 Welcome back. In this video I want to show you how we find some of these trade opportunities to trade the pre-earnings long straddles using the options back tester. So what we're looking at with the back tester we've got three years of data and we're looking at to buy a straddle. So choose straddle and choose long and then under custom earnings I'm just looking at a lot of times we'll look at these you know a week before earnings. So six days before earnings and we close the trade on the day of earnings so that would be zero. And then days to expiration I showed just something a little bit longer so if we're entering six days that option expiration cycle will be somewhere around 12 days so I just kind of choose that you can you can play with this and then simply type in some tickers so MSFT is one that we looked at and so when you when you type in the different tickers what you'll see is some different options pop up and the way that I have this set up is I'm showing it buying the 50 Delta call and the 50 Delta put that's a true straddle and so that's that's typically how I enter the trade. Now you can see some other variations of deltas and you can actually see that a couple of them have performed even better but to stay consistent for kind of the strategy that we're looking at it's typically the 50 Delta calls and the 50 Delta puts okay and you can see if we expand this you can see that the percent return 80 percent average percent return making over six percent six percent per trade shows the commissions winning percentage 66.7 so in three years there's been 12 earnings announcements so eight wins four losses you can see the average win is $293 average loss 140 gross gain 2340 and gross loss 560 so very been a very profitable trade over the last few years you don't want to you don't want to completely bank everything on these back tests because obviously what happened in the past doesn't mean it's going to happen in the future but every stock has its own little personality so a lot of times you can you can find these stocks that tend to perform consistently for the different strategies another one of the tickers that we will show an example of that we made a trade-on is IBM and you can see same thing really good returns even though it was only six wins six losses only a 50% win rate still made some significant profits trading this strategy now if you look at another ticker like for example Facebook Facebook is a stock that I probably would not trade this strategy on as you can see over the last three years you only won three times with nine losses for a negative return so this this back tester is really helpful to help you find these trade opportunities so if you're interested in this back tester and you want to get it for yourself so you can go through all the scenarios of different trades click on the link it'll take you to the information page where you can learn more see you in the next lesson