 What's up navigation traders in this video? I want to teach you how to roll a straddle from one expiration cycle to the next now This is a little bit different than doing it on a stock or an ETF because we are trading a options on futures position and in this case, it's for ZN Which is the notes and so we've got a couple different positions on here. You can see we've got a Strangle that's still very centered got a little bit of profit not looking to book that yet But that's out in May and May cycle at the time this recording has 45 days to expiration So we're not doing anything with that piece of the trade the piece I want to focus on right now is the one that's in the April cycle, which currently has just 17 days to expiration and You can see it is a straddle now This was originally a strangle the price of ZN has just been moving down down down so it breached our downside break even so our first Adjustment was to roll the calls down. We always roll the untested side down Collect more credit. This doesn't require any additional buying power to do And so now we're at a point where we've got the 121 half straddle both of the strikes are sold at the 121 and a half So what we like to do with these naked positions with these straddles and strangles or naked positions is Once we get to a point where we have under 21 days to expiration in this case. We're at 17 What happens is the gamma or the risk really starts to accelerate and so you don't get as much bang for your buck If you stay in the trade in those last few weeks leading up to earnings So what we'd like to do is we if we want to still be in this position We want to roll this from the current expiration cycle, which in this case has 17 days to expiration And we want to roll that out to the next expiration Which as I mentioned in May is 45 days, which is right in our wheelhouse if we were going to enter a new trade That's where we'd want to be kind in that 30 to 60 days 45 days is perfect Now the other thing to look at is in this decision-making process is what's the implied volatility level? Now remember on some of these futures you have to use a corresponding ETF to measure the implied Volatility in this case the corresponding ETF for the for the notes in the bonds is TLT so if we take a look at a chart of TLT and we reference our navigation trading implied volatility indicator What you'll see is that the IV percentile is at 84 and IV rank is at 40 So really decent high implied volatility Meaning the price of the options is elevated compared to itself over the last 12 months And so this is a time where if we didn't already have this position on this would be an ideal candidate To sell premium on anyway So that plays into our decision-making whether we want to close this trade out in ZN And if I get back to the analyze tab you can see that we've got a little bit of profit on this However with implied volatility as high as it is I want to stay in in this symbol anyway So in this case, I'm going to roll instead of just simply closing out the position So let me show you how to do that. It's a little bit tricky with with options on futures a little bit different I shouldn't say tricky. It's a little bit different than if you're trading on a stock or an ETF Because you can't with within the thinkorswim platform You can't just do the role in one transaction You actually have to close out your current position and re-enter it in the next cycle So let's go ahead and do that if we just highlight the position we're talking about Right-click create closing order So we're simply going to buy this straddle back should get filled at 1.37. It confirm and send And we got filled at 1.37. Okay, so now we're now we're out of that position in April So now what we need to do is we need to go into the May cycle and we're not going to change the strikes We're going to keep the strikes exactly the same the 1.21 and a half. So we simply right-click sell Straddle so we're going to resell the exact same straddle just extending duration Giving ourselves more time to make money. So that's trading it at 1.58. So you can see we we sold the other one for what did I say? Excuse me. We bought the other one for $1.37. We're selling this for $1.59 So we're picking up an additional credit of over 20 cents. So we're we're not only adding more credit, but we are Extending our duration picking up more credit giving ourselves more time to make money on the trade So let's try to get filled at 1.58. It confirm and send And we got filled so if we go back to the analyze tab And take a look at what the trade looks like now Let's click off that one and just click on the 1.21 and a half So you can see the diagram looks very similar Except we've got a little bit more room to the downside our P&L line isn't quite as steep It's a little bit more flat But we're still looking for that a little bit of an up movement to benefit this trade Going back to the chart, you know, we've had this huge down movement So if we if we can simply get a little bit of a pop higher That's gonna that's gonna give us, you know, several hundred dollars in profit And we and then we can take the trade off at that time So that's how you roll a straddle with options on futures. Hope that was helpful If you'd like to learn more about how we've taught over 10,000 members how to trade options for consistent income Just go to our site navigation trading comm click on the big orange button And we'll give you immediate access to our flagship course trading options for income We'll also give you the navigation trading implied volatility indicator that you see on our charts Along with the watch list that we use to trade the most profitable symbols day in and day out All this is yours. No cost. Just go to our site navigation trading comm and we look forward to seeing you on the inside