Technically Speaking: Trading the Trend | James Boyd | 6-3-21 | Scanning for Bullish Potential
[Music] [Music] hello and welcome to technically speaking trading the trend weeks to months my name is genius boyd great to be with you got my good friend michael keeley here michael keeley is a fellow instructor he is also coming back from a slight shoulder injury as i say the word slide i bet he's not i bet he's chuckling uh it's not slight uh he uh been coming back you might see him on the slopes of america and also the skateboarding parks around the country we'd like to welcome orlando alfred dennis uh cindy uh scott neal jill many others paul pierre orlando uh welcome to everyone so just real quick thursday we always talk about really thursday being trend thursday and you know whether you're someone who's like straight shorter term intermediate or longer term this class is very applicable we're probably going to talk about 50 stocks 50 options and so as we go just know that we're going to cover both ground now also remember that you can follow michael keely uh who teaches the market week in review as one of his classes that would be tomorrow but you can also follow michael kealy on twitter and uh he does post on twitter and you can follow any instructor there as well and we just want you to know we do post educational content there daily now remember that the content intended for educational information purposes only not an investment advice or recommendation of any security or strategy and or account type now remember that options are not suitable for all investors as a special risk inherent to option trading may expose investors to potentially rapid substantial losses in other words if there was a big down move in the market or spike in volatility etc right now also remember that we're going to demonstrate the function of the platform we're going to use actual symbols remember td ameritrade does not make any recommendations determine suitability of any security or strategy for individual traders any investment decision you make in your self-directed account so your responsibility we will be using the paper money platform here today and also remember the option greeks dealt the gamma vega theta which really measures sensitivity to direction change in delta sensitivity to volatility and the sensitivity to time now today what we're going to actually talk about just real quick uh i always like to take five minutes just take a quick look at the marketing sector and that's going to lead us into why we're going to talk about some examples that we do with that we're going to talk about some continuation and or reversal pattern or reversal type setups okay we're going to talk about current portfolio management we got to take 10 minutes okay there's some things maybe in this portfolio that we need to maybe look at and see is there some opportunity to a exit that's part of it exit and also maybe is there kind of some stop review that we could do as well i want to make sure as we go through that if there are some questions that we also leave some time there for some questions now our learning outcome here today is identify a short-term entry setup in a longer term trend and i want to kind of talk about we did this last time about two weeks ago how do we actually use the the thinkorswim platform the the scripts as a way to really kind of see setups and how are how is an instructor really finding examples of these types of trends so i want to include you in that and maybe see if we're coming up with something similar now let's actually go ahead here and bring this up got the s p here now i have not really talked about the moving averages much because i think when you're going sideways it it's not really super the moving averages they call them moving for a reason they're not channeling averages okay but if you look at actually today we saw the s p actually sell off it was down about 25 points is about six tenths of a percent down and then someone low and behold was watching the moving averages right the red line is the 30 period moving average and you see a little bounce okay off that 30 period moving average hammer like candle if you think that 30 period moving average is really acting as far as like a level support resistance has not changed now if you're a directional type of trader lately in the last week and a half you might have been really frustrated okay we're not saying that there weren't some trends that were moving but if you look at the market in general you haven't really seen the market really move a lot lately and this is why there's some diversification with strategy types some strategies some stocks might be more directionally oriented some others might be more time oriented because if either were to happen the investors trying to actually increase their odds of being right nasdaq nasdaq still kind of fighting through that let's say 30 period moving average hitting its head on the 10 as well which is the blue line and then if you actually also take a look at let's say the dow jones it's really the dow that has probably fought back the most not as much resistance as really the s p has but a little hammer like candle now i won't tell you what song i was listening to earlier that would date me uh when i grew up in the 90s anyway i won't say the the name of the song now if you take a look at that maybe now by the way could this be acting like a new higher low well let's kind of keep our eyes on something we're going to draw here so when we we see this move right here so this is kind of the start right and then what you're going to kind of see and see if you kind of identify what i'm drawing or what is the the the common denominator of what i'm doing to draw these squares well if i actually do this why am i drawing where i am and what do these candles really represent well what i've just done is i've really drawn a square where there's a red and green candle the red candle is the lowest point and then there's a green candle the up move and then all of a sudden we actually see that we get a red and green candle again and we'd like to kind of look at where the open of that green candle is which is higher than where it was previously then we're going to do it again red and green candle and we like to look at where the open of the green candle is and what you're going to see is on the s p you're going to see that's higher than where it was previous and guess what we're going to do again we're going to look at a red and green candle and these red and green candles wait hold on by the way we want to look at the open of the green candle which by the way ding ding ding ding ding is higher than where it was before so obvious on the dow jones we're seeing higher lows develop these red candles being the pullback the green candles really being the higher low and we could see that high low relative to where we were before okay so when you look at this we're still so the trend is not going straight up and by the way it's not meant to be a space shuttle okay it's not meant to be these are companies it takes time to actually make money it takes time that you grow the companies etc it's not supposed to just go straight up vertical okay especially when we're talking about the indexes okay now when we actually take a look at the sectors and i want to ask you a question what sector sectors did you see okay uh what sectors did you see today that were actually moving to the upside what sectors do you have an eye on tell me what you're looking at now as i'm kind of getting a couple comments on the sectors i'll just make some quick comments we saw gold actually go down almost about two percent today we saw silver actually go down about it was down three and a half percent it's down two and a half percent now i don't know if anyone else saw this but i kind of thought it was kind of interesting to a point russia i don't think our relationships with russia has been extremely strong lately nothing against vladimir putin or anyone in russia i'm just saying i think there's been a little tension there okay they actually came out today and said that they were removing the dollar assets from its wealth fund okay if you look at the dollar relative to the euro the yen the frank the pound the canadian dollar however you want to look at the dollar firmed up on that news and what i took away from that is you know we've been doing a lot of printing monetarily fiscally kind of tried and created an expansion as far as gdp the economy and this is where maybe we're kind of getting to the point where we as a country fiscally and monetarily might need to be a little careful don't want to see too many countries removing our us dollars from their wealth funds okay that would not be a great trend that you see other countries getting on that bandwagon now when we actually go back to the question okay so uh sri says financials okay sundeep says utilities aj says financials uh vj says energy and finance uh ephraim says energy all year orlando says materials okay so a lot of you i see a lot of financials and energy now what i'm going to do now by the way let's look let's put our eyeballs on those okay so when we look at let's say energy okay that's what energy looks like and we kind of talked about this on what tuesday not monday we saw it kind of like flags right run up pull back run up pull back run these are just kind of flags and by the way if you were able to kind of think about james boyd i i sure hope that maybe one word kind of really comes out diagonal right especially if we're really seeing a trend okay we're probably gonna see stocks where they go up and then they pull back and then all of a sudden they really break up through the diagonal line now you're gonna see that this square really represents where the lower high ceased at that time and the last three days we've kind of been seeing that same thing why can't some investors just look for just that why can't some investors do that now by the way if you think about this there's some investors that all they do is really look for a bold flag some look for bull flags in the shorter term while some other investors look for bold flags maybe in the medium term or intermediate term what i have drawn here these are just intermediate bowl flags or medium term bold flags not necessarily shorter term but they're just kind of like bold flags on a longer term basis but it's the same idea okay so if we were to let's say look at ixe which is really the collection of stocks okay now if we looked at ixe and i'll look at ixm and then we're going to go to the s p 100 list but if i actually just pull this up and go ixm you're going to see that when we look at take a look at ixm that also hit a brand new high here today and i want you to kind of think about this how do you think goldman sachs how do you think jp morgan which by the way some of their businesses they have a trading desk how do you think these billion dollar companies are doing in an environment where the market trend is going up and there's little volatility lately how do you think they're doing do you think that might potentially buoy some of their financial numbers now by the way it's not just goldman sachs and jp morgan same thing with wells fargo city you name it right so if you kind of take a look at this these banks are not only having a greater chance of being paid by the fun by the funds that they've lent from to consumers but from a trading desk perspective a firm boy they've been in a good environment and some someone is really thinking that they're probably mopping it up okay as these stocks actually really push to the upside as well now i want to kind of bring up something that i posted earlier on twitter okay i want to include us and practice together so right on twitter okay uh i'm gonna pull up just a recent post and this was just 15 minutes ago now we said we want to look at some trade examples some continuation some reversals so let's do it but i think what we just talked about was energy materials i want to focus on that first and then talk about well we're probably going to see what we're going to see well when i look at the s p 100 and the s p 100 really gives us a nice mixture it's not just tech nice little blend of sectors okay so i'm going to click on this first picture now when i look at this first picture and i'll kind of tell you what the first one actually says there is the first one it says is actually ford and gm okay now it's kind of thing to think about this earlier when you look at this for some people it might look like oh my gosh there's so much but i always really grade these or rank them only mainly on two columns what'd you say i said when i look at this i'm only really changing if i'm looking for let's say what is the strongest today i look at percentage shape okay and that's going to just categorize the highest or the lowest or the lowest the highest or the only other way which we really screen this is really weak percent those are the only two ways we grade this now what's interesting is if you specifically use the weak percent that's probably going to show us a lot of stocks that are probably above the 10 or above the 30 stocks that have stronger relative strength or whether it's on a 5 or a 10. now if we look at stocks that have a stronger weekly percentage well i mean we know where this goes if they're strong in the weekly percent they're probably stocks that are poking 20 day highs 55 day highs doing probably hitting uh cold as well and maybe i mean even a moving average crossover so let's kind of recap what i just said to make sure you pick up what i just laid down when i actually look at the s p 100 i'm only really only categorizing two two columns percentage change in weak percent and then whatever it shows there it's pretty much gonna domino into showing the strength whether are we above certain living averages relative strength time frame and also looking at 20 20 day highs 55's or cohorts which that's really where the investors sing is there a potential setup or is there maybe even a moving average crossover now really when we talk about percent change in really weak percent that's really kind of showing current performance and momentum and trend that's kind of important because you need that and then when we look at let's say the 20 20-day high 55-day high cold or whole moving average crossover that's really showing the shorter term entry set up in the longer term trend okay so if we're talking about why do we care about percentage change weak percent well because we need a trend okay if i actually see that those are strong that's going to lead to a greater chance that there is a trend there is momentum stocks probably above support and on the right hand side 20 55 cohold whole moving average that's probably going to tell us there could be a potential entry set up all right third stock in the list there does anyone know what third stock in the list is does anybody actually see what this stock is right here does anybody actually see what that stock is right there or kitty cat okay so the third stock really if we talk about weekly percent it's conical phillips which goes back to your energy if we look at the fourth stock of the fifth stock in the list it's goldman sachs you look at actually about ten down it's really uh in this case chevron and if you look at one that's not in the two sectors we talked about it's caterpillar now let's just go look at for example conoco phillips now when we look at conoco phillips i'm going to kind of look over okay and if i look over what you're going to notice is that stock is at a 20-day high it's also at a 55-day high it's also for example at kohl it's also showing a cross that happened really two days ago okay now by the way does the investor have to pick something that's already green no okay this is where they're probably buying a stock in a trend and it might be trying to maybe continue in that trend does it have to be showing 2855 cold and whole all together to be a legit potential energy no it doesn't have to be all of them it might just be a crossover that's it but if it's a strong move to the upside really going up maybe like nvidia okay no one saw us yesterday i just want to make sure i i went out back yesterday nobody was out there now if you look at this it's kind of showing all of those now if we actually take a look what we're going to do in our first trade and let's bring up let's say conco phillips well when we actually look at conoco phillips what you're going to notice in this case is we see that okay we kind of bring this down we kind of see that the stock really has like an old area of resistance maybe right around 59 well when we actually look at that old that yellow line okay these were this was the diagonal resistance okay and then you kind of see there's horizontal resistance now if the stock were to break out there's probably two different ways in which an investor might measure where that stock might try to go to well number one is that the stock might break out and could it go to the diagonal line extended which by the way is about 73 dollars now what is another way where an investor might try to ride the trend but to a certain point what else could maybe a technician really do to say james i'm gonna get in or try to have an entry set up but i also maybe want to set a target well they might use that fibonacci okay well and by the way we're saying fibonacci retracements what we're going to do is we're going to start drawing from the old resistance okay the old resistance and what you're going to notice is now by the way the stock is about two dollars and seventy cents off that support level about 260. that's about four percent maybe five so it's not as high as we think and then what i'm going to do is i'm going to go down to the lowest body and or support now if we take a look at this okay it's going to give us a projection of maybe where that stock might try to go to potentially now if we look at this and i'm going to kind of bring this down a little bit the 161 extension is not at the diagonal line okay you're going to see that that target would be about 67 and then the 200 percent which is not a fib level that is just taking the channel width from really 48 dollars to 59 taking that width and adding it on top of resistance so 200 is not a fit okay 200 is just the old channel width add on top of resistance and it gives a projection 71 dollars now the paper money account is going to buy the stock okay so what is going to happen here is it's going to come in and say okay it's going to buy the stock it's going to right click right click going to go right to where it says buy custom with oco bracket now if the investor says well james i i kind of want a higher probability of the stock hitting the potential target well and that's if it hit it 66 98 is going to be the number the paper money account uses now we're going to talk about position sizing in just a sec 66.98 now the investor might shave a little bit off that but if we're kind of using the exact number so no one asks me like where did you get 66.50 the line said 66 that's why i'm using 66.98 and then if
we said maybe the stop we might go back down and say what has been acting as a support so if i were to ask you this question if i were to ask you this question and say you know what what what's been acting as support has been a moving average has it been a price level so what so how do you even answer that right we're looking at when the stock went up and then it pulled back where did it pull back to before it bounced back up then when did it go back up as it went back up and then pull back where did it pull back to before it bounced back up went up pull back okay then went flat if we're talking about kind of maybe like a uh horizontal line perhaps if you will we might say that this blue line which is about 55 40 okay what you're going to notice is that 5540 has really been acting like a more of a horizontal area of support 5540 okay so 5540 less two to three percent for a stop and it's going to give about 454 okay 54. 29. now if we take a look at this data gtc data gtc now this we're actually in the margin account and so in the margin account we were really investing with about five to eight percent of the funds well let's just kind of use by the way the accounts about 172. what is about eight percent of okay that balance well it's about thirteen thousand dollars okay so the people in the account is going to come in and say you know what confirm and send we're going to say look single account we're going to go multiple accounts it's going to buy some in the margin lower dollar account then we're also going to in this case really do the bigger dollar account 13 700 760 59.92 just kind of seeing how many shares so if we kind of kept this to increments of 100 if we could and the margin account would be really be doing about 200 and in the bigger dollar account which is really going to be about twice that size at least is going to be 400 shares so if if we're doing let's say a margin account and an ira they don't have to have different positions they might be doing the same positions just different increment amounts okay which you see here this we're actually looking at the margin and the ira the stop is not valid until the stock is purchased and if the if the stock is purchased and the stock goes down it says sell the stock if it goes at or below it's not saying it's selling exactly right at that level it can get filled below okay now if the investor's okay with that they could send the order and now what you're going to see is that actually fills 200 in the margin 400 actually in the conoco phillips right there now the question from neil is hey how did you break the s p 100 into two separate tables uh so what i did is i took the s p 100 okay and uh i just kind of literally manually went through the s p 100 these are not my stocks okay the s p 100 and i just kind of manually made a list okay so i took the s p 100 and made a list and called it and this was high tech okay i called it the s p 100 list number one i had 50 stocks i took the s p 100 list number two high tech again so i made two separate lists why did the paper money account do that well what it did is there were some issues with this properly loading it works better if we have 50 probably better and it loads faster if it's probably 50 or less stocks none of these stocks are mine these are really the s p 100 which by the way can update frequently or occasionally so we want to verify over time are there any new ones have been added or subtracted etc and that that way we didn't have any problems with those loading okay so uh and i could see if i could put that back out there but i probably had that out on my twitter probably four or five times okay that i posted now i want to go to for example uh one other stock i'm going to go to the example of really goldman sachs and i'm going to go to that right there now the one i want to bring up i want to kind of bring up goldman sachs which is really the fourth one in the list and if we look at goldman sachs really here's the trend okay now sometimes when investors see that there's earnings upcoming they're kind of like on it there's earnings up coming i think as long as there's enough runway but i think like some time i'm thinking maybe three to four weeks maybe longer maybe six okay but something where investors might look for a stock to bounce or break out and if that stock is bouncing or breaking out investors might start to speculate on what those earnings could be now a farmer they plant a crop in which they think the crop price will be good now they don't know for sure okay so that's why they sell some of the crop before they actually have the crop fully in to hedge just in case you don't believe me go talk to them okay now if we take a look at this what you're going to notice is it we're going to kind of look at where old resistance was old resistance was right about 372. if you look at this stock it's about 16 really off that old resistance area so i'm not gonna say that wow this is like the timing is unbelievable okay it would have been nice if this class was at 7 30 this morning when it was actually a little bit closer to support uh and the moving average but if we were to look at this let's say the paper money account decides that they're going to do like a short put vertical so number one it's almost a 400 stock and number two maybe the investor says hey it's a little elevate off the support i don't want to choose a strategy that's maybe as aggressive like a stock like a long call etc well let's say the investor comes to the trade page and they say you know what let's go look at see if there's something here now i'm going to choose something like july which by the way is not that long away it's only 43 days away that july expiration the 16th of july now if we go look at let's say the the uh strikes on the put side that really actually has let's say a delta 30 to 40. you got the
375 you got the 380. and remember what we talked about yesterday there is no perfect strike okay no perfect strike okay each strike has has pros and cons okay if we look at the 375 and i'm going to kind of play the role of the investor says james i i i want to maybe sell a strike with a higher chance of it not being below that strike well 29 delta's saying there's a 29 chance as of right now the stock would be below the strike at expiration now if the investor were to sell the 370 and buy the 365s this is more your classic short vertical put trade remember what i said before but investors sometimes that are getting started and i think this makes sense they might just be focusing on one thing as they're learning and that makes sense but as someone starts to understand maybe stock buying or etfs and maybe like selling puts or short vertical puts they might have some traits that are just directional and then other traits that are not as much directional but they might be focused on time this train is really more focused on time but it's still trying to be right somewhat on direction of course now if the paperwork account were to sell the 370 buy the 365 remember the 365 is just protection okay if we go in and say well what is the risk remember in the margin account the risk we could really take in the margin account was really about two uh 800 in the in the ira i almost said 401k the ira it's really about fifteen hundred okay sixteen hundred dollars so really in the marginal account it's going to do two contracts in the ira it's gonna do four now is that pretty normal that it's probably gonna be doing about double based upon our numbers where we started yes single account gonna go to multiple accounts margin selling two of those ira it's gonna sell four of them okay there it is now what you're going to notice is there's the buying power effect that buying power effect is pretty much going to be right near the max loss okay there's the ira 1500 which is right near the max loss and if we actually say look let's uh and let's review so the credit for the six contracts is 750 the trade is wanting the stock to stay above seven 370 break even though is at 368.75 stock price right now is sitting at 388 so really it's just it has about twenty dollars of play to stay above breakeven now we're not foolish enough to believe that it can't go down 20 okay we weren't born yesterday we know if you can go up 20 it can go down 20. okay now just because i hadn't you hadn't seen in the past doesn't mean you ain't going to see in the future okay now if we click on this and say okay let's send the order now what you're going to see is that order is going to try to go out and fill okay at those mark values that we actually said okay now we'll we'll see if that feels in just a moment now what i want to do is i want to kind of before we go to questions okay what i want to now do is i want to go ahead and i want to go back to the agenda and we want to talk about current portfolio management just just just two or three quick ones well what i want to do in this case is i want to go bring up the example we talked about yesterday selling the pet on nvidia okay now nvidia and i asked this on twitter yesterday when did they announce that four for one split i don't know if i ever saw a firm answer on that but yesterday we kind of noted hey fourth one split on nvidia and yesterday the paper money account sold the put on it cash secured put so it's really a trade based upon the stock staying up above a certain price level well when we actually take a look at this and i want to bring this position up when we look at the position what happened was shorted the put and so that put yesterday was sold for 1710 okay 1710. now the purpose of the 510 was actually really downside protection and really paying some paying some premium to help reduce the collateral to do the trade so far it's about 20 of the way maybe through the premium sold it for 17 it's at 13.70 there's a little okay but maybe some investors are looking for a little bit more so notice that on a short put the delta's only 21. a lot less than
stock right but the theta here is 23. whenever with the investor shorts the pull we know that there the two main risks of shorting the puts are downside direction because it's bullish delta but the other risk of shorting puts or covered costs is really negative vega and boy do we see negative vega there so we don't want volatility to expand because that would pump up those option premiums so we don't want them to pop up we want them to deflate okay now i'm gonna go to the other one just real quick which is slum burger okay now if we look at schlumberger what you're gonna notice is he got the 32 and a half call now why would someone buy the call well you buy the call because you think there could be some upside or strong upside potential okay so what you're going to see is that call now by the way when was this trade place the trade was placed on 6-2 went along the call at 287 the call is now 520. now if we take a look at this the sh the short put that was actually sold for 214 and it's sawed through about half of that premium now it's not quite at 50 but what you're gonna notice is when we look at the call and then we look at let's say the put what you're going to see is the call the call is actually made percentage-wise a little bit more which again tells us that the trend has really been quite strong okay so that's that's kind of interesting is to see a little strong move and you're going to see that call is actually up 235 the puts up 93 93 unrealized gains and the short put is probably getting pretty close to rolling that trade okay now it's not at 50 yet or 65 but if it takes another good push on slumber to the upside that might be something where it might be rolled sooner than later on the short put but remember there's still time here there's still 78 days on the long call what we're talking about is rolling the short put so that's going to be the one that we watch early next week and see if there's an opportunity the trend of actually schlemberger looks like this so it it might be kind of in a situation where it's taking a strong move to the upside percentage-wise that stock i don't know what is about 10 now 15 up in the last three days gonna maybe see if that stock exhales and might see another potential bounce opportunity now uh yeah paul it it's not as much as really a mess as much as you think okay it really isn't i think the biggest actually is what happens actually to the pr to the liquidity i think that's the biggest thing so i want to actually also bring up let's say uh in this case one more of these and i want to talk about a stock stop loss okay so this would be our last one before we go to questions so in this example i want to bring up the trade and it's a trade on morgan stanley now i think this would be a good time to talk about stop losses and if we take a look at let's say morgan stanley i want to kind of take a look at this and kind of talk about before we move to questions about how an investor might kind of look and move up their stops when stocks go up aggressively we can kind of see this pattern over and over again okay and the pattern that we're referring to is what we showed before when these stocks actually go up i'm just going to kind of circle the red and green candle or square circle square that red and green candle square the red green candle and i'll just kind of fast forward now and now what you're going to see is these red and green candles really can represent for momentum type traders where these higher lows are where they could be now if you kind of look at this these areas or what i'm going to mark as the open of the green candle these open up the green candles can really act as higher low plateaus these higher lows if you continue to get those these can really act like diagonal supports because now if we just connect these one two three four okay getting into five we're kind of getting an angle or a diagonal trend line now here's the deal but james it doesn't touch all of them it's not going to okay you're not going to always touch all the equal lows or the lows the highs it's support we're just looking to see where do we get the most touches on support or resistance so if the ambassador said james i i'm up a little bit but i want to make sure that if this trend were to change that i could at least try to protect the capital and those potential gains now what you're going to notice is where we kind of have that diagonal line drawn it's kind of also where the 10 period moving average is and that's why we kind of say that the temperature moving average can act like diagonal support okay especially in a momentum situation well where is that well it's really 90 dollars and 78 cents if we were to set a stop two to three percent below that well that's going to be 88.96 now i remember one of my friends send to me one day james i don't like setting up my stops because it's it's like a lot of work and and i i didn't say anything and he goes james are you okay and i i said a lot of work i kind of think moving up the stops is like the fun part right the investor is actually trying to close the door or at least lock in some of those potential gains now the reason why i say potential is because if the stock were to slowly go down to 88.96 and slowly get below
that you'd probably have a greater chance to fill near there or at there but if that stock were to gap down then there's less chance on getting probably filled at a fair price level because the stock gapped so we don't know exactly where it's going to sell out at sell out at but what we're saying is over time the job of that investor is to monitor the support level to see if it's increased and if it has increased the task or the assignment is to move up the stops now those moving up the stops probably won't be every day but if that stock for example were to to go up let's say aggressively that could be something where those stops could actually be uh could be moved up more aggressively if the trend was that strong so i'll go actually figure out why that actually says that but the stop that's going to be moved up on that is 88.96 so the stop on that is going to be 88.96 now what i want to do and kind of true with time here we said we want to kind of go to now questions okay now uh ephraim actually says when i enter a stop i set it at a stock price that i want to get out at but the order shows me the option price to exit which one is really working well so uh i'm gonna bring up for example uh if you don't mind i'm gonna kind of take in this case uh i'll take this short put example on crux okay so just example given to answer this so let's say the investor said you know what james i'm going to create a closing order and this is on an option on a short put okay when the investor does let's say an exit to get out they might be doing a conditional order okay so this is the condition order market gtc we're going to go to the gear and what i'm going to say on crocs is sim crocs method we're going to say if it gets less or equal to and let's say in this case we're going to set a really really tight stop okay so the stock's at 101.43 and it's saying
if prox gets enter below 101 exit now let's read what's happening down below okay it's saying submit the following order buy those puts back at its current market price now what market price well it said right before that buying those two options back by plus two crocs 18 june 95 puts at their what at their market prices when when when the following condition is satisfied when the marked prices of security is less or equal to 101. so when it says marked price of the security what security we're talking about fox okay so if that stock so this order is not valid until the stock breaches 101 if the stock actually gets at or below 101 then it goes out and tries to buy those options back at their what at their current market prices all right next question uh so uh jay i'm gonna have to actually check on that now i wanna uh now by the way can you actually if you had a caller on morgan stanley can you have a stop at the same time yes you can okay the thing you want to remember on that is if you do get stomped out to buy the callback sell the put but the investor can have a stop but that's the biggest actually thing is if if they're using a stop on a caller they're really trying to say i'm trying to hold in my games okay on that all right now the other comment actually came in regarding a google split i'm not sure if i saw the google split but if i actually bring it up let's kind of bring this back i don't see it at least on the chart i might have to kind of dig into the news i don't see that on the chart okay all right other questions so i'm not saying they don't have a split i just did not see that on the chart okay not there any other questions okay now nasa actually says uh uh nvidia announced a split on 521 okay so that's actually kind of interesting i think that one was kind of hidden a little bit i didn't see as much talk about that maybe as you would think and we just want to verify is it truly a four for one okay just want to pick that that's typically pretty high two to for one three for one maybe okay four for one kind of seems a little high okay other questions that you have i just wanna make sure we're answering some questions as we go and also at the end uh lisa says what happened to income monday well income monday i love that okay so income monday was moved to tuesday okay and that class is actually taught by michael fairborn so i teach i'll show in just a sec michael fairborn actually picked up the class and cover calls and short puts and then what you're going to notice is on tuesday excuse me and on monday i teach a class on getting started with fundamentals where we talk about fundamentals tacticals and also some other things as well so i teach that class on monday michael fairporn teaches the cover calls and short puts and then uh that was the only class for me that was actually changed okay but now by the way can we still have it can we still have income type strategies discussed on tuesday and maybe thursday of course but if you said i want to learn about cover calls and short puts my good friend michael fairborne teaches that on tuesday all right now other questions now going back to the comment on russia removing dollars from the wealth account why does that matter so here's the deal right so neil let's kind of think about something when people buy oil what currency is it denominated in okay and if for example if you have let's say the u.s dollar that is declining what potential trade do investors typically look at to maybe try to take advantage of a dollar decline well if the u.s dollar is actually going down okay the us dollar is actually going down some investors that understand correlation and just understand that a lot of those commodities or many of them are actually paid for in u.s dollars
if they actually think the us dollar is actually going down they go along the commodities maybe it's through the futures or buying the physical commodities if they thought the us dollar was going to appreciate they might go bearish commodities the futures or the just the commodity physical commodities in general not hold a large inventory so neil really if if other if we started to see let's say other countries not really respect the dollar less countries holding that in reserve other countries like the euro the canadian dollar neil just look at the dollar canadian will you that trend has gone straight down and that is showing the chart okay the dollar losing ground to the canadian dollar okay and that's what i'm saying when the dollar is losing ground some investors just buy a canadian dollars they buy let's say australian dollars they buy let's say commodities in general and ladies and gentlemen okay if you look at that ixe if you look at really ixb it's really with that kind of idea that recently this is not just lately and historically that with all these fiscal programs the discretionary uh through the monetary stimulus etc that can have a depreciation effect on the us dollars as they flood okay the world and the country with dollars and when you keep on pumping or printing people might think that those dollars might not be truly worth maybe or there might be greater risk with the fiscal economy in general the economy and the government in general okay so um yeah so the comment from feldman and i think this is my last answer here is why did the dollar go up this morning it's what i said initially i think when you get countries like russia and maybe others that say they're removing those funds the us their dollar assets from their wealth fund i think it's now it's starting to become like okay if you get more and more countries to say that what do you think the u.s would have to do option number one they do nothing they just keep printing okay they keep uh put pumping more money into the economy or number two they say hey look we need to keep the reserve status okay and they say we got to scale back on this expansion from monetary and fiscal and then what happens well you they believe that they're going to try to support the dollar and do less monetary and fiscal expansion okay now by the way if you said are there two classes where i could hear more about this yes michael keeley talked about it last friday or the previous friday before that uh and also where uh the class by pat malali on wednesdays he talks about it quite a bit so this can be something we actually keep an eye on as far as dollar performance but also commodities uh as as a whole and also i would say are there other countries that actually jump on what russia mentioned earlier today so i'm out of my time uh these were our agendas we talked about we did two example trades we uh we put on two brand new positions here today and also with that we want to really focus on short-term entry setups in longer term trends we'll continue to monitor some of these trends and some of those developments today we talk about probably about half stock half options and we want to really kind of focus on how to ride trends in general whether we're doing it through stocks or options now remember with what we discussed here today we demonstrated the function of the platform we need to use actual symbols we did remember that td ameritrade doesn't make recommendations determine suitability of any security or strategies for individual traders make sure you're paid money practicing okay get a feel of how the platform works pros and cons how do you like to do it do not just dismiss paper money account it's a great resource for you coming up next barbara armstrong right at the top of the hour if you enjoyed today's session reach out smash that like button and also notice that i will be in all of next week as well thank you so much for commenting your questions i try to answer as many questions as possible try to even answer along the way and also at the end with that said thank you michael keeley as well and i wish you a great day
2021-06-06 10:41
