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alright I really should make videos like  every month or so as opposed to making it   every three months but in any case so here are  the trade alerts that were sent to the alert   students your if you enroll in the alerts they're  going to look exactly like this you can enroll   at beststockstrategy.com/memberships that is  Beststockstrategy.com/memberships and the alerts   are sent via WhatsApp the best way to utilize and  learn from the alerts is to try to replicate my   methodology or my way of thinking and ask yourself  why i made this trade and you can go back and you   can look at the securities that i traded and see  what they were trading at at that specific time   and try to replicate my thought process i  think that would be that would be very valuable   so anyway let's get to it january 4th the market  is up but volatility is also up that's not a good   sign here i rolled snow you can see i rolled it  from february all the way to may from 277 and a   half to 235 so in this situation as i demonstrated  in the prior video initially i was short like the   430 or the 440 call option and then i eventually  rolled up the put option i think to like 370   but then i had to roll it all the way down to  like 235 so i got whip whip sawed and whiplashed   by this and i had to find a way to make money  on it regardless and you'll see in my additional   trades with snow how i was able to roll and manage  this position so that it was profitable i think   the big takeaway here and i also had a similar  situation with tesla is as long as you trade   small enough you should be able to win close to a  hundred percent of your trades the problem arises   when you get into a margin call or you're strapped  for buying power where you have to close out the   position and the loss because the position moves  too fast too soon and the actual move is greater   than the expected move so when we sell options we  make money typically because the actual move is   less than the expected move additionally we make  money from theta decay which is the time decay   but you have to be able to make money even when  you're wrong when the actual move is more than the   expected move and i think that's the hallmark  and and the mark of a successful trader and   one of the most important aspects of being  a successful trader is not trading too large   i want to make 15 every single month too but  i've found from experience and i've learned the   hard way that if i try to make more than three  and a half percent a month if i try to target   more than about three and a half percent a month  then it leads to significant portfolio volatility   and it leads to a lot of unnecessary stress  so that's my target about three and a half   percent a month all right let's get going on  the actual alert so here you can see i rolled   it forward by a few months and then i was able  to roll it down by about 42 and a half dollars then i sold a call on tesla actually this position ended again in  challenge two um not significantly but   then later on tesla increased about 18  in two days so yeah i can i can see i was   a little bit stressed out with snow and then  tesla all right pdd bought that back closing trade   so here with um we tesla opportunistically  turn this into a strangle   pdd closing trade pd that's the original amazon b plus grade amazon was down seventy dollars facebook b plus grade market fell 55 points fixed was up 17 okay so actually i bought back the tesla  call so i sold it for 237 and then i   bought it back for 133 so that actually  wasn't the position that was problematic but the problematic position is  coming because i remember it well all right so here i i mentioned sliding back the  expiration from may and then as you'll see later   on i actually slide back the expiration from may  to february 26 and then i closed it out early i   think i closed out snow last week like pretty much  the first week of february microsoft so but but   i do think it's important because remember that  here with snow i rolled it all the way to may okay i think the reason why it doesn't load asap  the pictures is that i delete the pictures   and it's not saved on my phone so maybe it has  to like access it from the whatsapp database   but in any case it is kind of annoying that it  um it takes a second for the pictures to load   but the big takeaway here is remember  that i rolled it all the way to may   okay so that's going to be relevant  later on okay so here facebook tesla microsoft another microsoft both trades are b pluses closing trade on amazon sold it  for 360 watt pack for 20 cents   new opening trade b plus grade i should  have done that larger i picked up   about twelve hundred and seventy dollars  it's a lot tesla dollar 27 b plus grade amazon call picked up a dollar opportunistic  opportunistically turned it into a strangle   i'm having problems saying that word  late because it's 10 30 at night and   i'm a little bit tired so for some reason  my verbal communication skills are not as good so here i'm sharing my thoughts regarding  ways of rolling back that position so that i   can decrease the expiration because i don't  want to hold on to a challenged position one   it's stressful to have it in my account but  additionally i also don't want to be reminded   of it so i want to roll it out of harm's way but  then as soon as it stabilizes i want to try to   find some ways to get rid of the position   without taking a loss and actually with this  position i ended up taking um a well i ended   up making i think about six or seven hundred  dollars on snow but was it worth it no it wasn't all right here's tesla i  rolled it from 820 to 890. closing trade on tesla sold it  for 3.70 bought it for 10 cents okay all right so here is actually the the tesla  position okay so for some reason it just   like happened very rapidly okay so it must have  been january 8th okay so tesla went up a lot and   um what happened in this situation was that  i think tesla was trading at about like 8 14   on the thursday before so i figured and also the  option was trading at about 10 so i figured that   tesla the day before had gone up about 14 um okay  vix up 55. let's see how things play out tomorrow okay so we have the 820 call expiring  tomorrow and has a four dollar safety net so   there's a four dollar safety net so tesla was  trading at about 816 and then additionally the   option itself was trading at about uh 10 so i  had a 14 safety net i figured that on thursday   tesla had gone up about um i think about  eight percent but i thought that there   was a decent probability that on friday tesla  would retrace some of its gains from thursday   so i had a 14 safety net i had uh four dollars  was the difference between the strike price   and the current market price on thursday and  additionally the option was selling for ten   dollars but the option was expiring the next  day so there was ten dollars of extrinsic so   i had fourteen dollars of safety net then on  friday january eighth tesla opened up about   30 or 40 dollars so immediately i wanted to roll  this position because i didn't want it to be   that far in the money so i bought back  the the 820 and then i rolled it to 890   and then i financed it by selling a 740 put and i  collected about 92 dollars for that okay and then   this position executed about four four minutes  after the market opened rolled the position then i bought back a put option then what i did for tesla was i rolled the existing 525 puts to 640 and i used that credit in order to increase  the strike price by ten dollars was that a good   trade no not really i mean i pretty much  give up i assume significantly more risk   um just for increasing the strike price on the  call side by ten dollars i i don't think that   was a good trade did it work out yes but was it a  good trade i don't think so i mean anytime you're   going to give up uh 85 dollars to you know and  for three contracts so significantly more risk   just to pick up ten dollars of call  premium i don't think that was a good trade well the 88.90

so i have two other problematic 890s then i  find this up by rolling up the profitable puts   while also closing out the  existing put contract for a profit all right then what i did was i closed out the 880   which was expiring that day um and i sold the  635 so this actually was a good what was a good   trade um so at this time tesla was trading i  think it was probably trading at about 840 but   i just didn't want to take a chance so i closed  out the 880 which was expiring later that day   and i closed it out by selling the 635 and i  figured that i'd rather be long tesla by selling   the 635 put than being short tesla considering  how much it had gone up over the past few days so then i closed out the 400 for 42 cents  sold it for 370 and bought back for 40 cents so for so i made a mistake i sent the wrong tray  but sold for 264 and bought it back for 10 cents   so to summarize the positions to watch are  two of the 890 calls that expire next week   and those are the problematic ones and one  of the 10 20 calls that expires in two weeks   snow is no longer an issue so that  went up which helped a little bit   just to reduce the stress because when you  have challenged positions you really don't   want to deal with the mental anguish  and the stress of having to manage them all right so here's the kicker trade um  where i flipped the position and just   figured okay i'm just going to um flip  it from short calls to being short puts   close out the 890 that are due  next week and so puts to finance it this would be a lesson why it's important to  leave a lot of buying power we win virtually all   our trades but what happens when a stock goes  up or down 20 percent in in two days actually   what happens if the market falls 20 in two days  so hey let me just be clear with you you can win   almost all your trades and still lose money  because if the magnitude of the losses offset   your winners then there's no guarantee that  you're going to make profit and i think that   one of the huge takeaways is that you have to make  sure that when you that when you have a losing   position when the actual move is greater than the  expected move that you still find a way to make to   make money and to be profitable in this situation  i was able to buy back two calls and flip it to   five puts and you need to make sure that you have  the necessary buying power or else you're going   to be forced to close out the position for a large  loss and we made money on both tesla and snow but   if i didn't leave ample buying power i would have  been forced by my broker to close this position   now for a loss all right so let this be a lesson  why it's important to leave a lot of buying power   what has happened with tesla is extremely rare  but you're going to have to be consistently but if   you're going to be consistently profitable in all  market environments you need to be able to deal   with all situations profitably if you don't leave  enough buying power if you get too stressed out or   you don't evaluate the situation objectively  then that's definitely something to work on   i mean look i've lost money before as well by  making bad battery so i'm not immune to it it's   really just a learning experience you have to  learn and be committed to constant improvement   yeah i mean that's really what it  comes down to but i think that by   learning and studying these trades  you're able to improve your own trading   again tesla's gone up almost 20 in two days yet  we have handled the situation well imagine the   marking going dropping 20 percent in two days this  is why it's important to stay small and not take   all your winners for granted because a few times  a year you'll experience a situation like this here are the amazon calls that we made money  on so we made about 850 there snow is in a   good spot it's just a waiting game same with  tesla we can always roll the tesla puts down   if necessary and then flip it in case of a crash  where we buy back the short put they're buying   and at the money putting someone in the money  put and then sell short to the calls against it   all right brought back facebook the original  trade is there so we kept 50 in the premium so here i say that we're going to be a little  less aggressive on the call side because we have   snow and tesla so we want to focus on  more higher probability trades until   those two trades are cleared s p is  down 26. new opening trade on facebook   so here you can see with uh snow where we start  dialing back and rolling back in the expirations   okay so here we rolled it from may to march and  we picked up a credit so we rolled it in by two   months increased the strike by twenty dollars  but i decreased the duration by two months   all right because i don't want to hold on  to it tesla i also bought back the 10 20 and   then i sold the 6 17 and a half i flipped the  tesla call picked up a credit of 72 cents at 72   actually that was really weird because i made  a mistake you see how it says limit credit here   72 but then it says limit edit debit that's  really weird but then it corrected itself   i've actually never seen that happen before on  e-trade but it happened there so my justification   for this was that i'd rather be short a tesla put  a 617 than short of call so i made the adjustment sold amazon puts i definitely should trade   that larger seven dollars and  twenty cents that's amazing closing trade for microsoft  picked up a little less than fifty percent new opening trade on facebook b-plus was having problems logging into  e-trade microsoft bought that back so sold it for dollar 23 50 profit in about a week facebook b plus grade mastercard  b plus mastercard b plus amazon e minus so when you see an a minus  trade i definitely should have gone larger here   hundred dollars a safety  net and amazon was oversold okay so here what i did was i um wanted to  decrease the expiration so i rolled it from   the 550 to the 610 and then i contracted  or decreased the expiration by about   by about a month about three weeks or  so so roll the march back to february by   increasing the strike i can always roll it back  if necessary but i want to reduce the duration okay high b plus grade for amazon  okay so here's what i did with snow   so i rolled managed snow i decreased the duration  by three weeks and financed that by increasing the   strike by ten dollars and selling a short dated  strangle that expires next friday so basically   as long as snow stays between 257 and 375 by next  friday then all as well and if someone goes up a   lot then it'll help us too since we have two puts  in the in the position if next week's position   expires then i may try to reduce the 265 strike  on the february 26th but we'll see what happens   all right so i bought back the march 19th so  originally this position remember i rolled   it out i think to may and then i sold the 265  and then where to finance that so i only would   have to increase the strike price by 10 i then  sold the one week 257 put in the 375 strangle   and this filled for 24 cents and  this turned out to be a good trade   so remember i reduced the duration  from may all the way to february 26th okay bought back facebook brought back facebook   closing trade all these facebook  trades were closed for large profits new opening trade for amazon collected 920   without this pretty good trade although i  think this trade actually got tested as well new opening trades on facebook because  facebook fell below 250 at one point   i actually know those were sorry about  that those are actually the original trades   so these trades they closed  out but here were the originals i rolled these up a bit so i  increased the strike from 24 to 25   60 and i picked up close to five hundred dollars   here i increased the strike from 2480 to 25.90  and i picked up about 272 dollars closing trade so this is an important message as a result  it's important to trade small so we always have   an opportunity to manage the position so here  i rolled up the uh the call side by about 20 and i financed it by increasing the put side and i collected a small credit picked up an extra 200 bucks closing trade on microsoft that's the original rolling the existing positions to pick  up more premium picked up an extra 184 dollars new opening trade low b plus here are my thoughts on gamestop see selling the 115 call was a gamble   but had i made it the trade then i would  have closed it out right now for a nice game   but it's still gambling and as people saw when  gamestop went up i think to about like 480   selling calls was not the right move the market was acting weird around  this time too so you can see i   commented on it the market is  acting very strangely vixx is up 13 see the market is relatively unchanged but  the vix is up 10 so that was very weird today was very strange a  lot of intraday volatility so fiber so what i did here was i bought back the february 26th and then  i financed it by selling the 255 and then also   reducing the strike price on the february 26 to  255 so i sold another put option february 5th   with a strike of 255 and i was able to reduce the  strike price on the february 26th from 265 to 255. i rolled snow down and financed it by selling  a put for next week i have a 257 and a half   but that expires this friday so i need to be  cognizant of that just in case it gets challenged   then i sold the put on amazon this would be  plus grade i should have traded amazon larger here i sold to put on facebook b plus grade tesla 255 new opening trade b plus bought back facebook held for less than a day  about 35 trading minutes it must have reported   earnings that's the original volatility is  down 20 percent closing trade on mastercard sold for 88 cents and bought back for 28 cents new opening trade on facebook b plus grade nibble on amazon collected 760  dollars b plus grade facebook so here i rolled it rolled the existing  amazon position from three to two   and picked up three hundred and forty  dollars rolled it out to next week   high b grade rolled this up two picked  up 142 dollars that's the original new opening trade high b it's for facebook rolling trade amazon has been going up a  lot recently and i think that there is more   potential to the upside than the downside um  so i wanted to give more safety net to the 3760   call so i rolled the 3760 call to the  3870 so i gave myself an incremental   110 dollars a safety net and i financed it by  selling the 2630 put option it's a high b roll and then here's my justification it basically  makes me feel a little more comfortable plus   i want to be more conservative on the call  side after the craziness that's happened with gme your portfolio may be at an all-time  high we've had a good start to 2021   so for 85 cents and bought back for 32 so i rolled three of the  existing five tesla positions   from 610 to 650 and i picked  up an incremental 360 dollars closing trade i think we picked  up around 900 for this in total   yeah so we rolled up from we sold the original  24 then we rolled it up to 2560 and then rolled   it again to 2620 so we collected about 900  in total and bought it back for around 45 so since i did two contracts i made about  seven seventeen hundred dollars on this   net okay so here's i bought back i brought back  snow closing trade for snow i think amount of   i think i made about six hundred dollars net on  snow was it worth it definitely not but if you're   a member for a while then i highly encourage you  to study this trade because we rolled snow from   448 calls to the 255 puts and we made money so we  were able to bend with the massive volatility and   still manage the position i may do a youtube  video on it because it's very educational fiber i bought it back for 40  cents sold it for a dollar ten pins so i open a new trade on i amazon out pins because i was able  to capture 10 profit in a few hours tesla low b plus grade picked up 435 new opening trade on unh low b minus trade um that's not a  good trade shouldn't have made that   trade it's just a very poor grade closing  trade on facebook held it for about a week closing trade on amazon   i think we collected over one thousand dollars per  contract on a net basis so two contracts about two   thousand dollars a profit new opening trade for  UNH this this grade is better about a b plus grade   so opportunistically turn the amazon puts  into a strangle by selling the call side amazon sold the 350 then i sold paypal high b  grade simply because paypal seems overextended the market seems overbought and that's  it so if you have any questions let me   know leave a comment below please  like comment share and subscribe   and i highly recommend joining the trade alerts  you can join for seven days it only costs 19   you can join at beststockstrategy.com  that's beststockstrategy.com/memberships

2021-03-08 21:18

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