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getting everybody on years interest into
yesterday this time

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I was a scuba diving about 70 feet under

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so mean through a school about a hundred
seven footlong tarpon

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and at the other end of it i Sol two
500-pound sea turtles going out like

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newlyweds

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so it's kind of a transition from that
too

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hey let's talk about options other I was
presented with two options I guess on

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that on that dive

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and so I'm what I want to talk about
those just

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I'm mean I i've seen its I mean I
started trading about gosh it's been my

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22 years ago now

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and I first started trading in options
it's always been kinda where I cut my

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teeth

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I think it's it's been interesting
because is as we progressed with our

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our main site trade the markets it's
always been more of a focus on

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commodities

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and what happened is over time is people
his kayak asking like everyone's my

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choices option trades

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would like to know more about options as
I go camp so

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what I want to talk about tonight is
kinda dive into this and I was like how

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many people right now actually actively
traded stock options

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okay and how many people who have never
traded options before

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the sack ya city okay alright that's
fine and yes

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a perfect okay

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okay so you have on the PC muscle car
undersea

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we do have them this is a a four-day
live trading seminar to DVD was

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nineteen hundred dollars to attend this
and we did this back in Chicago on March

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and it's a four-day course every
recorded I'm only giving 10 days away at

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the end the talk

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and understand it does Taco does talk a
little bit about all

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the strategies that we doing things like
that to you and we'll see the drawing

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for this after the talk

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okay so start right into this now

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what I'm not going to do in just for
those you don't trade options I'm not

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going to be spending any time explaining
what options are

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because there's put information out
there but I do wanna talk about the

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strategies that I like

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%uh that work because literally there
are hundreds of different strategies

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that are out there

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on what I found is that a lot of times
I'm especially brokers

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they will teach strategies that actually
encourage a lot of trading

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leg in laying out adjusting and
different weeks and things like that

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in order to maximize commissions okay
and it's now all that's kinda their job

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and why this tragedy is yr you know the
net neutral delta neutral

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I'm a lot of its like you know you have
these you know iron condors

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which are fine in some situations but
only some trades that actually enable

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like

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a trades to put on the trade actually
don't think you need to be that

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complicated

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to do option trading okay so I was gonna
focus on my five favorite styles and

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trading

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and but what I want to talk about first
in the first regiment talk about is

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directional swing trades last couple
weeks

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but before I dive into that because I
found that i've talked about this before

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and that out the questions that again
afterwards it led me to realize that

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maybe some people don't fully understand
the importance of volatility in the

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markets

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okay so when a dive into that real quick
because this is a really important tool

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that'll let you know when you should be
focusing on selling options or we should

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be focusing on buying options okay

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so why talk about ball till the a lot of
people misunderstand that because they

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think that

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ok I'll tell you that the Vikes rate
matching not talking about the Vikes

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I what I'm talking about is the
volatility on the individual stock but

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your trading whether it's the stockers
index

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on the time zone not the time zone the
time zone is what I'm doing it right now

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the time frame that your training okay
whether that the daily chart 1 hour

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chart excedrin now

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examples these are the Bollinger Bands
bonior percent be

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Dabbashi ranged AD ax men also the one
that we have developed called the TTM

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squeeze

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all those together I'm all this together
work really well

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so why it is important what we have a
low ball till the environment

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it's essentially a pre-concert consensus
regarding the fair value of an asset

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as the snow it's common choppy market
our bodies fine with where prices are

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right now

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and during his period of time there is a
specific strategy just called reversion

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to the mean type training which will
talk about

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that works really well okay to something
you can do both directionally

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and as well selling credit spreads so
let's get a graphical interpretation

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this because it's important understand
this so what i'm talking about here

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is now this happens to be a weekly chart
it could be an hourly chart it could be

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a five minute chart it doesn't matter

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the singles I'm talking about here in
terms of a squeeze okay so here's a

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Swiss ignore the red dots

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here's another squeeze signal with the
red dots and here's another one

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now what this is is if you don't know
all that represents

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is a showing us that the Bollinger Bands
actually contracted to the plate

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we're almost rain i'm for is all to each
other

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okay most the time you know Bollinger
Bands are kinda all over the place but

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when I get really really quiet

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they get into what's called a volatility
squeeze and it's important to understand

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when this is taking place

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because it will completely impact the
choice of option trades that you do

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and a lot of times I talk to people
they'll talk about the option strategies

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that they tried that lost money

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and they're doing him at a time when
literally they shouldn't have been

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you know kinda doing them as an example
on this I'm

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you know right here say like an apple if
you look at this and say wow Apple's

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been trading sideways here

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I think I'm gonna do an iron condor here
in a few places here

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i mean you know your trade went
completely against you

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so what you're looking for here is two
things one you're looking for a squeeze

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the squeeze is telling you that but
volatility is got really really low

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and it needs to release energy okay so
here you can see a squeeze

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setup with an 80 X have about 30 okay

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and Apple had a nice move here it was a
fantastic but it was nice

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here's another squeeze at this point
with us we started the 80 X is about 28

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and when it released energy was another
decent move

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here's where it all comes together here
was a squeeze at the beginning in the

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2012

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they had a very low 80 X reading okay
and this is what you're looking for

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when you get the combination %uh
volatility squeeze with a very low 80 X

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reading

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the chances are very very high that
you're gonna get a very explosive move

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in the underlying stock

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okay and what's nice about this and a
lot of options theory

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talks about oh you don't need to worry
about market direction hey if you've got

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you know if you got this to sell some
iron condors you don't have to worry

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about it

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and i really disagree with that because
if you get something like this that

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showing you

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that not only is about to release energy
but the way the momentum is going to the

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upside here the chances are very high
dose can be upside

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then you can start taking advantage of
strategies

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better more directionally based ok a lot
of times you heard about strategies that

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a market neutral

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yeah I D idea market neutral neutral
works great 10 months out of 12

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than typically the two months out well
that it doesn't work you get back to

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your profits

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so you feel good because you're making
money most the time right

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but then the times you lose money you
give it all back so it's like a

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ike so this is what I found so

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the first thing is that I understand in
this kind of a scenario right here

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so basically during this is when I see
times in the market

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where there is no squeeze develop in
then that's great

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I'm gonna do tighter strategies like
selling iron condors

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however if it's something like this
really low 80 X reading

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in a squeeze this is where you can
actually step up and do some directional

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players

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the Drexel plays are nice because they
have very limited risk and unlimited

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reword

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and take advantage is bigger moves a
cramp alright

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I is another example Priceline same
thing you know once you get that squeeze

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with very low volatility

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it's typically you can see a very
exponential move after that

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okay so when volatility is high it is
better to sell options credit spreads

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are condors X enter a

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when volatility is low is better to buy
options and I preferred ultimately 70

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which we'll talk more about a minute

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and then um the thing about it is when
there's something like a volatility

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indicator like to squeeze

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what is telling you is that a market is
switching ok and that's the one part I

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see a lot of people don't get

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but markets are either doing want two
things are either trending on ross

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latenan

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when you see a squeeze a volatility
squeeze like this it's telling you that

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the markets about the switch

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okay it's got about to go from aus lady
into trending you have to understand

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that because if you start doing

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oscillating strategies in a trend in
market you're going to get killed

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and vice versa case you understand what
kinda markets about the switch to

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its easy to tell after the fact oh wow
we've got a trend other hand

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Apple's down from 450 to 650 yes that's
a trend

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but you wanna know during the process
when it's transitioning okay and as for

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the ball till the indicators come into
play

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okay so so the examples and directional
place this happens the MasterCard this

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is why I like to trade quite a bit

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here's a squeezy it sets up remember the
compression

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were looking for we're looking for this
to release energy

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and on a trip like this

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i'm looking at deep in the money July
options so even though MasterCard is

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trading at 170

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I'm actually looking at the 155 dollar
calls okay now for those

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if you never traded options before will
happen is you gonna look an option is

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changing and say wow

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I could buy the 100 eighteen-hour calls
for like two dollars

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okay why do you wanna buy 255 dark also
like seventeen dollars

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well the idea what this isn't just has
to do with

180
00:09:21,035 --> 00:09:26,964
up premium decay now you could buy the
180 dark all options on MasterCard

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and MasterCard's goes from 170 to 180
you lose all your money

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okay you got the direction right arm

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you you bought a call option and you
lost money

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ok and I can be a frustrating thing
that's why I like to go

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further in the money because what you're
looking for on these situations as

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you're looking to capture

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the underlined move with the Dell 270
option if the stock moves up a dollar

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the option gonna move 70 cents I don't
get me wrong there are times when our

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money options are great

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if you buy that 180 calling the stock
goes from 170 to 200

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you make a killing issues that you're
talking about a 10 percent chance of

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00:10:04,011 --> 00:10:04,095
happening

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00:10:04,095 --> 00:10:07,138
so why risk your capital on something
that has a 10 percent chance happening

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okay so different things like that

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okay so

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00:10:14,073 --> 00:10:17,116
on something like this for directional
play like to use a signal to get in

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we're getting the trade now there's two
ways to do it you can stay all in

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until it starts to lose momentum at that
point you can exit the trade

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what I like to do is still a scale-out I
am

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essentially every one standard deviation
so in this particular case

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I Barack where to go so all start off
and say this option cost sixteen dollars

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so for a hard stop on a risk half the
price the option

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00:10:46,519 --> 00:10:49,990
okay so obviously don't put your entire
account into this one trade it gonna say

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00:10:49,099 --> 00:10:52,120
well I don't miss more than five per
centum a county one trade

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00:10:53,002 --> 00:10:56,058
then great you put ten percent you're
buying power into a tree like this

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the biggest opt out you've just lost
five percent directly okay

207
00:11:00,002 --> 00:11:03,013
work its 3 percent you can adjust
accordingly

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00:11:03,031 --> 00:11:06,036
so that's a stop loss now the first
target is 50 percent

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00:11:06,036 --> 00:11:09,095
so for third sofa goes from sixteen to
twenty four dollars

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00:11:09,095 --> 00:11:13,111
I'm a take off let's add three contracts
on a take off one contract

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00:11:14,011 --> 00:11:17,022
second target is a hundred percent sofa
goes up to

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00:11:17,022 --> 00:11:21,045
thirty-two dollars I'm a take off
another third right

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00:11:21,045 --> 00:11:25,073
and on that last piece I'm just gonna
wait to lose momentum

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00:11:25,073 --> 00:11:28,094
now it may happen sometimes it may lose
momentum before then great

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00:11:28,094 --> 00:11:31,483
he does take off the entire position but
I'm going to hold on to that

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00:11:32,329 --> 00:11:35,417
takeoff a third another third and then
hold on

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00:11:36,209 --> 00:11:39,200
it will get a loss in momentum to see if
we can actually get one of those big

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00:11:39,002 --> 00:11:41,083
kind of fat tire events there

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00:11:42,001 --> 00:11:45,830
so this particular case if he held onto
the end you buy an option 17 bucks

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00:11:45,839 --> 00:11:49,230
he sold at fifty-five end up with a
profit of thirty eight hundred dollars

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00:11:49,023 --> 00:11:50,032
per contract

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00:11:50,032 --> 00:11:53,791
okay now that same situation you
could've bought outta money calls and

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actually lost

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00:11:55,007 --> 00:11:57,826
all your investment so that's why it's
really important to know which one to

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00:11:57,889 --> 00:11:59,700
buy either

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the other thing I really like about this
now if you're beginning options trader

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00:12:02,649 --> 00:12:03,736
does not make much sense don't worry
about it

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00:12:04,519 --> 00:12:08,520
if you have traded options for a while
you like this quite a bit

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00:12:08,529 --> 00:12:11,360
what I like to do with the squeeze too
is because when there's a squeeze like

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00:12:11,036 --> 00:12:11,112
this

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00:12:12,012 --> 00:12:15,101
its telling you that there's a low
volatility period in that stock right

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00:12:15,209 --> 00:12:15,720
now

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00:12:15,072 --> 00:12:17,076
that's actually when you wanna buy
options you can see here this is an

234
00:12:18,012 --> 00:12:21,017
indicator on TradeStation implied
volatility are the options

235
00:12:21,017 --> 00:12:24,486
the ball till here is very low when the
squeeze releases energy

236
00:12:24,639 --> 00:12:28,220
now it is the price accelerate but the
implied volatility

237
00:12:28,022 --> 00:12:31,045
also accelerates you're getting a
double-whammy they're not only are you

238
00:12:31,045 --> 00:12:33,063
getting intrinsic value the option

239
00:12:33,063 --> 00:12:36,095
right there but the implied volatility
is increasing and that's also increasing

240
00:12:36,095 --> 00:12:37,674
the premium portion the option

241
00:12:38,529 --> 00:12:41,534
okay so the really good strategy for
buying options

242
00:12:41,579 --> 00:12:43,636
I'm you guys always heard it's like well
why would you wanna buy options

243
00:12:44,149 --> 00:12:46,070
neighbors in a time they expire
worthless

244
00:12:46,007 --> 00:12:50,008
it's because people are buying the wrong
options but he a situation like this

245
00:12:50,017 --> 00:12:54,926
regalo implied volatility situation you
gotta squeeze about to release energy by

246
00:12:55,079 --> 00:12:56,570
Delta seventy options

247
00:12:56,057 --> 00:12:59,066
that taken make money directionally okay

248
00:12:59,066 --> 00:13:03,545
alright now the first as you know the
longest one the restaurateur

249
00:13:04,139 --> 00:13:08,160
I directional swings trades at last a
few days

250
00:13:08,016 --> 00:13:11,045
now this is my favorite there's a prior
to five then I'm gonna show you this is

251
00:13:11,045 --> 00:13:12,069
my favorite

252
00:13:12,069 --> 00:13:17,073
I ruling II fine I've got and I've got a
sleeping issue and I find that

253
00:13:17,073 --> 00:13:21,372
a fight and less Mehmet three young kids
in the house is always one crying at

254
00:13:22,029 --> 00:13:22,115
night

255
00:13:22,889 --> 00:13:26,870
I'm but unless I A

256
00:13:26,087 --> 00:13:29,129
happened was I don't know if I i'm
flatly couple have any positions on I

257
00:13:30,029 --> 00:13:31,035
cannot sleep

258
00:13:31,035 --> 00:13:35,087
okay I rely the kids can be cryin like
my wife gives me crap because the B two

259
00:13:35,087 --> 00:13:38,556
kids crying she's run around houses like
I want to have some help and I'll sleep

260
00:13:39,339 --> 00:13:40,990
through the whole thing

261
00:13:40,099 --> 00:13:43,308
I'm which is good for me it but it does
it mean in the morning that we're gonna

262
00:13:44,199 --> 00:13:46,060
have a conversation

263
00:13:46,006 --> 00:13:49,047
I'm but what happens is little if I'll
have a position on

264
00:13:49,047 --> 00:13:52,656
during the evening I I do get a little
antsy I just can't

265
00:13:53,079 --> 00:13:56,110
you know I wanna wake up in this be a
part of what's going on the markets and

266
00:13:56,389 --> 00:13:57,670
that's probably something where

267
00:13:57,067 --> 00:14:00,098
its Justin join the markets you know I
decide love the markets are like what's

268
00:14:00,098 --> 00:14:00,197
going on

269
00:14:01,097 --> 00:14:04,122
and I like to at least have some
exposure overnight so I can wake up in

270
00:14:05,022 --> 00:14:07,080
you know it's like life is like a box of
chocolates you never know what you're

271
00:14:07,008 --> 00:14:08,010
gonna get

272
00:14:09,000 --> 00:14:12,044
and this is a strategy for that because

273
00:14:12,044 --> 00:14:14,143
it's not something rhyming to be in it
for weeks I'm literally looking to buy

274
00:14:15,043 --> 00:14:16,452
something on Tuesday

275
00:14:16,839 --> 00:14:19,839
in either sell it Wednesday or Thursday
okay and its

276
00:14:19,839 --> 00:14:22,930
it's that meet above the move that
you're trying to grasp when you're not

277
00:14:22,093 --> 00:14:24,612
sitting there you're not having to stare
at charts

278
00:14:25,449 --> 00:14:28,525
on you not having to sit there and watch
a retake but you gotta potential for

279
00:14:29,209 --> 00:14:31,070
bigger swing type moves

280
00:14:31,007 --> 00:14:34,048
with all with the small timeframe like
that okay so here's what we're looking

281
00:14:34,048 --> 00:14:34,079
at

282
00:14:34,079 --> 00:14:37,081
%uh this to me as a as a as a fantastic
set up right here

283
00:14:37,081 --> 00:14:40,106
Goldman Sachs is a stock I like the
train quite a bit now what i'm looking

284
00:14:41,006 --> 00:14:41,074
for here

285
00:14:41,074 --> 00:14:44,141
hourly charts okay their signal to take
off the hourly chart

286
00:14:45,041 --> 00:14:48,118
and I'm typically looking at I've got

287
00:14:49,018 --> 00:14:53,087
the trend you always want to have but
trended a trend indicator and isolating

288
00:14:53,087 --> 00:14:56,180
the indicator in volatility indicator in
your chart K one other story

289
00:14:57,008 --> 00:15:01,029
so my training indicators on this or the
waves on what these measure

290
00:15:02,001 --> 00:15:05,073
are the long medium a shorter-term
momentum

291
00:15:05,073 --> 00:15:08,672
on whatever market whatever time very
much looking at ball till the indicator

292
00:15:09,329 --> 00:15:10,310
here's the squeeze

293
00:15:10,031 --> 00:15:14,079
course and what i'm looking for here is
wanna squeeze fires up like this when I

294
00:15:14,079 --> 00:15:15,148
see these red dots

295
00:15:16,048 --> 00:15:20,657
if the momentum here is lined up for its
all about zero

296
00:15:21,089 --> 00:15:24,170
the chances are about 80 percent that
this is going to trigger

297
00:15:24,017 --> 00:15:28,031
to the long side in that Goldman Sachs
and then move to the upside

298
00:15:28,031 --> 00:15:31,044
okay now show you another example here

299
00:15:31,044 --> 00:15:34,193
on that same day this is a chart of
Amazon

300
00:15:34,589 --> 00:15:39,633
okay and this triggered a short trade
were in this case heard by put

301
00:15:40,029 --> 00:15:43,052
however I didn't take this trade because
it was it clean because you're the

302
00:15:43,259 --> 00:15:45,310
longer term momentum

303
00:15:45,031 --> 00:15:49,044
above zero which meant a longer term
momentum was higher

304
00:15:49,044 --> 00:15:52,803
okay and the cleanest rains like this
are the ones when everything just lined

305
00:15:53,199 --> 00:15:53,263
up

306
00:15:53,839 --> 00:15:56,600
otherwise you're kinda fighting the
prevailing trend so this is an example

307
00:15:56,006 --> 00:15:57,103
the trade that I would not take

308
00:15:58,057 --> 00:16:02,066
never go back into Goldman Sachs this is
to me almost like a text book trade

309
00:16:02,066 --> 00:16:05,745
that I would just take over and over
again now this isn't the only piece to

310
00:16:06,339 --> 00:16:07,300
the puzzle

311
00:16:07,003 --> 00:16:10,722
for any fight an hourly chart looks like
this is like fantastic

312
00:16:11,019 --> 00:16:14,980
it's all coming together next we need to
do is check the daily chart

313
00:16:14,098 --> 00:16:18,387
okay just make sure that your trading in
the same direction is the daily chart

314
00:16:19,269 --> 00:16:23,540
here the daily chart is clearly an
uptrend you get the sea wave about 0

315
00:16:23,054 --> 00:16:25,463
degrees above zero the A's above zero

316
00:16:25,949 --> 00:16:30,430
you've got clean sailing ahead and again
this is something I wanna be trading on

317
00:16:30,043 --> 00:16:31,082
the path of least resistance

318
00:16:31,082 --> 00:16:37,181
yes

319
00:16:38,081 --> 00:16:40,156
I'm so the waves are there similar to
one

320
00:16:41,056 --> 00:16:44,155
the summer to moving averages on Mac D's
in different things like that but what

321
00:16:45,055 --> 00:16:45,139
they are is

322
00:16:46,039 --> 00:16:50,063
they're measuring both the Schur there's
three alarm so the shorter term

323
00:16:50,063 --> 00:16:54,074
medium term in the longer term momentum
on whatever market whatever time frame

324
00:16:54,074 --> 00:16:57,149
you looking at cracked

325
00:16:58,049 --> 00:17:01,100
correct okay so there's those

326
00:17:02,000 --> 00:17:06,012
and

327
00:17:06,012 --> 00:17:09,038
okay so we were in others the
directional place we've already talked

328
00:17:09,038 --> 00:17:11,082
about what an options we wanna by
directional I'm

329
00:17:11,082 --> 00:17:14,153
so this case I wanna go in the money on
a good ultimately seventy

330
00:17:15,053 --> 00:17:17,059
and if you're new adoptions that's
really is just like that just means that

331
00:17:18,013 --> 00:17:19,086
you in one or two strikes in the money

332
00:17:19,086 --> 00:17:24,125
okay so the stock is at 160 then you
wanna go down to like the 155 caller may

333
00:17:25,025 --> 00:17:25,122
be the 150

334
00:17:26,022 --> 00:17:29,036
in this case the 155 said adult have 68

335
00:17:29,036 --> 00:17:32,055
which is close enough us we pick those
up

336
00:17:32,055 --> 00:17:36,060
and then I'm here's my rule of thumb
with us first ball

337
00:17:37,005 --> 00:17:40,012
let's talk about targets first what I'm
looking for

338
00:17:40,012 --> 00:17:43,106
for a move here is a percent a specific
percent move in the underlying stock

339
00:17:44,006 --> 00:17:49,085
okay somewhat what i'm looking for here
is a 1.75 percent movie online stock

340
00:17:49,085 --> 00:17:53,092
the reason these percentages because a
$600 or stocks like Apple

341
00:17:53,092 --> 00:17:57,100
a 1.75 percent move is going to be a
much bigger point value:

342
00:17:58,000 --> 00:18:02,021
now twenty dollar stock OKC I wanna say
I wanna make a dollar in and get out

343
00:18:02,021 --> 00:18:06,038
now you get up 1.75 percent on the
underlying stock

344
00:18:06,038 --> 00:18:09,120
you dump happy position at whatever the
market prices

345
00:18:10,002 --> 00:18:14,100
okay so I'm very big on directional
trades on using the actual online stock

346
00:18:15,018 --> 00:18:19,094
to exit the trade cannot so and this
case is not so much like why I bought

347
00:18:19,094 --> 00:18:19,141
this

348
00:18:20,041 --> 00:18:24,041
about the options 70 want to get out a
bit 14 on this particular one

349
00:18:24,041 --> 00:18:27,050
that the stocks up one and three
quarters percent boom give me and I have

350
00:18:27,005 --> 00:18:27,079
my position

351
00:18:28,024 --> 00:18:31,073
the other thing you not hear me talk
about here is

352
00:18:31,073 --> 00:18:34,081
I rarely if ever hold trades expiration

353
00:18:35,053 --> 00:18:38,068
that's another thing always annoys me in
books like oh you buy this in

354
00:18:38,068 --> 00:18:41,103
holders expiration or resell doesn't
hold expiration

355
00:18:42,003 --> 00:18:45,056
there's nothing wrong with taking a
profit before expiration okay and why

356
00:18:45,056 --> 00:18:45,108
it's

357
00:18:46,008 --> 00:18:50,020
II be a little careful to about any
strategies like that one word

358
00:18:50,002 --> 00:18:55,005
one other riskier strategy is that start
out there that's taught as a

359
00:18:55,023 --> 00:18:56,047
conservative strategies

360
00:18:56,047 --> 00:19:00,069
is due in iron condors two weeks out
exploration are so many things that can

361
00:19:00,069 --> 00:19:01,081
go wrong with that

362
00:19:01,081 --> 00:19:04,150
the best iron condors are actually down
about six weeks before expiration and

363
00:19:05,005 --> 00:19:07,017
taken off about two weeks before
expiration

364
00:19:07,062 --> 00:19:11,126
but I mean here you know gets very sexy
the last two weeks a premium decay

365
00:19:12,026 --> 00:19:15,062
to do that that's actually the highest
risk wrist time to be in that trade

366
00:19:15,062 --> 00:19:18,071
but that's another discussion alright so

367
00:19:18,071 --> 00:19:21,128
in this case a 1.75 percent moved

368
00:19:22,028 --> 00:19:25,034
that mean that the move two dollars in
ATT's two cents on the stock

369
00:19:25,088 --> 00:19:29,089
if you've got a Dell 270 option that
means an option gonna move a dollar 97

370
00:19:29,089 --> 00:19:33,173
give or take okay you're gonna get out
that trade I'm on this particular one

371
00:19:34,073 --> 00:19:38,085
things we buy a bot calls at seven
dollars in 20 books

372
00:19:38,085 --> 00:19:40,163
seven dollars and twenty five cents
seven dollars and thirty five cents

373
00:19:41,063 --> 00:19:42,124
seven dollars 40 cents

374
00:19:43,024 --> 00:19:46,096
and then flip them out at 925 925 905

375
00:19:46,096 --> 00:19:50,113
so on these trains like this and you
don't have to hit a home run

376
00:19:51,013 --> 00:19:54,092
in options trading: up to buy something
at to install a 10

377
00:19:54,092 --> 00:19:57,095
you can make a living by in something at
seven and sign in at nine

378
00:19:57,095 --> 00:20:00,148
okay kinda like wal-mart

379
00:20:01,048 --> 00:20:07,080
so they buy it one is on at nine alright
so

380
00:20:07,008 --> 00:20:10,011
22 alright

381
00:20:11,001 --> 00:20:14,009
this or my favorite day trades and

382
00:20:14,018 --> 00:20:18,113
I'm real big onto outfit but not you
level sand for me not gr extensions

383
00:20:19,013 --> 00:20:22,021
I follow a Caroline broadens work if
you've heard of her

384
00:20:22,021 --> 00:20:25,108
but the 1272 extensions a very clean cut
the third set up here

385
00:20:26,008 --> 00:20:30,067
and all that is is what you're doing is
you're looking for a stock that's making

386
00:20:30,067 --> 00:20:33,123
a new high okay does have to be a new
all-time high just

387
00:20:34,023 --> 00:20:37,112
a new high for the day to be a new high
for the year the high for the month

388
00:20:38,012 --> 00:20:42,018
and once it pierces through

389
00:20:42,018 --> 00:20:45,103
okay then what you gonna do as you gonna
take the feminazis from this height and

390
00:20:46,003 --> 00:20:46,076
a slow

391
00:20:46,076 --> 00:20:49,077
you gonna find out where the 1272
extension is

392
00:20:49,077 --> 00:20:53,101
because when I found is that if it
breaks through to that new high

393
00:20:54,001 --> 00:20:59,003
it's got about a 90 percent chance of
hitting that 1272 extension

394
00:20:59,003 --> 00:21:02,014
okay there's a lot of information that
you can do with that

395
00:21:02,014 --> 00:21:05,042
so is example a MasterCard

396
00:21:05,042 --> 00:21:08,117
what's great about this is that is you
guys know look if you try to do

397
00:21:09,017 --> 00:21:12,030
options players I mean people bot say

398
00:21:12,003 --> 00:21:15,049
options like on a stock like Apple the
day before earnings

399
00:21:15,076 --> 00:21:19,122
mister curiosity go on least three
people had the guts to admit that they

400
00:21:20,022 --> 00:21:21,075
tried it okay

401
00:21:21,075 --> 00:21:24,172
I'm prepared what happens a lot of time
is that the implied volatility gets so

402
00:21:25,072 --> 00:21:27,107
high before earnings it's impossible to
make money

403
00:21:28,007 --> 00:21:32,019
by an option like an atom any option
before earnings on Apple can be like

404
00:21:32,019 --> 00:21:33,045
thirty dollars

405
00:21:33,045 --> 00:21:37,049
so you buy it the stock jumps up thirty
dollars in your break even on the train

406
00:21:37,049 --> 00:21:40,134
okay so it's mean the system is rigged
on that kinda stuff

407
00:21:41,034 --> 00:21:44,071
however after earnings there's
opportunities this is MasterCard

408
00:21:44,071 --> 00:21:45,119
afternoons

409
00:21:46,019 --> 00:21:49,090
it popped up made a good move higher
then start to pull back

410
00:21:49,009 --> 00:21:52,083
again when I found is especially on
these earnings players rather a pop

411
00:21:53,064 --> 00:21:54,066
opera pop down

412
00:21:54,084 --> 00:21:57,088
is that if they make a high early in the
session at some point during the

413
00:21:57,088 --> 00:21:58,120
afternoon or the next day

414
00:21:59,002 --> 00:22:01,077
they're gonna break out that high okay
because they gonna take out all the

415
00:22:01,095 --> 00:22:02,164
people that were short

416
00:22:03,064 --> 00:22:07,072
so I to do then is as we you as a pops
up here and pulls back

417
00:22:08,044 --> 00:22:10,128
I don't look for a squeeze the squeeze
tell me it's like a two things get

418
00:22:11,028 --> 00:22:12,030
really quiet

419
00:22:12,003 --> 00:22:15,025
it's starting to break out you know
getting to move great

420
00:22:15,052 --> 00:22:19,056
I'll buy some in the money calls here
with a stop at the low the day

421
00:22:19,056 --> 00:22:22,130
and my target is simply the 1272
extension

422
00:22:23,003 --> 00:22:26,010
now what I'll do though is if the move
happens very quickly

423
00:22:26,037 --> 00:22:30,088
for example time holding it overnight
and hits at 1272 Accenture Lee quickly

424
00:22:30,088 --> 00:22:34,101
all sell a portion of it and then see if
we can get up to the 16 18

425
00:22:35,001 --> 00:22:39,054
typically have seen its about a 50-50
shot that'll get up to the 16 18

426
00:22:39,054 --> 00:22:42,069
so in this particular case and I
actually like to use the transition

427
00:22:42,069 --> 00:22:43,110
matrix for options trading

428
00:22:44,001 --> 00:22:47,009
I don't know how many people do that
they've actually recently come out with

429
00:22:47,009 --> 00:22:48,062
a lot of improved tools

430
00:22:49,043 --> 00:22:52,081
in their option options pro but I've
always for day trading

431
00:22:52,081 --> 00:22:55,119
lobbies in the matrix you can sit there
you can leave your stops around

432
00:22:56,019 --> 00:23:03,019
I think every time the move stop brown
doesn't that cost money though

433
00:23:03,053 --> 00:23:07,112
be some complicated for me I like that

434
00:23:08,012 --> 00:23:12,101
okay of I'll be sure to read it um

435
00:23:13,001 --> 00:23:16,006
so okay sohn something like this then i
member this this particular position

436
00:23:16,051 --> 00:23:17,100
closed it was up

437
00:23:18,000 --> 00:23:22,012
I'll like 30 cents or something like
that in the next morning it gapped up

438
00:23:22,012 --> 00:23:25,017
and move to that 1272 extension right
away such great

439
00:23:25,062 --> 00:23:29,101
I took off summer-like on tracks okay
moved up my stop and i wanna see if we

440
00:23:30,001 --> 00:23:32,009
get to 1618 extension

441
00:23:32,009 --> 00:23:35,094
now what happened here you can see it
went up to the 1272 extension

442
00:23:35,094 --> 00:23:38,125
it then it came back to its breakout
point and that's when things get a

443
00:23:39,025 --> 00:23:42,050
little dicey I mean you gotta sit there
realize like okay we've taken a profit

444
00:23:42,005 --> 00:23:43,092
you moved up to stop to break even

445
00:23:44,037 --> 00:23:46,131
and this point really get brought you
gonna get stopped out for a scratch on

446
00:23:47,031 --> 00:23:48,119
the second half your tray which is fine

447
00:23:49,019 --> 00:23:52,045
or its gonna reverse and go back up
which obviously is better

448
00:23:52,045 --> 00:23:55,274
in this case a diverse in go back up but
I mean I'll be honest with you know what

449
00:23:55,679 --> 00:23:56,640
happens is

450
00:23:56,064 --> 00:24:01,125
I'd say 55 to 60 percent of the time in
this case unit scratched out on that

451
00:24:02,025 --> 00:24:02,114
second one

452
00:24:03,014 --> 00:24:06,060
okay the 1272 extension very high
probability

453
00:24:06,006 --> 00:24:09,061
it's okay to take all your profits there
if you want if you receiving a little

454
00:24:10,015 --> 00:24:10,067
more

455
00:24:10,067 --> 00:24:13,088
that this realize it's about a 50-50
shot

456
00:24:13,088 --> 00:24:16,149
so at this point the main thing you want
to do is protect protector profits in

457
00:24:17,049 --> 00:24:20,070
case the strain yourself a case at least
have a stop-loss were

458
00:24:20,007 --> 00:24:23,486
he is top down a second half is at least
a scratch trade if not a little bit more

459
00:24:24,179 --> 00:24:26,440
question

460
00:24:26,044 --> 00:24:30,097
alright so one question too I found that
people ask

461
00:24:30,097 --> 00:24:34,132
is especially the first couple years a
train journey can be kinda rough

462
00:24:35,032 --> 00:24:41,036
I remember um gosh the first time the
first time I had a big loss when I was a

463
00:24:41,036 --> 00:24:44,855
my wife and I were we've been married
about a year

464
00:24:45,179 --> 00:24:49,130
and I came home one day and said
something like you know is coming off

465
00:24:49,013 --> 00:24:50,028
the cuff remark i

466
00:24:50,028 --> 00:24:53,070
said something like I had a really bad
day today she's like what's wrong allied

467
00:24:53,007 --> 00:24:57,059
lost like 30 grand in the markets now it
for me it was a big time is a big loss

468
00:24:58,022 --> 00:25:02,040
at the time and down United think too
much about it as a spouse you wanna be

469
00:25:02,004 --> 00:25:04,015
open with each other and stuff like that

470
00:25:04,051 --> 00:25:07,139
and you now into a room change happen
the shower came out near my wife's like

471
00:25:08,039 --> 00:25:10,123
on a sofa like bawling her eyes out like
you know

472
00:25:11,023 --> 00:25:15,099
oh my god Ra and and it's tough cuz it's
like durian I and II just had a

473
00:25:15,099 --> 00:25:17,188
the second additional my book came out
this master the trade and she actually

474
00:25:18,088 --> 00:25:18,165
wrote

475
00:25:19,065 --> 00:25:23,146
come I've got it's funny cuz its thing
on page 21 or 22 or she actually wrote

476
00:25:24,046 --> 00:25:26,055
like an article on their like what's it
like to live with the trader

477
00:25:27,036 --> 00:25:30,094
like what's it been like an when I read
it I mean I like laughed I got a little

478
00:25:30,094 --> 00:25:30,172
nauseous

479
00:25:31,072 --> 00:25:33,145
was like wow you were you I did know she
is paying attention you know all that

480
00:25:34,045 --> 00:25:35,051
time

481
00:25:35,051 --> 00:25:39,054
but it was pretty interesting and so
question a valid question comes up is

482
00:25:39,054 --> 00:25:41,061
like you know can you actually make it
as a traitor

483
00:25:41,061 --> 00:25:44,086
because you hear that the success rates
are pretty low you know it's like 90

484
00:25:44,086 --> 00:25:45,097
percent Raiders

485
00:25:45,097 --> 00:25:48,122
you know that special Ian's like
leverage instruments to make it

486
00:25:49,022 --> 00:25:52,054
and in their little is good news and bad
news here in the good news is yes

487
00:25:52,054 --> 00:25:53,152
trading is a very valid career path

488
00:25:54,052 --> 00:25:57,137
you know traders from all walks of life
that have found their groove

489
00:25:58,037 --> 00:26:01,055
and they just you know they this is what
they love this is what they do they

490
00:26:01,055 --> 00:26:04,133
found a way to kind overcome some the
psychological battles

491
00:26:05,033 --> 00:26:08,126
other cousin lose money the bad news is
it is one the most difficult Kors on the

492
00:26:09,026 --> 00:26:11,030
planet in most people fail at it because

493
00:26:11,066 --> 00:26:14,072
largely because the psychological issues

494
00:26:14,072 --> 00:26:17,078
the real rub here is that in trading

495
00:26:17,078 --> 00:26:20,100
train is difficult because it requires
us to consistently do

496
00:26:21,000 --> 00:26:25,012
what is psychologically uncomfortable in
a natural okay

497
00:26:25,012 --> 00:26:28,063
and this never goes away in our no
matter how long you been doing this

498
00:26:28,063 --> 00:26:32,156
I'm what would be a definition
psychologically on country on a natural

499
00:26:33,056 --> 00:26:36,072
an apple breaks out to all time new
highs through five hundred dollars a

500
00:26:36,072 --> 00:26:36,145
share

501
00:26:37,045 --> 00:26:40,101
how many people want to buy it then how
many people wanna buy a new hire

502
00:26:41,001 --> 00:26:44,039
purchase waiting for the safe pull back
to the 21-page moving average

503
00:26:44,039 --> 00:26:47,130
well the people who wait for the
pullback that's the safe trade

504
00:26:48,003 --> 00:26:51,612
you know they never get filled the
people who in that case by the new high

505
00:26:51,909 --> 00:26:55,340
make money on it but does that work
every time know there's gonna be a lot

506
00:26:55,034 --> 00:26:57,107
of false breakouts and everything like
that to you so

507
00:26:58,007 --> 00:27:01,078
its it's one of those where it is you
know the top the top trade is typically

508
00:27:01,078 --> 00:27:01,150
the one

509
00:27:02,005 --> 00:27:04,101
are that the right tree is typically the
one that stuff is to do and you just

510
00:27:05,046 --> 00:27:06,062
gotta remember that that

511
00:27:06,062 --> 00:27:10,136
if the trade feel safe guess what it
feel safe everybody else to

512
00:27:11,036 --> 00:27:14,079
and the trade that feel safe the tree
that's obvious never works out

513
00:27:14,079 --> 00:27:17,097
if there's a crystal clear head &
Shoulders pattern there guess what

514
00:27:17,097 --> 00:27:21,113
everybody season everybody's lawyer for
the trade a trade going to fail

515
00:27:22,013 --> 00:27:26,292
most times so just kinda remember that
as you're going through and that's you

516
00:27:26,409 --> 00:27:29,360
know it's kinda that's what I found is
about obvious set-ups the that seem like

517
00:27:29,036 --> 00:27:30,071
there is a trades

518
00:27:30,071 --> 00:27:33,125
typically don't work out was a lotta
money moving around out there

519
00:27:34,025 --> 00:27:36,121
arm you know it's like things like
eighty percent at the moment in the

520
00:27:37,021 --> 00:27:39,023
market are controlled by twenty hedge
funds

521
00:27:39,023 --> 00:27:42,052
you know the 20 largest ones that are
out there they'll see this up to

522
00:27:42,052 --> 00:27:45,961
you know it's not a mystery okay so

523
00:27:46,429 --> 00:27:49,720
is I wanna see an example the trade here
that I did

524
00:27:49,072 --> 00:27:53,126
I wanna say the training is not easy and
I remember this because I was packing up

525
00:27:54,026 --> 00:27:54,078
as

526
00:27:54,078 --> 00:27:58,105
doing a flight to chicago and I woke up
and I had some calls on overnight

527
00:27:59,005 --> 00:28:03,088
on Apple and by the UN Amazon an Apple
is doing great Amazon

528
00:28:03,088 --> 00:28:06,120
in by the we're not doing so great but I
had about an hour before my flight times

529
00:28:07,002 --> 00:28:09,081
in there trying to pack and watch a
quote it's not like that

530
00:28:09,099 --> 00:28:12,102
and as you can see here this is the same
setup that we just talked about on

531
00:28:13,002 --> 00:28:13,010
MasterCard

532
00:28:13,082 --> 00:28:17,171
I'm looking for is for Apple take this
momentum and get up to the 1272

533
00:28:17,909 --> 00:28:18,740
extension

534
00:28:18,074 --> 00:28:22,253
okay and possibly the 16 18 but
realistically I was looking for the 127

535
00:28:22,919 --> 00:28:25,450
to not get out

536
00:28:25,045 --> 00:28:29,086
so I said no I looked at my limit orders
in place and Diaz paquin

537
00:28:29,086 --> 00:28:33,112
and as I'm watching along here met in
cmd i'm taking a hit on by to Amazon's

538
00:28:34,012 --> 00:28:35,561
doing okay

539
00:28:35,669 --> 00:28:40,270
and then Apple's you know it's exploding
up through here looks great

540
00:28:40,027 --> 00:28:44,124
and then you can see are getting really
close to my target here

541
00:28:45,024 --> 00:28:50,031
and then what happens is that some
report comes out an Apple starts to

542
00:28:50,031 --> 00:28:54,048
crater okay and craters a strong term it
went down about 28 points

543
00:28:54,048 --> 00:28:57,057
and I joked I mean I'd got outta the
market

544
00:28:57,057 --> 00:29:00,079
and you know I was I've gotta pack and
gotta do this I don't come back against

545
00:29:00,079 --> 00:29:01,088
me

546
00:29:01,088 --> 00:29:04,097
okay the heart rate here would have been
just to follow my plan to leave it on

547
00:29:05,078 --> 00:29:06,104
cuz your ego like

548
00:29:07,004 --> 00:29:10,013
you know 30 minutes later as a one
minute chart

549
00:29:10,013 --> 00:29:13,792
it comes up in its my target right um

550
00:29:13,909 --> 00:29:18,310
national made money on the trade by it
again it always comes back to

551
00:29:18,031 --> 00:29:22,056
doing a hard thing following your plan
and a hard thing for me here

552
00:29:22,056 --> 00:29:25,063
in this particular case was staying in
the trade

553
00:29:25,063 --> 00:29:27,150
the speaker you look like I gotta go
catch a flight I mean all these

554
00:29:28,005 --> 00:29:29,104
different things are always going to
distraction in

555
00:29:30,049 --> 00:29:33,137
distractions in your trading came and
got three young kids to run around

556
00:29:34,037 --> 00:29:38,074
on there's always gonna be distractions
but what I found

557
00:29:38,074 --> 00:29:41,123
is that the takeaway here is that if you
get your strategy down

558
00:29:42,023 --> 00:29:46,027
that you can actually make a lot of
money trading my not being perfect

559
00:29:46,027 --> 00:29:49,046
okay you don't have to have the perfect
rate I can count on one hand the number

560
00:29:49,046 --> 00:29:50,082
of trades I've done this year though

561
00:29:50,082 --> 00:29:53,111
call perfect raids it's always something
coming in

562
00:29:54,011 --> 00:29:57,047
om you know there's there's there's
never the ideal entry

563
00:29:57,047 --> 00:30:00,126
there's a good injury cocaine use have
to be prepared to do that

564
00:30:01,026 --> 00:30:07,083
alright so already begun time what it
will just talk and

565
00:30:07,083 --> 00:30:10,175
okay American eye-catching take a breath
here okay

566
00:30:11,075 --> 00:30:15,097
I'm

567
00:30:15,097 --> 00:30:19,161
so for those you that trade options just
outta curiosity how many you an entry in

568
00:30:20,061 --> 00:30:22,077
the weekly options that have come out

569
00:30:22,077 --> 00:30:25,150
okay week weekly options are fantastic
because

570
00:30:26,005 --> 00:30:30,061
they have very high premium decay and I
we looked on in general is

571
00:30:31,006 --> 00:30:35,012
I'm I'll biweekly options but I just
won't hold an overnight

572
00:30:35,012 --> 00:30:38,012
okay I'm I don't mind a trade in weekly
option

573
00:30:38,012 --> 00:30:41,014
but in general I'm looking to sell
weekly options now is a couple

574
00:30:41,032 --> 00:30:44,032
strategies you can do with that they're
not include in its presentation on a

575
00:30:44,032 --> 00:30:45,088
strong out there for you

576
00:30:45,088 --> 00:30:50,095
on 10 things I found is that out what a
lot of people come up and say like

577
00:30:50,095 --> 00:30:55,119
hey John I'm gonna sell these weekly
options on Friday because

578
00:30:56,019 --> 00:31:00,028
there's gonna be premium decay over the
weekend sheesh

579
00:31:00,028 --> 00:31:04,090
okay there's no free lunch okay what
happens is

580
00:31:04,009 --> 00:31:08,034
the market makers know that people want
to sell these weekly options on Friday

581
00:31:09,015 --> 00:31:11,018
because they think they're gonna be
premium decay over the weekend to the

582
00:31:11,045 --> 00:31:14,087
market makers actually push down the
premium

583
00:31:14,087 --> 00:31:17,115
to two with to what option will be on
Tuesday

584
00:31:18,015 --> 00:31:21,114
and then everybody sells them on Friday
and the donor stand why on Monday they

585
00:31:22,014 --> 00:31:23,045
don't make any money on it

586
00:31:23,045 --> 00:31:26,104
okay strategy can do it weekly options

587
00:31:27,004 --> 00:31:30,030
you can actually sell them on Thursday
and buying back

588
00:31:30,003 --> 00:31:33,081
on Friday like the next day when the
market makers are pushing down the

589
00:31:34,008 --> 00:31:34,086
volatility

590
00:31:34,086 --> 00:31:38,090
okay it works really good on spiders on
you can do it as a

591
00:31:38,009 --> 00:31:41,081
credit spread its fine or how he got the
margin

592
00:31:42,062 --> 00:31:45,158
to sell an outright what happen is my
first come out on Thursday

593
00:31:46,058 --> 00:31:49,076
like that first hour that the trading
that's when you wanna sell 'em

594
00:31:49,076 --> 00:31:52,083
by Friday afternoon the market makers
are pushing down the implied volatility

595
00:31:52,083 --> 00:31:55,086
for all the people that are coming in
Friday to you

596
00:31:55,086 --> 00:32:00,119
test we capped and sources were things
again we got how look if it's obvious

597
00:32:01,019 --> 00:32:01,098
out there in

598
00:32:01,098 --> 00:32:03,797
a min guess what the market makers know
that they're going to take advantage of

599
00:32:04,679 --> 00:32:04,684
it

600
00:32:05,179 --> 00:32:08,820
however that is this that is tragic
weekly options you can do

601
00:32:08,082 --> 00:32:11,107
I'm typically you know you can sell %um
selling it damn it spread

602
00:32:12,007 --> 00:32:15,026
it typically make fifteen to twenty
percent on that debit

603
00:32:15,026 --> 00:32:17,114
and then you can close it back you can
actually hold that over the weekend if

604
00:32:18,014 --> 00:32:19,102
you want but there is an opportunity
there

605
00:32:20,002 --> 00:32:23,056
okay on another when you can do

606
00:32:23,056 --> 00:32:28,063
is if you're doing I'm must-see for
weekly options

607
00:32:29,026 --> 00:32:31,090
are so many fun things you can do with
them one thing I actually like to do

608
00:32:31,009 --> 00:32:33,070
with weekly options I call it kinda like
a landlord play

609
00:32:34,051 --> 00:32:38,056
where say that you've got a longer term
position that you like say an Amazon

610
00:32:38,056 --> 00:32:42,065
a directional play maybe it's you know
you but the option two months out

611
00:32:42,065 --> 00:32:46,088
I one thing I do is just sell now the
money weekly in this case a about a deep

612
00:32:46,088 --> 00:32:47,096
in the money call

613
00:32:47,096 --> 00:32:50,144
is every week to selling out of money
call against it every week when it comes

614
00:32:51,044 --> 00:32:51,053
up

615
00:32:52,034 --> 00:32:55,121
and most the time is worship you saw
that you know I'm usually sell about two

616
00:32:56,021 --> 00:32:57,720
strikes out the money

617
00:32:57,909 --> 00:33:01,560
many times for weeks will go by where
you just click the entire premium on

618
00:33:01,056 --> 00:33:01,425
that

619
00:33:01,929 --> 00:33:05,530
are many cell for four dollars in my
back for a dollar but typically

620
00:33:05,053 --> 00:33:08,065
by the time you're halfway through that
holding period you've already paid for

621
00:33:08,065 --> 00:33:09,098
the option

622
00:33:09,098 --> 00:33:12,139
okay so now become kinda free trade told
Sky called the landlord play because

623
00:33:13,039 --> 00:33:14,040
it's like you own

624
00:33:14,004 --> 00:33:17,013
you know you own this piece a property
in your to selling you know you're kinda

625
00:33:17,049 --> 00:33:19,071
rate it out for a week at a time

626
00:33:19,071 --> 00:33:22,098
and a core sometimes the stock may just
jump up and now you're

627
00:33:22,098 --> 00:33:25,119
the one he sold and the money but
historic the spread on it

628
00:33:26,019 --> 00:33:29,051
okay so no big deal the biggest thing i
watch where there's a price you know the

629
00:33:29,051 --> 00:33:30,103
price plummet

630
00:33:31,003 --> 00:33:35,035
so that's a strategy that like as well
on

631
00:33:35,035 --> 00:33:38,854
other other credit other useful things I
found with weekly options as we were

632
00:33:39,169 --> 00:33:42,217
talking earlier about how I can say
right before Apple earnings

633
00:33:42,649 --> 00:33:46,450
how the implied volatility get so high
and that the at the money calls it at

634
00:33:46,045 --> 00:33:47,754
the money put her son for 30 bucks

635
00:33:48,159 --> 00:33:52,200
which is crazy so I do is before

636
00:33:52,002 --> 00:33:55,064
I the day before earnings come out like
on a Google or a nap or something like

637
00:33:55,082 --> 00:33:55,681
that

638
00:33:56,419 --> 00:33:59,440
you'll see that like on Google we did
this where

639
00:33:59,044 --> 00:34:03,060
the strikes sixty dollars out the money
you could sell a credit spread sixty

640
00:34:03,006 --> 00:34:04,071
dollars our money for a dollar

641
00:34:05,025 --> 00:34:09,144
okay you can't do that the day after
earnings the day after India

642
00:34:09,369 --> 00:34:13,450
you can get a penny for it so what we
were doing tonight that you actually do

643
00:34:13,045 --> 00:34:13,144
an iron condor

644
00:34:14,044 --> 00:34:18,044
icon Google like sixty dollars out of
money both ways

645
00:34:18,044 --> 00:34:21,044
now what your bed is obviously is that
the that the

646
00:34:21,044 --> 00:34:24,045
move after earnings is going be less
than sixty dollars okay

647
00:34:24,054 --> 00:34:28,071
if it's over sixty dollars used to be
the slider is your ratio in place

648
00:34:28,071 --> 00:34:32,240
om boredom that North Google and Apple
and different things like that

649
00:34:32,879 --> 00:34:34,928
the nice thing about the weekly options
as they actually kinda give you his

650
00:34:35,369 --> 00:34:36,210
window

651
00:34:36,021 --> 00:34:39,106
a bumper tune in to play earnings to
take advantage a premium selling

652
00:34:40,006 --> 00:34:43,009
just for the love of God don't like same

653
00:34:43,009 --> 00:34:46,010
by an alum money weekly option like on
Tuesday

654
00:34:46,001 --> 00:34:50,020
and hoping that it'll go higher I mean
it's just the the premium decay on it

655
00:34:50,119 --> 00:34:55,230
is literally I'm like a mule in 10 our
money call options on Apple

656
00:34:55,023 --> 00:34:58,069
you lose about seven hundred dollars a
day in premium

657
00:34:58,069 --> 00:35:01,074
okay I see just gotta realize that you
discover take billion against you

658
00:35:02,019 --> 00:35:09,019
very very much on us

659
00:35:10,002 --> 00:35:13,091
know okay so was talking right now if
you sell it that's great

660
00:35:14,009 --> 00:35:17,068
it's good because you're essentially
making so if you sell

661
00:35:17,068 --> 00:35:20,075
on like say you know credit cell put

662
00:35:20,075 --> 00:35:24,081
okay on Apple the salt n along you're
makin seven hundred dollars a day just

663
00:35:24,081 --> 00:35:25,640
in premium erosion

664
00:35:26,369 --> 00:35:29,820
if you buy it you get your taken a hit
on it so you just gonna be very very

665
00:35:29,082 --> 00:35:30,096
helpful careful

666
00:35:30,096 --> 00:35:34,103
when you're buying weekly options
because they can really screw the pooch

667
00:35:35,003 --> 00:35:36,097
i GNA

668
00:35:36,097 --> 00:35:40,128
and now I'm not a technical term did

669
00:35:41,028 --> 00:35:44,030
okay so on Thursday by Friday I cut the
Delta like

670
00:35:44,003 --> 00:35:47,059
twenties right around there I mean look
at Del 220 is you can go

671
00:35:47,086 --> 00:35:51,103
you can go um 345 strikes out the money
like that

672
00:35:52,003 --> 00:35:56,024
on what I've also found no you get a
little bit especially if it's quiet if

673
00:35:56,024 --> 00:35:57,653
the markets quieter

674
00:35:57,869 --> 00:36:01,770
if you sell closer um at the money

675
00:36:01,077 --> 00:36:05,111
you get about so he sell out the money
like a delta 28-year-old you know you

676
00:36:06,011 --> 00:36:07,104
get a it's a diesel kicker

677
00:36:08,004 --> 00:36:10,098
if it looks like the markets pretty
range-bound especially Thursday I'll

678
00:36:10,098 --> 00:36:11,151
actually sell at the money

679
00:36:12,051 --> 00:36:14,058
and then you usually get a look if you
do a debit spread you can usually get

680
00:36:15,021 --> 00:36:18,077
like 15 to 20 percent on the dead it's
ready so at the money

681
00:36:18,077 --> 00:36:21,079
if you sell lube it for other money you
think it is

682
00:36:21,097 --> 00:36:24,097
as much a bang for the buck picture you
know you gonna collect

683
00:36:24,097 --> 00:36:28,121
it's more like five or six percent or
something like that

684
00:36:29,021 --> 00:36:32,076
I your questions ok axles diving I'm

685
00:36:32,076 --> 00:36:35,128
okay so

686
00:36:36,028 --> 00:36:38,033
I'm always talk about the three times a
technical analysis you've got %ah

687
00:36:38,078 --> 00:36:41,081
slater's trend following in volatility

688
00:36:41,081 --> 00:36:44,088
as the only type of indicators are out
there and there's no amor magic anything

689
00:36:45,051 --> 00:36:45,126
like that it just

690
00:36:46,026 --> 00:36:51,039
missus math on the one of those is the
most what important those volatility in

691
00:36:51,039 --> 00:36:54,039
as the squeeze that we looked at the
beginning of this

692
00:36:54,039 --> 00:36:59,041
on but here's what I wanted there's the
next set up a lot to talk about

693
00:36:59,041 --> 00:37:02,078
we didn't talk about we talked about
Balsillie we talked about trending

694
00:37:02,078 --> 00:37:05,086
bulletin talk about oscillators and this
is my favorite

695
00:37:06,058 --> 00:37:09,067
set up for doing weekly credit spreads
were actually just doesn't have the

696
00:37:09,067 --> 00:37:09,124
weekly

697
00:37:10,024 --> 00:37:13,097
any type a crossroads this happens to be
charted by do

698
00:37:13,097 --> 00:37:17,106
on it's a daily chart will not do this
on other time frames I like doing this

699
00:37:18,006 --> 00:37:20,030
on daily charts I want to a five minute
charter

700
00:37:20,003 --> 00:37:23,012
hourly chart or anything like that but
what you're looking for is you want two

701
00:37:24,002 --> 00:37:25,008
things

702
00:37:25,008 --> 00:37:28,060
I one you wanna move to the upper band
now this is a

703
00:37:29,032 --> 00:37:33,066
it's called a reversion to the mean band
but it's just like the color channels

704
00:37:33,066 --> 00:37:37,067
case the color channels are set up is 13
period moving average

705
00:37:37,076 --> 00:37:40,098
manana one-and-a-half times standard
deviation in

706
00:37:40,098 --> 00:37:45,140
perhaps Average True Range we're looking
for is that we actually

707
00:37:46,004 --> 00:37:50,007
slam into the upper band and will get an
overbought are Sirion

708
00:37:50,007 --> 00:37:53,055
okay this is your basic 9 period our
side

709
00:37:54,018 --> 00:37:58,039
okay and all i'm looking for. is for
this market to then revert back to the

710
00:37:58,039 --> 00:37:58,126
mean

711
00:37:59,026 --> 00:38:02,032
okay in this case that's an eight-point
move in by do

712
00:38:02,086 --> 00:38:05,159
now what's nice about this is that now
you can do direction if you want

713
00:38:06,059 --> 00:38:09,105
but I prefer actually in this case to
sign a credit spread okay

714
00:38:10,005 --> 00:38:13,013
and you're not actually looking for the
credit spread expire worthless

715
00:38:13,013 --> 00:38:16,095
in this case you sell I to sell at the
money

716
00:38:16,095 --> 00:38:19,181
if it's a five dollar spread out to be
like to get half addition to the spread

717
00:38:20,081 --> 00:38:21,129
so two dollars and fifty cents

718
00:38:22,029 --> 00:38:27,042
give or take and then typically for
reverts back

719
00:38:27,042 --> 00:38:31,078
on you know you can if you're close not
expiration you will expire worthless as

720
00:38:31,078 --> 00:38:31,086
great

721
00:38:32,058 --> 00:38:35,069
the big problem on credit spreads is
that at some point you get to where he

722
00:38:35,069 --> 00:38:37,138
sold it for 250 N Out at fifty cents

723
00:38:38,038 --> 00:38:41,777
well now you're trying to risk four
dollars and fifty cents

724
00:38:42,119 --> 00:38:45,040
to make fifty cents hey there are times
when those credits president are so

725
00:38:45,004 --> 00:38:46,090
close to expire worthless

726
00:38:46,009 --> 00:38:50,037
just explode against you the next day so
to prevent something like this

727
00:38:51,018 --> 00:38:55,073
looking to sell it to fifty maybe buy it
back at fifty cents and make two bucks

728
00:38:55,073 --> 00:38:58,116
okay very high probability very
consistent play

729
00:38:59,016 --> 00:39:03,018
even in a situation like this one
overshoots okay and overshoots like this

730
00:39:03,036 --> 00:39:05,110
he sold for 250 in its like but wow

731
00:39:06,001 --> 00:39:09,069
well the spread still in place so it's
not like you can completely hammered

732
00:39:09,078 --> 00:39:11,083
here as I don't know in this case

733
00:39:11,083 --> 00:39:14,101
yeah the stock moved up six dollars
against you your position like a dollar

734
00:39:15,001 --> 00:39:15,060
against you

735
00:39:15,006 --> 00:39:18,011
okay and then who do we come back down
we're back to the mean

736
00:39:18,065 --> 00:39:23,109
remember that okay yes

737
00:39:24,009 --> 00:39:28,076
yes yes yeah so you have been questions
09 period our side

738
00:39:28,076 --> 00:39:34,117
overbought is 65 oversold 35

739
00:39:35,017 --> 00:39:39,053
alright IOM

740
00:39:39,053 --> 00:39:42,115
so it was talking about earlier is why

741
00:39:43,015 --> 00:39:47,022
its is critical to understand when
something like a squeeze is taking place

742
00:39:47,022 --> 00:39:51,025
because as we saw earlier we saw those
charts have apple on Priceline

743
00:39:51,025 --> 00:39:54,029
with a squeeze is taking place in energy
is released

744
00:39:54,029 --> 00:39:57,097
and those markets just explode higher
this tragedy does not work in that

745
00:39:57,097 --> 00:39:57,195
situation

746
00:39:58,095 --> 00:40:01,101
okay so the main thing with this is that
you want to look at a market

747
00:40:02,055 --> 00:40:05,118
that does not have a squeeze in place on
okay you look at something where

748
00:40:06,018 --> 00:40:09,077
there is no volatility squeeze going on
a market you want to see this going to

749
00:40:09,077 --> 00:40:11,120
do this during what I call normal market
action

750
00:40:12,002 --> 00:40:16,074
okay I'm

751
00:40:16,092 --> 00:40:20,163
so and then for stop-loss if your gonna
do this direction allowing

752
00:40:21,063 --> 00:40:26,106
which you can do is just put down of 14
pretty diverse you range

753
00:40:27,006 --> 00:40:30,083
and then you come over here and say like
okay at this point for by the new

754
00:40:30,083 --> 00:40:33,097
up average arranges a dollar's

755
00:40:33,097 --> 00:40:36,189
so this means that it could go against
you eight dollars

756
00:40:37,089 --> 00:40:40,157
but the chances are high that it won't
go beyond that now it's nice about this

757
00:40:41,057 --> 00:40:43,356
is a persona credit spread that's not a
big deal

758
00:40:43,869 --> 00:40:47,570
I mean the transmittal go against you
depending how much time you got

759
00:40:47,057 --> 00:40:50,068
maybe a dollar dollar 50 if you do

760
00:40:50,068 --> 00:40:53,247
directionally you just wanna make sure
that you're outside that range you can

761
00:40:53,859 --> 00:40:54,690
see here

762
00:40:54,069 --> 00:40:57,118
it spiked up through that range but
quickly snapped back

763
00:40:58,018 --> 00:41:02,035
okay but a as the biggest thing a lot of
times I've seen as people do these

764
00:41:02,035 --> 00:41:02,118
trades

765
00:41:03,018 --> 00:41:07,019
but then they use to try to stop okay
these are high probability trades

766
00:41:07,019 --> 00:41:09,110
but if you go in there and you're
nervous about it knew the big position

767
00:41:10,001 --> 00:41:11,058
it got really tight stop

768
00:41:11,067 --> 00:41:14,096
the chances are very high that you're
gonna get stopped out okay

769
00:41:14,096 --> 00:41:17,149
I would rather see you use more
positions use wider stops

770
00:41:18,049 --> 00:41:21,168
and let the trade work itself out okay

771
00:41:21,609 --> 00:41:25,010
I'm just you know we've done studies at
this and we found

772
00:41:25,001 --> 00:41:29,048
that the harder you store your screen
actually has a zero impact

773
00:41:29,048 --> 00:41:32,073
on what you want the market to do

774
00:41:32,073 --> 00:41:35,125
so you place your trade you give it room
and you go outside to mow the lawn

775
00:41:36,025 --> 00:41:39,076
no care do something else because
watching the trade is not gonna help it

776
00:41:39,076 --> 00:41:42,094
will happen a lot of times people watch
the trade you know they're gonna get

777
00:41:42,094 --> 00:41:45,113
that unblinking stare and in the US are
doing some stupid stuff

778
00:41:46,013 --> 00:41:49,020
when I say they i mean everybody I'm not
tomorrow and I'm in a trade nobody a

779
00:41:49,002 --> 00:41:51,030
smaller ones are in a trade

780
00:41:51,048 --> 00:41:54,051
but there are tricks that if you know
that when you're in a trade

781
00:41:54,078 --> 00:41:57,125
you start you know freaking out in
looking at it take my take

782
00:41:58,025 --> 00:42:01,030
the trick is one catcher position size
in half

783
00:42:01,003 --> 00:42:05,009
to you place a stop loss three get the
hell away from a computer

784
00:42:05,009 --> 00:42:08,097
you'll be amazed I'm actually wasn't
there was a experiment I did Road Newark

785
00:42:09,078 --> 00:42:10,125
grain trades

786
00:42:11,025 --> 00:42:15,076
I place a stop with an open target okay
and not go to lunch and come back ten

787
00:42:15,076 --> 00:42:16,135
minutes before the rain close

788
00:42:17,035 --> 00:42:21,043
you know I stopped out or the market had
some fantastic move that I connery

789
00:42:22,015 --> 00:42:26,050
every point every bit of and I knew
without a doubt that had I been there

790
00:42:26,005 --> 00:42:29,011
I wanna you know in that positive trade
I went across the whole move

791
00:42:30,001 --> 00:42:33,057
I mean like wow I'm up five cents I need
to take this profit

792
00:42:33,066 --> 00:42:36,077
so this remember that is control your
risk and let the market do what it's

793
00:42:36,077 --> 00:42:36,173
going to do

794
00:42:37,073 --> 00:42:42,166
it helps a lot okay there's example the
Amazon so Amazon here as this fantastic

795
00:42:43,066 --> 00:42:45,154
move all the way from two hundred
dollars up to two hundred and forty-five

796
00:42:46,054 --> 00:42:48,057
dollars almost straight up

797
00:42:48,057 --> 00:42:51,846
at this point guess what it's time to
sell a call credit spread mean

798
00:42:52,359 --> 00:42:55,390
you're looking for a virgin to the mean
and

799
00:42:55,039 --> 00:42:58,046
honestly on some like this here I'd feel
more comfortable doing a cockroach read

800
00:42:58,046 --> 00:43:01,094
the directional put just because the
stock is so strong

801
00:43:01,094 --> 00:43:04,193
I'm so here's a screenshot other you can
see here

802
00:43:05,093 --> 00:43:09,118
I was sold the clothes so if universal
credit spread all you're doing is like

803
00:43:10,018 --> 00:43:13,026
you hear that use in this case its own
and they can call

804
00:43:13,098 --> 00:43:16,150
and then you're buying another call
outside auditor stop-loss

805
00:43:17,005 --> 00:43:21,019
that's all it is so sold 100 other the 2
40's

806
00:43:21,064 --> 00:43:25,533
by 230 45 per for protection and there
was you wanna see obviously is that the

807
00:43:26,109 --> 00:43:27,940
one the soldiers making money

808
00:43:27,094 --> 00:43:29,170
and if the one that you bought is losing
money that's what's supposed to happen

809
00:43:30,007 --> 00:43:32,009
and then you keep the difference

810
00:43:32,009 --> 00:43:34,101
so in this case was sold for two dollars
and twenty five cents so the max

811
00:43:35,082 --> 00:43:38,101
profitable trading be two dollars and
twenty five cents per contract with a

812
00:43:39,001 --> 00:43:41,006
hundred lots that's twenty thousand five
hundred dollars

813
00:43:41,051 --> 00:43:45,118
and the max loss would be two dollars
and seventy five cents per contract

814
00:43:46,018 --> 00:43:49,095
are tours only five dollars per contract
and sales manager that way

815
00:43:49,095 --> 00:43:53,143
and again on these trades it's very rare
that actually let it expire worthless

816
00:43:54,043 --> 00:43:57,043
it's great when they do when you get to
a point where

817
00:43:57,043 --> 00:44:01,095
near the trades to 20 cents and now
you're risking twenty cent profit again

818
00:44:01,095 --> 00:44:02,178
support ornate East Los

819
00:44:03,078 --> 00:44:06,177
the math doesn't make it make sense the
exception is if it's like you know

820
00:44:07,077 --> 00:44:12,095
45 strikes away from re from from near
break-even point then okay fine

821
00:44:12,095 --> 00:44:15,109
but I mean you guys know if you've been
training like Apple or Google

822
00:44:16,009 --> 00:44:19,096
couple weeks ago Google dropped from
like six hundred and twenty nine dollars

823
00:44:19,096 --> 00:44:20,755
to six hundred

824
00:44:21,619 --> 00:44:27,470
on expiration day I'm if you had like a
6-10 credit put crack all credits bet on

825
00:44:27,047 --> 00:44:27,053
that day

826
00:44:28,007 --> 00:44:32,042
like wow it's gonna expire worthless you
got hammered okay so yeah if you're down

827
00:44:32,042 --> 00:44:33,139
and you can take it off for a nickel or
10 cents

828
00:44:34,039 --> 00:44:37,104
just taken off thanks you know people
say are gonna pay the commission on it

829
00:44:38,004 --> 00:44:38,101
that's better than

830
00:44:39,001 --> 00:44:43,084
getting stopped at a light rain on some
crazy move okay

831
00:44:43,084 --> 00:44:46,088
okay um

832
00:44:46,088 --> 00:44:51,144
22 we talked about that okay so here's
the last ravaging but I like to do

833
00:44:52,044 --> 00:44:56,131
as well I called I V crush arm astrid I
think ima cool acronym for it but I can

834
00:44:57,031 --> 00:44:58,080
come up with one

835
00:44:58,359 --> 00:45:03,680
benefit I think that search a check word
for something I'm not sure

836
00:45:03,068 --> 00:45:06,139
on but essentially what you're doing is
on I wake up in the morning

837
00:45:07,039 --> 00:45:11,117
you can I just turn on like CNBC or you
know looking Yahoo News whatever

838
00:45:12,017 --> 00:45:15,056
and you're just looking for stocks that
have bad news

839
00:45:15,056 --> 00:45:18,122
okay earnings as good on the typically
about

840
00:45:19,022 --> 00:45:22,113
any bad news is good except for like an
SEC investigation

841
00:45:23,013 --> 00:45:26,092
that's you know what to do Alan but the
result like this is that

842
00:45:26,092 --> 00:45:30,097
the markets are very efficient in that
they priced in all those bad news before

843
00:45:30,097 --> 00:45:30,176
the open

844
00:45:31,076 --> 00:45:35,113
k the markets trade you know a classic
one is always when steve Jobs was sick

845
00:45:36,013 --> 00:45:39,060
and even when Steve Jobs passed away the
same thing happened what happens is

846
00:45:39,006 --> 00:45:42,034
people panic Apple was down twenty or
thirty dollars

847
00:45:42,088 --> 00:45:45,140
well guess what and when it opens it
already opens

848
00:45:46,004 --> 00:45:50,045
at that price with a price in other news
K in the very first few minutes of

849
00:45:50,081 --> 00:45:50,168
trading

850
00:45:51,068 --> 00:45:54,103
the implied volatility at the money puts
explodes

851
00:45:55,003 --> 00:45:59,031
okay and what you wanna do is you wanna
sell those two people were panicking

852
00:45:59,031 --> 00:46:02,045
because there's been a lot of people
there'll be people at Apple okay who are

853
00:46:02,045 --> 00:46:02,053
probably

854
00:46:03,025 --> 00:46:06,033
you know they're buying puts to hedge
against you know their stock

855
00:46:07,005 --> 00:46:09,101
there'll be lots of people are panicking
because they're thinking why would Apple

856
00:46:10,001 --> 00:46:11,067
goes down a hundred dollars

857
00:46:11,067 --> 00:46:13,141
you know I bought it at a hundred I want
to take these capital gains I need to

858
00:46:14,041 --> 00:46:14,127
buy puts

859
00:46:15,027 --> 00:46:17,105
they panic a nearby points at the open
that's what drives the implied

860
00:46:18,005 --> 00:46:19,048
volatility so I

861
00:46:19,048 --> 00:46:22,072
so what you wanna do is you wanna become
a market maker anyone help them out

862
00:46:22,072 --> 00:46:26,128
in provide them liquidity and sell the
parts to them

863
00:46:27,028 --> 00:46:31,115
now so here's what happens there's
example by dr. the 5 minute chart so by

864
00:46:32,015 --> 00:46:33,034
doomed

865
00:46:33,034 --> 00:46:36,092
close at four hundred thirty dollars it
opens the next day and now this

866
00:46:36,092 --> 00:46:39,107
this is a line chart so it actually open
the next day

867
00:46:40,007 --> 00:46:43,105
down at three hundred seventy dollars so
is sold it at the money puts the three

868
00:46:44,005 --> 00:46:45,063
runs on your part to the open

869
00:46:45,063 --> 00:46:48,088
for 10 bucks now happens here is by DU

870
00:46:48,088 --> 00:46:51,152
stars to trade sideways the first like
10 minutes what is the put do

871
00:46:52,052 --> 00:46:54,143
immediately gets cut by a third

872
00:46:55,043 --> 00:46:59,088
okay that's an implied volatility this
getting crushed

873
00:46:59,088 --> 00:47:03,141
now the beauty in this is that it by
dehydrated dead sideways all day

874
00:47:04,041 --> 00:47:08,044
the move would have been about the same
by do kinda traded sideways to up

875
00:47:08,044 --> 00:47:11,141
being see these pussy sold at ten you
could buy back at four dollars later in

876
00:47:12,041 --> 00:47:13,068
the day

877
00:47:13,068 --> 00:47:18,073
I what happens like this is that you
again when the stock opens up

878
00:47:18,073 --> 00:47:21,125
the bad news is already priced in and so
there'll be some fluctuations like that

879
00:47:22,025 --> 00:47:25,064
but what you're doing is you're getting
an explosion %uh volatility the people

880
00:47:25,064 --> 00:47:25,160
are panicking

881
00:47:26,006 --> 00:47:30,009
that's what you wanna sell into menus
buy it back when things quiet down

882
00:47:30,063 --> 00:47:34,066
now which wanna be careful love is on
something like this too is you can also

883
00:47:34,066 --> 00:47:35,069
courses sell it as a

884
00:47:35,096 --> 00:47:39,099
you know even sold as the spread so you
can work or sell the at the money and

885
00:47:39,099 --> 00:47:40,193
buy one out to some protection

886
00:47:41,093 --> 00:47:44,125
I'm cuz you know you wanna be careful in
case you get something that is goes

887
00:47:45,025 --> 00:47:48,042
if you're selling something make it like
this and just keep going against you can

888
00:47:48,042 --> 00:47:54,241
get pretty scary pretty fast yes

889
00:47:54,619 --> 00:47:58,060
right

890
00:47:58,006 --> 00:48:02,063
write a

891
00:48:02,063 --> 00:48:05,091
yeah I'd so it's a good question so the
question is is that

892
00:48:05,091 --> 00:48:09,050
um gay don't catch a falling knife to
like for example on BP

893
00:48:09,869 --> 00:48:12,894
so I figured that said BP is a good
example I i've come look at it is more

894
00:48:13,119 --> 00:48:14,710
on

895
00:48:14,071 --> 00:48:20,076
gas some good examples are it's like you
know I mean

896
00:48:20,076 --> 00:48:24,175
bad news for the company I mean the oil
spill has come in houston won in fact I

897
00:48:24,859 --> 00:48:25,340
don't

898
00:48:25,034 --> 00:48:28,065
I don't think I remember I don't think
we did on that but I have done it on

899
00:48:28,065 --> 00:48:29,133
companies before where

900
00:48:30,033 --> 00:48:33,082
you know it gaps down and they just keep
you dislike while keeps going if you

901
00:48:33,082 --> 00:48:35,088
sell spread a lot of time you'll be okay

902
00:48:36,042 --> 00:48:39,050
because it'll like the tool can even
themselves out I'm

903
00:48:39,005 --> 00:48:42,026
if it's like a stock is like 60 hours in
below

904
00:48:42,071 --> 00:48:45,128
annual sales like I mean like amgen gap
in like four bucks

905
00:48:46,028 --> 00:48:50,033
alright so will sell it naked watch it
really closely it looks like it's gonna

906
00:48:50,033 --> 00:48:53,045
keep going down either by a backer by
some protection

907
00:48:53,045 --> 00:48:55,090
but there's a lot of times when it's
just like its price did you get some

908
00:48:55,009 --> 00:48:56,015
will go on and things settle down the

909
00:48:57,005 --> 00:49:01,010
you know you can't sell for a dollar
buy-back for 60 cents gonna bang

910
00:49:01,055 --> 00:49:04,143
okay I'm your questions on that

911
00:49:05,043 --> 00:49:08,088
a gap yeah okay

912
00:49:08,088 --> 00:49:11,125
yes a good question is if you're going
to the spread is there another juice out

913
00:49:12,025 --> 00:49:12,097
there

914
00:49:12,097 --> 00:49:15,129
I'm especially if you do so. if you're
selling at the money spread and you can

915
00:49:16,029 --> 00:49:16,103
get

916
00:49:17,003 --> 00:49:20,069
half the price in the spread which is
typically pretty easy in a situation

917
00:49:20,069 --> 00:49:21,083
like this

918
00:49:21,083 --> 00:49:24,119
the so you five dollars five dollars
why'd you sell for 250

919
00:49:25,019 --> 00:49:28,026
generally by the times things settle
down you'll be able to buy it back for

920
00:49:28,026 --> 00:49:28,059
like

921
00:49:28,059 --> 00:49:31,157
120 130 something like that so this is a
rich me like going like okay I'm gonna

922
00:49:32,057 --> 00:49:32,146
grab a Bach

923
00:49:33,046 --> 00:49:36,945
but when he and others verses you know
sign something for 10 and buy it back at

924
00:49:37,359 --> 00:49:38,230
three

925
00:49:38,023 --> 00:49:41,152
some like this ya doing a snake it is
very you know it's like okay

926
00:49:41,359 --> 00:49:44,390
gonna be a little careful there but down
there is

927
00:49:44,039 --> 00:49:48,078
the other thing I do is also sell at the
money and instead of just

928
00:49:48,078 --> 00:49:51,080
it's in a bind the next right down go
down like three or four strikes

929
00:49:51,098 --> 00:49:55,107
so at least now you can in obviously are
not your watching that one very closely

930
00:49:56,007 --> 00:49:58,104
and then a you know if it looks like
things are starting to settle upgrade

931
00:49:59,004 --> 00:50:00,823
working dads more protection but

932
00:50:00,859 --> 00:50:02,958
the first three or four minutes are
pretty can be pretty hairy but then

933
00:50:03,849 --> 00:50:06,670
things settle down fairly quickly

934
00:50:06,067 --> 00:50:09,098
yes yes

935
00:50:09,098 --> 00:50:12,104
absolutely on applies to bat earnings
very much so

936
00:50:13,058 --> 00:50:17,064
now the thing is I found that this does
not work on upside

937
00:50:17,064 --> 00:50:20,120
so it's always bad news is good news
down yeah I just

938
00:50:21,002 --> 00:50:25,040
it was things as people on people panic
on down moves cuz

939
00:50:25,058 --> 00:50:28,080
down this can happen so much faster than
other moves but I move aside

940
00:50:28,008 --> 00:50:34,020
I tried it like twice and I was over to
now is good enough for me

941
00:50:34,092 --> 00:50:37,281
I and a question on a no

942
00:50:38,109 --> 00:50:42,520
good okay alright alright so well good
time inner

943
00:50:42,052 --> 00:50:47,091
so two things one I you got the card
here we go to a drawing here real quick

944
00:50:47,091 --> 00:50:50,112
I will collect those and then I guess
Christine how you wanna do is have a

945
00:50:51,012 --> 00:50:52,071
pass into the middle

946
00:50:52,071 --> 00:50:55,089
yeah passing toward the island ok
electoral to the grind

947
00:50:55,089 --> 00:50:58,131
I'm so for those who are interested in
more options information when you have a

948
00:50:59,031 --> 00:51:01,084
website that's dedicated specifically
the options

949
00:51:01,084 --> 00:51:04,085
is called simpler options

950
00:51:04,085 --> 00:51:07,170
and I we do on this where we do actually
have a nightly video we talk about the

951
00:51:08,007 --> 00:51:10,013
different strategies that we're looking
at

952
00:51:10,076 --> 00:51:13,090
I we also have a portfolio or we tried
it you know specifically tracks in the

953
00:51:13,009 --> 00:51:14,040
trade that we're doing

954
00:51:15,021 --> 00:51:18,103
I'm I believe you have a form was a form
saying

955
00:51:19,003 --> 00:51:22,100
a form on your seat okay perfect so

956
00:51:23,000 --> 00:51:26,049
here that's a good deal I'm a 10-year
trial

957
00:51:26,049 --> 00:51:29,080
so if you wanna try out the site
essentially it's tough you can's

958
00:51:29,008 --> 00:51:32,040
you can sign up on this today we don't
actually have a free trial on the site

959
00:51:33,012 --> 00:51:36,065
we like to keep you know people who are
actually focused on their by you can try

960
00:51:36,065 --> 00:51:38,084
it for 30 days for seven bucks

961
00:51:38,084 --> 00:51:41,178
I'm what I encourage you to do is to do
it and for seven dollars you can get all

962
00:51:42,078 --> 00:51:43,107
the questions answered

963
00:51:44,007 --> 00:51:47,016
that's you you know to make sure that
you know it

964
00:51:47,016 --> 00:51:50,089
go the site though is that if you know
it once you know the challenges you

965
00:51:50,089 --> 00:51:50,186
don't need it anymore

966
00:51:51,086 --> 00:51:54,172
great go do it herself that's fine the
reason people stick around as if they

967
00:51:55,072 --> 00:51:55,164
like the community

968
00:51:56,064 --> 00:51:59,135
so it's just options traders there's a
discussion forum is alive trader was up

969
00:52:00,035 --> 00:52:02,056
like that so if you're looking for
community is pretty good but

970
00:52:02,056 --> 00:52:06,080
for seven bucks arm are you sad try
anything for seven bucks but that's not

971
00:52:06,008 --> 00:52:07,008
true

972
00:52:07,008 --> 00:52:10,023
I'm but for seven bucks I think it's a
pretty good deal

973
00:52:10,095 --> 00:52:15,167
and yes

974
00:52:16,067 --> 00:52:21,080
also big question indicators so I'm some
these indicators are actually

975
00:52:21,008 --> 00:52:24,047
a with built let's see

976
00:52:25,019 --> 00:52:28,051
all the indicators that we have we have
built for TradeStation

977
00:52:28,051 --> 00:52:31,058
I'll we do share the charts in our room

978
00:52:31,058 --> 00:52:35,093
if there are we have on a couple other
platforms but for the most part

979
00:52:35,093 --> 00:52:38,190
I mean it be something to wear if you

980
00:52:39,009 --> 00:52:43,009
I in the in the chat room that we have
all we share our chart to actually see

981
00:52:43,009 --> 00:52:46,011
the charge that we're using so what
people have done is either they'll get

982
00:52:47,001 --> 00:52:47,086
TradeStation

983
00:52:47,095 --> 00:52:50,179
and get the indicators or daughter so
there's a you know I like

984
00:52:51,079 --> 00:52:54,081
my broker but I can like look at your
charts and see the signals

985
00:52:54,099 --> 00:52:57,133
or just get used to the strategies and
you can actually you know try to figure

986
00:52:58,033 --> 00:52:58,078
out

987
00:52:58,078 --> 00:53:01,082
you know that's the main thing is we're
you know I options trading as well as

988
00:53:02,018 --> 00:53:03,044
England's it's not

989
00:53:03,044 --> 00:53:06,049
too difficult when she knows him the
basics and that's the main thing is like

990
00:53:06,049 --> 00:53:07,141
once you learn the basics even so there
you go

991
00:53:08,041 --> 00:53:11,068
okay once can use as moving average and
I can do this setup

992
00:53:11,068 --> 00:53:11,134
and that's fine too