Iron Condors-A Bird or a Trading Strategy? | Barbara Armstrong | 4-3-20 | Trading A Smaller Account

Iron Condors-A Bird or a Trading Strategy? | Barbara Armstrong | 4-3-20 | Trading A Smaller Account

Show Video

Well, hello, everyone this is barbara Armstrong, coming to you live from my lovely. Home office, so welcome, to my home and welcome to trading. A smaller, account. I'm. Just doing a quick sound check here, we're going to have the lovely. Connie Hill joining, us I missed, this class the last couple, of weeks so. It's a delight for me to be back and to be back here with all of you so, we. Have, between. Half an hour and 45 minutes together this afternoon a, great way to end our week and enter. The weekend, although for many of us those, like weekday, weekends, are kind of blurring a little aren't they but, good to see so many of you if you are here, for the absolute. First time would, you please, type into the chat and say hey I'm new and here's. Where I'm tuning, in from so and I know that we have a lot of our seasoned veterans on this as well so hello, - Vicki, Hannah always a delight to see your name in the chat and to Maria and Mary, and Bruce and Neil and Herman and David and sherry. And Daryl. And Edie and Nassif. Oh what a cool name that is, so. Good to see all of you here in Osborn, and and many others who are still typing. In so. What, are we talking about today well, my, friends, spoiler. Alert I'm, gonna let the cat out of the bag today, we are talking I'm, con doors it is not a bird it is a trading strategy I know we've only done this in this, class once, before, so. If. You're familiar with iron condors. Say type, into the chat you know hey, iron condors. Know. Them well or iron, condors. Is that a bird or a strategy, and, we've got people coming in from all over the place I just saw Edie coming in from Anchorage we've, got people coming in from New Jersey people. Coming in from Michigan hello. - Owen, and welcome, good to have you on board, we've, got Bruce who was new and from Nashville, my daughters in Arizona, so Kerry welcome, glad. To have you here my son is actually downstairs so if you hear some plates that, could be my son cam. But, yeah he typically is in Dallas so tau, passing in California, so this, is kind of, exciting. Isn't it okay, so, trading, a smaller account let's get through our important, information, so, that we can get right down to business and somebody great at following the rules Terry saying yes I'm familiar with iron condors, and then, the next person saying yep no idea and, you know this is one of the delicate, things about coaching. And about teaching a class like this where we have hundreds, of people when we include the archives, watching. And listening. So. I try. To strike a balance between something. That a seasoned, veteran can get lots of good value from and then, something. That a brand new person will walk away going oh this is cool now I get this ok, so, here we go trading, a smaller account options. And an, iron condor is an option, strategy, options. Are not suitable for all investors as, there are special risks inherent to options trading that may expose investors. To potentially, rapid and substantial, losses. Know, that multi. Leg options strategies, and spreads that, there are more substantial, transaction. Costs sixty-five cents a contract, but still we have to take that into consideration.

Also. Know that past performance of any security, or strategy, doesn't guarantee future results in, order, to demonstrate both, the strategy, and the functionality of the platform, we need to use actual, symbols, we, do and we will, however. That isn't to be construed as a recommendation on, the part of either myself or. TD. Ameritrade any investment, decision you make in your live account is on, you my friends so keep, that in mind okay and. We've. Got the Greeks up there we'll talk a little bit about that know that all investing, involves risk including, the, risk of loss. Okay. So. What. Are we going to talk about today well I've already hit you with the spoiler alert we're going to talk about our current, position, which happens to be an iron Condor, that we put on in this, class a couple of weeks ago so we're going to look at what's cooking with that and then we're going to look for a couple of new opportunities. And, both. Of those new opportunities that we're going to look at today happened, to be iron condors, we're going to start with a quick. At the market posture, and I'm not gonna spend a lot of time on that because if you listen to several webcasts, each and every week and you get that every, time you tune in you'll be going wow I just spent an hour today just looking at market posture, so, here, is our friend the S&P 500 if, we look at a longer, term if you're just, new to trading in general in addition, to being new to this class like if we look at a five-year chart, the, S&P 500, in the market in general has. Been very very bullish. Until. Until. Is the key word here. Until. About. The middle of February of this year and then, the market, had a great, fall how, great a fall. Well. From tippy top to the very bottom almost. 35%. Sorry. And you can't see, that very well so I'm going to come back up here so. Almost. 35 percent and then, if we look at where it is today because. We had a bit of a pullback today, down one, and a half percent after, a big rally and this is on a weekly, chart you know, still, down 26, percent so. It's made a bit of a comeback now if we look at this a little more up close and personal, so here's our six-month chart, you. Know, we. Can see that, you. Know we really have had and let me get rid of these other drawings. Just. Clear. That drawing set. So. Some. Might look at this and say. Sorry. I didn't mean to bring that up into your line of view, you. Just come back here. Yes. We've got Connie Hill with us today in the chat so Connie thank you so much for joining us really, appreciate. Having, you here if you guys have any questions, as we go through this please. Do not hesitate to ask. So. When, we take a look at this let, me just grab this. Pull. That out of sight, and. We, look at this we see that, we'd. Had a fall. And a. Series, of. Lower. Lows. And. Then. You know one day pull back and, and. A. Series of lower highs and. Then. Along. Came this little rebound, and this is the first. Higher. High we've seen, since. The middle of February and this. If, it is a low is also a higher low. So. Sometimes. We get a false positive on these so, some might think like Oh are, we starting, to set up a bit of a basing, pattern, here, or, is, this just a messy, continuation. Of our downward, trend and at the end of the day we. We, really don't know but we do know you, know for just trading. What we see and not what we to go up and they, may not so, this is just the market, in general now, if we take a look at and I'll get rid of my drawings, on here if we take a look at the VIX and this is the only other general, market thing I'm going to look at which is our volatility. Index, or our, fear. Index, we. Can see that it has come, down from 85. To. 47. Now. 47. You're going wow that's, a big drop big, drop yes. However. Like, when you look at this I mean, that last, year we were sitting like 11. 12 13 if. We got a big bump you know we got up somewhere close to 20, and that was considered to be in the nosebleed, section so. If we look at this even on a 10-year, time frame well. Here's a here's, a 20, year time frame I, mean. The volatility. In the last two months has been extraordinary. This, is the highest that.

We Have ever seen this index, since. This index, was created. Back in. 2000. What's. My date here now, 2015. Looks. Like oh this is because I've just gone back five years I thought I had gone back 20 but even in the last five years it. Doesn't matter what period, we've got a lot of village volatility. Going so, what does void. Have. Sellers, doing, why would volatilities. Be kind of what. Would. People. Who like to sell be. Kind of rubbing, their hands in glee when, they see that volatility, is higher and if. You know the answer to that feel free to type it into the chat, because. Now we're going to go and look at our current trade and this an. Iron Condor. Is a selling. Strategy, so. What are we doing, so we have a trade here on Costco, we. Did an iron Condor, and our. The. Call side, was at 325. And 330, and the, put side was at. 2:55. And 2:57. And. I know a lot of people have said they don't have a clue about condors. We're gonna come out and we're gonna look at Costco. One. Of the few places still, open and. Where people are still shopping and we're. Gonna come in and we'll look at a six-month, chart actually I'm gonna make it a little bit broader than that. Because. What we can see is over the last nine, months. We. Have, Costco. Has been trading, kind of inner range most, of that time between. About. 280. And. For. A good part of it about, 305. And the, highest, it's been is 325. So. The idea, of an iron Condor, is you are selling. Two. Spreads, you're. Doing a short called vertical where. What you're. Saying. Here, and let me just sorry this keeps, coming up over here so. What, we're the, idea is we're going to sell a call here, and, then. We're going to buy, a call, above, that so. Here, we are selling, a call. Now. If we sell a call we're, agreeing to sell stock and. If. We don't own the stock that could be a problem because what if this thing went nuts and went up through our strike so in order to define our risk, we're, then gonna buy a call this. Is called a credit spread and, what. Is our expectation, when. We set, up a spread like this it's called a bear call, spread or. A credit, spread because if I only call, it one name it's less likely to confuse, you sorry I'm being a smart aleck here but, our expectation. Is that Costco, is going to continue to trade below. The strike we've sold, so. We sold a strike here I believe our strike was 325. And then. Down below because, volatility. Was so high I think we sold the 250. Strike you. Can come and look again oh. You. Know what I'll do that after I've done with my drawing tools so, then we come down here below, our low and so, our low of the last since, September, of last year, has been around 280 so. I think we sold something, here we sold a put around, 250. And. Then. When, we sell a put we're agreeing to buy the stock, well, this is trading for a smaller account, and. This. Stock is like. If I sold the 260, put it says I'm agreeing to buy this stock for 260, to 260. Dollars a share well. If you have a $5000, account, and. One. Contract, represents a hundred shares that would be a, $26,000. Position, and. So. You can't afford to buy I have. To buy a hundred shares so what you do is we're, going to buy a put below that. Which. Gives us the right to sell. So. Here I'm agreeing to buy here I now have the right to sell. So. And once our expectation. When we we, set, this up and this is called a short put. Vertical or. A. It's. A, bullish. Vertical. We're. Our. Expectation. Is that and, this. Will be a profitable, trade if, Costco.

Stays Above, 260. So. Now we've set up a range so a Costco. Can go anywhere, between, 260, and 325. And rate. Up to expiration. Which I think our expiration, on this is still 14, days out it's, around April, 20th, and. As. Long as it stays somewhere. In, here, it can go anywhere. You. Know we've got a profitable, trade. Are. There any questions on this I. Call. This a credit, spread sandwich. Because. We we've, got a credit. Spread on the top a credit. Spread on the bottom and as, long as our stock, wanders. Sorry. Wanders. Somewhere, in between and, doesn't. Go through our, strikes. We're. Good to go now. What a lot of people love about this strategy is even, if it goes against, you you've, got to find risk, on this because. If let's, say our strikes are five dollars wide here say we sold the two 60, and the, two 55, and. Up. Here we sold the. 325. And the 330. So. The. Most we can lose is five dollars on, each. Of these and yet there's no way, that. Costco, even if it went through it couldn't close, through. Both, sets of strikes right like on any given day Costco. Is going to close at one price or another so. You can't pop possibly. Have both sides of this lose one side is going to win at a minimum. So. You get paid two credits, you get paid two credit on this side and you. Get paid a credit on this side and your, risk is the same so you're kind of double dipping if. You. Will and so, what we're looking is, for a delta, somewhere, in the neighborhood, of say, 20. To 40, the. More conservative, you are the, bigger this window, is so if you're looking at this and saying okay, if, I have a delta around, 20, I've got an 80% chance, that Costco, will stay below this, strike and I've. Got an 8 percent, chance that, it, will stay above, this string so. My. Odds of a successful trade. Are. Reasonable. Now. In this class if you there are many people that are here for the first time, we're. Assuming, we have a twenty thousand dollar account, now if you have a five thousand, dollar account, or a three, thousand, dollar account, or a ten thousand dollar account, you may want to change your position sizing, accordingly. But. Our rule, in this class or our guideline, that we're going to trade by is that we don't want to risk more. Than four, hundred dollars, on any one trade. Because. We want to have, money to trade another day even if a trade goes against, us and even. If you are the most brilliant trader, in the world, there, will be occasions. When, against. Your best technical analysis, and everything else you'll have a trade go against you so it's, important, to make, sure you're not taking more risk than your account can handle, okay. So that's, what. Our iron, Condor, is all about so, welcome, to the world of iron condors, this, is something that we teach in the, Advanced. Options class. That we talk about but. We talk about, both, of these spreads. Both. The short, put, we call this a short put vertical and. The.

Short Called vertical we talk about both of these in getting started with options, so, what I will do is I will put a link, to. The. Class where we talk about short call verticals, and one where we talk about short. Cut verticals, at the end of this so that you can. Get. An understanding of, what each of these credit, spreads, does independently. Okay. So. I'll. Do that so having set. This up now. Let. Me just clear my drawing screen again we're, going to come and we're look at we're gonna look at the position we currently had on so this was that. This will make more sense to, you now, I'm. Hoping. When. We look at when. We look at this so keep. My. Apologies, this keeps coming up on my screen here so here's the call side which is the top part of the trade and our, strikes we sold the 325. And we bought the 330, above it and. Here. You, know our net credit, on that was 70, cents and. Then. At, the bottom we, sold the 255. In the 250, and, our. Net credit, on that was I think 85, cents. For. A total. Of, 155. Now. I didn't even have to exercise, my brain at all there because it, says. Right here iron, condor. 155. Pretty. Cool isn't it and I'll show you how to set that up because. There's so much on this platform this is a really, nice. Feature to have if you're trading any kind of spread to be able to see this, and, what's. It worth now so this is what we were paid and, what's the goal well, the goal is, for us to be able to buy it back for less than we paid it for or for it to expire worthless well. We have 14, days left in this trade and. This. Is now worth 18, cents, so. We haven't you know we got paid about 55. So. Is it worth staying, in this you know as the juice were worth, the squeeze as James, Boyd likes to say you know we've got almost 80%, of, our max gained out of this and it. Looks like we gave back some of that gained today because, this position. Lost, $43, today so, what we're going to do is we're going to say hey we've got most of our profit, out of this so. We're going to close this out because we're basically at 90% of, our max gain and some people when they set these up some, traders, they, will put, in, an, exit, they'll, say when I've got 80% of my profit I'm going to shut this down so I'm going to we're going to place another trade. On Costco, we're going to do another iron Condor and I'm going to show you how to do that and. Then. For this one we're just going to look at this and. We're going to say create a closing, order we're not gonna close down one side, or the other we're just going to buy back. 19. Cent debit now the market, is after hours so it likely won't get filled till Monday. Confirm. And send and we, might even say hey you know what we paid 155. You know we want to get, 15%. This is a limit order saying we don't want to pay more than 90 cents but, you could alter that if you wanted, okay. So confirm, and send it's. In our iron condor, group. And. So. We're just going to close this out. And. You. Know that would be a profitable. Trade in this paper money account, so. If we were not in our homes we could go out and enjoy a paper dinner as. It is we'd have to order one in right but or we could go to our grocery, store and place an order and buy some nice ribeye steaks, or, or. Whatever, with our our profit. From this trade which was what, around, you. Know a hundred and a hundred and thirty six dollars, so. If we were to come out and place another trade now even, if we were only halfway here. On this one some people will do this on an index, at the index is going sideways, they. Might, still. Have this first, one percolating. And layer, another, one on. So. You know there's no saying that you can only have one trade. On a stock, at any one time. Ricardo, is saying is the juice worth the squeeze it's a microphone that saying you're. Probably right and I just listened to Mike do a class the other day so that's probably where I got that okay. So if, we look at this again now as Costco. Continued to be in this range. It. Has, so. There's nothing to say that we couldn't go out and put a new trade on and, so. I look at this earlier. And. So, if we said okay, if we, looked at. The. 320. And the 325. Strike, so. You know that's rate up around here, so. We could take our line, edit. It and say. What we want to. See this line, at. The. 3:20, so that's where our sold, strike, is, and. We. Can even have this show up on our chart if we want say, we're going to call this iron Condor. 320, is our, sold strike. 320. 325. Is. The. Top end and. Oh. I see, this is in a total you're, gonna make this a straight line.

You, Know what let me just do this again. Okay. So I've got my line here, oh, we. Wanted this to be at 3:20, so you can draw your line and then come over here and edit it and so, we've got this line we want it to be at 3:20. And we want to put in, the, notes here, that it's an iron Condor, and if we want this to show up on the chart. 320. 325. We. Can over, here where it says do not show we can say hey show this on the right. And. So. Now we know, that we have this iron Condor, trade and that this is where our strikes, are at the top and then. We can come down to the bottom and say okay. 260. 255. So. I'm. Going. To just get rid of that line. And. We're. Going to put a new line in here and. Again. We can add it this. So. Repetition. Is the mother of all learning right. So. Iron, Condor. And. Our. Bottom, strikes, being. 260. 255. And. We're going to show that on the right so. Now when you go to look at your trade, you'll see that, the. Our. Expectation. Is that it's. Going to stay between these, two strikes so. Let's go to the trade tab and if we're looking at May now. Do we have to look at May this is 42, days out we. Could look at the weeklies, but I want you to pay very close, attention to, something here. And. I just was, a few fewer, strikes, is that. If I come and look at these weeklies, how. Many contracts. Do we have, volume. Is how many contracts. Traded today, open, interest is how many contracts, are in the book on the books in total, not, a whole lot do, you see the difference between the bid-ask spreads. You. Could drive a truck through those they're really. Really wide which makes it very difficult, for, you to exit, a trade it. Makes it much more, challenging to exit a trade profitably. So. We're going to go out to the monthlies, and we're. In the after-hours, now so you may say well hey, these. Bit off spreads, look ridiculous, here - it's. Just because, we're in the after-hours. And I don't know why this is, but sometimes they're wonky, so, trust me when we go live in the market on Monday. These, bit off spreads will be within 10%. There. Are about 30 cents. So. What, we're going to do is look at our Delta, and our Delta, here is 22. Which. Means we've got a 78%. Chance. That. Costco. Will, be trading, Bob. And this is just like, you. Know things can change. But. It's saying that you've got about a, 78%.

Chance, Close, to an 80% chance that this will expire. Without. Being in the money so. If, we're looking at that and then, I, like, to look at each side to see what each side is bringing, to the table so. If I say a cèlle vertical, five. Dollars, spread I'd be looking at a dollar 50, on that. And. Then. If we come up to the call side, and we say okay our twenty, Delta that would be at 320. Would. Be 19, so we've got an 81, percent chance. Of that, expiring, out, of the money. Okay. So, here. We go we're, going to sell, an. Iron. Condor. And. Our. Put. Our puts. Are always, at, the bottom so that's the 260. And then, we're buying the 255. Underneath, it to define our risk and then. When, we come to the top we. Want to sell. 3:20. And. Then. We're going to buy the 325. Above, it for protection so. We're, looking at a credit. Now. This credit is looking, very high. So, in and. That's, probably because of these wide bid-ask, spread so we were at 320. 325. And. 260. 255. Now. When I looked, at this earlier today. That. The credit, was about a dollar 63. So, I am going to tee this up. But. Know that when you go in on Monday, this will likely not, have filled, in your paper money account if you're following along and placing this for practice, now. When, you come down to. This, advanced. Orders. We're. Going to put in our exit, and, I. Want first trigger sequence. Or it could be first triggers all oh sorry. And, then what that pops, it up for me so. First trigger sequence, we're gonna come anywhere, on these two lines and right click we're. Going to create an opposite. Order and so. If we say well we'd like to get out when it's about. We've. Got 80%, of our profit, so, that would be about. 53. Cents right because to 70. If. I round up to 270. That would be 54. You can get your handy-dandy calculator out, and take, 265. And multiply, it by 0.2, now, on Monday you, know if this fills you. May want to look at what. It filled for and adjust, your exit, accordingly, because, I'm thinking, that this may require some change, so. What are we risking here. So. We're risking the difference between the two strikes which is five dollars, less. What, we paid to get in we're, paid to get in and, we're paid to sixty-five so. You, know and and again I don't think these numbers, are going to be the numbers that we end up with when we get in it would be nice if they were but. If we're saying. This. Is how much we can make this is the most we can make on this 265, we're. Risking the, difference, between these two strikes, 5. -. The 265. So. 235. So. This is over, a hundred percent return, on our risk. Potentially. Our. Return on this, is our return on risk because, what are we risking here.

235. What's. The absolute most, we can lose on this trade. 235. Dollars, what, is our in, this class maximum. It's. It's. 400, so we're you, know we would give. Ourselves permission, to, take this trade because. We're not risking more than. We've agreed to risk, okay. So, I'm gonna hit confirm and send and. We. Want to sell an iron Condor how much can we make 265, we just talked about that how, much can we lose. 235. And then, keep in mind that there is. Four. Legs, to. This strategy, so there's. Going to be a commission, of 65, cents, per, leg or two dollars and sixty cents and, we, would put that in our iron Condor, bucket and then. You know even though we've teed this up expect, to go in Monday, and have, to adjust things when, those bid-ask spreads, D. Wonka 5 to. Use a highly, technical term okay. So if, you would like to see. How. We set, this up so that we have our iron Condor. Listed, here, and our, trade price you. Come up to where it says position. Statement, right. At the very top like, well it's actually in the middle of your page you're, going to come over to where it says adjust account and the three little lines beside, that. Down. To arrange positions. And, what you want to click on is order, type, and. When you click on that order, type it. Will tell us what. It. Will arrange, it by type of strategy, and it'll do the math for us and who. Doesn't appreciate that, okay. So, would. Anyone like to see. One. More example, so. John if you are just starting. It's. Going to be so. Much like drinking out of a firehose I can't even tell you. So, what. I would suggest, is. Going. To getting started with options, and. And. Go through some of those next, week actually, we're at the very tippy top of a brand new rotation, with that but, you can go back in the archives and look for the ones on the credit spreads and that, would be a great great, place to start so. If we want to do one other example, we, could look at our friend, Walmart you notice that the two stocks I picked are one. Both. Trading, in a range and, both still open, and they, both offer you, know what many consider, to be consumer. Staples. So. If. We look at this Walmart, since, when, well I've got a ma nine-month, chart in this entire nine months, this. Stock has been trading in, a range between, about 105, and, 125. So. That, goes right back to June. Of last year, so. Could, we get enough premium, to go in and sell. The. 105, put and maybe the 100, put and then, sell, maybe, the 125. And the. 130. So. If we look at that we come out to our trade tab. And. We say okay here's, our 105. Have we got volume on this and again we're looking out, in May because the. 17th, of April 14, days not a lot of time. Although. We do have some contracts. Here. So. We're going to look at May so. We're going to look at the one five and again this, is very heavily traded, right sorry this, is very heavily traded so our bid-ask, spread looks, really. Unappealing.

But. When the markets, are open, the bid-ask spreads, become more sensible, so, again I went, through and. Did the map on this earlier. So. If, it if it looks kind. Of too good to be true just think, wow look. At what happened over the weekend it's not because it was the weekend, it's, because, of these wonky, aftermarket. Bid-ask spreads, so. And, then we're looking for the. 125. And. The. 130. So. We're looking at a credit of around $2. Now when I, looked. At this, a couple, of hours before the market opened, that, credit, was more like a dollar, 30. To a dollar 40, so. If I'm Monday, you say oh the, credits only a dollar 40, it's not worth doing well. If you take you, know a dollar 40. Let. Me bring up my drawing tools one last time a. Dollar. 40, and, we're gonna put that over. 360. Because. We still have that you know five. Dollar, widespread. Right so the most we can lose on this is five dollars. Even, if it turns out to be a dollar 40. /. I've just got my little calculator, here 360. That's, still, a, 38%. Potential. Return, on our risk. Now. At 2:06, if I, just round and say okay most. I can make on this is - and I'm risking three, well. That looks like you, know call, my spidey math senses. 66.6. Return, potential. Return. On risk. But. Don't, be, surprised, if you get up Monday morning and look at. That, it's, it's. Not, the. Numbers aren't looking quite as appealing, okay. But we're going to go ahead and T this trade up I'm going, to close my drawing, tools one. Last time just. So that we can put another trade in so your. Homework. Will be to find another, one. Of these, and. Yes, Viki thank you for teeing that up I, will, show people where to find things so we're, gonna hit confirm, and again if we wanted to put in an exit, advanced. Order. First. Trigger sequence. Right click anywhere, on this pink these, pink lines create, an opposite, order we'd. Want to get out when 2. Times 2, is 4 when this is worth about 40, cents, buy it back, take. Our risk off the table and I'm just using 20%. You, know we could use 10%. So we could say hey we want to get 90%, of our profit out of this baby. So, you know we could use the example, of 90%. So we want to buy it back when it has only 10% of its value, if, you are trading this strategy, on a regular basis you're not going to change your mind from trade to trade you're going to have a standard set of guidelines that, you, tend. To trade by or. At least that. Many investors, or some investors, will do that, okay. So. We've got that teed up for Monday now, if you come to the education. Tab one. Of my favorite tabs and. Then. We're, going to come to webcasts. And. You. Can just kind of scroll back through the archives, but if you want just the whole shebang at a glance, you, can. Come to this webcast, calendar, and, today. It looks like we didn't teach anything and it's not that we didn't teach anything is that as we've taught things they're falling off the calendar, so, what I'd suggest you do is some time before Monday. Morning, when, Friday has fallen off and gone back to its rightful, place at the end of the week you, could just print this or take a screenshot so. One. Of the classes, that I. Mentioned. Is taught earlier, today so you can't see it on the schedule but it's getting started with stock investing, and it's, at 11 o'clock on Friday mornings, Eastern, Time.

A. Reasonable. Spread I think you're talking about bid-ask, spreads. And a. Reasonable. Bid-ask spread, many want it to be pennies apart, or, no, more than 10% is, a, guideline that many will. Will. Look for a bit a spread, that's not more than 10%, so. These, during. The regular trading day on the monthlies, have. A bit a spread, that would meet that, that. Parameter if that's a guideline, that you. Would choose to adopt so. If we look at this getting started with technical, analysis, if you're new to this taught by Cameron, May it's excellent, and if. You want, to trade options which, we'll talk a lot about in this class because it's appropriate. With. You. Know with, a smaller, account, size you, really still want to start with getting started with stock investing, because you'll, notice today we did two example, trades one on Costco, and, we did one on Walmart, both of those are on companies, and on their stock, so. You need to understand. The basics, of stock investing, and of technical, analysis, how stocks, move. Before. You can really become. A. Knowledgeable. Option, investor does that make sense, okay. And then, you know this will be it's, being recorded it will be archived, and then, you can come here to the archives. Now. It, they typically try it up by Friday. Later, on later today but, it may not be up in the archives till Monday, but, absolutely, one you can watch this as many times as you like in fact I encourage you you, your gerbil your cat your mother your sister have, it have everybody watch it so. If you know you wanted, to watch this one and that I taught, it you can say I want to come to the archives, and I, want to look it for the class that, barb taught so. Here, today this morning I taught a class you know, using the pain of a fall protective, puts a particular. Strategy, so. And then you can just go back so last week we talked about short, call verticals, which is the top part of that iron. Condor, strategy, is made up of a short called vertical the. Week before I. Almost. Covered that class so I don't know yep, there. We go short court verticals. Was. The six. Okay. So guys, we've. Covered a lot today. One. Last thing there are also courses, and, and I think the courses are great when I started. I actually. Started. Let me see if I can get. When. I started. I started by. Coming over to stocks there were a bunch of little videos, I did the videos, and then. I did the stocks, technical. Analysis, class. And. You, know it's very interactive, you. Can do this you. Know a section, a day many of us are now working from home or perhaps you're at home and not. In a position where you can be working, and. So, you can see here introduction, to stops five videos so. You could start there and then come on over to options, and do the same thing so, you know we've got a bunch of videos on options, if you scroll down you'll, find those, here. You go five, videos, 20. Minutes, you. Can do that and then. You. Know come up to the course on trading options, again section. At a time how do you eat an elephant one bite at a time I know that, this can feel a bit like drinking out of a fire hose when you're just beginning but. Trust me if you keep coming back and building a framework, you. Will be amazed. At how much you will learn. So. Anyway. Guys that's, a wrap for today did, we cover our market posture, we did we. Looked at our iron Condor on Costco, and put it in order to close that out we, teed up two new trades both iron condors. One, on Walmart. And one on Costco, did. One contract, of each and we'll be monitoring, though, as we go through so. Guys I hope that this has been helpful have an awesome, awesome weekend. Know, just in closing that options, aren't suitable for everyone, we did some example, trip show. The functionality. Of the platform, and to explain, this trading strategy, not. To be construed as a recommendation it, is not but. I encourage you to place these trades in your paper money and follow up on them as if they were real, because. That's, how we learn. So, there. Are lots of good books out there so, Bruce is asking, about books, my. Favorite. Book on investing. Maybe. We're not supposed to have favorites. It's not about option, investing, in particular it's. About the mindset, of investing, and it was called reminiscences. Of a stock investor. Reminiscences. Of a stock investor have I got that right. Connie. And. You know I started, reading it thought why do they want me to read this book that you know it's about a guy that was trading when he was basically looking at a tape at the turn-of-the-century, so.

You Know how. We trade, has, changed, phenomenally. As far as the mechanics, and being able to trade online trade. From our mobile, devices, for crying out loud but, the psychology. Of trading, hasn't. Changed, a bit I learned, a ton, so. That would be a great place to start anyway. At the end of this I wanted T up. Two. Of the getting, started with option, videos and if I can find one on iron condors specifically. If not I'll go back to two, or three weeks ago the one that Connie did where she placed that original. Iron Condor, trade so, guys. Stay. Well stay safe stay home. You've. Got hundreds, of hours of material, that you can wade through and, start practicing you, know this. Opportunity. For you to be home and learn, more about trading could be the greatest gift you've ever given yourself so on that, note yes. It was about Jesse, Livermore. Mr.. Gutierrez, Lee and if you haven't read it or haven't read it in a while I read it three years ago do, to read it again. I'll. Bring, a couple of quotes from it next week I absolutely. Love that book. Yeah, okay, guys take care AB and. Best of success with your investing, bye for now.

2020-04-06 06:15

Show Video

Other news