 What's shaken navigation nation happy Friday today is Friday February 8th. Welcome to this week's video update I don't know about you guys, but I actually don't like Fridays. You know how most people wake up on Monday mornings They hate Mondays going to work to a job. They hate. Well, I hate Fridays because that just means the markets are closing Can't trade for another two days. At least it's not a three-day weekend though. So I guess that's good Anyway, let's jump in before I get to the alerts a couple of housekeeping notes First of all, if you have not registered make sure you go to navigation trading calm slash small Exchange we're gonna be doing a web class with the man the myth the legend Tom Sausenoff from tasty trade To go over what the small exchange is how you can get involved What it's all about why they're creating it? It is February 12th. That is Tuesday of next week at 3 15 Central time make sure you register You know, this is an opportunity. They they've applied for approval of the small exchange So it's not even approved yet, but they're giving tasty works customers a chance to get in before it's even approved and and to get a seat or subscription on the small exchange now Back in the day back in the 50s 60 70s 80s, I guess 60 70s 80s When the exchanges first came about and people bought seats, you know, I mean they were they were trading for Around, you know a couple hundred thousand dollars at that time and people were late later Selling their seats on the exchanges for millions of dollars now I'm not saying that's gonna happen here, and I'm not even saying that this should be looked at as a investment opportunity by any means but being able to get it a seat on an exchange and Be able to get reduced fees for us as active traders could be a huge huge deal so anyway, check it out I want to learn more along with you guys and We'll have the we'll have Tom sauce off there. We can hear it straight from the horse's mouth and Look forward to seeing everybody there Next who got caught being hot this week each week in the community We like to recognize a member who is engaged and active and answering questions asking good questions This week goes to Big Willie Congrats Big Willie He actually was more active last week, but got a little overshadowed overshadowed by Starting to call him earnings Mike who's been posting his earnings trades, which are great. Keep that up Mike But congrats to you Big Willie you got caught being hot and As always I I'll send I send you a private link where you can grab some trade-hacker swag and enjoy that so congrats keep that up community is Booming and keeps getting better and better the more people we get in there and get engaged So really excited about where that's going. I think it's really gonna turn into you something special All right, let's jump into the alerts for this week starting on Monday the fourth First trade was a rolling adjusting trade that we did in natty gas. So we've rolled we had two Adjusted kind of inverted short strangles in natty gas and we rolled both of them this week the first one was on Monday and we rolled this from March to April and I know that the brokers do it a little bit differently. So just make sure you're paying attention to the days to expiration In toss March has 21 April has 50. I think it's a little bit different in I think It's a little bit different in tasty work. So just make sure you're you're paying attention to the days to expiration That's why I always post those in the alerts so we we adjusted both the the calls and the puts instead of just Rolling down our calls. We actually adjusted our puts to because they are getting too far in the money and And here let's go to the platform and I'll show you what I mean If we go to natty gas after the you know the massive move down we saw from the from the top If we go to the trade tab what you'll see is that we went ahead and rolled our puts down, too I mean look at what this 3.25 or where we rolled down to is it the 97 delta? And so, you know, we were at the whatever we're at for four points something But I mean look at it. Look at the open interest. I mean, it's just really sparse It's not very often that you get to the point of inversion that You're that far in the money And so we don't have to deal with this very often But in this case, this is one of the reasons I wanted to get out of being so in the money and roll it up And we you know, we wanted to choose a strike That had some good open interest both on that one and and this one here And that's why we chose the 3.25 and the 3.0 for for our other piece and so by by doing this, let me go back to the Platform what you'll see is that we we bought this back for 1.327 And then we re-entered so that when we re-entered we re-sold for 0.638 So you might be looking at saying, okay, you rolled for a net debit though You know, how is how is that a good thing? And the reason we did it is a implied volatility is still high So we want to have exposure in that gas and b when we do these roles We're playing the cyclicality of that market, you know So when we're rolling down rolling down rolling down, you know We're anticipating at some point prices are going to stabilize or bounce higher And that's still what we're that's still what we're playing for The other thing is keep in mind that when you roll in inverted positions position and You adjust those those tested strikes Even though you're you're not getting as much of a credit when you when you resell those We actually have a higher max profit and a higher theta So it's a little bit backwards when we're inverted and we will we adjust those pieces then if we were not inverted Okay, so I just I want to point that out because we don't do we don't have to do this very often because we usually don't have a situation with With this type of moves that we've seen in that gas, but it's important to understand Why I did what I did And to to make sure it understands to make sure it makes sense in your head and Makes sense logically from the mathematical standpoint Even though we rolled this and we got we did it for a net debit It's because a we're still bullish In playing the cyclicality in that gas so looking for a bounce higher And it gave us a higher max profit and more theta For for where price currently is so hope that makes sense If you have any other questions on that feel free to post in the community and I'll try to clarify But this is our 2.8 3.25 position So again, let's looking for a little bit of a bounce higher to get back into range there And then very similar with this piece here Where we're we're in range here, but also still bullish looking for a little bit upside To benefit that piece And again, like I said, if we look at u and g the corresponding etf Excuse me The ivy percentile 65, you know, so still good premium in those options So we still want to have that exposure in natty gas And if we could just get a little bit of up movement or some consolidation in price that would be extremely helpful for that position Next trade was rolling adjusting trade in iwm So we had our short call vertical in iwm from our iron condor That we went ahead and rolled to keep that short delta exposure and to extend duration on that trade So if we look at iwm We've got two pieces here. We've got our full iron condor, which you can see We've got a decent amount of profit in not quite enough to book yet But potentially next week If price stays stable there And then we've got this short call vertical from our other iron condor And so just looking for a little bit more downside before we do anything with that one Next trade was a closing trade in casco So this is a short call vertical that we originally put on for some short delta exposure We ended up booking a nice profit over 50 of max profit On that one if we take a look at a chart of casco You know we got into this thing way back here around this area And I mean this thing just traded sideways what felt like forever We finally got a little bit of downside enough to get out and book 50 of max profit So good hold and weight on that one Next trade was a rolling adjusting trade in spy. So similar to iwm. We rolled our One of our short call verticals from feb to march And so let's take a look at spy very similar to Iwm so we've got so hang on. Here's the one that we rolled. We've got two pieces here This is the one we rolled. You can see the markets come down a little bit since we've done that So we've gotten some profits back in that one Our other piece is basically it at almost at max loss So we haven't done anything with that because you know, we could close it out where it is But really we're just holding on this and just in case there's a slight chance We make a huge move down and get back some of that some of that profit Otherwise next week this is still in feb. So next week is expiration week We've got uh, we're at seven days to expiration now And so we will definitely be managing that next week And depending on where we're at with short delta and everything We will either just close it out take a loss on that piece or we will look to roll If we if we need some more short delta or we may look elsewhere We'll just have to see where we're at with everything at that point My inclination would be to just probably just to close it kind of like we did with apple today Because it's so far at a range But we'll see We'll see what the numbers look like and where the market's at early next week before we do anything Next trade was a opening trade in snapchat snap snap And we did a post earnings short put Uh, short puts not not a vertical It's such a low price symbol that we went ahead and just did the short naked puts You can see uh after earnings they blew out earnings To the upside anytime. There's a move above and beyond the expected move. We anticipate the price is going to Stay steady to higher took a little bit of heat yesterday went down But then cranked right back up and it's it's on fire to the upside up almost five percent just today And so we've got some profit there looking for about 40 or 50 percent of max profit before we book that one Next trade was a it was the other piece of the natty gas already mentioned that already went over that And then we had a closing trade in four slash six b Which is the british pound booked over 25 of max profit on that piece of the trade after meaning after the roll It was almost a straddle. So, you know, we were looking to book that Uh pretty quickly we weren't waiting for 50 of that So we went ahead and booked that when we were a little over 25 of max profit on that piece Overall after the couple adjustments made a little over 500 bucks on the trade Now that one is I was looking to actually re enter that today If we look at fxb, which is the corresponding etf To get an idea We've just had such a a decent amount of contraction implied volatility the last couple days I'd rather i'm going to wait till early next week if it's still at this level we'll put it on but You know, hopefully we get a little bit of a pop higher get some better pricing on those options before we before we put that on But we'll see where it's at Early next week, but I'd like to get back into that one get some exposure in uh in the currencies The other currency that really is liquid enough to trade would be fxc or the euro And if we take a look at fxc, you can see the applied volatility is just next to nothing in that And I was actually looking at calendars in there, but the pricing they're just too low priced because Currencies are such a low volatility symbol Um, so nothing nothing going on in the euro at this point Next trade was an opening adjusting trade in smh the semiconductor etf And we so we've got two pieces on here in smh Uh implied volatility popped its head back up above that 50 level that we like to see before we sell premium So here's the one that we already had on this is an adjusted strangle You can see prices hanging out up here in the upper end of the range And then the piece that we just added let me close out this theoretical piece Is this one so we just added a new centered strangle out in march Both of these are in march you can see it's still very centered got a little bit of profit there But just waiting for some more before we do anything on that one Next trade was a closing trade in apple so I referenced this earlier But this one this was a long put vertical that we originally put on for short delta exposure We had just seven days to expiration on this one. It was way out of range So instead of rolling we just went ahead and took a loss on this one We've we've been rolling this for several cycles, but we just wanted to a reduce our short delta a little bit To help balance our portfolio and and with this one so far out of the range just made sense to close out instead of rolling So that we are out of apple Next trade was a rolling adjusting trade in eem So we rolled our short call vertical in eem kept the strikes the same We're able to collect a little bit of a credit on that roll And so if we take a look at eem You'll see this is this is what it looks like now So just looking for some downside to benefit that if we do get a pop in implied volatility Uh, I will probably enter a new iron condor kind of centered around Wherever price is but you can see implied volatility is contracting today And um, and so we're we're not looking to add to this at this point Next trade and lastly was an opening trade in netflix So again, just trying to balance our portfolio add a little bit reduce a little bit of the short short delta that we have Um, so in netflix we did a bullish position to add some long delta And what i'm looking at here is you know netflix had a big move up Drop down a little bit push up drop down a little bit. So anticipating another push higher Uh, and so nothing nothing magic about that But just looking at a good entry point to add some some long delta and with the market coming down the last couple days Looks like potentially a decent entry point for a continuation to the upside And so netflix just looks like a decent opportunity for that As far as where we're at on our ratio So we like to be between one to one and five to one on our short delta to theta ratio We are currently at uh, right at about three to one. So good spot We are getting closer to three and a half to four and so that's why we made some of those Uh portfolio delta adjustments with cutting loose our apple trade Adding this netflix trade and that helps balance us and we're back down to about three to one Which i think is is a great great spot to be For where we're at So those are all the alerts. Let's take a look at some of our other positions We've got oil. We've got two pieces on in oil So let's separate these and you can see we we got to a point now where We're over 50 of max profit on this piece of the trade, but in oil We've got we've still got 35 days left to expiration. So i'm not going to roll out to May Because we've still got a ton of time left once we get to a point where we've got about 60 days to expiration in the next cycle Of may Which is about seven days away Then we might then we'll potentially look to to lock that in and roll out to the next month But at this point we're just going to hold on to this still fairly centered um oops Still fairly centered So, you know, we're just going to play it if we get a little bit of upside That'll be good Just looking for some more time to pass some more theta to decay in that one And then we've got our other adjusted strangle, which is the 56 put 54 call pretty much same story Just hanging out here just waiting for some more time to pass before we do anything with that one So we'll spread out those those rolls and we're coming back really nicely in oil And and so hopefully within the next couple cycles we'll be back to profits Which will be awesome to see and and I can't wait I'm going to I'm going to do kind of a recap of both that both the nat gas and the oil trades once we close out of those to really Show you guys the power of of of what this what happens when you take a huge loser Out of the gate and you can turn it around into a winner what we're not out of the woods yet, but uh coming back very nicely Uh es we've got a long put vertical here, uh, which expires next week as well Yep, seven days to expiration And so we will look to we originally put on this as a short delta exposure We're going to continue to keep it on as part of our short delta And so we'll we'll look to roll this next week Uh, I mentioned that gas wheat we've got, uh Iron condor on here still in wheat and just waiting for a little bit more profit before we book that one di a Kind of a similar story as the es. We've got this short call vertical Uh, which is way out of range. Uh, hopefully we get a little bit more downside next week And we'll look to either close or roll that And then we've got our other piece on here, which is already in march Which you can see price is still within range here, but just looking for a little bit more downside To benefit that piece I mentioned e em e w w we've got this adjusted strangle price is hanging out right here Uh, we are at a point where we're back to profits in e w w I believe I'll have to double check the trade tracker to to see exactly where we're at But uh, we're at a point where I've got a little bit more downside movement a little more Um Little more theta decay We'll decide if we want to roll this one out in in extend duration or go ahead and book it But uh, hopefully next week we'll have that decision ability If it does continue to move higher, you know out out of range here, you know implied volatility has popped its head back up Now if it moves up, we'll probably get a little bit of a contraction But if we have decent premium, we may look to add to that one. Otherwise, we'll just manage as necessary E w z we've got a straddle which is has been adjusted from a strangle And you can see price has come back nicely into range here So just continuing to wait for a little bit more theta decay And some time to pass before we do anything on that one I mentioned i w m I E Y R. This is the real estate ETF So this is one I've I've tried to get filled on Several times you can see prices had breached the upside break even by a significant amount And there for a while, uh, there was still a decent amount of premium left in the puts Now that premium has decayed to a point where it makes sense to close this out But I had to order in almost all morning didn't get filled so I'm not going to chase it Obviously if it moves any higher, we'll go ahead and close out this untested side But at this point, we're just kind of holding on and and you know, see if we get a bounce back Even though it's it's well out of range And then we've got Our other one, which is another tight iron condor You can see right here still very centered. So just waiting for some more time to pass on that piece I mentioned netflix qqqs. We've got two sets of short call verticals here Uh, you can see prices just inside range on that one And then on this one similar just looking for some downside to benefit that SMH we've got already whenever smh snap spy xlk So we've got this that we uh originally put on for that long, uh, excuse me short delta exposure It's a long put vertical It's out of range here just looking for some downside to get back into range there We are in march with this one. So a lot of time nothing to do in that one yet And then xlv This is another one. I feel like we've been in forever And it's just been kind of hanging it get a little bit in range a little out of range a little in range Just kind of bouncing around so if we can just get a little bit of downside We will book that next week. If not, we will look to potentially Roll or close regardless of where it is. Uh, this is in feb with seven days So we're going to do something with that one early next week And xrt we've got an adjusted strangle here Which has come back nicely and just waiting for a little bit more profit before we do anything with that one So those are all the trades. Those are all the positions Everybody have a great weekend. Don't forget to register at navigation trading dot com for slash small exchange For that web class on tuesday. Have a good weekend everybody. See you monday