Trading Vertical Spreads | John McNichol | 11-13-19
Good. Afternoon everyone, John McNichol, here and you have reached trading. Vertical, spreads, our subject. Today is hedging. Which. Short call verticals, so stick around. Well. Good afternoon whether, you here live or listen to the archived session, do appreciate you being here once again John McNichol, you can see my Twitter handle on, the screen, if you, wish to follow me at J McNichol underscore. T da also. If you like these, webcasts. This. Is part, of the, the. Trader. Talks, webcast. Channel, please. Go in and click Subscribe if you want to be up-to-date on, all the, latest and greatest that's, coming up like for instance James, Boyd will. Be coming. Up after this session with an options, strategy. Selection webcast. Let's. Take care of disclosures, and we'll get right into it. Remember. Options, are not suitable for all investors as, these special risks, inherent, to options trade and may expose investors, of potentially rapid and substantial. Losses carefully. Read the previous about a copy of characteristics, and risks of standardized options, spread. Straddles, and other multi leg option strategies can entail substantial, transaction, costs including, multiple Commission's which, may impact any potential return also advanced. Option strategies often involve greater and more complex risk than, single leg option trades and investors, may also wish to contact a tax advisor regarding. The tax treatment applicable. To those spreads and other multi leg option transactions. Now. In order to demonstrate the functionality of the platform we will be used in actual symbols keeping in mind TD Ameritrade does not make recommendations. Or, determine, suitability of any security or strategy, for individual, traders any investment, decision you make in your self-directed, account, is solely your, responsibility now. While this webcast may discuss technical analysis, other approaches, include fundamental, analysis, may, assert very different views and the. Account. That we're using looks, like a real account on, thinkorswim, but it is not it's a demo account you. Have the ability to practice what you learn here today as well, with paper money that software is for educational, purposes and successful, virtual trading, during, one time period does not guarantee successful. Investment of actual funds during, a later time period as those market conditions change continuously. Past. Performance, of any security strategy, does not guarantee future results or, success, and, keep. In mind transaction. Costs are important factors commissions, and other fees are important factors should be considered when. Evaluating any trade, the zero Commission, applies to online u.s. exchange listed, stocks ETFs and, options, trades there's, a $0.65. Per options. Contract, fee per options, contract, fee applies. To option trades. Alright. Let's go ahead and get into our topic, for today. Today. We're, gonna learn how to beta weight positions, to an index, our, example, will be SPX. For the S&P 500. We'll. Go ahead and identify potential, signals, to initiate a hedging strategy, for short call verticals. Analyze. That potential, hedge and, calculate. Max profit max. Loss and position, size we'll, also determine some, potential, exit, criteria and, we'll. Create, and place, a short, call vertical order on the thinkorswim paper-money. Platform that, is our learning objective, for today after this session you, should be able to beta, weight your. Portfolio. Or, practice, portfolio, and being, able to create, a short. Call vertical as a hedge. On the, paper-money platform, thanks. For joining us Anthony Scott Paul, if. You have any questions, feel. Free to utilize the chat. Scott. From Atlanta there Paul, from New York 2 cities we have live events that are going to be coming up. Over. The, next month, if. You go to the education, tab and select. Live. Events. You'll. See that we have some upcoming events, I'll. Be in Chicago, this weekend, and then. I believe the following weekend, mike Follette. May. Be in, new york and then, coming up next month in december, Ben Watson will be in Atlanta. Blue, double check I know there's Thanksgiving, coming up so we may have a break weekend, there you, can look at the live event, schedule, there. Alright. Let's go ahead and get right into it so. Beta. Weight in positions, to a, index. Utilize. In Delta. So. Beta weighting a portfolio, attempts to convert all the underlying positions, into shares or Delta. Of an index. Kind, of a simple. Analogy, is a, fruit. Basket, you, have a basket, of fruit each fruit, is different, has different tastes, different color texture, things, like that. Stocks. Can. Be this similar, fashion, stocks. Priced. At different values more. Importantly, stocks, have different, volatilities. They. May move up and down in different. Ways some may move more as a, percentage, others may move less. So.
It's. Kind of hard to, get. In, determination. On, the. Volatility. Of your, portfolio. Based. Off of what the market may do so. What, beta weight attempts to do is to take an index. Which. Will go, ahead and turn that fruit, basket into, the same fruit so, let's say a bowl, of apples or a bowl of oranges to. Get a better a comparison. Of potentially. The impact, of market. Moves. So. Delta, is going to be the sensitivity. Of. An. Option, to. Changes in the price of the underlying asset. Now. That Delta also to suggest, how much the price of the options position will go up or down based. Off of the move of that underlying asset. Now. Each stock share is going to have a delta of $1. Per share and. Some. Of the indices, that we may look to, compare is the, S&P 500. The. SP 500. Looks. At, 500. Of large. Cap stocks so if your portfolio, is typically. Weighted, more into the larger, caps from, various sectors, and industries the. S&P 500 may, be a good benchmark if. You're more, weighted, into technology. Stocks. Think. Of the Fang stocks. Biotech. Anything. That is more technology oriented. The. Nasdaq. Maybe more of a benchmark, in that case and then. If you have a portfolio that is much more weighted, into small caps are. You t stands. For the Russell 2000. May be a good example so. The idea is to select a index. That best represents. The, holdings, in that portfolio. So. Here's a beta weight example, we're also going to do it on our thinkorswim. Practice. Account. So. If you look at the top part of the screen a. List. Of various. Stocks. You. Can see the quantities, various. Share prices. Now. When it comes to stocks these, quantities. Also basically refer to as deltas. If. A stock goes up a dollar that. Position, would go up a dollar and if you have 128. Shares. If. Your stock goes up one, dollar that portfolio, would be impacted, by, 128. Dollars and we can actually see that represented. Here in this, Delta column. Now. A non, beta, weighted. Delta. This. Top half these are all basically, a fruit salad or a, fruit bowl you. Know these are all different stocks. Which. All have their own deltas based off the number of shares. You. May recognize, a lot of these stocks, for. Instance PG Procter, & Gamble. If. You were to compare like a Procter & Gamble or maybe in Archer, Daniels, Midland. You. Know kind of your non, cyclical. Stocks you know they have a tendency of being less volatile. Than other stocks maybe, like a Facebook, or certainly. Like an energy, company or, utilities. And then it's Devon Energy there. Or. Williams. I believe, energy, there those.
Stocks Have a density being more volatile, and so. What, can we do to. Kind of make stocks. With different volatilities more, relative. To, a benchmark, and that's where the beta weight comes in so. On the bottom, part. This. Is a beta weight portfolio. What is it weighted - it's. Weighted, to, the sp500. And. The thinkorswim platform there, is a checkbox to, check for beta weight and then we can put in the appropriate, index. Whether, that's s PX n. DX, r. UT y, or whatever benchmark. Is more, relative, to that portfolio stocks, at you. Now. Once that. Of two, dollars and 20 cents so. What as what does that imply, that implies, based off of current, volatilities, that if the. S&P, 500, moves. One point, that. Would have an impact of about two dollars and 20 cents on Archer. Daniels, Midland. Now. Notice, look. At how the deltas, are larger. And. Are. Typically going to be larger, on. More. Volatile, stocks. Now. It's going to be a combination of the size of the position, as well as with volatility. Notice. On like Procter & Gamble. You. Know it's Delta, again, kind, of less than some. Of the other stocks that a tendency to be more volatile. Now. Also by that beta weight when, we add them all together it's. Going to have a, delta. For your whole portfolio. Now. Notice on the top half it was showing seven hundred and sixteen dollars. Well. That's assuming that each, stock, goes, up or down a, dollar in. Tandem. Well. That doesn't have a tendency, of happening, so, by beta. Waiting to the market, now, this number. Represents. For. A one-point, move in the essent SPX. How, much your portfolio, is. Impacted. Plus. Or minus. So. Theoretically, if the S&P 500 went, up ten points your. Portfolio, would be positively, impacted, by two. Hundred and fifty dollars now that's theoretical. It's not going to be exact, when, it comes into application. On that so that's something to keep in mind. Likewise. If the SP goes ahead and drops 10. Points or let's say 20 points well, that can have a negative impact to the tune of upwards, of 50 dollars so. Once we know what. The impact, of. The. Market, on. Our, portfolio, that can also help, individuals. Possibly. Effectively, hedge, the account against. Possible draw. In the market again. Not perfect, but a tool that, may make it easier, to create those hedges now an individual. Can create hedges by you, know whether buying options or, doing spreads on each one of those individual. Positions. That, can be very time-consuming also, the per contract, fees can add up as well, by.
Going Ahead and making that fruit basket all, the same fruit, we, may be able to use one, instrument as a hedge. Against, the entire account and that's the intent of utilizing. For, instance SPX. Verticals. As one, way of doing that. So. Let's go ahead and illustrate, this a little bit more once, again if you have any questions feel free to ask certainly. Love to hear from you. Appreciate. The like as well. Sometimes. I see some stuff in real time just happen to glance and there's a like that popped up so if you like what you learn here today certainly. Let us know. So. Potential, signals, to initiate, a hedge strategy. Is. A, stock. That may be near. A resistance, area now those of you that joined us last month the. Market had, been trading up closer that resistance, we did initiate ahead a hedge. When. We take a closer look at it obviously, the hedge didn't play out because the market has generally. Traded higher. But. As, far as timing one, may look for a, stock, or an index near a resistance, area. May. Look for some. Type of bearish. Indication. Such. As candles, may. Be an approach. These. Stock index, trading. Or closing, below the low of the previous Stanly these are all examples of a technical. Condition. Where. Prices, may be pulling. Back now. Pull backs can also be a way of continuing. The, trend if. It's just a dip but, if they're selling more increase in volume. More. Volatility. That may, be a sign of. Something. More significant. Some. Traders may look for you know price going below. A short-term moving average. Whether it's like a 20 day. You. Know 10 period, average some. Of these may be relatively, shorter, term in nature. And. If. A stock basically, goes below an intermediate. Moving, average whether, it's like a 30 40, 50 period average you, know that could be a change, in overall trend. Of not, only of the. Market, but possibly, on some of your individual, stocks. And. If. It breaks below a support, area whether price or, maybe a trend, break you know these are all reasons. That, someone may initiate a hedge now, as far as. You. Know the. Perfect time. One. May not be able to find that certainly, from. A matter of timing and. You. Know as. Price. Kind of reverses, off of that resistance, as. Price. Continues, to fall volatility. Rises now, what's interesting is as volatility Rises those. Premiums, may rise as well so, as things, possibly, may get worse in. The market one can can potentially, sell more premium, to. Offset. Some, of those potential, losses in the, market now. This is not meant to recover. Necessarily. Any or all or, all the losses that one may have but, may limit some of that downside. So. Another. Technique is, looking. At the volatility. Index or the VIX and. Seeing. If there's any type of divergence. Forman a. Divergence. Is when. An indicator, is doing one thing and the, price or the charts doing something different, an example of a a. Bearish. Divergence and. Let's. Go back on that is. We're. Comparing the lows. Now. It's called a bullish divergence on, the VIX since it's an inverse, the. Price actions, making lower lows. But. At the same time the indicator, in this case it could be a MACD, is making. Higher lows that's. Implying, that the, momentum. May be changing. At the very least it's slowing down so. When the VIX is maybe making some newer lows but. The momentum, kind of shift into the opposite, way may, imply that volatility. May rise and. With. That rise in volatility. Usually. Coincides, with the market falling. Now. So. Let's go ahead and take a quick look at the, VIX, and. We'll talk about how we can initiate, this. Strategy, here. So. Will you bring up SPX at first so. You know here's a chart of the S&P 500, right, now. Notice. It is in a channel. You. Know we've seen overall, higher, highs and higher lows here, was the more recent, break out that.
The SPX had done. So. Some traders may have initiated hedges, as we did last month as price came up to that resistance, but. Never really fell back so. That hedge basically. Just faded away as the, market went higher now, some traders may close out that hedge, as, soon as that price breaks and, try. To live to see that market run now. Notice. Even. Though prices are making new highs if this, channel holds. You. Know we may be looking at an area not. Too much higher from. The high of the. Other day. You. Know within about 30 or 40 points, you know one may see some resistance, on the SPX. This. Could be a matter of time and looking for some type, of bearish, formation, to occur as the price, gets to the upper part of that channel so go. Ahead look at the VIX. VIX. And. Let's. Go ahead and add that, MACD. Indicator will, go to studies. Or. You can just actually click on the beaker, on the, chart. And. Look, for MACD. The MACD. Histogram or. MACD. Histogram was, the one that was shown on the slide, we. Just go ahead and double click on that and. Click. Apply. One. Can be comparing, the lows on the price. Little. Lag here on the computer. Here and. Notice, there is a bit. Of a divergence here as the, VIX has been going. Lower and over the same period of time the. MACD, has, been rising that's a bullish divergence even. Had gone positive. Here over the last day we did have a bit of a pullback yesterday. That, continued on to today but kind of faded back now that's not a guarantee, that a. Hedge, initiated, right now is, going to translate in the market falling back but, from a volatility, standpoint. It, is, pointing, towards some, of those signs, the. Only fact is that the drop. In volatility, has slowed down that. Doesn't necessarily mean that volatility is going to ramp up and. The market fall volatility. Can end up going a bit more sideways, or even more of a tighter range so. We'll see. So. That's. Kind of the sentiment. There let's, go ahead and talk about how we may set this up. It's, trying to get rid of some of our tools there that seem, to be stuck, let me try something else here. So. Hedging which short call verticals.
Now, Generally, hedgers. May go ahead and select out. Of the money strikes that are above a potential, resistance level, whether at or above to increase the probability of. Those, options, expire worthless that's, a desired outcome for, selling, a, short. Vertical, whether, calls or puts you're. Selling, those verticals, expecting. That they would expire, worthless that's, how we get the max game, hedgers. Strive to protect against uncertainty, in the, market due in an upcoming event to, be pending news you. Know we have the. Impeachment. Hearings. Or. Potential, bearish trends, therefore. They select expiration. Dates that, occur after the event or news is scheduled to be announced so, if one, wanted to have a hedge or protection, possibly, going into the end of the year then. One may select options. Going into December or possibly, a January. Now. After beta, waiting, two positions, or. The portfolio and. Individuals. May decide what percentage, of the portfolio, they're looking to hedge what. Percentage, 30. 40, 50 % etc, now, if one wanted to kind of more of a later hedge they may only hedge a smaller, percentage, of that portfolio, that. Way if the market goes higher they're. Not limiting. As much of their upside whereas. If you had 50 percent or more, you theoretically maybe at least initially, limit. In about, 50%, of, your upside, although. As the market, goes higher that, hedge will, get, smaller, and. Be. Reduced, to nothing. Now. Remember. Beta weighting, are as far as the hedge is concerned now remember beta weight is theoretical. In nature and, the, underlying positions, may move more or less than that index result. Resulting. In a, less effective hedge if. They go ahead and move more than the index, so. Again it's not perfect. So. What we're going to do is we're. Going to select, a. Short call vertical. On. The. SPX. Determine. The Delta of the hedging position on the analyze tab. We'll. Be able to see what our maximum loss is for that position which. Is going to be the difference, between the strike prices and the net credit that's the same as any short. Vertical the. Difference between two strikes minus two credit received the, maximum profit on the hedge or really the max of this hedge is going to be whatever credit, that we received, and. Once. Again the short call vertical the. Maximum, hedge is equal, to, that credit received. So. Let's see if we go ahead and apply this. We're. Going to go ahead and, bring, up on, the. Thinkorswim platform. 1. How we can bring. Up our portfolio. And look at these hedges. Now. There's a couple of views that you have on thinkorswim, if, you come over to, the far. Right. Side. Where. It says position, statement, we're on our monitor.
Tab We're. Under activity in positions, and under. Position, statement, on that bar you, see a list of all your positions, if you, come to the far right. On. That. Same tab. You. Can click and, select. Old. Layout, old, layout will actually, list all of your. Underlying. Positions. And bring. Up your deltas. Listed, now if you're using a new layout that's fine too you can set it up however way you'd like but this is kind of an easy button for us today going. From new. Layout, to. Old, layout. Number. Two we. Go to where it says beta, weight and. We. Check that box. By. Default it, may bring up a symbol or may be the last symbol that came up but, for our example you can type in SPX. And. At. The total. Of, your. Positions. There should be a subtotal. Of your. Deltas, against. The SPX, now. If you don't see a total, if it says n/a sometimes. Some, symbols, particularly, if there are other derivatives, may. Not display right there is a subtotal. Checkbox. And. You. Can check all the, positions, that you, want to be, calculated. In that position, so. As an example I do teach a futures class I unchecked. All those futures positions, so as not to skew. This. Practice. Portfolio, you. Check those off you click OK so. Now this, portfolio weighted, to the SP 500 has, a delta of 61. Now. With that in mind. Like. Good I'm. Glad I clicked the right mute button that was a sneeze there so. Um. We, have a a. Delta. Of 61. What, that means is, if. The SP goes up a point this portfolio is theoretically, would go up 61 dollars if it goes down a point. A theoretically. It would go down 61. Dollars or just shy 62, now, let's say we wanted to hedge. 1/3, of this. Account so, basically what we can do is we can take 30% x. That's. 60 percent I believe. That's what we had on the, slide. Take. Your beta. Weight Delta's, multiply. It by the percentage. So if I said 30 I would multiply that, by 30. So. We can do that on the platform. Bring. Up the calculator. We. Have our gadgets, over on the left-hand side we can change one of those. And. Wanting to do is take. Sixty. One. Point. Eight, two. Times. Point. Three. That. Would be about 18, deltas. So. We basically need, to sell about. 18, Delta's. Against. This account, so. What we'll do is we're. Gonna go ahead and go. To the trade tab, we're. Going to type in SP x for S&P 500's. P, X. We're. Going to go ahead and select an expiration. Let's, say we want to go this. Into, the. End of the year. We. Can go out. Right. Before Christmas if you want to go into new year you, know we can look into the new year into January. Let's. Say go ahead and click on those. January, options. Then. We can go ahead and select a strike that maybe out of the money. Right. Now SP X is at thirty ninety-five. So. Some. Of your deltas you, may be looking at 30 to 40 deltas as. I. Went to all on the strikes there's a lot, of strikes here that we have. You. Know if we go out closer to, some. Of those 30 deltas. That's. A strike at 31 40 I. Believe. That 31:40, is. Kind, of at or. Above, that. Resistance, there. If. We, want to go a little bit. Further, 31, 45 we can do that, so. The, options themselves have a delta of about just. Shy 30 so theoretically this, short strike 31 35, as a right now 30%. Probability of expiring worthless. Again.
Probability. Not certainty, now, if I go ahead I can right click on the bid price and we, can do sell. Vertical. So. We're. Gonna lock. In or define. The. Risk versus, having a naked call buying, a cheaper one against, it that she's showing a buck 60 credit, that. Was a multiplier, on this we'll take a look at that in a moment. This. Is also a $5, why on. The indices depend. On what is we may go, a little further out here let's do a $10, why and see, if we can get a similar, credit. So, 155. Or for a $5. Wide $3. For a $10. Wide by, going a little wider we may be able to get a similar credit and have, to buy, or sell less contracts, thus reducing. The, cost. Of the trade. Now. Let's. See, with. This in mind if I hit to confirm and send right now you. Can theoretically, see, what, the risk is this is a multiplier, of a hundred. So. 3. Times. 100 maximum. Profit 300, that's the most we can make per contract, maximum, gain maximum. Loss the, spread, -. The. Credit so. 10 dollars -. A 3 dollar credit. $7. Is to match them lost times 100, that's a. Maximum loss on the trade. Now. Let's, go back and, we'll. Go back to the edit now. We can analyze, this and determine how. Much of a hedge is this one contract, I'm. Going to right click on, the position and, we're, going to go ahead and select. Analyze. Trade. Analyze. Trade, that. Will take us to the. Analyze, tab and. If. It doesn't you, can go to analyze, and we're, on risk. Profile. Now. With, us in mind, this. Is showing, right. Here where. The current, Brice's underpriced. Slices, if you can't see it you can turn that on just. By clicking on that arrow. We're. Looking at that price slice. The. Current Delta on this position, is negative. 451. So, that's one contract. Negative. 451. Our. Edge needs to be about negative eighteen, if my, math serves me right. Negative. 8 18, 54 so, if they take that 18:54. And divide. It by 4. I'll, just do 450. That. Should be 4 point 1 2 contracts. So. To do about a 30% hedge, we're, gonna go ahead and, sell. Four, spreads. On this. So. Now I can go back to the trade tab I. Can. Go ahead and change this to 4. You. Can also do this in the analyze, tab but I can change it there let's, say I go ahead and analyze it again. Now. If you add multiple positions. So.
I'm Trying to bring this up here. Sometimes. My mouse just. Trying. To catch, it may. Not work and, close up the price slices here so, I already have that. Other practice, trade in here I'm, going to uncheck one, of them so I got the 4. And. If I go back and look at those price slices, again, there's. The Delta is negative 17, that just shy about that 18, Delta's I want to sell so, that's what we're gonna do, now. I'm going to go ahead and. Hit. Confirm and send and. Then. We're going to go ahead and click send maximum, profit 1200. Since. We have 4, spreads, that's. Going to be 8 contracts. That's 65, cents, times 8. So, there's your transaction, 520. So. Our net credits going to be about 1200, that's the max of our hedge and I'm, going to go ahead and click send. And that'll, be working it's been filled now, if we were to go to the monitor tab. Notice. How. The subtotals. On my position and oh. Hey. I already. Have a hedge, on. Here, one of our hedges is actually almost worthless. So. What. I need to do is it carried over that worthless position. If. You look one, day. We're. Going to be seeing. That other, spread, that we did last month it's disappearing. So. This. Deltas. Will, actually, adjust but. Right now we're. Sitting at about 44. Deltas. So, that reduced, it by about 18, if. I want to hedge it again when those other, options. Expire we, can adjust that accordingly. So. That's how you can go ahead and hedge. An account, utilize. In short. Call, verticals. So. Some of the example, criteria, here is one. May close the position when, the event or the news has passed. We. Can lit the options expire, now. The desired, is if, those options expire, worthless I mean then the price does not trade, through the spread. If. The. Options are in the money. The. Risk of, assignment. May, exist throughout the trade, however believe. On SPX, they. Are. European-style. And, therefore. The assignment, would occur at. Duration. And. It would be cash settled. So. In, this case, if. The spread, is in the money that would be the maximum loss and that. Hedge would disappear. Now. We can also look to close the position within. A few days of expiration, or roll. It into a new position if, the, hedge is still needed so, for instance on the existing, hedge that I had I could. Close, that out and, rolled. Into a new one. Now. You can close that position, with a percentage. Of the maximum gain so. For instance we had sold. That. Spread at about 1200. If. I wanted to. You. Can add a column. Actually. You can't do this on the old one but you can look at percentage, PNL. Or. Do a calculation, that. If. I took 1200. And. Let's say multiply, that by. 0.8. That. Would be a gain of about nine hundred and sixty dollars, if I see that gain on that position at any, time may, possibly, close that out and. Lock. In the game. Because. Also as it goes. More. Out of the money the hedge is also being reduced so one may continue, to add hedges. To. Keep their deltas, at whatever. They'd like. Other. Ways and, this is if you do if. The price does move down strongly, you may be able to buy back that short strike for. Five cents or less and, I, think even avoid the, the, contract, fee. On that, or. The. Other one and this is for, instance what happened with the market a couple, weeks ago if there is a a breakout. To the upside. Let's. Say in the case of this price channel. That. The market breaks out and forms, a much, stronger Trent. One. May be able to go ahead and just close, that position, by buying that back and that's, quite simple you just go back to the monitor tab. You. Right-click, on the position and, create. Close in order. To. Go ahead and buy back that spread. All. Right. Okay. I don't see any question, so hopefully we cover down on this. Topic well for you, appreciate. You. So. Some of the considerations, for this strategy to keep in mind is one the, credit, collected, is going to be the maximum hedge amount so. As the, weather, the market moves higher or lower your. Deltas. Are going to change. You. May weather, put more of the hedge on or take a hedge off one may increase their hedge as.
The Market Falls and then, may lighten it up as the market Rises, the. Underlying positions, may not move exactly with the index so keep that mind result, in a larger, than expected loss, or which. Less is less of an effective hedge as. The. Index, declines. In value the, call deltas, increase, in value. Reducing. The, amount of that protection, and. Beta. Way to Delta's again are theoretical. In nature. So. In summary what do we learn today beta. Wait the portfolio, to, an index, with our example the SPX. Identify. Potential, signals to initiate a hedging strategy, for short call verticals, and. Analyze. We use the analyze tab to come up with that, 18, Delta. Calculate. A maximum, profit and maximum loss as well. As position size and essential, to each and every trade and we. Discuss some of those potential, exit criteria most. Importantly, we applied what we learned by, creating, and placing, a short call vertical on the. Thinkorswim, paper-money, platform and, that's, kind of your call to action folks today. Is. On your practice account, you. Can go ahead and bring up an old layout look, at all those practice trades and see, what, your deltas, are. Check. The SPX. Beta. Wait type, in SPX and see what your SBX Beta weight is and, practice. With an appropriate, hedge at any, time that you see fit. Now. There are other ways of hedging accounts. As well if. You join us on some of our various active trading webcast, whether it's on futures. Or. Other. Instruments. That are available but. In the case of our topic, for short. Call verticals, on the SPX, a relatively. Easy way to, hedge a portfolio. So hopefully you learn something new today folks appreciate. The feedback from everyone Thank. You Terrance and remember. Folks in order to demonstrate the function out of the platform we. Needed use actual symbols, keeping in mind TD Ameritrade does not make recommendations. Or determine, suitability of any security or strategy, through the use of our tools any investment. Decision you make in your self-directed account, is solely. Your, responsibility so. Coming up top of the hour James Boyd again on I believe, a selecting. Option, strategy, selection, so, stay tuned, have. A great afternoon, and looking forward to seeing you again real soon, bye now.