it so I think in the coming months and especially leading up to the election You know, who knows what'll happen then but you've got all this stimulus money running out And and so the the spending is going to stop I mean, there's still I mean the unemployment rate is still sky-high and and so at some point Things are going to not you know, the math just doesn't make sense of you know People still spending the money that the way they are when that money runs out They're not gonna have that money anymore. They a lot of people are still unemployed and so You know, the the rubber is going to meet the road at some point You know, I think this this stimulus and everything is still just kind of propping this thing up at some point We're gonna see some downside now. Is that gonna be next week or is it gonna be a year from now? You know, I think the delayed effect of this stimulus running out and and and The the band aid that the Fed has put on You know at some point that is somebody's gonna have to pay the piper and so That's why we're still keeping short Delta You know, I mean and and we'd like to keep short Delta most of the time But if you remember if you're trading with us during this period here, you know We we were short short short short short and then about right here We started cutting loose some of our short Delta cutting loose some of our short Delta down here We were long and so we benefited from you know, this area in here and then obviously Not, you know, this our short Delta got hurt, but we but here's the thing We've been short since about right. Let's call it right here We've been short right here and we've still made money And so that that is the key to this methodology is Managing your deltas managing a portfolio portfolio so that you are hedged to the downside if the market tanks But yet you can still grind out a profit in a massive up move like we like we saw here So that is what it's all about my friends, you know, obviously if we had been long We would be a lot more but hindsight is 2020 and the fact that we can still make money and we're short and the market goes like this That's it. That's a huge benefit So that is what it's all about is creating a portfolio that can they can be profitable in an up market But be protected on the downside All right, so that's XLK closing adjusting trade in GC. So we had Two sets of iron condors on this one got down to 14 days to expiration We were able to book over 40% of max profit on that piece of the trade and then still holding our Other gold iron condor. So let's check that out So this one's pretty centered and it's pretty close to 40% of max profit as well So we will we'll be looking to potentially take this one off next week If we look at our days to expiration, we've still got 39 days to expiration I'd like to get one on in October You know once we get down under 60 days or close to it. So maybe Friday of next week We may look to enter another one in the October cycle and then you know potentially take off our September one Next trade rolling adjusting trade in DE John Deere so this one got down to three days to expiration and so we went ahead and rolled that out to the next cycle with 38 and To keep that short Delta exposure in John Deere, so let's take a look at John Deere John Deere has been very strong So prices out of our range here even after our roll And so looking for some downside action to get back into range there You can see this just pretty solid spike here over the last week and a half in John Deere So apparently people are still loving their tractors Next trade opening trade in SPY so we put on a new iron duck in SPY and Did this with five contracts and we did this one with 20 days to expiration So we've got three different ducks on now. Well, I'll go through it here. So SPY So this is the one we just put on so since we've put this on you know prices run up the beak now Remember for those especially for those newer traders kind of when do we take this off early? We said our Date our calendar to expiration and then we kind of we put our break even slice kind of right here as The price would start to enter the duck head Right and so if prices right here We that means we still have over a 21 percent chance that price could come back here into the duck head Now if we get to a point where we're it we're maxed out on our beak profit and we have you know less than 10 Let's say between 10 or 5th even 15 percent sometimes depending on how much time is left We'll just go ahead and take this off book the beak profit and move on We don't need to stay in this thing and you know not make any more money We can redeploy that capital free up that capital redeploy it into other trades, you know But for now we'll hold this if price continues to rip higher into next week Then we'll just close it out early and and try to enter a new one in a different different expiration cycle The other duck that we have in SPY is this one here with a July 30th expiration and you can see Let's move this date here to the expiration. So 7 30 so you can see you know in this case We still have Move our price slice over here still have almost a 30% chance, you know of getting back into the duck head Widen this out here So so we'll hold this and again if this thing just rips higher we may take it off early But we still have a chance of it getting back into the max profit area Which is what the duck is all about no risk to the upside a big potential max profit and Limited risk if we close it out if it gets down to our downside break-even We also have one in rut. I'll talk about Rolling adjusting trade and yes, so this is one of our long put verticals. This one got down to two days to expiration So we went ahead and rolled that out to 65 days to expiration. So we skipped over one cycle We were already holding one another one in the 37 day cycle So just to kind of diversify our time frames roll that one out. And so let's take a look at ES So this is the this is the one with 37 days or actually now it's got 34 so we've got 34 and 62 days This is the one with 34 needs some downside action to get back into range there And then this one is pretty close to where we rolled it. Nope. No profit or loss on that piece yet Next trade rolling just in trade in QQQ similar situation got down to two days expiration went ahead and rolled out Skipped over August went ahead and rolled out to September because we still have a another set in August So let's look at the cues So here is the one in August. We're up about a couple hundred bucks since we did that roll looking for a little bit more downside action there And then this is the one in September from that alert and we it's gone down a little bit We're up about 90 bucks since we did that roll And then while we're here, we've also got a bunker in the cues Price has moved higher since we put this on So looking for some downside to benefit that Remember with these bunkers we want to take them off when we we get down around, you know Close to 60 days to expiration. We don't want to we don't want to let this profit sag into the valley of death So we want to take that off first, but we've got a little bit of time on this one Hopefully we can get some downside movement to uh to take advantage of that Closing trade in spy. So we had we had another iron duck in spy. We had closed this out This is one where price did run higher and so instead of holding onto it. We just went ahead and Booked beak profit on that trade So got at it right at a dollar which is the width of the call spread So you see we have the 310 and the 311 call. So it's a dollar wide Close it for a dollar. So we booked beak profit on that one Next trade opening trade Okay, so this is the other iron duck. I already showed you Put this one on with that at that time had 13 days to expiration Next trade closing trade in spx. So we had the two spx weekly double calendars And kind of what we've been doing recently is we'll have two of them on Close one on thursday close one on friday. So this is the one we closed on Uh on friday or excuse me on thursday And so on that one we booked let's go to our closed trades We booked a $215 profit The next one the one on that we closed on the next day on friday I'll just show you right now. We only booked it's basically a scratch trade book 10 bucks But um, I mean we were we were dead centered on this one And so if we would have got any type of stabilization in implied volatility or increase We would have had a really nice winner, but uh friday I mean with the and the market up and market makers sucking out the uh sucking out the premium before the weekend this week Uh, volatility just got crushed. So we were able to scratch out a little bit of winter, but not as good as I had hoped But that is trading Let's see. Let's go to trade alerts and Go to okay. So yeah, this is the one I just went through Okay, netflix. So, uh, this is something that we haven't really done in a while because Last quarter we kind of took earnings off We took a little break from earnings just with everything going on a there was so much opportunity with implied volatility everywhere else And then b You know, we you weren't really getting the implied volatility crush after earnings that you typically do Uh, because of the heightened volatility with the coronavirus stuff going on So, uh, jump back in earnings this cycle, you know, it's july 18th So all the big names are starting to come out with their earnings The first big one was netflix And so what we did here is we put on an earnings iron duck and so we did this in the cycle It just had one day to expiration in this case Uh, and then you just exit the next day And so that's exactly what we did got a nice credit of six dollars and 20 cents on this with a one day to expiration Which is cool. Uh, that's that's the power of the implied volatility Heightened right before earnings And so we put that on And then I'll skip over that one. I'll come back to it and then the next day we waited Uh till about 2 30 in the afternoon. So about 30 minutes before the market closed This thing was kind of bouncing around it was kind of getting it was in the duck head and then it was kind of bouncing out It was kind of bouncing around so in that kind of situation You don't want to let it expire because remember in fact, let me just go to the platform I went ahead and put in this theoretical of so this is the trade that we put on Uh, and so price was kind of you know bouncing around in here started the morning, you know The open up the the night After they announced earnings. So on thursday evening. I mean price was way down here And I was thinking okay hold hold hold, you know, don't don't go any lower And then over overnight this thing kind of rallied grinded higher grinded higher and then ended up You know right in here and then during the day it was kind of bouncing around in this area And ended up right here. So right before the market closed We closed this out ended up booking right at exactly at $500 of profit. So almost almost a duck head. We had a potential of 620 Now what happens here? So look where price Uh, look where price expired right here, right? So that is between The short call and the long call had we held this and just let it expire We would be assigned 100 you know for every one contract you'd be assigned 100 short shares of netflix Okay, we didn't we didn't want that. So that's that's why we went ahead and just closed this out Um before before the market closed Now if price would have been in between the two short strikes between here and here And you let it expire you would have just captured the full beak profit The position would have been this would have disappeared you'd be you would have uh collected max profit But you just you've got to be careful especially right now I mean with things as volatile as they are with any kind of stock based equity based etf stock We are probably going to close those out pretty close to expiration Because we don't want to get in a situation where it expires between here and here we get assigned or it expires between here And here we would get assigned assigned so if remember and this is all in the course But if just as a refresher if price runs higher up the beak you can just let that expire Because then you get an assignment and an exercise they cancel each other out You just keep beak profit the rest of the contracts disappear But it's it's it's in between the short and the long call and it's between the short and the long put that you need to Be worried about that's where you can get assigned the other options disappear Then you've got naked stock either long or short depending on which side it expires on so That's why we went ahead close that out And so nice trade in well, you know 500 trade per contract overnight in netflix So hopefully a lot of you guys caught that one And so let's go back to This one here. Yeah, so okay, so on friday We also added another weekly double calendar in the next cycle did this in the seven 10 days cycle So put on a new one as applied volatility was contracting. It's a good time to put these on so that's what we did that So you can see this one is up about 45 bucks since we put it on but just going to wait and hold this till near expiration Try to potentially get another one of these on monday with the same cycle And then close them out thursday and friday Just like we did before so these have been working great And so we'll continue to rinse and repeat Now as implied volatility starts to contract You know, this is this is spx So obviously the height of implied volatility was in march And it has kind of just slowly grinded with a little spikes here and there But now, you know, the ivy percentile is down to 61 ivy ranked down to 20 And so, um, you know, if this if this does if the market does continue to grind higher and implied volatility does continue to grind lower Uh, you know at some point we will widen out our durations on these weekly double calendars So instead of doing seven and 10 days, you know, we might go back to our like we teach in the course kind of the seven and 21 days And so we'll just we're we're managing these we're looking at them every time. So we're we're kind of comparing the seven and 10 versus the seven and 21 Uh, we're still in in a situation of the options are elevated in this short duration between the front and back Weak makes a lot of sense. And so we'll continue to do that until it doesn't make sense So that's the plan there And then this was the friday closing trade where we, you know, basically scratched that one book 10 bucks And we're out of that. So those are all the alerts. Let's take a look at the rest of the positions Uh, yeah, natty gas So we've got this short strangle that was adjusted into astral prices hanging out right here And so we're up about four hundred and sixty bucks since we did this roll just waiting for time to pass hoping that natty gas just continues to stabilize in price I mean even even price swings like this, which are pretty solid, you know, as far as size go But still staying within our range because the the applied volatility is still elevated in in that gas as well So if you look at ung ivy percentile 63 ivy ring 48 So still good premium in there. So we're going to continue to collect that theta and try to get back to profits in natty gas In bonds, I mean, look at bonds I mean, this is nuts with everything going on in the markets with everything going on with the fed with everything going on with You know Interest rates and everything else. I mean fed You know bonds have just done absolutely nothing Right. I mean, we had this one little By, you know, pop down and then spike back up right back into this little narrow range I mean, I don't I don't remember ever seeing bonds Be this stagnant for this long of a period of time. It's it's it's kind of nutty. So At some point they're gonna move we'll see which way they go. But but for now, we're just we've got our Our adjusted short strangle on here prices hanging out in the upper end of the range If we look at the untested side of the puts still got a decent amount of premium in there So I'm not looking to roll those puts up yet But we will if this thing continues to rip higher obviously it comes back into range That is what we really want to happen and we'll continue to to manage this one, you know back to profits as well oops Not need to go back to the alerts apple So apple we've got this long put vertical on for the short delta exposure Price is hanging out just outside of range there. So need a little bit of downside to get back in DIA we've got a couple sets of short call verticals here. That one is is at a range And then this one both of these are in august. This one is just inside the range IWM got a couple of different pieces here Starting with a couple of long put verticals that one just outside of range This one just barely outside of range. So again holding that for that short delta As well as a couple bunkers. So we've got a lot of short delta in IWM Now this one is you know, this is down to getting close to that 60 days expiration, right? And so, you know, this is one that we will take off now I I didn't take this I wasn't real quick to take this off because you know price wasn't really sagging You know, we've got kind of this almost a straight line Yeah, that's not a very good depiction. You know straight line down to you know from here to here So it's it is starting to sag but uh hoping for a little bit of a Uh a little bit of a downside action I was hoping to get out of this for a tiny bit of profit, but you know, obviously market ran higher on friday I was hoping to get a little bit of a continuation from thursday's downside action Didn't get it. So we're probably going to take a loss on this one a small loser I mean, we're down 100 100 bucks 124 bucks and then The other one out in october prices moved up since we put this on But still, you know long ways off here still a lot of time for this market to move around. So We'll be holding on to that one for now QQQ I mentioned that Rutt go so we've got another iron duck and rut. So this is one where You know talked about it. I put my price slice right as price would enter the beak Now this one is only got 15 percent Chance of price getting back to the deckhead. So if price stays right here or goes higher We will take this one off. So we've right now as of today, we've got seven days six expiration So there's no reason to hold this for another seven days, you know, we're tying up a little over 1800 bucks in capital Why not take this off book the big profit, which will be about 130 dollars Redeploy that capital into a new trade whether that's an iron duck or some other high probability trade So that is the plan there Uh smh, we've got this adjusted strangle. You can see prices out of range However, if we look at our untested side still got a little bit of premium left in there So we haven't rolled the puts up yet. This is in the august cycle. We've got 34 days to expiration So if we if we do roll this on monday, we'll stay in august If uh, if we wait later, then we'll roll it out to september SPY Yeah, whenever the ducks in spy Let's go over the iron condor that we still have Price is hanging out in the upper end of the range of this iron condor So we could use a little bit of downside action to get back to center Uh, but just holding this, um, you know, obviously if price goes out of our break even point And there's very little value left in this put vertical We'll close that out and then we'll decide do we want to keep this for short delta exposure and roll it Or do we want to just close it out? So we'll we'll see where we're at with everything else in our portfolio at that point and make that decision then xbi We've got this short strangle that was adjusted into a straddle. We're at the 105 strike See price is hanging out right here in the upper end of the range If we look at our put side still a lot of premium in there So we're not looking to roll that roll those puts up yet and we're in august with 34 days So got some time to see if this thing can come back to center xlk I went over that one. So we got that long put vertical. So those are all the positions. Those are all the alerts. Let's take a look at our day trading So let's go here first Uh, let's go to Where is it? There it is Okay, so For the week 7 13 through 7 17 Uh nice solid week, uh over 4600 in profits So nice week and you know the one thing about this week is I was traveling I had meetings and so I and I mentioned in the facebook group That you know, I'd be very doing very little day trading Uh just because of everything going on. I didn't I didn't have the time or the attention needed to really focus on it But still did really well and did a lot of pairs trades, which those don't have to be You know babysat as much as the what we're calling our mighty 90 strategy Which is what we're trading the first 90 minutes of the market open Those those have to I mean you got to be there. You got to be right in front of your computer You got to be ready to pull the trigger in and out So I didn't do too many of those however. I did do quite a few pairs trades And um, and so I'll kind of break that down By the way, so I mentioned before that the class is coming out august 6th It's going to be at 4 p.m. Central time So mark your calendars will be sending out more details and links and information To to get to save your spot for that But just to give you an idea of so we've we've got several day trading strategies, right? And so the first one Is is the one that we've been posting a lot about and that's what we're calling our mighty 90 strategy where we're just trading in the first 90 minutes of the day and um And so that's the first strategy that we're teaching on august 6th the the pairs trading and uh, the other the other strategies We're going to be doing kind of like a series So, uh, we don't have the dates yet, but it may be the next week Maybe, you know august 6th and then the next thursday and then the next thursday We'll figure out how quickly we were able to get all that stuff together to roll those out Uh, we may do one a month. We'll see we'll see how quickly we can do that But uh, but for this first session on august 6th, it's going to be the mighty 90 strategy And then we'll layer in the other day trading strategies. Uh, and and The sequential order in which we do them is important. So, um, just f y I just wanted to give you guys kind of a insight on kind of what we're thinking and and what to expect With this day trading stuff And then we'll also talk about what we're going to do as far as, um, you know streaming these and calling them out and Uh, allowing you guys to follow us and see exactly what we're doing So good week, 4,600 bucks. So let's break this down. The big day was monday Uh, you know, I had some great pairs trades in the mini nasdaq versus the mini russell Um, and you know, you look at this and you say, you know, how is this possible in a pairs trade? Don't you usually lose on one side and make money on the other? Uh, because they're correlated so they're moving in opposite in in similar directions, but you're taking opposite positions Well, in this case, we did multiple trades on this. So sometimes we're long nasdaq short russell Sometimes we're short nasdaq long russell. So we reversed it a couple different times. So I ended up booking profits on Both sides. So so on on on one pairs trade, you're typically not going to see positive numbers on both sides One's going to be a loser. One's going to be a winner like you see here Uh, good good pairs trade on gold versus silver If you're watching gold and silver, let's just go to the charts for a second. I want to kind of break this down a little bit Let's go to silver first So silver has been spiking Pretty significantly. So let's just look at this week. So this was kind of especially this day Silver was up huge Gold was not up that big Um, and so there's there's a little bit of a divergence here and so silver is really spiking whereas if you look at a chart of gold You know, it was it was going up as well. Let's see now right here. Yeah, no right here So right here where silver was spiking gold was flat Okay So the pairs trade was taking advantage of that where after silver had spiked up We were we were we were short silver and we were long gold And then gold just kind of stayed steady and silver came back down to reality And that's that's part of how we profited on this one now. There's a lot of criteria that that goes into that So, uh, don't don't go just Don't go being crazy on pairs trade. You definitely want to paper trade these before Before you jump in and we'll we'll give you the specific criteria. We're using but Really nice pairs trade there, you know, this trade together costs about a little over $6,000 in capital And we captured, you know, almost $1,000 there And then the minis, you know, these are you can get pretty small on these. We were doing multiple contracts on these But but depending on the depending on the symbol I should pay better attention, but and this will come out in the class, but You know each one of the a contract in each one of these is like If you're trading during normal market hours is pretty minimal I think like less than I mean it's less than a thousand dollars. I think closer to like 500 bucks Yeah, I think it's like four or five hundred dollars per contract. And so, um You know really, you know small accounts can do this large accounts can do this If you have a really large account once you get comfortable with it You can you can not do the minis the micros you can actually do just the nasdaq versus the russell They move exactly the same And so, uh, we're just doing the minis right now I think a lot of people are going to start out with the minis. So we're gonna As we're as we're teaching this we're going to use a lot of the minis There's no reason to use the big ones especially when you're starting out when you can just practice with the micros Uh, and then we had one just individual trade in the micro es pretty much a scratch They're 10 bucks, uh, and then beyond meat booked 85 for a total of 33 62 on the day So nice way to start the week Next day, uh, staying really tiny. I think I was only doing one contract here In this case, both of those Were losers and then did a pairs trade in russell versus s and p That was a little bit of a loser and then had a decent little winner in apple with our mighty 90 strategy Tiny green day, but green is better than red my friends Uh, this day 162 had a couple pairs trades here that were losers had a Basically a scratch pairs trade on notes and bonds A little loser on this pairs trade and then a nice winner on beyond to give us a positive day 162 Again, I was you know, I mean one I just took one trade right there The rest were pairs trades that can be held a little bit longer Uh, next day 477 another nice trade a pairs trade in gold versus silver And then for mighty 90 strategy trades Um, netflix was kind of the the main culprit of losing here. The others were You know tesla the tiny loser in video winner facebook winner, but overall 477 positive And then on friday to end the week Uh pairs trade in nasdaq ym that was positive Uh, just a uh Just an individual trade on es was positive A couple negatives there and but then a nice winner in roku to give us a overall profit of almost 550. So That was the week of day trading So don't really have much else to add there except you know, just make sure if you want to follow along Go to the facebook group, which is Uh day trading options for income. See if you just go to facebook search day trading options for income search navigation trading You'll find it. That's where we're at the end of each day. We're we're posting Our our daily performance and some other stuff in there So if you want to follow along that is the place to be Hope everybody has a great weekend. Talk to you next week