 What's up trade hackers welcome to today's update today is Tuesday March 24th before we jump into the markets trade hacker question of the day When applied volatility is high across all symbols. How do you decide what to trade? That's a good question. So let me talk about it from this perspective. I mean if you look at any of these stocks You look at Apple. I mean IV percentile is at 96 IV rank at 59 I mean all these big stocks Amazon IV percentile of 96 IV rank of 63 I mean just you know across the board Everything has high implied volatility. So the question is how do I decide which symbols to trade? and the way that we look at it is When you're in a situation like this where implied volatility is high across the board We tend to navigate towards broad markets first so Indices the S&P 500 Nasdaq Dow Russell so IWM DIA QQQ SPY and then you know Even some of these international indices or smaller ETFs or sector ETFs International is like EWZ EWW, which is Brazil and Mexico and then we look at the financials XLF XRT for retail IYR for real estate FXI is China's large cap So we tend to navigate towards ETFs first and the reason is is because when you're in a situation like this There is more risk trading a single stock. I mean take for example Delta Airlines now I don't think that any of the airlines are gonna go out of business over this coronavirus situation But they certainly could right It's an individual company and if they if they do some things and if the government doesn't bail them out and and and You know there is situations where publicly traded S&P 500 type companies can go Bankrupt right they can go to zero and so you do have a little bit of additional risk with stocks You do have more volatility typically with an individual stock versus an ETF And so we tend to like to stick in time in periods of extreme high implied volatility We stick to mostly broad-based ETFs sector ETFs Country ETFs and even you know some commodities like gold oil natural gas those kind of things for additional diversification We'll still dabble in stocks and we did a trade in Roku the other day And we'll still do some some small positions But the bread and butter the meat of our trades are gonna be done in ETFs So hopefully that is helpful. What's going on in the markets today? Big big move higher. In fact this morning when I was looking at the futures They were halted due to limit up so S&P moved up 5% and so that's considered limit up in the futures And so they were they stopped trading pre-market right now the S&P is up over 8% Dow's up over 9 Nasdaq's up over 7% Russell's up about 8% as well Oil was up about 5 6 7% at one point today. Now. It's up about 2% So it's giving up a little of those gains golds up 6% bonds are down a little bit under a percent So some big moves in the market in anticipation of this potential stimulus plan That that Congress is getting ready to put on Trump Daddy's desk. So we'll see we'll see what happens now As you remember over the last few weeks any time the government has come out with some type of major financial stimulus whether it's cutting rates or quantitative easing or Pumping money into the system the market has reacted negatively, right? It's gone down and so the question is this is the market's moving higher in anticipation of this new bill But the question is when it comes out is it gonna get the market's approval? Or is the market gonna look at it as that's not good enough and turn around and hit new lows So that that's kind of the main question one thing we did in preparation of this because we are finally getting a little bounce is We added a little bit more short delta and we did that in the form of one of our portfolio bunker strategies Just like we teach in our course where it gives us some some downside Protection which with a very little upside risk. So if this thing continues to rock it higher Then we have very little risk, but if it does turn around We've got some big upside potential to the downside and so we just nibbled we just added a little bit here We're not gonna go crazy because obviously nobody knows what's gonna happen And now if we get a little bit of a move higher We'll add a little bit of more shorts and we'll goes higher We'll add a little bit more shorts and so continuing to keep our portfolio Balanced in a way that we're comfortable with you know Usually we like to keep a little bit of short delta a little bit of short bias But after this massive move and the way that our positions are structured We've actually accumulated some long deltas who are a little bit long here, which is which is fine I mean after a move like that you'd expect that we see a bounce at some point You know, we may even see just a massive kind of rip your face off rally making it look like we are headed back up But I don't think we've seen the the lowest of the lows yet So we are continuing to add a little bit of short delta in our portfolio as the market goes up The other thing I wanted to point out is our friend of volatility So you would think with the markets up huge that volatility would just be getting absolutely annihilated And you'll see when the markets opened up volatility was down quite a bit more But has rallied basically all day back to where it is now it's still big futures are still down 6% If we look at VXX VXX, you can see it was down a lot more to and it's rallied Now we did have a short call vertical in VXX after it had this huge spike up In fact, we got in about right here did take a little bit of heat But then this thing just rolled over and so we close that out for a nice winner today in VXX So let's take a look at some of these other stocks just to see what's going on Boeing up big today up over 15% Although after the slide they've had that looks pretty minimal when you look at it in Relative to the move it's had a lot of big movers today to the upside a lot of green on the screen Just trying to point out, you know a lot of these travel companies Expedia a lot of these You know booking having having big gains to the upside Booking up, you know, almost 10% so a lot of these travel companies thinking that this stimulus could be a good thing Harley-Davidson hogs going wild up 23% today. You know, so let's take a look if there's anything else. I missed I want to touch on But yeah, I mean a lot of things up double digits here So big move in the market, but we should know something about this stimulus package time this recording We've got about 30 minutes left until market closes. I thought actually we'd we'd know something by now But maybe by end of day or maybe tomorrow morning. There will be some news about the stimulus package So we will see what happens my friends stay small stay mechanical Don't get too crazy out there. Stay safe. See you tomorrow