 Good morning. Good morning. It's time to rise and shine. Good morning. Good morning. Good morning. I hope you're feeling fine Good morning. Get up. Get out of bed. It's time to wake up. You sleepyhead Get up. It's a brand new day and we can't miss out on that day to decay Get your day planned out to be at your best and you got to make sure you got the right back test Like the sleep away make sure you're awake because we don't have time for fat finger mistakes and ratio condos Good morning everyone. Happy Thursday October 19th Got the S&P is up 4 points. Nasdaq up 58. Russell down 4. Dow down 16. So a little mixed bag of tricks At the freeze VIX was down about 0.73% Marcus dropped a little bit so it may end up At the open the VIX may end up uh Up a little bit or more flat My Thursday AM Let's see requires VIX overnight max 0.25. Yeah, so it may uh May qualify we'll see what happens at the open here may go rick or may go am iron condor One of the other Two minutes till the bell Got the notes and bonds are a little bit lower Gold and silver lower Oil and natty gas lower Grains flat to lower You're on the pound Little mixed Bitcoin up about 1% Fresh is in a talking mood today. Uh-oh look out Those are the only thing i'll do a dks at 9 25 central But those are the only other i'm either going to do the rick or the am iron condor So probably a short little stream this morning So if you're new got any questions once we get in feel free to post Talk about anything zero dte related I've also got a one two bnb double calendar from yesterday that i'll take off this morning I got stopped on my dks yesterday All right Opening bell coming. Let's see where we shake out here VIX futures are still down one and a half percent. So i'm assuming vix is still going to be Contracting Which means it'll be time for a rick VIX won't print probably for another minute or two And frankly with you know Jerome speaking today i'd I'll probably just do a rick here if it sets up as opposed to The am iron condor No ricks trading at 15 bucks. That's too expensive Just doesn't give you enough upside profit to make it worthwhile in my opinion. I mean it's barely 25 So we may be doing nothing this morning Or me should say I may be doing nothing this morning Yeah vix is Contracted so the rick So I would I would still consider doing a rick if it it looks a little bit better I mean I could do a uh Let's see what the 15s and the 80s look like Yeah It's just not setting up good. I don't I don't like that little profit to the upside And you'll see that with rick sometimes when you have something like you know Powell speaking Just won't give you the right risk reward that you want so my thursday quiet lunch that I trade requires a overnight vix move up of at least two percent so That won't qualify for me either wuga, what's your uh What's your quiet lunch do you have a link handy? so Annette on the uh On the reverse iron condor if you if you're looking at my screen here You know it's trading at 15. Let me just lock this to So 15 35 so my max risk would be 15 35, but my upside profit's only 4 65 So what is that 4 65 divided by 15 35 Equals that's only 30 percent So if I were able to get max profit to the upside That's 30 percent. Well when my profit target is 30 percent on this So when this actually sets up and it's trading for let's say 12 or 13 dollars then You know you you can hit 30 percent and it's not anywhere near the max on that upside so I like to I like to You know, I'll I'll only get in this if it's if it gets down to You know, let's say It gets down to 14 then we've got You know, that that's a much better ratio as far as upside max profit versus max risk So somewhere You know around 14 or less is what I would want to pay for that, but it's trading in it 15 and a half bucks It's not a good risk reward Now if obviously price goes down you still have some significant profits, but I want I want a chance to hit my profit target to the upside or the downside Yeah, we get looks like that's monday wednesday friday Today is thursday Yeah, it depends a net, you know sometimes like right now, you know, I just set it up based on the delta criteria in the back test so You know, this one ends up being Between the longs is is 15 wide sometimes it'll be 10 wide and you can you know, so it depends on that too So it's not just under 14, but That's typically going to For a 15 wide that's typically going to be a good frame of reference You know if the longs were 10 wide, you know, that one's trading for 17 But if it's 10 wide Yeah, probably probably 14 is probably a good number for regardless So that post from michael todd. Let's look at that. So that'd be the 55 delta and 30 delta so That would be something like 4300 and The in 35. Yeah, so this would be the setup for that For the tim wise one, but still I don't I wouldn't trade that not with a 30 profit target Not enough profit to the upside No idea you this tea I can't see what you're doing, buddy Uh, I would assume theta is being held up a little bit for drum and then it'll get released after his speech I don't I'm not I just I'm not sure about the significance of it Yeah, you you give us you're gonna have to post a screenshot or something man I can't I can't from what you posted. I have no idea Translating and guessing is not my strong suit S&P's getting close to unchanged Russell is down a half percent Ed hnc is that ed can I call you ed? All right, cool. All right ed. Uh, is there any content available explains more of the why behind some of the entry criteria? on the various trade plans overnight VIX change for example, so Logically if you think about it The reason that we enter a rick On it using that VIX filter is because we're buying essentially we're buying premium, right? We want to we want to buy the options when their price lower and obviously the a big move is is kind of the main thing that benefits it but also um You know if if volatility is already contracted it may not contract more So if you're buying premium, that's kind of the more ideal situation, right? You want to you want to buy when it's after it's already gone down And then benefit from a big move or at least hope premiums don't decay extremely fast So so that that so the VIX filter is we want it We want the VIX to contract at least a quarter of a percent overnight So we get that contraction then get in with the Reverse iron condor because we're buying that premium. So for the other it's it's just the opposite What you'll notice is that the um When we're selling premium when we're selling an iron condor We want we want volatility to have expanded we want those premiums to be juiced We want we want to be selling those options when they're priced higher and then benefiting from that contraction In the back test supports that so that's that's that's kind of the logic behind the um Those those filters at least the VIX filter does that make sense Ed? Yves you're just you're looks like you're just doing That there's four legs on a reverse iron condor you're only showing two That's the that's the issue You're essentially buying a strangle Yeah, a reverse iron condor is four legs. You're you're buying a strangle, but then you're also selling a selling a strangle essentially You should be able to Yves. Have you have you watched the the reverse iron condor course kind of walks through step by step all the details Uh dark avenger. I didn't I didn't enter a rick. It's not priced Good. I'm not I'm not trading it You want me to paste the one I'm looking at? Or did you think I entered Okay, cool. Ed What is the best way to ask about some of the other entry criteria I've seen I think it'd be Uh, I mean this this is really the the best time. I mean, you know, especially this morning. I'm not I'm not entering anything so, you know, we'll We'll cut this a little bit short, but yeah Anytime we're on a live stream If you've been on any you'll notice that we get in our trades that we just kind of chat about random stuff so This time is really reserved for you all to ask questions and stuff. So if there's ever any questions those will be definitely be priority over our meaningless banter speaking of Important things. I forgot to close out my bnb. So let me do that really quick I'll come back to your question Trying to get filled in my bnb at 940 ended up being a nice little winner 935 Pakers at 935 how about 930? I filled at 930. All right, so just closed out my one two posted that in the calendar channel Yeah, Ed you can post in the in the chat here Or we kind of use this channel to chat during the live streams You could you know, if you have some just specific zero dte Questions, I would post those in the channel right above the zero dte channel Or yeah, if you want if you want answers live Do that during the live streams here Uh, let's soza. Yeah, I trade I trade a three to two Uh, tim weiss and some others trade four threes So yeah, that's uh, that's what we are referring to when we say ratio. It's just more More puts than calls or more calls than puts in these in these cases. It's more More puts than calls but You know tim weiss just posted this morning a specific situation where it looks like it tests well to do more calls than puts as well Yeah, any any time you do more of one than the other. That's what we refer to as a ratio Yeah, there you go. Yves Not to be confused with t this Uh, the ratios isn't really about having a directional view lassoza. It's more puts trade richer than calls right because of the put skew because of the nature of how the market can move down like an Elevator and up like a stair step Puts have puts just trade richer. They're they're they're more expensive and so you get more premium Uh by by doing the ratio and Testing has shown that they they perform better So yves you pronounce your first name is eve So I just call you eve is that correct? Okay, thanks for clarifying. All right. So let's take a quick look at some other positions Put on a new time fly yesterday looks like it's up a few hundred If we had our other time fly in the know of three which we've calendar put a calendar adjustment to Looks like that one's up a few hundred neither. Those are quite to profit target yet We've got a duck in spx. I haven't added another duck yet You know, we've just been You we've had a couple down days, but we're still just kind of in this consolidation zone here So if we get another maybe the kind of breaks out of that, I'll uh, I'll look to scale into another duck Got some short premium in oil Beta's still being held up in there Got a uh, some short premium and m. E. S. We're not we've done a couple adjustments to this one We're not quite to profit target Let's trade at 58 we need to get into the 40s low 40s. I think is where we'd hit profit target Zn we just get under this we've got vol got pumped into that a little bit Zs we're not quite to profit target on that one after adjustments QQQ not quite to profit target on that one after adjustments Get this vix kind of hedge It's up a few hundred We've got a tgif that we'll be taking off today Took half off yesterday We'll take the remaining half off today Well, there's definitely some juice pumped into today with this expected move. Let's see krish. I'm sure you posted it, right? 31 it's still showing 31. So You know, I think yesterday was 26 So they're definitely adding a little juice in there for pal today about 52 on the upside 90 on the downside Let's see where my rick would be trading now That's still 15 60 so that it looks like that premium is being held up pretty good So no go on any am trades Uh, lassoza has your overall trading strategy evolved much over the last few years? Or does the core remain largely the same? Yeah, it's changed a lot in the last year. I mean a year ago I was I was trading very little zero dte at all But remember the everyday options Um Everyday expirations in spx only became available in may of last year and I I traded zero dte some Before that when there's monday wednesday friday, but I never really had a Clear strategic plan until I started using option omega and being able to back test Intraday strategies because prior to that I was using e delta pro or cml Which are all just end-of-day data. You can't you know, you can't test zero dte strategies So that's been a huge evolution in my trading I assume that would be like a double butterfly trading naked Yeah, yeah, I've traded those before um Yeah, I mean that's usually I mean I've kind of moved to the time fly adjusting with the calendar spread But you know, if you adjust with a a butterfly spread you can start with a single and then turn it into Something that looks like a batman butterfly I would only do that to the downside So for example, and I don't I wouldn't I don't put those on just to initiate a spread but um You know, let's say we have this one on here price moves down around the downside break even You know, you could You could add because at that point premium is going to be Elevated because price has been moving down most likely And so, you know, that'd be a good time just to put on a butterfly anyway, so Um, you know, you could add another one here to kind of create that that batman butterfly I don't like doing it to the upside because if price is pushing higher volatility is contracting Not really the most attractive time to put on a butterfly So that's that's why I've kind of gravitated to the time fly which uses the calendar adjustment My favorite overall strategy pt. That's like asking me which one of my children are my favorite Depends on the day I mean zero dte has certainly been the most profitable this year Uh, I I love calendars calendars Well, the tgis have not been great this year a lot of the other ones have though Which are a lot of kind of newer ones that again since everyday options were introduced, you know, these these weren't available Just even you know a little over a year ago So, you know, these one twos and these six sevens and five sevens and three fours and all you know, those are all those are all New as of May of last year And the time flies starting to uh, you know, I love the time fly too. It's just simple quick High winning percentage profitable Power hour. Yeah, we'll go your pride. Right. I mean if I had to break it down to uh One thing if you put a gun in my head and said this is the only thing you can ever trade again Part of that is just being able to hang out with you guys, right? Yeah, it's fun It's consistent So, yeah, if I had to pick a kid I'd I'd kill the others and I'd pick power hour Eve what do you mean? You're what are you? You're reserved about the validity of the back test. What do you mean by that? I mean, it's it's an easy thing to verify yourself Just look look at the trade logs the next day They're they're right on at three 55 message. I'm not sure what you mean You know, one thing that I've done a lot of and a lot of other people do is is you know, what we call forward testing where You have a back test you're trading it exactly like the back test And then the next day you're comparing your fills and your your trade to the back test And it kind of helps you understand What's going on now? It doesn't mean you're always going to get the exact same fill, right? I mean it fills at You know that exact time Sometimes it's kind of in between strikes when you're trading in real life. You got to pick pick the strikes that um You know that are the closest and sometimes that can change at the last second You know, there's little things like that but overall it's it's right on Oh, you're post above I was testing this morning with option omega. I had rsi criteria to filter out setups However, I noticed that trades were filtered out even though the one minute 14 period rsi did not qualify Okay. Yeah, I don't I mean I don't use indicators like rsi so That would be something to ask option omega about Yeah, they've got a help and um Feature requests and stuff in their discord. So that's the that's the best place to To ask a question like that, but yeah, I don't I don't use that stuff. So I would not be the guy to ask Is dick k on here? No, it doesn't look like it I'll save this story for power hour, but I had a dream last night about I was hanging out tim wise and dick k that that tells you I'm I'm hanging out with you guys way too much. It's dreaming about you guys I Woke up and I was like what the what's going on in my head did not involve a private jet, but it did involve a yacht It's not it's not a it's not a great story. Not a great dream by any means. It's not very short and But uh, I'll I'll save it for power hour you dick k's on Yeah, I don't know what I had for dinner, but uh, yeah, that's that's correct Volatility And price movement really so what it comes down to All right, my friends. I'm gonna jump off here. I do have a dks That would qualify so I'll do that here in about 25 minutes or so, but Uh, anyway, we'll be back by the way if you um If you click on the dks in my uh trade plan, I did tweak that a little bit. I posted the other day, but Just fyi. I kind of tweak the management of it a little bit Improved it a bit. All right, uh catch you all in power hour. Have a good rest of your day Take care