 What's up navigation traders today is Friday August 23rd Welcome to this week's video update where we review all of our trades exclusively for pro members Before we jump into the alerts. Let's go to the community and check out who got caught being hot this week This week goes to Eduardo flores So Eduardo has been participating in the community for a bit and started sharing some trade ideas this week. So Congrats Eduardo keep up the heat and Appreciate you having being a part of our community All right. So going to the alerts for the week starting with the alerts on Monday the 20 excuse me the 19th our first trade alert was entering a Double calendar a weekly double calendar in SPX and so this is just like we teach in our weekly income course let's go to the alerts and Go to the platform and take a look. So we were we were fairly centered However, obviously today's big down day with S&P's down a cool fitty Plus and we've still got a few hours before the market closes at the time of this recording But this is a this is an interesting thing to understand about these double calendars is how these the max profit and the The break evens can expand and contract with volatility So if implied volatility expand expands these break evens are going to widen and you're going to get more of a max profit when we put This on our max profit was at about $1,500 I think $1,500-$1,600 and our break evens were we're right more in this area But with this huge down move today, you can see this the break evens have really expanded and that's just based on the fact that the there are short-term options that we're selling and Further dated options that we're buying. So that's just the nature of a calendar spread and so Price is right here. So we're right near our break even got several questions about this in the community of hey, you know should we close this out we've got three days to expiration and You know if you if you're super nervous over the you know of holding a position like this over the weekend And you wanted to take profits. I don't have an issue with that The only thing to make sure you understand is with these trades, you know taking profits early Does not typically play out well over the long run on these short duration trades now Remember on our our longer duration core income strategies where we're entering between 30 and 60 days Managing profits early is more profitable over time We look at these shorter duration trades not just on an individual basis, but After a lot of occurrences over time What's the most profitable way to manage these and that is holding them closer to? expiration, you know within one one day to expiration and so that's what we're gonna do and You know, obviously if this market just continues a massive slide We're gonna take a loss on this trade course of it bounce up Monday bounces up Monday We'll we'll take a nice profit So that's just the nature of these with these shorter duration trades your P&L Swings are gonna be larger than on the longer duration trades But that's just the nature of those and that's how they work So you've got it and that's why it's so important to stay small keep your position size and check So that you can withstand these, you know kind of P&L swings, you know We're only doing one contract on SPX here, you know, if that's too much for you you can go to rut RUT which is smaller and you could or you can even go down smaller and use SPY or IWM or one of those as well So just keep that in mind You want to play that you want to let the probabilities play out and you don't want to get caught up too much in the short-term price swings That you'll see with these shorter duration trades All right, so let's let's move on to the next one here going to Next trade was a closing trade in 4 slash CL so we had a short strangle on there booked over 45 percent of max profit on that trade We've got a later alert coming up here where we jump back into oil, but we were out of that one booked a nice profit Next trade closing trade in IWM. We closed out our Iron condor in IWM booked over 40 right around 40 percent of max profit on that trade so out of IWM Next trade was an opening trade in CL so you can see the next day We jump back in so let's go to the platform and take a look oil is down big today over 3% But we're still with well within range here Centered was right here and now we're down to about right here. So still well within range Just moved down a little off-center from where we entered it. So now we're just playing the waiting game To get some theta decay there in oil Next trade was a closing trade in SPX So we had a weekly iron condor on in SPX and we ended up booking a nice profit of 1450 you know, this was a this is another one where Had we gotten out early and and because markets were really moving around We wouldn't have we wouldn't have gotten that nice of a profit. So, you know, just You know, you got to manage these how where you're comfortable But over time we think the best way is to hold those close to that expiration date and then and book profits Then in fact if we would have held this even longer, we would have made even more But you know, that's obviously hindsight and we don't do that. So nice profit there 1450 Next trade was a rolling adjusting trade in SMH. So we've got two different sets of Inverted strangles in SMH with this one We just we rolled out from 30 days to expiration out to 58 kept the strikes the same because it was fairly centered We just wanted to extend duration on this trade kind of diversify our Days till expiration. So we've still got one in September and then we rolled this one out to October We were over 50% of max profit on this piece of the trade, which is the other reason that we went ahead and rolled that out Let's go to SMH on the platform and take a look at that. So here's the two pieces Here's the here's the one that we still have in sep with three contracts You can see it's a little off-center now after today's big down move and then the one That we rolled out to October pretty close to where we put it on just waiting for some time to pass and some theta to Decay in SMH trying to get back to profits in SMH Next trade was a closing trade in Netflix so we had put on a long put vertical in Netflix just for some short delta exposure and We were able to get out of that booked a nice profit of 30% Profit there on that one. It was actually about 50% of max profit But when we buy a long put vertical when we pay a debit We're we're looking at that as a profit of the debit page. So about 30% profit on that one Next trade closing trade in MA. So we had an iron condor on in Mastercard We ended up closing that out booked over 30% of max profit on that trade. So booking some nice winners this week Next trade a closing adjusting trade in ZW. Now, this was not a winning trade So this is a one piece of our iron condor trade price had made that big move down We had a remaining put vertical side on that we ended up closing out We held it all the way up till one day to expiration ended up closing that out taking a loss on that piece of the trade And then we're still holding our full iron condor Right here. So you can see prices are moving a little bit higher today And so we've got some profit here not enough to take off yet looking into next week You know this one is has 28 days to expiration the November cycle is about to get under that 60 days to expiration So we will look to add another centered iron condor out in November next week. So look for that in week Next trade it was an opening adjusting trade in SPY So we currently had a short call vertical spread that was previously part of an iron condor With the volatility spike. We went ahead and sold some more premium Now I did something a little bit different on this and I mentioned it here We intentionally gave this three point wide wings on the call side and five point wide wings on the put side the put skew is just super heavy in there and so Basically if we had done equidistance on the wings on each side There would be a huge a lot more risk to the upside and so we wanted to kind of flatten out that P&L curve I'll show you what I mean by that. So let's go to SPY and check out the analyze tab and So here's here's what that looks like. So It's come down off-center after today's down move But when we put this on price was right here and look how kind of evenly distributed that that pink P&L curve is kind of You know very evenly distributed to the downside versus the upside if we had Kept our wing width the same. So let's say we did five points wide on this side as well so this break even would be down here or excuse me that the the The defined risk portion would be down here But the the P&L curve would really drop off and have a steep curve to the downside If the market were to move up and so that's why we did that Just giving us a little bit more balance there The other piece of this that we have is the short call vertical that we've got in sep And so obviously with the down move that one's come nicely back into range for us So just holding at for some potential more downside movement speaking of short Delta So we like to have kind of a one-to-one to five-to-one ratio of short Delta versus our Theta and Right now we're right at about Delta neutral, especially, you know, these these short duration SPX trades That's gonna add in some decent amount of Directional Delta obviously that we we have long Delta in here now because it we benefit if the market moves up you know, so that's that's part of that exposure and So overall though in our portfolio, we are pretty much Delta neutral So we're a little bit under that one-to-one Ratio that we like to be in which you know after a big sell-off. That's what that's what you're gonna see Obviously if the market continues to sell off, we're gonna wish we had more short Delta And if we get a little bounce in the market, we might look to add some more short Delta next week So we'll kind of see where everything lines up early next week Next trade was an opening trade in CRM. So we did this one this morning on Friday So this was a post earnings short put vertical just like we teach in the earnings course if a stock announces earnings and They in the price opens well up above the expected move to the upside then we will sell a put or a put vertical in this case we did a put vertical and targeting, you know, 30 plus percent and So let's take a look at CRM. Obviously it got caught in the down draft with the rest of the market So you can see prices come down out of range, which you know we had the Jerome Powell speech this morning and then You know some some additional information came out about the trade tariffs China imposing some on the US and then Trump talking about retaliation So so that's what's kind of spook in the market at this point but So so, you know CRM did get caught in that down draft and that's one of the reasons that I went ahead and did this with 14 days to expiration We you know sometimes with these we will look to do it in the near term And we we could have done it with zero days to expiration So just had just today to see if that if price could kind of stay steady to hire But I opted to give it a little bit more time give it a couple weeks And so hopefully that plays out in our favor if we get a little bit of a rebound here in CRM So here's this line kind of represents the expected move price started out up here came down a little bit We got in and it started to look like it was gonna rally We're we had some profits and then that the trade war stuff came out and just You know price just kind of dropped like a rock on that, but still in decent shape I mean if we get a little bit of a pop higher back above that line there will be in good shape So we'll we'll see how that plays out Next trade was an opening trade in forward slash 6b So this is one I've been watching for the last week or so and implied volatility continues to creep up in In the British pound so we went ahead and sold some premium there. It's a good diversified symbol outside of stocks and bonds in gold and so Went ahead and sold some premium there sold a short strangle We just did that today. So it's not too far off from where we put it on You can see with implied volatility spiking. We're down a tiny bit still pretty centered so just holding on to that for now and Then lastly, we did an opening adjusting trade in IYR, which is the real estate ETF So we had an iron condor in the sep cycle and we just went ahead and added one in October And so let's take a look at IYR And so here's the one that we have in September. You can see prices kind of hanging out right here It was all the way up here before the market turned around so it's coming back more into range for us and then we put this one on in October and That's what it looks like here. So it's kind of it prices right here and We're down a tiny bit because that implied volatility has increased substantially since we put that on so those are all the alerts Let's take a look at some of the other trades mentioned oil. Yes We've got this long put vertical that we've been holding for short Delta Price is right here. So could use some more downside to benefit that piece a Gold up big today. We've got two pieces on in gold One of which is an iron condor here if we get a bit more theta decay We get up to that kind of 35 40% of max profit into next week if we get a contraction implied volatility We should be able to get there fairly quickly We'll book a profit on that one. Then the other piece is this short call vertical Which was part of our iron condor and with today it was in range and then with today's big up move It's moved out of range. So we're hoping for a little bit of downside to get back into range on gold You can see big up move here After that after the trade war stuff came out So if we can get a little stabilization, maybe a little bit of down movement that would be good for gold Natty gas Just continues to bebop around in this range here We've got these two different short strangles on here You can see prices hanging out in the lower end of the range So we could use a little bit of up movement in Natty gas that would really benefit us there And then bonds up big again today That's not good for what we've got on we've got two different pieces We've got this short strangle here where you can see price isn't quite to the short strike But pretty close. I was looking at how much value we have left in the put So if price kind of stays here or it goes a little bit higher We'll go ahead and roll those puts up in bonds and then we've got this other inverted strangle Where you can see its prices out of range So we're just hopefully looking for a little bit of downside action in bonds And then these are both at 28 days to expiration. So we've got a little bit of time before we roll those out, but Late next week maybe next Friday or into the following week we will roll those out into November So we've got about seven days before we before we look at doing that Wheat I mentioned Apple down big today down over 4% which plays out in our favor So price was actually way out here. It's come back down into range. So I'm just holding that for some short delta exposure in Apple I mentioned CRM John Deere down over 4% as well So we're at a point here where if we get down to, you know, 50 plus percent of max profit We will roll those strikes closer and then either decide at that point either to keep it in September or roll out to October Actually, no, yeah, we would roll out to October because we're getting Down under 30 days in September. So we would roll out to October in DE DIA now we've got these two sets of short call vertical spreads again holding for that short delta exposure Helped us out nicely today. So if we get some more that's going to benefit those EEM another short delta position This is just a simple long put that we had put on and you can see we're in the profit here You know, I'm gonna hold this we've got 28 days. It's in September You know, we'll just hold this for that short delta exposure You know if we get down to let's say the 38 level That'd be about a $400 profit out of a potential 780. That's over 50% profit That's kind of what I'm looking at there. If we if we look at a chart, you know, that would get us down below the recent lows here So that that would be kind of a point of where we would can consider exiting our EEM trade EWZ we were at a point We're close to taking this off if if implied volatility didn't contract and got that down movement But we're still well within range. So just holding for now and waiting for some more time to pass more theta decay in EWZ Goldman Sachs, we've got a long put vertical here. Just looking for some more short Shortside action to benefit that piece Intel We were actually I had an order in to close this when price was right here Trying to get out at basically a scratch trade never got filled and then obviously with the down movement today We've kind of moved out of that position moved out of that Out of that profit position. So just holding this we've you know, still got 28 days here Once we get down to 21 will look to potentially roll this out to October or if we get a little bounce higher some more Contraction, we will potentially just close this after rolls and adjustments. Like I said, we're really close to break even on this trade So I just gonna hold that for now Mention IYR QQQ We've got two sets of short call verticals very similar to DIA Just holding these for that short delta exposure. So any down more downside action will benefit those SMH I mentioned SPX SPY VXX So this is our short call vertical in VXX this position benefits from higher prices in stocks and Contraction in implied volatility. Obviously, it's up 10% today with the spike. So we're just outside of our range So we'll benefit if things kind of stabilize and prices will start to contract in VXX XLF we've got this long put vertical that we put on for that short delta exposure pretty close to the break even right here But we'll benefit from downside action there and then same thing in XLK a long put vertical For some more short delta exposure well within range just looking for some more downside to benefit that So those are all the positions all the alerts. Hope everybody has a great weekend And let's look for some more great trading next week. Talk to you then