 Welcome back. In this lesson we are going to review a short naked call. So this is a bearish strategy. We want implied volatility to be high. We want optimal timeframe 30 to 60 days to expiration. We've got a profit target between 25 to 50% of max profit. Downside risk is none because if it's going down we're making money and the upside risk is undefined. So that's the one component that you need to be aware of if the underlying stock or symbol continue to rally up up in a way. You do have undefined risk with this strategy and it's got a high probability of profit of over 70%. So real simple all you're gonna do is sell an out-of-the-money call right around that 30 delta. And this is a positive theta position so that time decay is going to work in your favor. So we want to look at this strategy when we're when we're bearish on a stock so we think it's gonna go down and when we want that theta day theta decay that that time decay component. So we already did a short put short naked put and remember I said that's like doing just the put side of a strangle. Well this is the other side. This is just the call side of a strangle. If you don't want to take both sides and you simply want to be bearish on that on that position. So if we take a look here I actually already set it up but if we go to IWM would be the symbol for the example here and let's say you looked at this and you said okay we've had a breakdown here. I think IWM is gonna continue lower. I think this market's gonna continue to roll over. Implied volatility is relatively high. That IV percentile is at 56 so it's above 50 so we could look at that as a high IV symbol. And so what you're gonna do is simply go to the trade tab look for that on go to the call side look for that 30 delta call remember we want to stay between 30 and 60 days to expiration stay out of the weeklies so that's 28 that's too short 56 that's that's in our wheelhouse so that would be the one we choose go down to the call side look for that 30 delta and remember I always like to opt a little bit higher 30 or higher so I'd go with the 32 simply right-click sell single it's gonna populate here and then we will analyze that trade okay so I've already got it here so delete one of them but so this is what that looks like right this is just the call side of that strangle and and so as you can see here you've got over 80% probability of profit on this trade if we set the price slices to break even and I'm sorry that's not correct we need to go to 520 so this is something that sometimes I forget a lot of newer traders do as well make sure this is set on the expiration date so that that's more like it I thought that was pretty high so little over almost 74% is the probability of profit if we held it all the way to expiration but remember we're gonna try to take this off at a 25 to 50% of max profit so as soon as we get if it continues to move down or as time passes as that pink profit line continues to creep up once we get to that 25 to 50% of max profit which in this case the max profit is $162 so we want 25 to 50% of that to take off that profit and then we can redeploy that capital into another high probability trade so I hope that was helpful see you in the next lesson