 One of the most common questions I get asked is, you know, how do I start day trading? So what me and my mentor about it for our viewers on YouTube is create a free mentorship course that reveals our 12 secrets that every single brand new day trader should know before they get started. But please take note that there is limited seating every single week. So please reserve your spot at myinvestingclub.co. The link is in the description. We're going to talk about the market price action that we're seeing right now, some kind of thesis, theses, theses, I don't know how you say that. We're going to talk about some of that and where to expect things to go from here. So as you know, we're coming into the earning season again. We just got one of kind of, in my opinion, a very telltale situation with Netflix here. So Netflix after hours, this is very market related obviously. And Netflix got totally smoked. On earnings, I believe the news was subscriptions are down. I think is what they said. Not nearly as much subscriber growth slows as economies reopen. They beat pretty well too. And they announce a $5 billion buyback. Okay, is the buyback plan, buyback, buyback, buyback. Yeah, so this is not entirely, in my opinion, this is not the kind of earnings that we need to see in order to maintain the market at the prices it currently is. So I'm not going to be very aggressive on these earnings plays. And really the type of thing I'm watching obviously futures is not really doing anything with that news. Not a big effect on that on the S&P futures. But the cues are, I mean, this was when it came out. This was the initial reaction. And then it just kind of sat there. So I don't think it's really anything to be concerned with with the Netflix earnings. But this is very indicative of what to expect out of the big tech companies that haven't really changed anything and have just kind of been doing the same thing. So I'm not super bullish on a lot of these going into anything. I will tell you one thing that I am bullish on is anything lumber related. That's why I bought Home Depot today. Home Depot is down a little bit. I am slightly red on it. Am I like 4%? I'm like minus 4% here on my calls. So Home Depot, I bought my initial position today that I bought was up here, 326.50. Right into this, all these, I kept seeing these like these wicks like this. I was like wick, wick, wick, wick. And I was like, man, this has kind of got the price action like it could just continue to grind back up. So I took a starter there. But really what I was interested in here, heavily interested in was this nine period moving average exponential moving average is nine EMA. That level right there around 321, excuse me, around 321. This is really where all of my attention started to come into play. So I mentioned in the chat room when I took my ads, I took my ad right here. I bought here in the 322.70s was my additional ads. And I brought my average from like way up here to way, it's like way down. I was green here. And then now I'm pretty much breakeven. So minus 4% or something like that. And that was really just due to a tick difference in work close. So I'm pretty much breakeven at that point. So I feel like I have a decent average on this position now. And really what I'm looking at is just I'm watching this nine period moving average. And this is, I mean, I'm focused on this. And if you guys have noticed, Home Depot has not really been following the market because the costs of lumber and the costs of just everyday materials, material costs have gone to the moon. So I don't think that tech is going to affect this play. Now Home Depot is very market related most times. And if the market gets volatile, we could see we could see some downturn. But I think I've got a good managed risk here. And I'm just watching this nine period moving average. I'm anticipating that this holds buying into that support, looking for some continuation back higher. Costco, again, is that same situation. Look, it's the nine EMA. It's just hugging it, hugging, hugging, hugging, hugging. We had a beautiful jam on Costco up to 375 today. I am totally out of Costco. I sold out of everything and on that. And now I am, because I just, I have this weird feeling that earnings are going to disappoint this quarter. And we're going to see some retracement or some, some kind of even choppier action than we already have seen. So I've been realizing profits on anything that I had in cutting the losers. And I am pretty much down to nothing except Home Depot. That's all I got. It's literally the only position I have right now. And I don't have much interest in being exposed on the long side, fully exposed on the long side without hedging, which brings us to our topic of the evening. And I've brought on AK Wildlife in order to discuss this. He's, he's our community options premium-selling expert. How to sell premium in these times and protect against what we're going to basically call what we're calling the protective callers and protect against negative S&P returns. If an S&P is negative or sideways, how do you, how do you help maintain a fully exposed long portfolio? You know, like if you have a lot of positions that, you know, are investments on the side or how do you manage those trades when there's a drawdown in the market, how do you continue to put those profits in hip national bank basically? So, you hear Johnny Boy? Yep, I'm here. Can you guys hear me? Yes, sir. How are you? I am. I'm doing great. It's 60 degrees in Alaska, so sunny and it's warm for us this time of year, I guess we'll call it. There you go. It's like 60 degrees here and I'm freezing my tits off. All relative, right? Yeah, I was like, okay, it's kind of chilly, but it's like 60 degrees and stupid windy, like really, really windy. Yeah, it's like, yeah, 54 in Dallas. Yeah, that sounds accurate. I turn from the south where we don't check the weather, we just walk outside shirtless and we say how fast did my nipples get hard? That's how cold it is. 105 in Florida? No, thank you. No, thank you. That right there is proof that Florida is the basement of the world. That is horrible. 105 in April. No, man, I'm out. I'm out on that. I'd be, oh my God, sell my house, get out of my rent, whatever it is, I would be gone from that state. Oh, he's just playing. Oh, okay. I was like, dude, no, no, no freaking way am I in that game? All right, so 39. There you go. Let's talk about protecting your account from the chop. This is really, really what I'm getting a lot. I get a lot of DMs about this. John, I don't know about you. Do you get a lot of DMs about this? Like in the recent times, like how are you staying positive in this market where the S&P just runs and a giant, I don't know about you, but a giant handful of the stocks that I've been watching, they have not really followed the market as aggressive as I would have expected. Yeah, because a lot of the ones that everybody's been trading like PLTR and some of these other ones, F cell, what is the other ones, the plug, I mean, they're down a lot. Big time. NIO. Off its highs. NIO, I mean, if you look at the S&P, it's at all-time highs or close to, and these are down 40, 50, 60% off of what they were a couple of months ago. So I'm getting some of that. And so especially people that will call me or turn to investors. Yeah, Viacom, for the love of all that is good in this world, I have no idea why that has not bounced yet. Dude, I gave that two swings and I was like, okay, no, I'm done with this. This should have bounced a long time ago. And I gave up on that turn. For those of you sticking with Viacom, I wish you the best because I'm not in there anymore. Nope, pass. Diamond hands. Yeah, diamond hands. There you go. Happy Doge Day, Viacom. All right, so let's get into this. Let's talk about the protective collar and the reasoning for the collar. You want to take it away? Yeah, so the idea behind it, so one of the basics of just like when you talk about options and just using this traditional hedge, if you buy stock, own stocks, you're already long. The easiest and the most common that everybody knows is, hey, I just buy a put. And that's kind of my floor. So the example would be is if the stock's at 100 bucks and you got in at 50, you have a $50 unrealized, you might buy a put somewhere in between. So you're saying, hey, it drops to like 75. That's where I'm going to get out and I'll lock in a profit. So a lot of people just do that. And that's how they protect the portfolio is just buying puts and trying to hedge against the downturn. The reason why I prefer and a lot of people, I mean, some people know about trade options, but not a lot of people that are kind of a newer to options don't understand or don't even realize that there's a trade called protective collar that I prefer because it does a couple of things. And you can essentially put it on for very, very cheaper or nothing. There's a lot of times you'll hear zero cost collar, things like that, terms being thrown out on the internet. And that's what the idea behind this is, is it allows protection. But just like anything else, when you when you get protection and you get in your pain, like, you know, not paying a lot of money, you give up something. In this case, you're giving up some of the upsized potential, if it, you know, runs back up. So that's why, you know, it's not always the best in all circumstances. But I think it's a very attractive thing for people, especially that are longer term holders that have a very good, you know, we'll call it unrealized gain that they want to protect, especially going into like earnings earnings is a great example. You know, you know, Netflix, you know, I drop 10 or 11% after hours, I think it's kind of grinding back up a little bit. But that's where this can help them, allow them for a big protect, you know, allow them put on protection for very, very inexpensive and protect them for a period of time. So that's, that's what we'll talk about tonight is a little more in depth about what the protective collar is, how it works, when would be a good time to do it. Obviously, you know, you want to have it on before any downturn, before any earnings events, before any major drawdowns, because you just like, you know, when, when you had big sell offs, you know, last year in, in the February or early March, if you were trying to put them on or buy puts, it was, you couldn't, it was so expensive because everybody wanted to put it because the market was selling off. So you have to have these on obviously before the events happen to make them work, you know, really protect your, your portfolio. So an example of this for, for those of you that are kind of getting, getting, you know, doughnut eyes right now or the glazed, the glazed look, basically if you come from the small cap land, this is a version of boxing. Okay. Except in this strategy, there's going to actually be a return to you. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. 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