 Okay guys, so I'm a little bit under the weather here, so but I had to put out this very quick Recap video or review of the calendars that I took last week. I told you all I was getting into calendars and the whole point behind calendars is Theta decay so what that means is Basically one of the biggest factors in the value or one of the biggest factors that affects the value of an options contract is time time left to expiration. It's one of the Greeks theta and All else being equal meaning if there is no move No significant move in the stock price in either direction all things being equal Theta will eventually decay as days go by towards expiry So a calendar looks to profit from little to no movement and Time decay or the passage of time. So I took four calendars and it was a paper trade. It was just For illustrative purposes because I actually took them if you recall In exactly opposite direction. So I took a target put calendar and a target call calendar So I was expecting the target I was expecting targets right to reach 145 or lower. So I basically bought right It's a buy because it's a debit. What that means is that the the put Contract that I bought which was expiring in January Which is further dated than November Was more expensive and then you sell one against it, you know to basically cover yourself And that's what actually decays in premium. So that's what you want. Sorry I did not mean to say that you buy it to cover this one It's actually the other way around Because this is the one that you're selling but you buy this one the longer dated one to cover yourself and And this one is supposed to move less than the front dated one Okay, so I was expecting target to go towards 145 and lower, which is why as I was saying these You know further dated contracts Or more expensive than the near dated contracts So because this is let's say ten dollars and this is let's say five or six dollars Then you end up paying more Or you actually end up paying because it's more expensive the one you buy than the one you sell against it And that's why it's called, you know, like a debit because you in the overall Transaction what you pay for and what you sell you end up paying more, which is the 341 debit over here At the same time which is kind of you know Like a straddle strangle kind of thing. I also bought the call So I was expecting it to go down But I was also expecting it to come to go up to the 170 call, okay And this one ended up being a 410 debit And I did the same for Walmart and this is because retail sales were out and these both had Earnings, okay, and target came out kind of bad really on earnings Not so much on revenue, but definitely on earnings and Walmart did did surprise. So that was pretty good So That's why I took these two retailers. Okay, so I was expecting them to move Basically not at all. Okay, let me actually switch over To what those things look like which is those by All right Filled oh boy, okay, so this was sorry Let me zoom out to the daily. This is the Walmart play and this was on the daily and we were Expecting Walmart to basically trade inside this range, which you did. Okay, so this is basically the Monday one Sorry, this is in October. This is the November one Over here. So this is what it's done except that today and yesterday it kind of popped because of earnings You know, here's the earnings surprise. It was 13% on revenue and 3% on Sorry 3% revenue 13% on earnings. So Walmart did pretty well But it did basically chop around this level. All right so Let me jump real quick on target That is what we were expecting target to do and that is indeed indeed what it did now what I am Understanding the problem was with this is that the range was too far. Okay, so I went all the way from 140 to 180 So that's $40 So that's too big of a range To to have made the calendar Worked out as expected. What you want is you want very insignificant movement around a particular area You don't expect these things and that's why you sell these before earnings and we'll get into that when we look at what I sold them for or and So this range would have needed to be a little bit tighter than the 40 bucks for the target and the Walmart one was 150 to 116 I was like almost $50 on that one. So that was too big a range. Okay, so what happened Let's go back to what we had. So this is what we paid for each one of these when we bought them We bought the 341 we bought one for 341 for 235 for 269 and for 410 Now what ended up happening? So let's go back over here to our Let me quickly move. Oh, sorry. This is spy. No, it's not what I wanted Spice seems to be on the move here for some reason Okay I guess I'll let's go back to Where I actually took these so here it is. All right And I'll put these up here. So the 341 debit was actually a 323 debit The 235 was actually a 230 the 40 the 410 was a 405 and the 269 was a 271 So here's where I bought these at. All right, and this is what I sold them for so the This is the call target Which was this one right here, right? So I bought it for 405 and I bought it and I sold it for 455 So that one was a $50 profit. All right and then This is the Walmart call And this is the first one that I closed out. So this one I actually closed out four days after and that was Well before earnings. So I was good on that one and The next one was the Walmart call calendar which Is this one right here? I had bought for 271. I sold for 360. So that's pretty much 271 to 360 like $90 so that's a hundred and forty dollar profit right there on those Okay, so that actually moved pretty well Now the next two This one was the Walmart put calendar and then Walmart was pretty bullish as you remember from the chart So here's the put calendar actually paid 234 and I ended up selling it Here it is for 151 So hold on a second. Yeah, I've paid 230 for it Right the put calendar on Walmart and I ended up selling it for 151 so I lost 50 $80 so out of the hundred and forty minus It's my calculator here 140 minus the 90 so I'm left with $50 profit and then the last one which was the Walmart put calendar sorry the Here the target put calendar, which is the one I sold today when after Let me show this on screen here Here it is the target Daily All right, so this is what target did today and this was Actually, this was the only one that I rode through earnings Or I held through earnings in a gap. Look at this huge gap. It's a gap basically from 178 all the way down to 149 or so so that was like a $30 gap right there on target Because it missed obviously, so let's go back here Here we go. All right So this one was actually also very profitable. So that was the put calendar on target, which cost me When I bought it 323 I sold it for 493 All right, so I had $50 493 is what I sold it for and it cost me three Yeah, three twenty three, so I made a dollar seventy plus the fifty bucks So I made two hundred twenty dollars on those calendars. So I'm I'm just gonna be throwing some of these things in here because it's a Just you know, it's something that I want to get into because it gives you a lot of leeway in either direction You know in such a way that you don't Lose too much when the ticker goes against you and Even if the ticker doesn't make that big of a move it it simply won't it'll the time the time decay will actually still You know make use some money Even though the ticker isn't moving very much and that's why you take them in before Earnings, but you definitely want to get out You know you definitely want to get out of them Before the earnings are announced, which is not what I did in this case because I did expect I actually expected both of them to miss I expected target and Walmart to miss Not sure I haven't looked at the details of the Walmart earnings call. So I'm not sure how they pulled it off but You know, they might have just had like so much excess inventory I'm not sure but the point is you're not really supposed to hold them through earnings And then the other thing that I'm definitely gonna do for next time is I'm gonna do it right here. I'm gonna clone these The range definitely needs to be smaller You know for these things to actually Be more profitable so so like this, you know the put or the call on The high side it just it needs to be closer So, all right, so we will look at another calendar Play probably all the way until December. So November I'll just use it to close out Excuse me to close out my existing Defensive plays and then December will probably oh, no, sorry Actually, that's gonna be probably until March unless I find some other opportunity before then but So I will see you guys in the next calendar Spread video or possibly other types of vertical and diagonal spreads. All right. Have a good one