 Welcome. In this video, I want to talk about how to make money trading options like a casino. So we all know that casinos are extremely profitable. So how does a casino make money? First off, the odds are always in their favor. Every game that you play in a casino has a house edge, meaning there's a probability, a percentage that over time the casino is eventually going to win in that specific game. Secondly, they encourage many small bets. If you've ever sat down at a blackjack table, and let's say it's a $5 blackjack table, $5 will be the minimum bet, but they typically also have a maximum bet size. So if it's $5 table minimum, they might have a $500 maximum bet because the casino wants you to make a bunch of small bets because they know over time their edge is going to play out and they're going to make money. They don't want the guy who comes in and lays down a million dollars on one bet because if they lose, that doesn't really put the probabilities as much in their favor. They want a lot of small bets so that they can get that edge over and over and over and let those probabilities play out in their favor. Let's take a look at some of the most popular games in a casino and the edge that they have. If you look at blackjack, they've got about a .28% edge. So it's known as the smallest house edge of any game typically. Craps, if you're playing the pass or the come line, it's about a 1.41% house edge to the casino. PyGal, 1.5%. Caribbean Stead Poker jumps up to 5.22%. If you play roulette, where it has the double green or the double zeros, the house has a 5.26% edge. And then when you get up into slot machines, depending on the casino and depending on the actual game, it can range anywhere from 2% to 15% or even higher. So, and then Kino, which is another very popular video game, the edge is between 25% and 29% in favor of the casino. Slot machines and video gambling used to be a small part of a casino, but now if you walk into a casino in Las Vegas, you'll see that they dominate the floors because they understand that they are the most profitable part of the gaming industry. So, slot machines and video gambling now account for nearly 85% of the casino's profits. So, how does this relate to trading? So, navigation trading, we want to do the same thing as the casino. We want to put the odds in our favor and give ourselves an edge. Now, it's not an edge like there's some kind of arbitrage or there's inefficient pricing. It's simply that we're using strategies at the right time to give ourselves an edge, to put the odds more in our favor. And an example of that is we sell options with high implied volatility. We wait for the time for implied volatility to spike. We wait for the option prices to get expensive and we sell options in those strategies. So, that's an example of putting the odds in your favor. And just like the casino, we want to place many small trades. If we get too large in our trade size relative to our account, we're not going to give the probabilities a chance to play out. So, we want to place a ton of tiny bets, tiny trades over and over and over and over and let the probabilities play out. If you make 50 trades, the chance of the probabilities playing out to what they should be over time are very slim. But if you place 1,000 trades over the course of a year, for example, then eventually those probabilities are going to play out based on the pricing models that make options tradable. So, let's take a look at some of the strategies that we trade and kind of what that edge or what that difference is. If we trade a short strangle, which is a strategy that we trade all the time at navigation trading, the theoretical or the initial probability of profit is right around 70% when we enter the trade. But the way that we manage and adjust and exit winners at a percent of max profit, our actual winning percentage is close to 90% or higher. So, the difference between that, the edge is 20%. That's huge. Short straddle, initial probability of profit is 50%. The way we manage and adjust gets our winning percentage up to over 80%. That's a 30% difference. Iron condors, where we set the short strikes at the 20 delta, start out at 60% probability of profit. Our actual winning percentage is over 85%, giving us a difference of a 25% edge. Calendar spreads start out a little bit lower at 40% probability of profit. But with the management and adjustments, we can get our winning percentage up to over 70%. There's a 30% difference. And our money flow trades, which is simply buying a vertical or buying a put or buying a call, will start off at a 50-50 probability, but we get it up to a 75% win rate, giving us that advantage of 25%. Let's go to the platform and take a look to make sure these probability of profits make sense to you. This is an example in SPX and looking at a one standard deviation strangle. As you can see right here, up in the middle, when I set these slices to the breakeven points, we have an initial probability of profit of 70, a little over 72.5%. So I said right around 70%. It's never going to be exact, depending on price movement, but it's going to be right around that 70% level. And again, with our winning, with our management and adjustment techniques, we can get that winning percentage up to over 90%. Let's take a look at a straddle at order entry. If we move our slices to the breakeven points here, move this one over to this side. As you can see, there's a probability of profit of over 52%. And I said right around 50. So again, it's going to be right around that 50% when you enter the trade, but we can get the winning percentage up to over 80% by managing the trade properly. Let's take a look at a calendar spread at order entry. You're going to see the probabilities show right around 40%. In this case, 37.99. And again, managing and adjusting, we can get those winning percentages up over 70%. We look at an iron condor, we set the short strikes at the 20 delta or 20% probability of the money. As you can see our initial probabilities are right around 60%. And we get that winning percentage up over 85%. And then the last one I'll show you is the this is just setting up a a call buying a long call. And if we set our slices to breakeven on this, anytime you buy a stock outright, or you or you buy it in the money call like we teach, the probability is it's about a 50 50 bet. But but based on a criteria that we use to enter our money flow trades, we win these trades about 75% of the time. So I hope this was helpful. You know, this really shows that if you concentrate on keeping your trade size small and letting the probabilities play out, you can have a huge edge and start to generate these probabilities in this income over time. But you've got to let the probabilities play out. I hope this was helpful. If you'd like to learn more about the different strategies that we use to make consistent returns, come see us at navigationtrading.com. We've got a ton of free resources, including the navigation watch list, which is a list of the most profitable symbols to trade for each type of strategy. We've got the volatility indicator, which you've seen on my charts. You can download this directly to your thinkorswim trading platform. And we've got a free options course called Trading Options for Income, which is a step-by-step guide to get you making consistent trades right away. We look forward to seeing you there.