Selling Premium at Earnings With Iron Condors | Technically Speaking: Trading Stocks & Options

Selling Premium at Earnings With Iron Condors | Technically Speaking: Trading Stocks & Options

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[Music] [Music] good afternoon everyone welcome to our webcast on technically speaking trading stocks and options i'm connie hill i'm happy you would join me here today there's a lot of exciting things going on going on in the marketplace right now some of you may have noticed it's earning season during earnings seasons we've got lots of moves lots of news and there's one thing to be aware of which is in the market there's a lot of implied volatility premium being priced into the price of the auctions into that premium so how could a trader take advantage of that well that's one of the things we're going to focus on here today we've got some good friends that we love to see out here uh osborne wayne sandeep robert tm soul crazy foxy welcome to all of you as well as those of you that didn't chat in here we've got my good friend barb armstrong in the chat she's so knowledgeable and helpful as you have questions go ahead and type those into the chat between barb and i hopefully we'll be able to get that covered for you pretty quickly if you're listening to this on the recording and i'm not sitting you know but next to your side you can get your questions answered too just put your question out in the comments section uh of the youtube broadcast and then i'll go back and review those throughout the day make sure we get your question answered here as well now foxy crazy says hey there it's a big bounce in the market just recently what happened was there a news item well i have to tell you i uh have been more preparing as opposed to just seeing what was going on in the market so i honestly don't know but if any of you know feel free to let us know because we've got some interesting news in the marketplace that's not in total it's not entirely uh positive so we'll see what's maybe somebody knows what's going on right now here is my twitter handle i'm at chill underscore tda barb is at b armstrong underscore tda you'll want to make sure to follow us we'll post educational content interesting things for you throughout the day sometimes little helpful tidbits as well and so if you follow us you have access to be able to communicate with us in that manner which is i think for you a great advantage now as we get started today i need you to know that what we talk about is for educational and informational purposes only it's not intended to be investment advice or recommendation of any security strategy or account type options are not suitable for all investors as a special risk inheritance options trading may expose investors potentially rapid and substantial losses while this webcast discusses technical analysis craig quite a great deal there are other approaches including fundamental analysis that may assert different views stock markets are volatility to decline significantly in response to adverse issuer political regulatory market or economic developments the risk of loss in trading stocks can be substantial past performance of any security or strategy does not guarantee future results or success please no soliciting no photography take lots and lots of notes to your heart's content all right today our agenda i've got actually a lot planned for us to do here today i'm going to have to be really efficient with our time so that we cover it all but we've got to follow up on some class trades we're only going to spend a little bit of time on that and then i want to talk about some of the benefits and risks of selling premiums as we look at some different examples and show you maybe a couple of opportunities that you might use to enhance your understanding and knowledge in your paper account some of the things that we talked about today all right just seeing if there's anything to address right now but you're right there was a big bounce in the market let's jump over here to thinkorswim and i've got us queued up right where i want us to start out we're sitting here looking at my account statement which shows us the historical information of something that went on and i've got oh i didn't i have pulled up i do have dal pulled up this is a trade we did a couple of weeks ago we did what we did a short call or short put vertical we can see uh 38 37 strike price we did that on the 13th and this morning what did it do it filled for us automatically we received a 28 cent credit on it and we said hey if we can get 80 of this or 85 percent i think that one was out of it let's go ahead and close the trade and so it did it for us automatically today pretty close right after the opening bell this morning and so we bought it back for about three cents which uh on ten contracts about thirty dollars okay so we brought in 280 we spent 30 to close the spread some of you might ask is that really necessary is that that big of a deal well let's go look at this one on delta airlines because the contracts actually don't expire until may 20th okay so we still have quite a bit of time uh in the trade delta airlines some of the airlines are starting to come back to life we entered here on this day and it ran up just like we expected it to pull back a little bit started running up again today and that's when it gave us our time to get out now our short strike on this let me go back here was 38. all right that is where we wanted the stock to stay above if we go and look at the chart here and we say well where's 38 it's clear down here so some of you might say well i don't get what the point is of buying it back if it looks like we're in really good shape and and that's a valid concern you know some of you may have been in this position if so you can go ahead and comment here in the chat where you're sitting in a position where you have what you believe is a max gain on a trade and you may only have just a few days left and and i remember a circumstance when i had one day left i was sitting at a max gain and i thought there is no way i'm going to lose on this train just isn't going to happen well sure enough it did happen the very next day i think it was a bearish trade that i had on there a short call vertical and some wonderful news came out on the stock that friday of options expiration day and very quickly that position went from a position of essentially max profit to max loss so can that happen yes i even to this day remember the ticker symbol of that stock because it pained me so greatly and taught me such a good lesson that even though it might look like a sure thing it might not really we've got until may 20th before those three cents just waiting for that to dwindle down and so that's the rationale in why somebody might consider doing that it doesn't mean you can't ever allow something to expire worthless that's one of the great things about credit spreads but i want you to be smart about i want you to think through it as opposed to just saying oh i'm just not gonna i'm not gonna take any action on it uh wiley knows here we have a kaholt indeed wiley we do have a nice little cup holder move above the high of the low day here four if somebody wanted to use it as a separate entry point yeah some people might decide to do that earnings are out of the way here and that might be something that others look for as well uh well he says we will know something about uh crazy foxy says sometimes opium paves off i guess that's not really hopium here it's just letting the play work out and putting in structure so that you can capitalize on your profits now let's take a look at another trade here we're going to go to our activity and positions and we're going to go to lennar lennar's a home builder it had been struggling like some of the home builders have been uh we just have one 80 80 80 250 call spread so we sold that 80 call we brought in a premium of 55 cents and right now that premium has gone to 92 and a half cents so does that mean we're up on the trade or down on the trade we are a little bit down on the trade uh not a ton we're down 37.50 which is not enormous but let's go take a look at the chart again we have 22 days before it expires let's take a look at lennar and on the nar let's zoom in here we had that short call vertical we got in here which was first part of the month and what did the stock do since then well here is my i marked on my charts the 80 short lag so we knew where approximately while we're looking for the stock to stay below and it's cut it has kind of stayed below it it's popped up here a couple of times and and was above it but it didn't really last for long it's just kind of dinking around is what i'd say so could this trade still work out for us yeah could the stock just go sideways the rest of the time and still be able to close below 80. sure it could so again it's a trade of patience we're going to just kind of wait it out let it continue to work yeah in other words we don't have a reason necessarily at this point to get out of the trade all right one more i want to show you is one we did last week on love we were doing some things with the airlines last week uh on love we did an interesting trade that's a little bit more of an advanced trade that some of you might be ready for there might be others of either like i'm not quite there connie and that is just fine okay no it's an intermediate level class and we really do have varying levels of experience joining us here today what we did on love is we bought a longer dated call instead of buying the stock out right we said we're gonna buy this september option here we are in april it'll have several months to bounce along 141 days and if we think the stock's going to be bullish yeah that might be a good idea in the short term however we sold a call actually a couple calls against it we sold 50 250 calls against that those two long contracts when we did that we brought in roughly about 88 cents or 88 bucks per contract that helped offset the overall cost of what we were paying for that long option gave it a sonata at 337.

now i want to move this down the road a whole week and i want to show you how it is progressing this particular trade the short leg is putting us in a position that we're up 112 dollars on it if we're up 112 on a short call what does that mean it's probably the stock is pulled back a little bit to allow that to be profitable and we get further evidence of this by seeing our september option is down about 155 so the overall is that we're down a little bit but not a big deal and maybe that short call is doing exactly what we wanted it to let's go take a look at the chart on this one bring up our love southwest airlines and let me zoom in here oh that was maybe a little too zoomy let me back up a little bit i put a mark up here where our long call is or a short call rather this is the one that we sold and collected that 88 dollars of premium on we got in on this day and yes indeed the price of the stock has pulled back a little bit since then but it's not necessarily any danger and we sold that premium to help offset that cost and all we really want the stock to do is maybe move slowly in this direction but maybe not past 52.50 so that we could keep that premium so we're going to keep our eye on that we're going to continue to let it work all right any questions on those trades we have them play went through that a little bit quick but that's okay because i wanted to move us along to my main topic today which is selling premium and how do you know if you're you have premium to sell now a couple things i'm going to bring up spx here for just a moment and there's that big bounce somebody was talking about i'm going to add implied volatility on here i don't want to get rid of my fibonaccis because i'm using them for something else but i do want to add on a study here of implied volatility and i hope you guys have a feel for what implied volatility is if you think you have a good answer for it go ahead and type it in the chat i would like to actually see what your interpretation is of implied volatility or what your understanding is okay we're going to add it to the chart and sometimes it's nice to throw it up in with the price action okay sometimes that's helpful we're going to do it here so this green line is the implied volatility and you can see it's gone up it's pulled back it's gone up it's pulled back what has it done here recently man it went charging up what was the accident of the spx doing during that time it was basically dropping less than it was a little bit more bearish and so the volatility index or implied volatility uh allows us to see what kind of the measure of fear in the marketplace what it's looking like we'll look at the vix as well paints a very similar picture but uh it ran up so here's uh last night let's zoom in here here's last night the mark had been pulling back was maybe looking like it was down to support again boy that support area looks like it's holding still and as it towards the end of the day that implied volatility started to drop off today is starting to drop off even more with this bounce in the market so the implied volatility i'm not getting any of you to respond here so i'm going to give you the answer okay implied volatility is that part of an option premium that swells and it has a sensitivity to the to implied volatility and that's what our vega greek helps us understand is if there's a big reaction possibly two implied volatility changes are small now as we go into earnings many times individual stocks we'll see that implied volatility ramp up now i'm going to take you over to something here we're going to take a look at facebook facebook announced last night right many of you may have been watching that and you know you you can see the trend of facebook here it hasn't been doing all that great in fact the news prior to the earnings announcement was really negative it was like man these guys are going to get killed again if you're reading any of the commentary on what people are saying i i tend not to listen to that a lot but but the market was down on it okay so this implied volatility was just spiking i mean look how enormous that is and then today the news came out and what's happened well actually the news came out last night boom that flight volatility just dropped like a rock okay and that is really common once the news is out then there's not the uncertainty is not there anymore but what happens to what was priced into the implied volatility piece of the auction premium man that just shrunk right and so many times some traders will look at the implied volatility and say well maybe selling premium in the form of credit spreads or calendars might be an opportunity to take a look at so yesterday we did something in our account that i had to do without you okay but i did it intentionally because i wanted to show you here today so yesterday before earnings announcement we put on a trade that essentially goes in this account i separated it down here all right what's the problem there we go so we did this i did an iron condor we did an iron ponder we did it together here you didn't know you're in together with me but you are and we put on an iron condor and i want to kind of tell you the layout of it first of all we just did one contract of each which was fine we had a 2.50 wide spread on each of these legs we have on those legs we have a 155 is the short leg on the foot and 195 is the short leg on the call all right and we brought in a buck 25 for basically a two-day trade three-day trade and with the idea here that we'll just bring in some premium we'll sell it that was so incredibly high uh if our spread here is two dollars and fifty cents what that ended up doing for us is we had a credit i'll just put this down here on facebook we had a credit of a buck 25 but the difference i wish i could show you this a little better maybe i can for a second uh you can see the spread width was a 100 or 2.50

for the call set as well as the put set sometimes those can be uneven but uh we just did them even but if we have 125 in credit uh what is our max potential loss now the truth is could you lose on both sides could you lose on the call side expiring in the money and the put side expiring in the money at the same time at options expiration not really although in your margin it might pull out enough money in case you leg out of the trade and you get out at the worst time on one side and get out of the worst time on the other side okay so because theoretically you could really you could blow it that that would be real uh but hopefully you wouldn't okay and you'd take into account that man if i'm if i'm getting a buck 25 my potential risk although it's never guaranteed but i'm going to say the risk here is in the neighborhood of 125 as well do you see that that is a potentially tremendous payoff yeah it very well could be now when i sold these strikes and i'm going to show you on the analyze tab we're going to go back to think back here and i put the date back to yesterday's date and it'll show us the closing numbers on the on these um all the option chain okay so i what we did here we sold this one the one that just has a few days left and when we sold it we had pretty pretty low deltas in fact on the put side on that uh put side what was that that was the one 195. come up here a little bit more i'm looking at this okay on our call side about 195 delta was about 27 okay so out of the money could be more out of the money because we definitely have some more strikes out here oodles of open interest so you don't necessarily have to worry about that factor now on the cost side that 195 call where did it go yesterday no i'm looking at the wrong one here you might need to see a few more strikes here let me go 50. it's not so i'm trying to think here no okay um [Music] we we had on it i just had some notes that i wrote down the 195 call that we sold was a 27 delta the 155 put which is about right here was it about a 23 delta so we've got two deltas that with a high probability of expiring out of the money especially if you come over here and look at the probability otm i believe yesterday they were a little bit higher than that at the time that we placed the trade this is only going to capture the closing prices let me just take a look at the chat here well let me see what lakshmi is saying okay watch me telling us that uh he i think you're talking about zuckerberg got beatings and slapped by his followers until facebook peaked at 384 33 anyhow this his ego might not satisfy with the recent drop um note it billings about uh facebook but not necessarily part of our trade no problem so what happened okay we came out on facebook and i drew in where our short legs were okay so here's our 195 here is our short leg of 157.50 and we started out here kind of about midway the put spread is in fantastic shape isn't it price of the stock is so far up there but we wanted it to stay below 195.

now earning today it dipped down below 195. right now it's currently in the money in paper money you will not see any automatic uh assignments it's something that is different in your live account than the paper money account is that assignment feature and so i don't want you to think oh we're still in the clear completely 100 percent when in reality this were in a live situation that might not be the case at all right you could take assignment because we've got an option in the money here but what happened to microsoft yesterday uh microsoft they came out with some earnings as well they popped up they got as high up here as what was that 290 and some change but as the day wore on it faded back now it's getting a little follow through here today on facebook we could take a couple of approaches one would be uh saying that uh put strike is so far away from the money it's likely to expire worthless okay just what i said you might not want to do but somebody could consider that because it is a good distance away what if it's 155 and the stocks at 205 it's you know more than 50 points away this one however could be a concern this one right now is looking like that that side of the trade is not favorable now do you have to trade do you have to close the trade down all at once answer is no you don't have to you could call you could close down your call spread differently from your put spread now if we come back to here to the monitor tab and we come back to facebook and we see indeed our put spread here is the one that's giving us a profit the call spread here is making us negative on the trade now if i wanted to close this up i could say create closing order pick this top one and it'll pick all the legs it'll say okay to get out of the trade this is what it's going to cost right now now doing buying it back for 215 would subtract our credit out that we received of a buck 25 to have pretty close to uh uh instead of going in at a pretty good uh or rather than capturing a really good profit we're going to end up giving some of that credit back and the most credit or the worst it could go against us is what the worst that it could go against us is the distance in the strike prices of that 250 right minus whatever the credit is so this is kind of hanging around it's not absolutely a max loss but it is substantial now if we wanted to i'm going to delete this and if we wanted to say well let's just maybe do away with the cost or the put spread we're feeling pretty good about it let's see how much it would cost to close we could create the closing order come down here and find the calls or the put spread rather what's it showing there zero basically there's not really a market for it at this point i imagine if you wanted to pay a little bit they would allow you to get rid of your short lag if that's all you wanted to do okay in all likelihood they'll never guaranteed it's looking like it could expire worthless but our call spread let's do it separately if you want to create a closing order come down here find our call spread it's up here bring it up this is essentially our encounter here put side here call side here yeah it's about that same total amount that was bouncing around as if we wanted to close the entire spread at once if you don't feel like you need to close the put spread and you want to save the 65 commissions on each leg you could okay but you're risking a potential max loss for not very much to close it out okay that's what the risk is just like on that trade that i mentioned to you earlier that i had the sad opportunity to to witness where it was looking like that's that trade that call vertical was going to close at a max profit and instead the news came out boom you're handed a max loss and so as we look at well how much would it cost to close up here not a whole lot okay you somebody could wait till tomorrow and see if indeed the momentum starts to fizzle up but that would put us in a position of maybe having a max loss excuse me on that side of the trade rather than a partial yeah bart says this considered legging out of an iron condor when you're doing it one spread at a time for our purposes here today we're just going to go close it up we're not going to try to attempt to get in a situation where uh we we stick ourselves with the max loss okay but there was a possibility there we're gonna go ahead we're gonna hit uh i want both of these to go okay i lined them up separately because i was showing you separately because you can do that i'm gonna do keep this as a blast all that we which means send them both in let's see what happens here looks like we got filled on the one side all right what stocks come to your mind that are just like all over in the news as far as having earnings announcements tonight we do have some biggies now we do we are going to first take a look at apple apple uh has a lot of implied volatility priced into the options that close tomorrow how much more implied volatility is priced in there it actually was a little bit higher than that earlier today when i was looking at this trade i think with the spike in the market and the drop in the vix and the implied volatility dropping down a little bit it's not as high as it was but it's tremendously higher than the options that close next week or the next week or going out to the may monthlies right 107 if something is priced if that implied volatility is saying 10 higher than of the week following it maybe 10 or 15 percent some people might say yeah that's a lot of implied volatility we're here we have almost twice as much the implied volatility priced into the options that expire tomorrow versus the options that expire next week on friday all right yeah dan says apple was on the mind uh yeah i'm saying we've got amazon apple and roku yeah all big dogs for sure so if you're trying to determine hey is there a lot of implied volatility priced in there this is what we look at and we compare it to these other weeks so yeah this has a lot of implied volatility in it now with the example on facebook where we went out of the money maybe maybe we didn't go out of the money enough okay because the price of facebook right now is about 10 bucks higher than our 195 short lag right it's up there about 205 right now so maybe we say okay let's learn something from that let's look at apple on apple we are we're going to look at these front week options and and i would say if you're just learning to trade options this is probably not a good place to cut your teeth okay you might consider do something doing something a little bit more conservative and some people will wait till earnings is over i'm talking to you about these before earnings to take advantage of that implied volatility and i do think it is something that maybe somebody that's a little bit more experienced might feel comfortable doing but somebody that's new might not feel quite as comfortable okay so if you're feeling a little squeamish i totally understand okay this is aggressive so on apple if we use the delta to try to identify what strike prices we want to sell i'm going to start on the put side you can start on the put side of the call side it really doesn't matter which one you do but let's look a little further out of the money here let's look at well oh the other thing was what is the expected move the expected move that's priced into those options by friday they're expecting the stock to move plus or minus 7.80 uh eighty seven cents we don't know if it's up we don't know if it's down we just know that's the expectation for a move so one thing that we could do is we could take whatever that move is and add it to the current price of the stock now this has been bouncing around a lot this morning and i say that because i had some numbers in here that i calculated 30 minutes ago it was looking like it was about an 8.40 expected move with the drop in implied volatility some of the implied volatility has already come out of those options that were there say an hour ago when i was toying around with this but let's use our calculator for a minute on our calculator if we say let's lock the price of the stock in here that we're going to play with at 160 350. so we're going to just continue to come back to that even though the apple price is jumping around all over the place and if we said let's add let's go with 786 and we'll do a minus on the next row we'll say 160 350 minus 786 and see what those numbers are so we can see what the market is pricing in as a move and sometimes it's visually helpful to do that and then go look at the chart and see what it looks like so real quickly here we've oh i already put the number 160 350 plus 786 gives us 171.36

that's as high as maybe what it's pricing in and then here if we do the same thing 163.50 minus 786 then we're looking here at about 155 point 64. so roughly we're looking for maybe a move down to 155 or a move up to 171.

so let's see where that would be on the chart we can see that implied volatility dropping on apple where it was up higher today now it certainly is starting to come out many times they wait until that announcement before that implied volatility comes crushing out but i like i told you yeah we could i could see that it's changed already in the last hour so let's put those lines in where the expected move is so we're going to say 163 uh let's see 163 oh no i take that back that's where it is right now 171. so let's put a line here 171. and i'm just going to make it green i like to put those lines as green actually in here we're going to do raspberry okay because that's the move that's expected and then down here to 155 and a half so 155 oh that's pretty close two pennies off we're going to keep it we're going to make the color of that a raspberry as well now ideally in an ideal world then we would say let's sell something that we think maybe goes beyond the perimeter here beyond the expected move so hopefully this the price of the stock will stay within those two short legs that we put together on the bear call in the bowl put okay so keep this in mind we're going to just kind of look at that and i'm going to highlight this i'm going to bold this a little bit so we can see it better all right move that up in this class account we typically don't want to risk more than 750 dollars per trade on which is a half a percent of our 150 000 portfolio that goes back to position sizing and uh if you need a review on that i've done a class i think it's probably been about three weeks ago that i did a class on my getting started with stock investing and in that class the whole session was about risk management and the formula that you can apply and i essentially have this formula here in my notes on my scratch pad it's essentially this little formula and i went and had to do some position sizing before our class because i didn't want to take the time to do it in our class all right so here is where the stock is expected to go what if we could sell something up here say at 175 or 180. yeah that might put it in a safe range but does it pay us enough okay that's going to be the question and maybe we could sell something lower a 150 250 or a 150 that goes lower than the expected move all right let's see here i'm going to go back to the trade tab again we're just going to use these options if you're not comfortable with that and you still wanted to practice trade it in paper money you can always go out a little bit further okay there's no problem with that now the one that i selected here a little bit earlier was the 150 250 and the 150 for the put side the 150 250 is at a 14 delta now some people might feel a little comfortable there some of you might feel a little comfortable bringing in a little bit more premium the way the stock has moved since i did this calculation i'm actually going to start it here at 155 and let's do 155 150 250.

so i'm going to do right mouse click we're going to say cell iron condor right here i'm going to change my order to a blast all because i'm going to show you how we're going to piece this so i'm going to come up here we're going to go back to 155 so the right direction and i'm just going to say sell vertical because i want you to see the composite of what you know how much of the premium is being given to us from the put side okay now the call side it just comes and grabs whatever's next sequentially it doesn't know what we really want it doesn't know our rules so we can change that so if we come out here and we say well maybe we look for similar deltas maybe we look for a 14 delta essentially what that's saying is what's the likelihood that this option could expire out of the money or it's actually expired in the money there's only a 14 percent chance it's going to expire in the money so pretty low which means what an 86 percent chance ish that it would expire out of the money is it ever guaranteed no is it theoretical yes but it's good to have something to relate it to so what if we came down here and did say sell the 170 we could go up a little bit or we could come down to the 14 delta i'm going to go up i may have a feeling if we went clear down to the 14 delta like i was planning on we're not going to get enough premium out it so let's go 170 on the call side to sell let's go 170 and then um 170 let's do it by two and a half here so 170 170 250. bring that down that'll be the one we buy so we're just going to change that up so all of this together is about a 93 cent credit and most of it's coming from this call side uh and what i'm gonna do here let me go back went a little further than i wanted it to we want to go back there to the 170 call there we go and i'm just going to put it in separate so that you can see yeah more premium is coming from this call side now some people if they want to maybe have a slight bias uh they may go a little bit more out of the money on one side or maybe a little bit more in right now with apple it's been pulling back on the charts right it has this one this huge run-up and then this pullback it is getting a nice bounce here for whatever reason uh maybe it may be rumor oriented that what they're gonna do or it might not be we just really don't know so if you feel comfortable with something like that let's see this is 155 the short put is it beyond the expected move well it's right about at it right the expected move is 155.64. uh so it's kind of right out on the call side of short legs 170 guess what it's a little bit close to that as well it gives us a little bit more breathing room on the call side of it let me see i think we have a question here yeah so rg's noting the 170 call is a little bit lower than the 171.36 yeah so our our 171 or our 170 strike would be just inside so it gives us a little there's a little bit of room there uh would it be better to go outside of it yeah you certainly could you could say let's just grab the next 2.50 one after all we are getting some decent premium out we could come up here and grab that i will do that instead of saying cell 170 let's sell the 172.50 just go down one by the 175.

okay that's how much it's going to drop the credit on that side of the spread but if you feel more comfortable there because then you're beyond the boundary of 171 36 or 172 yeah that might give you a little bit more wiggle room okay a good observation rg well let's do this i'm going to uh let's just fine tune this we're going to sell 172 50 by the 175 and i think that'll put us right where we need to be then on the put 155 150 250. so it's going to be about a 64 cent credit on a 64 credit if the max potential loss could be 250 or the difference in the strikes 250 we take 64 minus 250 which is going to give us what about a buck 90 something or a buck 80 something 2.5 64 cents so a buck 86. now we don't have time to run the numbers and see what return that would give you but you could go through that process see what the return is see if you feel comfortable with it so we're kind of combining a little bit of technical analysis information we're mostly using information here off the option chain for that setup now i'm going to just delete these two and not put them in separate we're going to leave these guys together in their iron condor just like we have it uh we're gonna hit uh confirm and send i'm not gonna put buyback orders in it we'll just pay attention notice there's some commissions because we're doing some options here and let me put it in our class grouping all right i'm going to report back to you next week what happened on this because uh obviously things are going to be happening tonight and tomorrow after they start trading based on what their news was all right we looked at some trades we discussed this idea of premium and seeing the facebook example i think it was good to show the potential risk there even though it looked like it was high probability it moved beyond that range and that is entirely possible we had to close that trade out at a little bit of a loss we've got another one we're going to keep track of didn't get to all the ones i wanted to but that's okay now you guys that have been attending our classes probably have heard us talk about this a little bit giving you the opportunity to have a one-on-one session with somebody on think or swim some of you are great at think or swim now some of you might be a little bit exposed or like yeah i would love some help you can sign up for a 30 to 45 minute session and have a one-on-one with somebody that's a platform specialist uh i barb let me have you go ahead and post that link in there for people to go and sign up you can pick your date you can pick your time and they'll email you a confirmation tell you what to do so that you can do this online tutoring which is great because barb and i can't do that with you okay but these guys are specialists they can do that take advantage of that opportunity thank you for posting that in there for us barb well i want you to identify your own earnings opportunities look at the implied volatility look at the move see how you can use that information to maybe put together practice trades and remember this if this is new to you you're absolutely going to want to practice it in paper money and these were just paper money examples here as well but i want you to find your own maybe based on some of those stocks that are coming up with earnings all right well we're going to wrap things up here james boyd's going to be up next with trading the trend i thank you for being here great cause questions observations no survey if this was helpful hit the like button on your way out barb i appreciate your help here today as well uh so just as a reminder what we talked about today is for educational and informational purposes only not investment advice or recommendation of any security strategy or account type have a great afternoon everyone we'll follow up on these next week bye [Music] you

2022-04-30 19:57

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