 Hey guys, this is Preston from Xtrades and today we are going to be talking about position sizing We're gonna be talking about position sizing on Lotto plays swing plays and leaps and I will basically be going into what the certain contract is How to size your positions when playing them and yeah some other stuff, so let's go ahead and get into it So first we're going to be talking about Lotto's You can see right here. This is a play by Kevin the creator of Xtrades. You see stop-loss Lotto So basically there's no stop-loss on the contract. It's like all or nothing This was on a Friday that he bought this contract and then it expires on Is that the following Tuesday? Oh it's following Wednesday, so that'll it's basically like super short expiration, but with a lot of us You're gonna go fewer contracts just because of You you have no stop-loss, so it's basically all or nothing you could lose all your money But it could also be a banger of a play But you with the added risk to it. You don't want to put up too much Capital to where if it's a L then you are basically sitting there like oh crap How do I make my money back so you want? small exposure Just so that if it's a banger then you make a lot of money capital back But if you lose then oh well like it is what it is is a cheap contract to begin with So lotto's you hold them for a shorter time frame like you can see with Kevin's play he swung it, but He can only hold it until Wednesday, so he'll probably sell On the following Monday or Tuesday Something like that. Just if he gets the move that he wanted He gets that upwards move because it was a call Then he will sell because he will make a good amount of money if it goes in the money and he gets them at the move that he wanted and at the same same rate if on Monday the market opens and We went down Say we say spy dropped like two three points then the contracts will not not be worth a whole lot maybe like 0.7 0.6 and so that's where you have that risk and it's a shorter expiration But it's high risk high reward You can play like weeklies for this or if it's spy the country they have contracts for like Monday Wednesday and Friday so Pretty much just it's always a weekly In an alerts they'll say like oh, this is a lotto and it gets our bot actually tracks it as a lotto and says this position is risky and everything of that sort so It's there are awesome plays, but yeah, definitely fewer contracts and shorter hold So I'm getting into swings You'll have more contracts because it's a more the chart has a better setup and You've been waiting to get into this play So you can see here with Kevin the AMC play July 16th. So it's bought that on Friday with a week to go and So he can swing it into the into the next week has a stop-loss and the contract is a little more expensive Compared to what we had here with the spy play So you're gonna have More contracts, but with your stop-loss you won't lose As much money per se When you stop out compared to if your lotto play went to Zilch so They're less risky You can hold on to them longer because you can give it time to sort of play out and so You'll have the more contracts than you would with a lotto size play and you want to leave room to Average down if you need to Options guru likes to do that a lot You'll buy fewer contracts at the start of the play and then give it time to develop and if we go down a little bit Then he'll get into his full position size So that's one one aspect you could think of when playing swings or leaps, which is what I'm gonna get into next With swings you want to go like medium term expiration. So one week out two weeks out Or a monthly it doesn't doesn't necessarily matter, but yeah, whatever You have the capital for to play And now so leaps These are I would consider it like over two to three months out so Here we have Birkenstock with September with expiration in January and Angelic with August with expiration in January and so these are going to be like your most expensive contracts that you buy and So you'll have the most exposure with these contracts. So you buy Like less contracts than you would with like say weeklies or even lotto's You buy like two or three of these contracts because they're so expensive But you have the most exposure out of any of these three Contracts styles so you can have like three of these contracts, but at the same time it's going to be $1,800 or $1,500 So You can think about it from that perspective is that fewer Not not fewer is better it just depends on your account size and how much you're willing to put forth because with these contracts you are You've been waiting for a while to get into this You're looking at like the weekly the weekly time frame chart or the daily time frame chart Maybe the four hour, but if you're entering a leap like this I would say like weekly or daily candle time frame for your chart and These are gonna be your longest hold you swing them for like a month or two months Just you let the play develop because you won't be losing as much premium and so You can you can hold it. There's less risk like if you're down say 15% for a month or two weeks It doesn't necessarily matter you can have those like diamond hands or hodl as they say Just because you have all this time on the contract and you should start worrying about it like with Birkenstock's play here like maybe in October getting into November and then with Angelic Same thing because it was pretty much the same expiration. So That's that's pretty much that and then so here we go We have a summary just capping off the video going over everything I talked talked about With lotto's you go less exposure and they're the cheapest contract but you still want to have the least like the least exposure on those because if they hit you'll get a good return since it's like a short term you're expecting a big move and if they go they go against your the direction that you want then you don't want to be losing too much capital and so least exposure less contracts, but upside is fairly large and then the most contracts but medium exposure it would be on swings and those are week out two weeks out or a monthly and That's pretty much like you have a stop-loss set at like 20% or 15% and you're gonna be swinging it for a couple days or a week and so You have been looking at the chart for a minute just looking at the four hour hourly and Yeah, you're okay with getting a little more exposure in there and then with leaps These are the ones that will be three months out or however long and you're gonna have the most exposure here But probably the fewest contracts because if you're depending on your account size having like three contracts or four contracts when they are like six to eight hundred dollars per leap depending on the ticker that you're playing then You will have the most exposure, but the least contracts But it has room to grow and get into like the 1200 range and around that area. So That's contracts position sizing from Preston and yeah, have a good one