 Good morning traders and welcome to the pro trader webinar options focus today With Jay trader now we have Jay trader usually every Wednesday at 10 a.m. He usually comes in a bit later. He's kind of finishing up his room and This is gonna be a little different though this whole week. It's as you guys know on options trading And Jay trader trades a lot of options as well. He puts some materials together for you that we can share I think you'll have to come over to the discord room if you want to get some of the documents, etc but Anyway, that will be in there and he's gonna go through his options strategies here All right, so you guys know who Jay trader is. Yeah, he's been training for quite a while and Since he was 18 years old he does offer mentorship and Education I'll put these links into the chat for you guys if you want to reach out to him You got his email as well. I got to go through the disclosures. He usually trades live here every Wednesday I don't think he's gonna be trading live today, but I'll go through it anyway And then we'll turn it over to Jay trader if he's in here If not, then we'll go through the S&P for a little bit like we typically do on Wednesday All right general disclosure all book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor Recommendations live trading is in simulation demo paper trading mode and strictly for educational purposes live trading executed in simulation cannot accurately represent Realistic trading performance risk disclosure trading futures equities and digital currencies Involves the central risk of loss and is not suitable for all investors An investor could potentially lose all or more than the initial investment risk capital is money that can be lost without jeopardizing one's financial security nor lifestyle only risk capital should be used for trading and only those with sufficient risk capital should consider trading Past performance is not necessarily indicative of future results. Okay, so Joseph, are you here? No, I guess not yet, which is fine We will take a look at the S&P E-mini for now and kind of see what's going on and that'll provide a nice kind of overview of You know his his because he looks at stocks specific stocks So instead, you know, we'll go through The S&P which will give a kind of a broad overview of what's happening And as you guys know, we have some fundamental news. It's pretty pretty important. The market is very sensitive to Which is FOMC later today. It's a big one. There's economic projections. I mean, this is there's a statement There's the rate. There's a press conference It's a big big thing This is probably the biggest Economic event every month in this case is the quarter. So it's even bigger And yeah, the market's definitely going to be Very interested in that that will start around 2 p.m. East Coast time So in terms of what's happening right now, well, let's let's take a look at the S&P Well, we can see the 830 here. We have a nice kind of a boost to the upside And We stayed up there, right? So you can see I'm actually, you know a trending market here so Let's see even even put a trend line in here and you can see that we're in a nice uptrend here and Some back and forth here From the cash open at 930 move to the upside move to the downside move back up 3900 the figure up here. I just Can't seem to sustain above it and now we can see the Some sellers starting to come in here Let's see if they can reach down to this 3890 right now looks pretty good some pretty strong selling coming in and looking for a Continuation here, right? So just looking for this 3890 90 okay, so still looking for it here So we're just we're kind of right around here. We just we're looking for that 94 or so and Let's see the Continuation here and just bottom of the range here. We'd still be in an uptrend Okay, it's nice area in here. This is where the buyers came in. This is where there's liquidity And that's just a quick move. So it's about a four-point move that we're kind of looking for here And then that's it, you know If you want to hold for longer term, then that's Something up to you looking for a bigger move, right? You're looking for a higher time frame move Maybe down into this 830 area here or or below And all right, so didn't quite get there got there to 91 so far And here we go one more shot at it liquidity coming in on the offer and buyers take them on Interesting Okay, so yeah that one didn't work out. I Would I would be stopped out of break-even on that to be honest and That would be that okay, so gave it a shot had a three-point Gainer and then came back and hit hit hit it stopped at break-even there Just going I just going through it's not a trade recommendation whatsoever This is just going through scenarios And how to read order flow and and and kind of putting this together into some sort of plan in here Now in fact, you know, you can still be bearish up here where these sellers came in and move this market lower Okay, but you know We kind of have to look at the order flow around these areas in here And we're seeing quite a bit of buying in here. So yeah, I don't I don't like that idea Due to the order flow here at this level here Right and here come the buyers. So now we're back up the top of the range here And actually looking for now buyers to try to extend it. It's pretty good buying in here So let's see if we can get them to come up that 98 again and extend into 99 and 3900 and and above it here. We'd love to see it come up into 0203 area up here Okay, so looking for that and that would be the other position here You you know looking at again like looking at the order flow here, right? Saw something here in the order flow looking for this move back down didn't work out Then looking for the order flow up here and looking for the move up into 3900 and then above here as well Okay, so what you can see like just by reading the order flow in here Then looking for the extension in the move All right, just trying to understand some of these areas in here And then looking for these moves to unfold. Okay, it's due to the order flow All right, so that's what we're reading in here I'm kind of off on a kind of funny tangent in here Just saw a couple funny things in here So or interesting ideas in here again, not trade recommendations, but looking for a Follow-through in in the order flow here. Okay, so In this one up here, maybe maybe you took you know partial profit up at 3900 the figure Maybe you're still holding it, but again, I would be Just different ways to consider this once you start to see this event unfold Right to take some profit You could manage your stop in a few different ways at break even or If you took some profit up here for a couple points You could put your stop down below here for a couple points and it would be an overall break even That you're looking for okay, and then you'd still be in it, right? Anyway, just some considerations in here soft a couple of interesting little moves in here And I imagine this is probably gonna be the day here I mean we are in an uptrend, but you know, we're really Not looking for much today. It's gonna it's gonna happen later in the day and We're gonna see something some fireworks around to with the FOMC all right, so again now stopped out at break even or Overall break even so well nothing on that one right but gave it a shot here Saw something was looking for the follow through Anyway guys, yeah off to kind of a funny odd Direction here this morning. I just saw a couple of interesting Order flow events though and I thought I'd follow through with them Alright, so let's see here. Anyway, the focus today is on options And as we wait for Joseph to come in Then Yeah, and he should be in any minute Wanted to also mention about options. Okay in general here and using a book map You know, we've had some great events so far So on Monday we saw, you know Brent Kachuba He went through Some really interesting ideas on Monday, which all followed through later in the day And we're gonna have a Doug plus that follows a lot of the spot gamma And uses a lot of their products that he will go over a lot of those Trade opportunities that he saw on Monday. Okay, he will be presenting on Friday Tomorrow we have options millionaire. So looking forward to that. That should be Excellent webinar So what he's if you guys don't know who he is You know, he's just been killing it so and you know, he's a book map user so tune in for that one tomorrow and You know just understanding order flow and looking for opportunities if you're scalping options. Yes You could use the underline here in book map if you are Looking for longer term Opportunities then well, there's all sorts of things you can do in here I mean if you're looking for you know in this uptrend in here on the way up Look at your options shamed Look at you know what the implied volatility looks like and you know if you're kind of Thinking that the market's going or the FOMC They're going to raise rates Well, then, you know, you have an opportunity here Okay, because if they're gonna be raising rates, we're gonna see a nice drop And we're in an uptrend right now Just trying to get back up above the figure here is what it looks like In fact, we can even look at maybe one more shot in here. Let's see if Again, not a trade recommendation and I don't see anything quite yet here But I'm curious to see if we get more buying up here and then a breakout above 3900 Okay, probably see a nice stop run above it And nothing yet Here come some buyers Good morning Bruce. There he is Joseph. How are you? Good Bruce. How you doing doing well doing well just Looking at the S&P here and I kind of go going over the general market and we have FOMC later today so Let's Let's jump into Looking very forward to what you have to say here about options. So let me find your screen And you see book map. Yeah, just a moment Yes, got it and let me pop that out Okay, there we go All set to go Good morning, everybody. As you know, I'm a day trader Small caps big caps mid caps also trade crypto futures When I trade options Especially when you trade Tesla made the Amazon Apple Lately not too much Apple, but a lot of made the Amazon and the Tesla I like to trade options. So I wrote even some articles that Bruce after can share about options So what are options? As we said, it's type of securities, right that involves the sale and purchase of option contracts The main important thing is to define always for me the risk when you're trading options because it's You treat a different price Versus the stock. So in this case this morning, you can see that we had over here Mehta One minute chart and the open was around 146 and 20. We had to push to 146 and 70 and we unwinded of Course when you trade a stock, you will trade short over here So you will short sale When you trade in the option so being that you want to speculate for the bearish market downside, you will buy contract puts There are three main ways that I suggest to trade options. The first one is swing trading Which involves in opposition for multi-day or multi-week in this case when you swing trade I would suggest to go over a Monthly expiration, right? So look for monthly options When instead I'm day trading or I'm even scalping, right lately Personally, I'm just like they traded but I'm entering some traders who are scalping options and an option why they are also useful because they give you a very big Possibility to grow your account very fast. If you know how to medicine will in this case for day training and scalping I use weekly options. So when I say weekly options, I take always expiration of the actual Friday Different is when you trade for example The SPX, okay, so you will start to trade them on Friday Now this morning how I chose over here You can see the expiration run 40. Now you I use these charts only for charting purposes I don't trade directly over here through to the Ameritrade But this was, you know First way that I could could see the charts. So I Start getting always more interested in this Two main things that I will explain you today on options one is how to choose the options The second thing is how to manage a position If over here, I'm looking at meta and I'm looking and this was my pre-market plan So pre-market plan on meta We can see it over here I said downtrend guys, you see me this down trending just if we go over here And you can see this phase of downtrend, right? Setting set of lower highs lower lows Resistance 149 so I was looking for this level of resistance over here 149 support the 145 Support the trend like Below previous day low look to trade a short pattern the yellow rejection avoid any other place So this is the previous day low And that's our trend line. So the starting of the trend line break. I'm starting to get interested in Shorting me that or bind puts contours The fact that this morning I personally didn't trade Options because we had low volatility in the market Me and beta is basically the stock that had a bearable utility But the liquidity was very low a lot of top action Even if you look at yes, yes, basically move between 38 and 86 and 39 0-2 So around 15 16 points, which is a very low Range and I wanted to wait two o'clock today for the FOMC. Okay, so FOMC it's always generally on Wednesday Now the selection of the 140 140 over here, so it puts is very important and why I chose that When I'm getting interested over here in trading When I'm getting interested over here in trading in the 145 I need to look Where I believe this stock will go So I'm starting to look at previous mainly support main supports I'm starting to look for the next key whole round-dollar area. I Remember one of my mentors smashed a bit. That is a very good option trader So when I was asking him in the beginning because I started trading many years ago Co-rewards, which are the Italian version of options and move very similar to this or used to move very similar to this now Are not anymore the tradable so I asked him once how you determine which option you want to buy and The his answer was looking for where you think the price will go So if you have a trend, of course, I will look for the main support. Okay, that will be my target Now, of course, I will have to define if that support will be reached in this case for a short Interday or during the week or I need monthly options. So at least five six weeks out of the actual I would say expiration So today we are looking for a fill over here We can see how the option worked In the moment that up here we have our signal, right? So assuming over here that we're gonna take as you know Poppin fill. So this is a perfect jailer rejection viewer rejection anime poppin fill In that same moment the price over here is around 118 I also like these options over here made them because They tend to be pretty liquid and the spread is still low I don't like anything above 15 cents of spread And we started to have this big raise, okay rise 118 117 was the price to enter Once we had over here that we say at the bottom, okay On the option we had the peak at 159 160 So that's a pretty good move over here in terms of percentage. We're talking about 33 34 percent of return Now It's continued to fail So we had a trend line break this point. You can see the VWAP rejection and 949 We're going to put also here made the up 949 until this dip over here into the 143 and 90 But you can see that the price of the option remain pretty lateral, right pretty lateral So this is a very important factor when you're trading options Okay, you always need a pretty big trend Because if you're trading option and the underlying stock is not moving So on the underlying stock, say this is our stock will be sideways and you're going to buy over here and you're going to hold You're not going to lose anything if this is the same price But vice versa if this is our option, right and while the price over here on the stock is same Is the same as maybe two or three hours before That will be the price of our option. So the time decay will have this in place I also made an e-book that after bruce can share with you explaining, you know, all the greeks Dale the gamma and everything that you need to know But for today, we're going to focus on the price section of this even if though We have the fmc. So I expect to have low liquidity and low volatility Now, this is uh Mate of this morning So you can see that in 942 943 So once we're getting over here back to The view up area. Okay 145 145 and 10 And also we have our dip If you look below the chart around 140 139 142 at the Adoption All right, so that's the key area where we start having a rejection view up over here And as well over here At 948 949. So this area over here So you can buy over here the options And 140 142 143 and you can sell into this push. No just a normal Small win over here because it's basically chopping out and being sideways Joseph, are you looking for I mean What sort of kind of strategies are you typically using? Are you just buying them outright selling them outright? Or are you selling calls buying? selling puts I mean, you know creating contracts or Okay, so I always been trading options in the same way that I trade over here stocks. So buying calls And then also buying puts never like, you know, short calls and vice versa So even when I was trading, as I said, and this was around 2001 2002 2003 I was reading cover once which are essentially the same exact thing And they move the same so they give you basically like it's like trading stocks with the leverage at the lower price That's the reason that you can grow your account very fast I always been trading, you know was going up long. Okay buying calls was going Short in the stock. Okay. I was buying puts very simple looking at technical trading analysis for Defining the strategy and then taking the option During the years I've meant a lot of traders on options And I could see really that it's one of the best tool to grow your account very fast But now don't get me wrong. You still need some expertise You still need a lot of understanding of how Option work, you know versus the stock and how the time decay And influence the price Of your of your option The setups that I basically use for the big caps are exact same of the ones that I use on options So a lot of traders think is the trading options is very different But if you do it for day trading, so if you're looking for Easy setups Like, you know, you could have a bounce long on meta or a short on a rejection on tesla Instead of buying over here the the stock Or shorting the stock You're gonna buy calls Or you're gonna buy puts That's it very simple very effective And as I said, I've been Mentored a lot of traders in this way and I've seen a lot of good results So keep it very very simple, you know a lot of strategies out there But this is what I've seen has been the most effective for, you know The majority of the students that I that I follow in options Now looking at meta And looking at yes, I'm seeing right now a bounce on yes from 38 94 to 39 0 1 39 0 2 So I'm using always yes on another screen as a main guide for when I'm looking to trade options for the line stock In this case, we can see that Meta is going over here to this view up area. So we're gonna see if we can test the 144 and 80 R, you know, that's the main difference While the option Just look at this While the option traders Is Now below the vweb, right? You can see over here is below the vweb Over here Now we're going to expect and it's also below the jail. I'm sorry Now over here, we've got instead weight We're going to expect a push to the 145 if we have this retest over here the 145 in that rejection That will be a first level where we can start buying over here puts 140 for now. I can see a A strong over here a break of the 145. So this is still not a short Let's see if gonna fail this level purchase over here the option you can see that is just grinding This is what I'm waiting for If we're going to have this price action over here On the option we're going to buy it ideally around 140 145 and looking for that push. Okay, so I'm explaining my possible scenario over here Meanwhile Yes gave This setup over here So you can see that we had a wedge breakout So nice decent push So I'm pulled back over here so Just look at that stuff. This is what I'd like to see. This is a first proper reversal signal So now we're going to expect over here the Put over here two bounds at least the 140 area Joseph there's You know, I'm sorry like If you hadn't mentioned this already. Um, is there a certain amount of volume that you're looking for? Uh for You know, I I know that You know the yeah, you talked about the the expiration But uh, yeah for for scalping and day trading Uh, yeah, it's very very different Yes, so, uh generally I'm looking to trade the first or the second otm option weekly And I will be looking for those options that at least in today they trade around 10 000 shares or more As I said, I want something very liquid uh, if you're looking for example at Right now at meta and we'll be choosing For example a 140 over here, um Sorry, we're gonna be choosing over here a 149 or 148 so very out over here in Very in the money, pardon We're gonna choose over here the 149 or 147 or 146 puts what's going to happen They're gonna have low liquidity if we're trading right now the 140 So we are Okay, we are just a little bit out of the money with the 140 This 140 today has the highest volume traded. So the 140 contract on the put Has 3000 Contract traded well, for example a 146 has a 420 a 148 the 130 and 149 100 contract. So nothing therefore Uh, if I follow this even the previous days, I know that the 140 Is going to be the most liquid one. All right. Let me trade that Um one rule that I have Is that if I see the spread being Uh over 10 12 cents Maximum 15 cents. I'm not gonna take the option For example today, uh, we're having generally two cents spread On the 140 put and this is very important because If we trade through the spread with the spread it's gonna be really um Especially in a sideways action like this one is going to be really hard to make money So my suggestion Is that we never buy options above 10 15 cents spread So in this case traders We still don't have that short. You can see that we are grinding on this trend line Our option over here is around around 136 138 and why to trade option because it's basically the what I would say one of the best products to trade for the potential reward that you can have Uh with option also uh You have to assume always that you're going to trade something cheaper, you know the actual stock So even if you have a small account You can really Look to build fast a small account Yeah, I'm I'm curious at joseph like a a lot of your traders Um You know one of the beauties of options is you don't have to have 25 000 to day trade Exactly So sorry bruce over here, but this is a 139 140 buy over here the option exactly this price over here As soon as we start seeing this crack. That's our set up. We want to uh look for it So the price over here now went from 139 140 on the ask to the 142 143 on the bid What are we going to do over here? We're going to stay with the trade and we're going to look for the first main target, which is this 144 In the meantime, we have to understand that Our Yes Is it on the main support you can see over here this support the support the support so the 3895 3896 If we're going to bounce we're going to step out from the option If instead this will fail we're going to hold our option So right now as we can set as we said We see the break over here our trend line view up over here fail 90 may fail jailings fail We're going to look if yes, so he will fail below the rate 95 if yes will bounce we're going to get out With a stop loss of our option so option went from 139 140 on the ask now to 145 on the bid So what we can do right now is basically to put a stop break even So if the price over here On the stock Goes back to this level. What are we going to do? We're going to stop over here 140. So basically scratch on our option So we're going to use also risk management over here 5 risk management 145 146 now On the bid We see yes cracking over here. So this could be a good short and also good put Great Bounce over here at exactly in this moment of yes So right now the price it was 146 On the bid went already 145 on the bid So what we're going to do we're going to use that risk break even So what I'm waiting over here Is essentially this I want to see that we're going to hold and unwind more All right So price over here 147 on the bid 147 148 When I see a break Of this 144 and 30 level over here on meta on the stock That would be a 150 plus on meta over here Put I also suggest over here to use the limits Something that I'm sure they will ask me I never like to use over here ask so buy to the ask so if we can buy into the mids So let's say we have a spread 148 150 This is a pro tip try to use the mids. So you try to buy for example 149 over here 150 Sell the first partial. Okay. So over here is the first partial sell We're going to do over here Going to sell half at 150 Exactly this point over here Always pay yourself into the strength Okay, never wait that the stock reverses And then you're going to basically Undersell over here your put What I like over here is perfectly the seed mother is coming down. So today. I'm analyzing less The the book map over here and we're focusing more in the prior section over here in the use of the options So now it's 153 154 from our 140 over here purchase And you can see that each bar is making a higher low. So that's the first main target. Okay Looking for that 144 meta and over here. We'll be looking for the 160 on the put This is a pretty good tool over here. I think we got the The best talk of the day. I mean if you look at other stocks today, they were very choppy Meta at least had a little bit of range. So look over here now this bounce, right? bounce over here on meta And I would like that you look at the price right away how it Pulled back from the 153 over here in the bid To the 147 148 over here in the bid. So now we can use this 90 may Is a tool that I often use For trailing the second part of our trade So we had broken this trend line this down trend line Now they're starting to bounce This is the level over here that I'm watching for a possible or recycling or even If we break the 144 and 50 cutting our trade You can see right away the price went back to 145 over here in the bid Our average is 139 140 base on the strategy Again 148 Uh, yes is rejecting. So what I would do over here Is looking to buy on the bid Around 146 147 So yes, I'm winding more Over here. We have a first rejection on meta So again over here Who add at 146 147? So we add in the second half that we covered So now our average if we add let's say 140 now, we will have a 143 average that's our risk Okay, so you understand also recycling over here with options And you understand the price section how we're looking to read the price section Okay, when I see a breakdown over here, I think we can have a very good beer flag I'm sorry was action Yes, it's done and whining. So that's a good reason to stay in the trade Careful over here because we're having you can see that Push on yes So now if you had it for example at the 146 price right now is 143 on the bid That's your stop. Okay. So that is called trailing stop over here Exactly this point. So that over here is a trailing stop So looking at this trade on a I would say low liquidity Market okay, and low volatility We had over here our trend line break. This is a perfect You can see the bigger picture This is a perfect beer flag We were looking for the first main target 144 never got to there In the moment that we had this Entry over here on the stock 144 and 64 the breakdown We had over here 139 144 the dip long on Meta as I said try to buy the mids into the spread Not essentially to the ask And then over here you can see the first target So once we start breaking the the bweb and then the read over here And then of course over here the trailing because once the trade doesn't work get out So we were looking also this morning at amazon, but pretty choppy for now again Today is not the perfect day to trade big caps until We won't have the 2 p.m. Data Yes, now it's bouncing. So probably going to see over here bounce also meta Right now the option is still 142 143 142 144 So you can see that once the trade started to once the stock started to pull back to upside The option over here started to unwind pull back to this Main 140 area, but you have all sweet time over here to get out We're also going to check soon tesla Tesla has a very low Is a very sorry small rains for the day So Nothing right now has liquidity you can see also low liquidity We're going to continue to follow meta So now we have a beast set up. So another fail of The 90 may but not taking this If you look at the book over here We have Not a lot of supply But a lot of demand over here 144 I'm not really worried too much about this Because often those are orders are acting like a main catalyst So, uh, they're gonna probably go Uh Go print over here and you know, uh, try to to get fill 144 145 Fill over here meta You can see the bounce from 145 to 150 But right now the volume of this option is the highest of the day 3,800 Um Contracts over here traded uh puts And if you look instead the 144 3,400 contracts over here traded So these two are the I would say the the most liquid ones for the day Loaded equity in this phase of the market New lows over here 144. Uh, so you can see right now the The option how it's spiking we have 143 144 previous low This 144 and if you see everything traders started after this timeline break around 1033 so After here, all right Fail over here Rise over here with the put option to port 144 bounce While he has to stolen winding. So we're going to look now at other two Plays of today starting from tesla we're going to use the We're going to we're going to use book map together with a one-minute chart Together with the option chart over here. For example Hey, we can cut this off so this morning We had a plan over here on tesla These were my levels As you can see traders. We had the rejection right So we have an uptrend in the last weeks of tesla This is uh two Tuesdays ago So we had over here a first consolidation into the 290 push consolidation over here around 298 to 99 and push So we have a channel uptrending Pretty good channel over here We can put this okay And I had this resistance set this morning at 310 now if you look at our option The price over here was a 310. So the next whole round or number Option would be 305 But we have to determine where do we think on a fail the price will stall. Okay. What is the first main target? Well, this is the first one over here 306 So 306 is the previous support What does it mean that I will be looking for that Round trip. Okay. So a round dollar number 300 05 or 300 for the chose of my option If I look over here today 300 we have traded 14,000 Of contracts 305 So the one that I suggested to trade because we are the first round on a number In here We traded 24,000. Okay So If you choose as I said the 300 we're gonna see over here 40,000 contracts 305 So this level here of the trend line as well 24,000 so 10,000 contracts more. This would just mean more liquidity If now you look at R 305 the spread is around five cents But as I said, you can trade into the mids The main purpose of this morning is to calculate the best pot to trade We can see the resistance that we traced at 310. This was traced from the previous day Over here, we have a morning breakout of that 310 And then over here 950 we have a retest Of that resistance. So you can see that we have a sideways action, right? The retest of that 310 Perfect over here on book map. So that is a solid entry. You're gonna zoom in a little bit. Okay So over here, we can see the price action So we had a first top second top. That's your short over here 309 and 90 so exactly 949 If you look over here If you look over here traders at our option, we can look two different things This is a high we can call it number one And this is our low number two Right So this is of course, you can see our high lower high number two This is instead traders our dip over here And this is our dip So you can see a divergence, right? And that's options So we have a lower lowering price over here And over here We have a lower high So what does it mean over here? The best setup happens When we have together rejection pre-market level And this over here um I would say four dollar You can see this double bottom over here That's exactly the setup that I'm generally trading So when we have all these three things together And the stock we're 310 of course Low over here of the option So we can see over here two main things as well At this point We start having an inside bar and each bar starts making a lower high until this point over here And over here each bar is making a higher low Until this point over here. So the first exit Is this In this case, you have a pretty good return because you're buying over here around 420 430 The first main sell by the system that I teach us for 80 Again, perfect use of heat map over here. Perfect use of book map. This is absolutely crazy when this happens We had another opportunity Yeah, we're gonna Put this At 1030 Okay So This is an engulfing pattern Into the vweb Into the jailings with our trend line This is the part of engulfing pattern And over here we have our level And that's our entry Exactly around 475 480 Now I didn't take this this morning You can see also over here the engulfing. So this bar This is the outside bar after the inside bar and the same thing over here that you can see on the On the stock This area This area So a beautiful pattern the trigger is exactly our trend line break Which would be over here around 470 And you can see also over here on book map The shift this we seen like hundreds of times Between bars over here. So at this point, you don't touch it Once you start seeing over here the sellers. Okay, you can get involved and look for that in white Now will be interesting to see today What kind of trend we're going to establish Ideally, I'm looking not for a break of 306, but ideally 305 That would be for me the best setup So I would like to see the 305 break and then start to show over here pops And we could look then for even 300 puts. All right So once we break over here 305 if we would have a break 305 today I'm going to switch Between 305 to 300 puts 305 will still be good just in the money I will prefer to trade a little bit out of the money. So cheaper More return in case of a bigger online. So the three main things traders that you will need to define over here When you're trading options and this has to be the abc, right? The first thing will be the options price In this case, we have over here 5.25 The tesla put 305 Then the premium that you paid and this is actually what you're paying for your option And then you should always look for the Underline stock rise and chart Because that is the guide All right So if you're trading over here option on tesla, of course, you need the tesla also chart Right the number of traders that they don't put one or that one I like to put both charts and see how they're moving together For example, is this making a lower high in this? For example a higher actually over here a higher low Yes So we have over here that divergence. Okay, correct divergence over here Like we had before And remember when we are explaining at this point We have over here one two And before we were having Over here, sorry, there were opposite diverges. Okay, you want to see like this higher Now another thing Going into amazon And we're going to choose over here amazon today the 120 So today traders the Most liquid option was the 122 So right now 122 will be at the money I prefer always to stay a little bit more out of the money. So we're going to look for the 120 You can see this is pretty choppy today Amazon gave the same setup of tesla So once once we have the spike in 950 Here number one This is the spike 950. Sorry number one as well That white line up there is the Resistance that it trades for the pre-market And this over here is a dip in 950 So again three things together We have over here at the dip 130 This is the Resistance of pre-market and that is the spike Plus over here, we have the heat map. This is a nice absorption over here You can see also breakout. So fake breakout. This is a nice bull trap and then unwind What happens over here You're going to look to buy over here the options around 1 to 40. So this is a reversal bar This is a reversal bar over here nice spike And that's your reversal over here in bokeh. So again three things together to confirm your thesis Well, let's continue to see instead the price section of meta and we are we're going to continue to look for the 140 Remember before we were 3,400 contracts now. We already traded it 4,400 In about 50 minutes. They traded 1,000 contracts over here So the main support that we saw before you can see it 144 143 Is basically getting weaker Yes, it's unwinding good But the price action On our option over here sideways. So I'm going to remove it here Some things Main support is 144 No trade for now, but I just want to follow the price action with you Don't trade options sideways. Don't trade options with low liquidity Uh trade always the extremes Tell them when it's uh Trending They'll sell an option when you have like You're long and you start seeing like a weakness or you have to sell into strength the majority of the times Otherwise your option will will lose too much. I would say premium. Okay So I put uh, uh, joseph. I your your pdf. Uh, it's in the discord advanced webinar chat room And a couple of links to the blog articles that you created on on options I want to share also bruised as an example of a trade on tesla from today So when I explain that set up at 310 you can see in the advanced chat room Uh, that's short that we took at 310 is an example of a trade So we shorted as you can see exactly that top over here at 310 looking for that main field Using exactly in this case we we traded the stock but we traded short from 310.30 till 307 right now And this is exactly the reason why we're explaining before the use of book map The use of tesla that pre-market high And the fill okay, so I share traders in the advanced trading room of book map example of tesla today Now let's continue to see also meta Which is going back to the j-line so I could think now all right traders we have what This morning. We already faded one time second time and now we have the third pull back to the j-lines It's just for a scalp Um es is near The vwap es is below the open level I don't generally look to trade A third time of here rejection unless I start seeing some big sellers So a little bit off cautious over here, but we can look how book map The charts of the options and the underlying stock move number one over here you can see J-line rejection at 144 and 55 Over here, you can see the price on the put So bounce on the 138 Over here, this is the level of j-line the chart. We can see that we have a heat map Uh small liquidity I prefer to see more selling pressure this time. Remember we are 11 10 And today we have all ffmc already. We were lucky to have you know, even if it was small A trade over here to share now great stuff, joseph. I mean you're going through The anatomy of your entire trade and uh and doing it right in front of everybody here Yeah, the point is, you know, you trade always the same patterns. So you become very confident in what you have to look for Um, why it's always the same. I would say process So game plan risk management And also self control For example, the bruce have to tell you that We needed and we had a lot of patience on on big caps because very A big lack of liquidity and also volatility today in the market I could say that Two weeks ago, uh, we had big caps Much more trendier than right now today. It's a very slow day probably due to the data that we will have at two o'clock So what does it mean less trades or even avoiding to trade unless we have a very low risk, you know Like tesla over here that if you have traders book them up This score room. This is an example of What we we traded so We share the the chart over here at 9 30 And this is our entry over here at one one 10 and 30 over here Why because we explain before look this liquidity that we have above That's a usual wall of sellers when bruce is this he started like being happy Because we know that we'll have like at least a nice pullback And then of course you see the stock that is working Then you're going to continue to hold the same thing. Okay, we didn't take for example the put But the put we can see and I'm going to put back up now Uh, we can see how the put moved if we put out 305 We can put it over here We see that at the time we bought the put we bought sorry the shortest stocks already at 3 10.30 Over here. We're buying we can buy the put at 424 And then we can have this big Move we cover here now partial at the price of 307 and something And the stock and the put over here move from 420 up until 530 there's one thing that Over here There's one thing that we can see As we said, this is the high All right And over here what we have we have a lower low We sat over here. We have a lower low. So this is the opposite divergent. I don't what I want to see because essentially This dip should have been lower Being that this is the higher high versus this. Okay, so opposite for example what we saw on before meta And But you continue to stay in because you're following on the line stock That's the main point of all this But that's your main guide. Not really what the option is doing But as we said That on the line stock Okay, reason why you always have to have the underlying stock when you're trading options And I can tell you that if you learn how to trade option in this way, you're going to be very profitable Very very profitable I've seen a lot of traders really struggling thinking that options are so difficult. They're not It just you have to basically Choose another price versus, you know 307 over here If I would like to short or 308 I would like to buy Choose another price And that really mimics Your stock with few I would say nuances. So you have for example the time decay and These parameters that you have always to check but it's very simple. Otherwise Yeah, I mean, you're keeping it extremely simple And I think that's again the the beauty here Because there's so many different things you can do You know and and yet, you know, just cut out that get to the strategy that that works for you that shows Profitability and just get really good at it Exactly, exactly. The more you keep taking things simple, the better So kiss, you know, keep it simple. I remember one of my old mentors, Ken Caloon Back in believe 2003-2005 And when we were he was teaching me U.S. stocks, he was explaining really this like the Essential of the trade is being very simple and able to recognize in A few seconds and being able to understand right away if it's an A plus setup or a B setup In this case, as we can see over here Tesla only moved today $4 of range, which is nothing. I mean Tesla could move generally 1015 20 points So four points over here today is nothing. This means like a very very tight range When you have this traders again try to avoid it. But again, every single time we have FOMC is generally on Wednesday And I remember this very good like I believe three weeks ago or something like that And we had experienced the same price action Today at least we're lucky because we could share over here the Tesla trade and Also the little trade that we had on meta explaining the life process of risk management And also how to recycle and also get trailing stopped out Bounce over here from 11. I see also bounce over here and yes, he has a resistance at $38.94 right now Price is $38.92 Uptrend over here Dayla rejection of yes So now careful because we could expect a Tesla rejection as well I was looking for that 308. Let's see if we can get to there or we start like cracking the support of 307 We're gonna also manage to see the price action on the auction Again, this will be only exercise for price action It's not something that I'm gonna trade at this time of the day with data coming in a couple of hours So the price over here is 340. Sorry 490 And $5 on the 305 put tesla So exactly this moment exactly this moment. That's your entry exactly here While the price over here is moving the five five zero five five Five zero five is your buy as your let's say put Entry And the risk over here would be the 490 the point is I'm not trading this due to the lack of liquidity And due to the time of day because over here what you want to see you want to see follow through Okay, you can see instead it's not Still on winding still holding and I don't want to give back profit at this time of the day All right, so we're only doing this to explain the price section Now the price is 490 and five It's going very fast back to 480 five and 490 five and that's also the main difference As we said try to buy to the mids or try to buy on the bid Uh, don't try to buy on the ask because otherwise you will have a worse feel You want to see this fail and rejection for the unwind? For now you can see that we have very low prints over here And the volume trade on this option is 27,500 today. So Not a bad liquidity for the option Just bad liquidity and volatility for the stock So we were looking over here for this trend line break Finally, you can see the first bar over here Confirmed the trend line break 1119 as I said I'm not a fan for this Entry so I will never get this answer over here The reason why we have 1110 low liquidity And we have data coming up in already two good rejection this morning But that's a pattern as well. So you can see the rejection over here in the stock At 307 and 30. So this is the entry bar season 730 31 35 And the entry bar on the option over here is this one. So, uh, 495 for five dollars over here for the entry And move quickly over here to the 530 So small scalp. This was also I would say The morning support then we have another support over here. So that would be the second main target Now what we were saying is just that you can see the setup over here The same setup we had on tesla Same also set up vice versa of being a put for the the rise over here in our input All right, so any questions traders for today bruce. We have any questions today on options Let's see here. Um No, not really just some some nice compliments, uh, joseph and uh, let me let me check in discord here Also bruce will be in the states from tomorrow. So tomorrow i'm going to take that The fly to to colorado Uh for trading for a cause and we're going to talk about mental discipline So I think it's something going to be very important for all the traders who want to follow us Right, right. No, I remember the special event. Uh, uh, quite an honor, uh, joseph. So, uh, Congratulations on that. Where exactly did you say you said colorado? Uh colorado because I will stop there, but then it will be in vegas Okay at the end of the month, you know, everything of this is for charity. So helping You know as has we can I think is the best thing and also a good meeting for traders Yeah, and I will screen share next time from From damper so from colorado Ah, okay. Okay. I actually, um, I believe sam will be, uh, hosting that one with you. Um, I will be out Uh on that day, but uh, um, yeah, I'll have to have to miss that one. Um, okay. Okay, buddy. Yeah Um, all right. Well, uh, yeah, thank you very much. Uh, joseph, uh, uh, you know going through the the details in, uh, You know, how you trade options and that's exactly what we, uh, wanted to, uh, Have or offer in this, uh, in this webinar series. Uh, so, uh, really really nice stuff, joseph Thank you very much bruce. Thank you very much traders. I reach out to me bruce or book map if you need help My main point today was one thing to explain really the simplicity Of trading options with this strategy Uh, the most important thing bruce, uh, give me one second Is this looking for these book map big heat maps as you can see over here Finally that level of the stock on our daily and our chart Don't see your screen there joseph. Um, oh, sorry Uh, last webinar you should be able to see it Yeah, no, I'm I'm seeing your, um Uh the different traders, um In the room See screen share one second Ah, I got it. I got it. I got it now. I'm sorry No problem. So book map Level of daily or hourly chart And then in the moment that you want to purchase over here or short Your stock you're gonna buy or calls or you're gonna buy puts very simple very effective And then you just have to administer your position knowing about the time decay So price of the stock being lateral remember your option with time will start like losing value over here So you're gonna lose over here, uh money just this Again traders. Thank you very much. See you next week from the states Uh, hope to meet also some guys and traders in colorado will be a meeting on the eight Uh, just you know for a few folks even book map traders are invited Thank you. See you all together there and uh, have fun. Take care