 What's up navigation traders welcome to this week's video update today is Friday, September 28th Hope everybody had a great week of trading Let's jump into the alerts for the week starting with our first trade on Monday It's a little bit of a slow week less number of trades Then then we've seen recently, but we'll go through that and kind of talk about why that is first trade was an opening adjusting trade in ZW which is wheat and we had back-to-back trades in wheat So essentially we we added on an iron condor in wheat to extend duration and continue Managing that position We're almost back to Profitable position in wheat again, but man, it's been a wild ride been in it for quite a while Just continuing to battle as as as we teach So we so we opened a new one and then the next alert was we closed out the The November one that we had on and booked over 40% of max profit on that piece of the trade So let's go to the platform and here's the one that we currently have on you can see prices hanging out right here Could use a little bit upside and some more time to pass to benefit that Next trade was an opening trade. So we opened up a short strangle in SMH the semiconductor ETF IV percentile popped back up above that 50 level that we like to see so we sold some premium This has been on for just a few days now here So what you'll see is we've got a little bit of profit here, but not enough to take off. So just continuing to monitor that one Next trade was a roll in oil. So we had a and an already adjusted strangle in oil But we got down to that point where we were 21 days to expiration And so when we get down to that point, we start looking for a time to roll out to the next expiration Extend duration lower that gamma risk. I've talked about this before and on some other training videos But the closer you get to expiration The higher your gamma gets so gamma is one of the option Greeks and basically what that means is your risk accelerates as you get closer to That expiration date and so what we want to do is we want to roll out Extend duration it cuts down on that gamma risk and gives us more time to to continue to manage the trade So in this case, we had the 68 and a half calls 67 and a half puts and We rolled that out to the 68 and a half calls and puts So we basically have the 68 and a half short straddle and then we've got our other piece on as well So let's take a look at both of those. So here's the one that we just rolled You can see prices is just hanging out right here in the upper end of the rain Just gone up even some since we did the roll up in price and then so we just looking for some downside in price to benefit that and then we've also got this other Unadjusted full strangle on as well. Let me reset this so I can click on the appropriate boxes And you can see prices pretty centered here So just waiting for some theta 2 decay and some time to pass before we do anything else in oil The if we look at the chart, you can see it's up 2% today. So decent move higher today and then the implied volatility is still Very high with the IV percentile at 71 IV rank of 70 So good time to be selling premium, which is part of the reasons why you know when when IV continues to stay high I like to continue to add exposure to that underlying Still keeping within our risk parameters of not going overboard not getting too large in anyone's symbol But but adding to that to to take advantage of the high implied volatility Next trade was a another rolling adjusting trade this one in IWM So this was a short call vertical that was originally part of our iron condor trade We rolled this from October to November and then adjusted the a-strikes appropriately We had we rep over 50% of max profit on that short call vertical And so it just made sense to roll that out a extend duration on that trade keep that short delta exposure in our account and And continue to to manage that one. So if we take a look at IWM now It's up a little bit today But here's here's where that is so pretty close to where we put it on But we just basically by rolling that we captured that that profit in the October cycle and Rolled it out to November to try to get some more. So we're we're almost back to you profitability on our IWM trade overall and If we can get a little bit of a pop and implied volatility potentially, you know, another push down would do that We might look to add another iron condor on here Or we may just close it out depending on where we're at with our portfolio and with the overall profit on that trade So we'll see what happens there Next trade was a rolling adjusting trade in EEM. So we rolled our short short strangle in EEM So this was one that had already been adjusted, but we just wanted to roll it out from October to November Very similar to the oil trade. We got down to that 21 days to expiration in the current cycle, which was October so we wanted to roll out to the next cycle and since we were doing that we went ahead and Adjusted one of the strike. So we left the call side alone, which is one that's kind of being tested right now And we just took the 41 up to the 42. So now we have a 42 straddle in November So let's go to the graph and I'll show you what I mean So again EEM I was looking to actually add on to this position earlier this week But even though implied volatility is is pretty decently high Just wasn't getting enough credit in the options to make it worth it. So I just continue to hold this position This is we rolled our puts up from 41 up to 42 So now we've got the peak here the 42 short straddle in November you can see the October is zeroed out because that's where we rolled from and So now we'll look for a little bit more theta decay. Hopefully stay in a decent range here for us If it does go outside of one of these sides We may look to add depending on what kind of credit we're looking at getting at that point So stay tuned for that Next trade was an opening trade in Ford slash 6e, which is the euro We'd like to have positions on in here anytime implied volatility warrants it Ivy popped up right at about the 50 level I was at about 54 actually earlier before I put this on and then it came down just slightly at the time that I put this on But not a huge difference between 50 and 54 anyway, but just at FYI So we'll just like a normal strangle will look to close this between 30 and 50% of max profit depending on how quickly that profit comes And I also mentioned that you could do an iron condor or short strangle in either 6e Which is what we did with the euro or you could look at FXC, which is the corresponding ETF Both of those are fine. In fact, if we look at FXC on The chart what you'll see is the implied volatility should be pretty similar Right around that 50 level you can see IV percentiles at 42 IV rank at 45 Pretty close, but it's a it's a good ETF to be trading as well We just like we like to switch it up between ETFs and futures. I know some you know, if you're in an IRA You probably can't trade futures So but I do want to give you that alternate trade in case that is the case because it is a good decent time to be selling premium and a good Unrelated symbol so, you know, we like to always have uncorrelated unrelated symbols that help spread that risk Help spread that diversification, you know so the euro isn't correlated necessarily to oil or stocks or Natural gas or wheat or soybean. So it's just another good broad diversification for us getting into some currencies like that Actually, sorry, let me go back and take a look at the graph. We just put this one on so Not gonna be much change as you can see prices dead centered in our Profile there, so just gonna wait and hopefully collect some theta into next week on that one And then lastly our last trade we closed out of our Tesla short strangle huge drop today stock dropped 12 percent on the news that the sec is Filing a lawsuit against Elon Musk. So while back several weeks ago Elon Musk came out and tweeted That he had secured financing to take Tesla private Well, what happened is that obviously is going to affect the price of your stock when you say something like that especially the way that he said it how he had had secured financing and So that was right in here Right after their earnings announcement and you can see the price of Tesla shot up from around 300 all the way up to close to 390 Well, then some news came out that it wasn't Necessarily true that he wasn't potentially going to take Tesla private So you saw the stock drop and continue to drop into the following week and then last night or today this morning I can't remember what time I think it was I think it was last night News came out that the sec was filing allegations that Elon Musk Had not secured that and so it's kind of false or misrepresentation to shareholders And so the stock dropped 12 percent overnight So that's where we stand But what happened with our position is price was kind of hanging out in the upper range of our short strangle You know right up in this area and with the drop it put price right back dead centered into our strangle Even though implied volatility spiked we still saw a good little gain there Booked it for over 35 percent of max profit based on the amount of time that we had in the trade I was I was hoping to get at least 40 But with it dead centered like that and as much as it's been moving I thought you know what let's just take this off book this profit With the with the headlines going on, you know, we'll probably get a chance to re-enter We'll see what happens. We try to stay away from earnings and if we try to enter in November We're gonna be dealing with earnings. So may not do that anytime soon, but But we'll see what happens. So those are all the alerts for the week. Let's take a look at some of the other positions that we have on Starting with Ford slash ES the S&P 500 futures. So we've got a couple of different pieces on here We've got one out in November. Let me reset these so I can check on the different boxes We've got we've got this short call vertical spread out November again This is part of an iron condor that we've just continued to roll for several cycles to keep that short delta in our portfolio You can see we've got a tiny bit of profit here Just looking for some downside to benefit that keeping that short bias in our portfolio We've got another short call vertical. This one is in October and So you can see that right there. You remember when we rolled these two out We rolled one to October one to November because November was under that 60 days to expiration So it helped just kind of spread that risk spread that time That time to expiration out gives a couple different options there So that's where that's at, you know, still in our range here. Just looking for some more time to pass on that And then we've got our long put vertical, which is part of a different trade You can see price has since Since we rolled this has moved up and a little bit out of our range So looking for some downside to get back in our range there Another position we've got is nat gas we've got a short strangle on here You can see prices hanging out right here down slightly on this trade could use a little bit of downside As well as just some more time to pass. We just put this on last week So haven't been in the trade too long So just waiting for some more theta to decay in that one. I Mentioned wheat apple. So we've got our long put vertical on in apple You can see prices slightly out of our range, you know, obviously apples been Extremely strong over the last several months for sure I mean going Going back to May of this year It's been pretty much straight up with a little bit of sideways action in there I Put this little trend line on here not because I really look at trend lines or use them as support and resistant but Resistance, but it is a pretty definitive one and so we'll see if it bounces off that and rolls over Obviously that would help our position, but we'll see what happens Next trade Costco All right, so we got we got in this trade right here on this big down day here And this is a pre earnings long call So we were looking for price to increase as well as implied volatility to expand Going into the earnings announcement, which is next week on October 4th What has happened so after we put that on the stock price dropped a little bit and then has just stayed Extremely flat right here, which in turn has caused implied volatility Just to grind lower and so both of those things lower prices and lower implied volatility neither one of those has helped us out And so we are we're down on this trade and just looking for potentially a little spike up I mean if we just get up to that 240 level Well, we'll take a little bit of profit out of the trade, but we'll see what happens not looking too good at this point Down a couple to $300 on the trade right now. Yeah about 298 about 300 bucks is what we're down So hopefully we can either get out with a smaller loss next week or you know, like I said, if we get up to 240 We'll be in them in the profit there Of course anything above that would be gravy as well. So we'll see what happens there DIA the Dow ETF We've got a couple of short call verticals on here that were previously part of iron condors as well Just looking for some downside to benefit that we have continued to keep those on to keep that short delta exposure in our portfolio And by the way just to give you kind of an update I don't think I mentioned in any of the alerts this week But we're at about three between three and three and a half to one on our short delta to theta ratio So for every hundred dollars of theta We've got about three hundred fifty dollars of short delta And we remember we like to be in that kind of one-to-one to five-to-one ratio of short delta versus our theta and As as the markets move and fluctuate We like to keep in that range. And so we're gonna get we're in a good spot here Obviously a nice flush downward in the end stocks would would be very helpful But if not, we'll continue to monitor and manage as needed EEM I already mentioned that one. That's the adjusted strangle that we rolled out to November EWZ we've got a short strangle on here. You can see we've got a little bit of profit Not enough to take off yet And this is we'd closed out of our EWZ trade last week and then we jumped back in so this is a brand new trade So this we don't we haven't done any adjustments or anything to this piece yet to this position So up about 90 bucks looking for you know anywhere from 30 to 50 percent of max profit Before we do anything here and that you'd EWZ I mentioned this last week But you know implied volatility continues to stay elevated Primarily due to the upcoming election October 7th is when the election starts and then there's another voting I don't know exactly how that how that election works over there, but there's another round of voting. I think it's October 28th and And so leading up to that I think implied volatility is going to continue to stay high But as you can see with time passing, we're still getting that theta decay If we do get a contraction and implied volatility this this profit line will jump up even quicker But we'll just continue to watch that and monitor it and we will definitely be playing that during the election You know, it's going to be most likely pretty volatile. So if if that doesn't fit your risk tolerance Beware stay out if you want to but we will be in it FXI We still got a couple butterflies on here one is in October You can see prices hanging out near the upper end of the range here Just need a little bit of downside in FXI to to benefit that one And then we've also got this November fly on which is our call butterfly. You can see prices very centered Got some profit there, but not quite enough to take off yet. So we'll continue to watch that. I mentioned IWM IYR we've got this pretty tight iron condor when I say tight I just mean the the short strikes are a little bit closer to when we put it on or Closer to the current price than than typical we do that to just collect enough credit to make the trade worth it You can see prices just kind of hanging out here got a tiny bit of profit Need a little bit of upside in price and some more contraction in IV before we do anything there In the queues, we got a couple of short call verticals One is in October as you can see here prices still in the range Could use some more downside to benefit that and then we've got the one out in November, which is the same story So very similar strikes. They're just one strike apart and but they're in different expiration cycles So we just kind of diversified that time kind of like we mentioned in ES as well So just looking for some downside keeping these on to help with that short Delta exposure in our overall portfolio SMH already mentioned that one got that short strangle on there TLT the notes and bonds we've got an iron condor on here up about a hundred bucks Looking for some more profit before we book that one if we take a look at the charts It's the implied volatility has really gotten crushed But we just haven't been in the trade long enough to get to that profit target yet So we'll continue to watch that one and then lastly XLK a technology ETF You can see we just need some downside to benefit that this is a long put vertical that we originally put on for additional short exposure short Delta in our portfolio and we've just continued to roll that for a couple cycles and We'll continue to keep it on at this point because we need that short Delta exposure So those are all the trades. Those are all the positions. Hope everybody has a great weekend Let's look for hopefully some more volatility next week. That'd be nice, right? Talk to you guys next week. Have a good one. Bye