# Live Day Trading: Stocks, Options Strategies and Market Analysis $SPY

## Метаданные

- **Канал:** Real Day Trading
- **YouTube:** https://www.youtube.com/watch?v=ODopadl0SAo
- **Дата:** 29.01.2026
- **Длительность:** 1:30:39
- **Просмотры:** 678
- **Источник:** https://ekstraktznaniy.ru/video/53081

## Описание

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Join me for Live Day Trading and Swing Trading with Pete Stolcers of OneOption. We will discuss the markets and day trade and swing trade stocks with relative strength and weakness.

🔥 Learn More: https://www.reddit.com/r/RealDayTrading/
🤓 Read The Wiki: https://www.reddit.com/r/RealDayTrading/wiki/index/

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Thank you!

#daytrading #swingtrading #livetrading #stocks #stockmarket #trading

## Транскрипт

### Segment 1 (05:00 - 10:00) [5:00]

Hello traders and happy new year. This is our first live event. Harry, how is the new year treating you? Pretty well. It's a different year, same thing, but uh you know uh everything here is uh you know the market certainly doesn't know it's a new year clearly. I I'm still struggling with the fact that January is almost over. What the heck? Where's the time going? So, uh yeah, the market has uh been a little bit challenging. You know, it we've had some movement, but a lot of compression. It seems like we move and then we sit and sit. So, uh not a lot of traction. Obviously, we have a huge window of opportunity right now because today we've got the FOMC statement coming out. Either Harry or I or the market believe that uh the rhetoric's going to change much. So, this is probably going to be a nothing burger today. But earnings, we've got some major earnings coming up. I'm going to take a look at this alert right here. ARM is a really nice short

### Segment 2 (10:00 - 15:00) [10:00]

and uh you can see how that's been drifting lower going to the D1 chart. So that's a stock that I'm watching and you can see how it's had a small bounce here and it's been able to reverse very easily down below the 50-day and AB. So that's one that I was kind of watching for a short today when tech stocks have been strong. This stock has been selling off and not participating. So, uh, yes, big earnings, uh, Meta, Microsoft, Tesla after the close today. — Yeah, it's, um, it's always interesting when you, uh, you see these earnings. One, you know, everyone should always keep in mind during earnings season that even if you're not trading, the company that's reporting earnings, the companies that you are trading may be impacted by those earning announcements. So obviously with Meta or Microsoft, you know, if you're trading a tech company or if you're trading app, for example, that's going to be directly impacted by the earning statements and the call afterwards um from these companies. So you have to be careful looking to see is there any earnings coming out that might impact us? And I of course don't recommend playing earnings directly as we always. — Yeah, exactly. And when it comes to the mega cap tech companies, you know, if we look at QQQ, it has not been performing all that well until just recently. There is a downward sloping trend line here. That's the H minus trend line. And you can see how we did break out above it, but there is a big wedge formation on a D1 basis. And what contributed to this breakout right in here was the fact that Microsoft, Meta, and Apple finally joined the party. So when it comes to the mega cap tech stocks, a handful of stocks, a dozen stocks or less make up 25% of the S& P 500. So these earnings are going to have a dramatic impact on the market. And there's, you can see what Meta has done. I mean, it's been down. Microsoft has been extremely weak. I think we're gonna probably find out that somebody's been liquidating Microsoft because that's a big decline and the same with Apple. Well, they all have recently rallied just like you can see here in the chart and that's kind of gooseed the QQQ to break out of that wedge formation. So, the rubber meets the road today and tomorrow. We're going to be hearing from Mega Cap Tech and then Amazon and Google are next week. So very interesting. So far so good though. We've had some good earnings from uh some of the chip makers. Anything you're looking at there? I mean, you know, there's an interesting way I look, I know some people are going to play earnings whether we tell them not to or not. Um, one thing you can do as with anything with options, the question generally is, are the market makers right or the market makers wrong? Right? because they're going to price in to their to the option pricing with the with IV and with uh um uh you know the intrinsic value of the option they're going to price in that move. So if you take a look for example at Meta, right? They're pricing in a move right now of 43 $44 up or down. So basically the upper bound of where they think Meta will go after earnings is $713 and the lower bound of that is going to be $627. So let's say I'm looking at it and I go, you know what, if I look historically and I can just take a look at option stalker here at 53. 3% of the time Meta has exceeded what uh the option what the market makers think the stock will do on earnings. So that means more than half the time it will have it will exceed for example here if that was the case it will go down more than $44 and go up more than $44. So how would you play something like that if you were just strictly playing not the stop and you're not taking a direction here? You're basically saying I think the market makers are wrong. Well, in that particular example, what you would do is say, okay, if I go up $43, that's 713, right? So, all I have to do is do a buy the 715 calls, sell the 720 calls. I do that for 95. Now, on the downside, 627, right? So I buy the 625 puts and sell the 620 puts also for a dollar. So now you for

### Segment 3 (15:00 - 20:00) [15:00]

both trades it costs a $1. 95. If Meta exceeds to the upside or to the downside, in other words, it goes up more than 44 or down more than 44, you stand to gain $35 because it cost you $1. 95 total for the trades. And if it goes below 620, you're going to get $5 on that uh on that put debit spread. So you will get $35 there. And if it goes above 7 uh whatever it was that I said 715, 710 715, you'll get the 3505 there. If it stays within the $44 range, you're going to lose the $1. 95. That is how you should approach if you're going to be crazy enough to play earnings. Instead of picking a direction, what you should be picking is are the market makers wrong or right? And then you look historically. Historically, market makers have been wrong more often than right on a stock like uh like Meta. On Microsoft, it's 40% of the time it exceeds. On Tesla, it's 73% of the time exceeds. So, the market makers actually get Tesla wrong more often than any other stock that's reporting tonight. Yes. Uh, very interesting. And by the way, because there are still a few days left, there's Thursday and Friday before options expiration. Those options aren't going to go to zero. So, you'll be able to salvage something for them. — They're not uh, you know, you may lose half of the value. So, you might be able to exit that uh those spreads for a total of $1. So, yes, you're going to lose 50% on that. And I'm certainly not advocating the strategy. You know how I feel about earnings. Harry, you've had pretty good success in the past trading earnings. I avoid them like the plague. You know, I've had marginal success trading earnings, but it's nowhere close to what I can do when I'm just trading regular markets. So, why would I put myself in that position where I've got to monitor these positions when I can just be watching the post earnings reactions and do much better probability wise? — Yeah. I mean, by the way, TE and Tesla would be the better trade there where you would uh you would buy the 460 calls, sell the 465s, you do that for 94 cents somewhere around there because they're predicting a uh $25 uh drop or gain on Tesla. And 70% of the time that's wrong, which means chances are Tesla's going to go up or down more than $25. And then you would do the uh you buy the 405 and sell the 400 puts for 80. You can do that entire thing, both sides of it, for a $1. 70, which means $3. 30 is up for grabs to for profit. And so you're getting uh you're getting about 2 to one on that trade. And if Tesla exceeds to the upside or exceeds to the downside, so it goes below 400 or it goes above uh 460, you're going to be in profit. Um that's the idea behind a trade like that. That's the only type of trade I'd consider. The other type is the Davalized time spread. Uh but you need stocks that don't exceed. That's the opposite idea where you're banking on the IV crush and you want stocks that don't exceed. But that's not the case tonight. — The other nice thing about Tesla is you can see that it's compressing right around AVWAP Q or AVWAP E, the 50-day moving average, the 100 day moving average is coiled like a spring. When this thing releases, that tells me that one way or the other, it's got a better likelihood of making a big move. very newsy, too. It tends to really move a lot. There's all sorts of news. Who knows what Elon's going to say, too. That's always a wild card. — I'm gonna have robots driving the cars. — Yes. Uh so, uh let me take a look at a trade that I put on last Monday, and it's one that I highlighted in my Sunday video. It was TSM and it's been a month since we did our last live event. So, I have no clue what you and I uh might have suggested then. I know we were both bullish, so I'm sure it's performed well, but uh TSM was a stock that I liked. And there we were looking at entering a diagonal spread. And uh we're going to be going way out in time b buying the uh April deep in the money 270 calls and we were able to get those off for $68. And then I was able [clears throat] to sell the lottery

### Segment 4 (20:00 - 25:00) [20:00]

those being the options that expire this week. Those are the 34750 calls for $2. 50 yesterday. So, it's been a nice trade. You can see how the stock is just working its way higher. I'm looking for this stock to just — not make a huge dramatic move, but to just kind of be inching its way higher over time. And the reason for the strategy is that I'm going to be long those longer term deep in the money calls. that I'll just look to resell the lottery out of the money calls every week. And if the stock makes a big move higher, I'm going to be very happy. I will end up closing that spread down for a really nice gain. If they keep expiring, then I'm just going to keep rewriting them and defaying the cost of my longer term call options. two that I really like. Well, three. One, you mentioned Pete in the P in the chat room. You mentioned ARM short, which I think is uh really nice. If you look at the uh the ARM chart, arm short looks great. It, you know, it's below all the SMAs, below the EMA 15. It uh it it's just on a you know, you have about $8 before you hit support, which is the low of January 14th. So you have a lot of room there for this to drop more. But of course, as with anything else, you have check earnings tonight. So it would be uh a bit of a risk carrying an arm short overnight. Uh two that I like are um INEN iron. Um that chart is beautiful and might not be as impacted by earnings tonight as others. And then Dave pointed out in the chat room as ESTS. Both those two have pretty similar, very bullish uh daily charts. So I like as I en uh those are really nice. Um and I just got an alert on Wow. Uh lunar uh lun. Take a look at lun all the aerospace. It's like as they're both they're all moving today. — Yep. Quick note on IN. I highlighted that two weeks ago in a video and I was suggesting selling the Feb. I think it was February 6 puts on that and they moved their earnings release date up to 25. So make sure you're watching that. Lunar. Let's take a look at Lunar. Yeah, all of these space stocks have done very well. And there you got a really nice breakout here. Let's take a look at the M5. Did you set a price alert or was it uh — I got on a trade exchange I got a uh just a note there saying it has its volume highs. So um I checked it out when I got that alert. Um option pricing of course on that NASTs are through the roof because of the IV and that's why I've loved selling out of the money puts on these stocks. Uh as ESTS has been one that I've been doing routinely. Uh LUNR sets up well for that also. And let's take a look at that earning state 324. So there's lots of time. That means that we've got lots of uh expirations that we can choose from. And if I look at support on this stock, you can see horizontal support coming in. Let's call it the $17 level. So if you could sell the $17 puts, a lot of these are trading where you can generate. So you're staying $17. It's about five points. So you're about 20% 25% out of the money, which means you've got a lot of cushion. The stock can really move around. you go out to the February 13th expiration and if you're looking at the $17 puts, you can bring in probably 45 cents, maybe 50 cents. So, you're not it's not going to be a lot, but — uh you're only that's a two-eek trade and you put up half the strike price. So, you're talking about putting up $8. 50. All of a sudden, the return is pretty decent. And I use half the strike price because if the stock pulls back, you want to be able to take assignment. You like the stock. The stock is really nice. So, those are the kind of plays that I love doing when the market's very neutral like this. I just I'm short Tesla at the moment. I just got a trade exchange alert said Elon Musk. I'm like, "Oh, what's going on? " And of course, it's Elon Musk reportedly want the June SpaceX IPO to align with his birthday and the planets. There you go. — Oh boy. Well, my son works for SpaceX and my daughter-in-law, so uh it'll be interesting. — Yeah. — Someone posted in the chat, what about a him short? I like it. It's not terribly exciting, but it's it, you know, it fits. It checks off all the boxes. Um

### Segment 5 (25:00 - 30:00) [25:00]

it's not bad. I wouldn't expect to it's not going to be a you know, blockbuster type trade, but um it is breaking below. You just got to be careful on the low of 121 which was 2796. Um, you know, it might bounce off that. It's not that huge of a support, but you know, the stock has been beating all to hell uh since its highs of 74 way back in uh 20 fe of a year ago. So, this is one of the dogs that I still am hanging on to and I'm regretting it. I think my net cost is somewhere around 39. 50. So, I'm just kind of sitting on it to see what happens. I know that it goes through periods of volatility. You can see that in the past. If I get a nice pop in it, I'll unload it. I'm not overly worried about it. My long exposure right now in general is very light. My overall market exposure is fairly light. I'm just in and out of trades selling premium where I can. I have uh let's see what uh TXN was a stock that I liked and that's one that I want to highlight this week. I love this breakout. So, when I looked at this breakout, the stock was creeping higher into earnings. It blows through this horizontal resistance. And you can see how it's also taking out this previous horizontal resistance right here. So, when I come in and I look at a stock like this, do I want to chase it? Not really. Well, why not? Well, because look, it's had a kind of a tainted history and it's been weak and it kind of bounces and chops around. Okay, new question. Would I like to buy this stock down here at the breakout where it was before it announced earnings? Yeah, actually, I would feel very comfortable about that. But I didn't sell naked puts on this one. What I did was I sold the February 20th 200 puts and I bought the 19750 puts and I did that for a 50 credit. So difference in the strike price $2. 50 credit received 50 have to put up $2 for that spread. 50 cents is my max profit on it. 50 divided by $2 yields a 25% return in about three and a half weeks. I like trade. you people don't realize that I mean we always talk about look if you're going to become a trader you got to beat the market right which is when I say beat the market I mean literally the you have if you take a dollar and you put it into spy on January 1 at the end of the year you'll have about a$1. 17 right or$1. 15 you'll the market's going to go up on average obviously you have down years but on average it's going to go up 15% 12% 17% you know average it out Well, you have to be able to get a higher return than that on your trading. Yet, you know, when people take a trade and let's say you you uh put in uh a dollar uh sorry, you put you have a you know, an option that you bought for a dollar and it goes up to a$120 and you take the 20 cents profit on it. You think, well, I didn't do that well, right? I only took 20 cents profit. But that's a 20% return that that's beating the market. That's what you need to consistently do and you really need to look at it rather than in the raw dollar values which I know is hard because everyone's doing this for the money. Uh but in your as Pete just said you need to look at it in terms of your percent return are you know a 25% return over the course of a month is extraordinary. If you take that and you advert take that out for a year you're doing amazingly well if you can do 25% return every month on your money. So, um, but people will look at a 25% return and go, "Eh, that that's not too that's not enough. " And so, a lot of times there's that fine line between the between greed and sensibility where yes, you want to add to your winners and you want to hold on to things longer. You don't want to take profit too quickly. At the same point in time, you have to realize a 25% return is pretty damn good. — Yes. And uh statistics professor Harry is also going to tell you that uh the odds of that outcome are also very important. — Yes, always looking to increase. We're always looking for ways to increase our odds. So when I look at this trade, I looked at the price action earlier today. I could see the volume and the stock was holding all of its gains and that green candle which I also post earnings. I love it when a stock does this. It opens near its low and it grinds grinds higher all day long. That tells you that buyers are interested and they're fueling that

### Segment 6 (30:00 - 35:00) [30:00]

stock. What I don't like seeing is a stock that opens on its high and then gives back its gains all day long. And I noticed one today, GLW, and they reported yesterday. That's not a pattern I'm particularly excited about post earnings. Okay, so uh they announced before the open today. So you can see how the stock opened on its highs and it's been giving back those gains all day long. So, this — not a good sign. — I'm going to wait for that. I'm gonna wait for that dust to settle. It could still recover. And part of that decline today could be related to the big pop that it got yesterday. So, I'm not saying, "Oh, this is a great short. " I'm just telling you that if I'm looking to do the strategy that I used for Texas Instruments, I'm interested in that stock because it is showing me that buyers are supporting that earnings announcement. In this case, I would be holding on. — Just circling back real quick to the U discussion on odds. Remember, the entire city of Vegas is built on a 2% advantage. That That's it. That is your average. I mean, slot machines obviously a little bit more, but your average advantage for the house in Vegas is around 2%. 5248. That's where you are. if you'll throw in the don't pass line on craps or something, maybe it'll be 515 485, right? But that that's their advantage. That's where they make money. And so if you can do something, particularly, you know, if you're trading and doing a lot of trades and you're an active trader, that increases your odds. And that's why everyone is always gravitating towards the next shiny tool, right? where oh this indicator or that or volume profiles or whatever it is because everyone has the same thought process which is this will give me an edge right a small edge not a 100% guarantee but an edge and the problem is is there are some that can give you an edge uh you know obviously price action and volume and all that but there are others that do the opposite they do something even worse than not giving you an edge they make you think you have an edge when you don't you know RSI is one of the all-time great examples and everyone who follows me knows how I feel about that [ __ ] indicator. Um, amateur traders love to use an RSI. This is overbought, it's oversold, and then you know what RSI does is one is encourages counter trend trading, right? Because if something is overbought and it's on an upswing, well, that RSI will tell you now's the time to short. And the reverse, something has been dropping a long time and oversold. The problem is that something can be overbought or oversold for quite a long time. And so what you're doing is counter trend trading and trying to time the market. That doesn't give you an advantage. It increase in your odds. It gives you the impression that you have an advantage. And what you do is you jump in following blindly these stupid indicators and you get your ass kicked. It it's actually worse than uh not having it at all. So you really have to be careful but it is all about uh the odds. Someone asked here um am I mostly — second current valuation? Yeah. Yeah I am. Uh in my larger account I'm mostly cash. — One second here. I want to highlight a trade. Uh put an alert on CVS. I like this short. Watching what it does around VWAP. The way that I got that alert was I rightclicked on it and I said, "Let me know when this stock goes from relatively strong M5 to relatively weak. Why do I like the short? " The whole sector has had news on it. There's talk that uh Medicare payments are going to be capped. That's something they're looking at. All the health insurers went down. CVS went down huge yesterday. Lost almost 20% of its value. Look at that steady selling. Look at that volume. institutions selling this name — is yesterday it drops and then it tries to break the 200 SMA which is at 7197 and closes literally right above it. It dropped below it. It got all the way down to uh 7069 and then wound up closing at 72 literally at the two three cents above the 200. today. Same thing where it uh opens and below the 200 SMA looking like a strong short at 7142 and then again pops above it which it's still at 7199 um to now 7343. So it is having some trouble getting through that 200 SMA. — Yep. I would simply be looking for a day trade and follow through on this VWAP right here. You can see, you know, we always talk about half of the candles, long candles being significant. You can see how this

### Segment 7 (35:00 - 40:00) [35:00]

stock got right back into the halfway point of that candle. You can see it better on the D1 chart and that's where it found resistance. So, excellent point. Absolutely. Downside limited with the 200 day moving average there. This would only be a day trade and I would only be looking for uh those sellers that came in yesterday to see this as a good opportunity and to drive it down from 7350 maybe down to 7250. You know, you can make a dollar on a day trade on a stock like this. I'd be interested, but this is kind of a critical point right in here. You want to watch what it's doing relative to the market. So, but what I'd like to see in this particular case to initiate a short is I'd love to see the market bounce, bounce, move higher and the stock preserves VWAP and starts leaking oil below it. That would be a good short for me. — Matt Copus wants to know, "What do we think of this? A swing short for XY L if it closes below the 200. " Yeah, I think that's the key thing. If it closes below the 200, it's below it right now, but it's close. It's bouncing around. But I think if you get a good close below the 200, you could pop on that swing short at the end of the day. Uh let's see. I've got a chat member wondering when are we going to be adding some badges? We've got a badge uh that designates community members who survived the 2022 bare market. And uh actually before the live event today, Harry, Will and I were discussing some possibilities, some things that we could do to make the chat room a little bit more interesting, maybe gamify it a little bit. So yes, good idea. We're looking at ways that we can reward people. We do have some excellent traders in the room that uh we'd be looking to promote. I suggested yesterday, by the way, Pete, you probably I think you were out uh we should all get together uh for a meetup in Vegas. Uh but you know, that's just me in Vegas. So, um we'd have to drag you out there. — Oh boy, that's going to be a tall order, but never say never. — Yeah. I mean, you know, maybe we'll throw in a seminar. I don't know. But, uh maybe at a bar. Uh I don't know. I just uh you know one of the big problems is that Pete knows with any of these with all trading communities uh is this turnover right where you have people come in they check it out they don't want to follow a system take their time and uh they certainly don't want to paper trade to practice and then they get their ass handed to them and they're like that's it I'm done I'm out and then you know you get a whole new group coming in so you have this whole turnover. So, anything that can foster a stronger sense of community where people can help support each other and, you know, keep people on the straight and narrow is probably a good thing. But, you know, God be and I we must have seen without being hyperbolic about it thousands and thousands of traders come through the subreddit come through the chat room over the last five years. And every time the ones that come in and seriously try to follow the system, try to learn this, take their time, paper trade, go through the 10 steps, all of that. They last some many of them are actually now part-time traders, a few full-time traders. Some have quit their jobs uh and are doing it successfully. and everyone who comes in there and just tries to rattle off trades and they know what they're doing and they're just going to use some of the, you know, maybe they'll use the option stalker to find some good trades and but then they just get wiped out and they're gone. It happens every you can almost predict who's going to be there in a few months and who's not. — Yeah. Speaking of community, I was going to talk about your podcast. Tell us about that. You're going to be starting that up soon, right? — Yes. Um, so it is a uh, you know, what no one tells you when you start this is episode one. I have probably done now 25 different versions of it. And there's that fine line between ranting and being irreverent and being serious. And there's also that line of, you know, I know the core group of people that are going to tune into the podcast in the beginning are people that follow me and people that follow uh the subreddit and read the wiki. So, I don't want to rehash everything that's in there for people uh that already know it. But then there's a larger group of people who are going to be drawn to the podcast who know nothing about me or the wiki or the subreddit or one option or any of that. And you know I don't want to be referencing things that they have no idea what I'm talking about. So there's also that fine line you have to

### Segment 8 (40:00 - 45:00) [40:00]

walk of how much do you give more background and foundational stuff and how much do you put out new stuff. So that I've been going back and forth, but I think I finally uh have settled on episode one. Uh it is being edited now and uh should be released I'm hoping by I think next week we'll release it out there and uh we'll just start from there. That'll be episode one and then Pete, I hope you'll be on for a guest in the first couple episodes and um — Sure. — You know, hopefully it'll it'll help people. Um, it's going to be very focused on [clears throat] mindset because look, one thing is true, which is much like poker, much like chess, the rules of trading are not difficult, right? I mean, I'm not saying they're easy, but unless you're an absolute [ __ ] you'll learn it within a month or two, right? You learn what options are, learn what uh how to buy and how to sell. the rules are are the knowledge gap between a successful trader and unsuccessful trader is not that big. But the how to trade, the mindset of the reading of the charts correctly, the the sticking to um a process, a system of how to do it, that is where the differences lie. So, I'm not going to focus so much on this is what an option means or this is how you short something because if you can't figure that out, then not I can't really help you. It takes an incredible amount to produce content. Uh my Sunday videos, they're about 30 minutes long. I put about three and a half hours into that every week, sometimes four hours. And I'm not even talking about thumbnails and editing. I've got someone else doing that for me. Uh it just it requires a whole lot of work. So when you tell me how many times you recorded it and re-recorded it, I get it. I understand. I'm looking forward to it. I can't wait to have you launch it and to be on it. So uh that's exciting. and perhaps we'll do a couple of live events before then just to uh grease the wheels and uh get some people logging in. — Yeah. Yeah, it should be fun. All right, we got a bunch of questions here. What do I think about a Netflix long? Big horizontal support here. I mean, I closed out my Netflix long this morning for a profit. I saw that nice movement at the end of the day yesterday. Wanted to take advantage of it, but there it is dropping again. Netflix at the moment is a fairly dead stock. Um, everything is priced in there. That deal will go through. Uh, it look, if you are a long-term investor, absolutely would think you should buy Netflix at this price here. I 100% believe that in a year's time, Netflix is somewhere around 135. And that's just a fundamental me coming from the movie industry um knowing about the company, knowing about uh this stock. Um on the short term right now, bearish as hell. Probably unless you see some extraordinary newsbased movement, I would not go um long. — Yeah. So this is uh a bearish flag formation setting up here. You can see how it's poking below AVA E. So that's bearish. Now, if you were a long-term trader, you would click GTC, you would click on the high from that candle, and candle. You would set your alert line, and this is nice, tight, and orderly. So, you'd want to see what happens when it pokes above it. But until it does that, it's toxic. You don't need to be out there trying to pick a bottom in it. — Yep. By the way, there was a question. How is your trading challenge going? — Yes. — Another small account challenge. — Uh well, it within the first 15 trades, we doubled the account. It went from 2500 to 5,000. Uh 5,200. Then I did a I think it was PG. Yeah, I did a um a diagonal uh earnings play on it, which was, you know, the uh the IV play. And an odd thing happened with it. Uh you know, sold the uh 145 calls for this week and bought the 145 calls for the following week. And PG actually uh went up around $34 on earnings and was only projected to go up five. So everything suggested that one should have made uh a nice profit on that. For summary, what happened probably because of the X dividend there, but what happened was the 145 calls uh continued to be of that

### Segment 9 (45:00 - 50:00) [45:00]

were expiring that week continued to be worth more than the 145 calls expiring the following week. So it actually went into the negative and wound up losing around $8900 on that trade. So, um, right now the account is even. Uh, so if it wasn't for that trade, we'd be about four 4,3900 right now. So, that one trade kind of mixed things up a little bit in there. Um, not sure how and why that happened with the options. And also because it was a small challenge, they were basically telling Schwab was basically telling everyone, you got to sell this because of the dividend or else you're going to owe a couple of thousand dollars on the dividend part. Um, so there wasn't even any time to hold the trade. So that one got a little bit screwy, but I'm pretty happy with everything else. uh right now. I mean, these things have ups and downs, but you know, if after by the end of the month, you're up 20% in a month on a small account, that's going to be pretty good. And that's pretty much where we'll wind up at the end of this month. — Yeah, that's a really unusual situation. Plus, you don't often see the dividend right around the earnings announcement either. Usually, it's sometime in the middle of the quarter. So, that is kind of a wacky deal there. Uh and yes, Matt, I I have been uh focusing on SMA breaches uh which are if you're small account swing trader, SMA breaches are really one of the best uh plays that you can make. Particularly if you have a strong volume uh something closes above it and then the next day it confirms. If you have a confirmed SMA breach, um that is an excellent uh setup that a small account and all accounts really, but a small account should um uh focus on. — Had a question you I had mentioned Texas Instruments and the way that I had played that. Could I also do the same thing with STX? Problem with STX is it's gone quite parabolic in here. It's so far out of the money right now. I don't think you're going to get much of a credit going all the way down to the 360 calls or right in here or puts, excuse me, because you're $80 $85 out of the money. I mean, we could take a look at it. I'm just not expecting that there's going to be a play there. So, we'll go STX. We'll go out to maybe the Feb uh 20 expiration. And I will bring that up for whatever reason. It could be my recording software is making everything very delayed here. Uh here we go. So 20 anything around the 365 level. Uh you can see right now that's an inverted spread. So even though it says 70 by 180, it's actually a negative 70 by 180. So could you get a dollar for it? Well, throw an offer out there if you're happy with a dollar. That's what I'd be looking to get for that. Sell the one uh sell the 365 puts, buy the 360s. Put one contract out there. You can't tell when the market's this wide. See if they fill you on one contract for a dollar credit. If they don't, you know that it's not there. If you get filled on it, maybe you can get a$120. Try another one lot. a$150. Try that. So, you can kind of experiment and find out what the true market is and where they're willing to take you out of it. So, uh the only issue I have I love the stock. I think the stock's going to continue to go higher. There's a powerful move. Yeah, I'd wait for a day or two to make sure these gains can hold, especially after making that type of move right into the number. You've already got big gains. Somewhere along the line, you're going to see some profit taking and the odds increase when you have that. So, give it a little time. See if you can get that spread done. try with a Walmart. — How much do you determine? By the way, I see there's a lot of people on the chat there commenting on Dave back and forth. Uh I I've known Dave for many years. I find him to be a excellent trader. I don't know what he does separately with those sell signals and his separate chat room. I know he has that. Um but um to me he's a valuable source of information and I find his uh the trades he picks to be on point. He's a very technical trader. Um but u someone here I think scooter go fast clearly has gotten burned by Dave and and doesn't like him. So I'm sorry for whatever happened there. I can't really speak to that. Um, you know, Pete and I are just trying to

### Segment 10 (50:00 - 55:00) [50:00]

help people here and do our thing. Um, but if you have an issue with Dave, he's very open. You can just, you know, ask him directly. — I've known Dave for over 15 years. He's one of the best traders I've met. So, uh, anytime you're following someone, beware because you don't have the same risk tolerance that they do. And if you're putting out a trade that you executed at a price, there's a good chance that you're not going to be able to get filled at that price, too. So, the risk tolerances are different. And uh, you know, I am in the middle of writing my book. And, uh, it's kind of funny because I talked about following other people and I tell everyone, don't follow me. Do not follow me. I don't want followers. I'm not trying to gain followers here, okay? I'm trying to give you examples of trades that I like and that I'm entering, but do not follow me. Learn from me. And the example that I used was back in here, Harry, you'll remember this. My god, not a day would go by in the chat room when I didn't hear Kathy Wood's name. Kathy Woods. Kathy Woods. Kathy Woods. Like, what the f? Seriously? I'm trying to teach you a system here and these people are just following Kathy Woods. Guess what? That revolving door that we talked about earlier, this is Kathy Wood's Arc Investment Portfolio. She's brilliant. She's a great money manager. She could be, okay, but you don't know the premise and the basis behind her trades. So, you blindly go in, these people put their money behind it, and they promptly blow out. And she had done really well before this period as well. So, don't follow people for crying out loud. learn from them. That's what this whole live event is about, right? — Yeah. It also amazes me because Kathy Wood is a fundamental investor. Now, whether you agree or disagree with her, read on the fundamentals is a separate thing, but she's not a trader. You'll never see Kathy Wood go, "Oh, this just broke the 200 SMA. It looks great. " She's not following price action. And as Pete said, she could be buying something and willing to take the ups and downs because she's going to hold it for five years. You might plan to keep uh dollar cost averaging that stock over time. Who knows, right? But again, there is a difference. Fundamental trading fundamentals are you think a company is undervalued now. You think in a year, two years somewhere down the line it's going to be worth more more. Maybe it's simply, hey, I love that product. I use it. I drink Coke. I'm going to buy Coke. Or you like reading fundamentals. The PE ratio is really low. Whatever the [ __ ] it is, I don't care. It's a longterm idea. [clears throat] Trading is shortterm. Intraday trading, day trading, over a couple of days, swing trading, fundamentals rarely, if ever come into play on the shortterm movement of a stock unless it's earnings season and the stock just had earnings. But other than that, you should not be looking at, oh, you know, Nancy Pelosi took this stock or Wood took this stock. These are long-term trades. You don't know their time frame. is being that risk tolerance. — Had a question on Lulu. I shorted that uh today and uh can I talk about why I felt that was an appropriate short given that it's right at the 100 day moving average? When do you respect average and when do you say okay it's been breached I can take a short here. How we get from point A to point B matters. say that all the time. Okay. So, if this stock were approaching that 100 day moving average and we had mixed green and red candles all the way down, that is a wimpy decline. That tells us that sellers are not in complete control. When we start to see nice brisk movement like this long red candle, half of the red candle preserved, can't get back above it. Okay, that's selling pressure. Whoosh. Next move lower. Now we take out that 100 day moving average with authority with conviction. [clears throat] That's what I'm looking for. I don't want it poke poke poking at it. I want it obliterated. And if I see that, then I'm going to have a fair level of confidence that this stock is going to be able to take it out. And you can see on the five minute chart, very few bounces. can't get back up to VWAP. If it came down and then ran back up to VWAP, no bueno. Came back down, Comes down to the low of the day, takes it out, and never recovers. That's what I want to see. Got a question here on um bullish put

### Segment 11 (55:00 - 60:00) [55:00]

spreads. Um you know, uh credit spreads. you get a 25% return is great, but you can't allocate too much without a lot of risk. Uh, look, bullish put spreads among everything else is a statistical play. You want these trades to have an 85% or higher uh profitability rate. That is, if you do the setup correctly, which is the short put that you're selling is you have two good levels of support that must be broken. I'm talking an SMA, a strong trend line, something like that needs to be broken in order to even start putting that shortput in jeopardy. If you do it right, you have about an 85% success rate on it. However, on the times where it doesn't work out, yes, if you are uh getting a dollar credit for a $5 spread, right, and someone said, should you the stock be going up or down? You get more premium. Look, what you're looking for is 20 cents credit for every dollar in the spread. That is what makes the trade viable, statistically viable, right? And so if you have a dollar spread, you're looking for a $5 spread, you're doing, let's say, a 430, 425 credit spread on puts, you're looking for a dollar credit. That's 20 cents for every dollar. Now, by doing that though, you're risking $4. So, if it if you do a 435430 put credit spread and the stock falls below 430, you're going to be out $4 per contract on that trade for the dollar you're getting. So, your riskreward there is inverted, but it is like that because these trades have such a high success rate. So, how much of your account? Well, I mean, clearly you have to devote if you have a $5,000 account and you're doing a dollar credit spread and you do 10 of them, well, that's $4,000. It's 80% of your account that is now taken up by this one credit spread. I would not do that. However, you know, it it's meant to be passive income. It's meant to, you know, give you uh a decent return, 25% return, and it's usually over two to three weeks because these spreads usually are out. So, I would not certainly put more than, you know, 25% of your account into a credit spread. But just be aware of what how it statistically works. I had someone ask, "What's wrong with following people? Uh, I've been doing it for two years and I trust them. I view it as cheating. Okay, you're looking at someone else's test and you hope that they have the right answers. So, let's say that they do have the right answers. When it comes time for you to perform, you can't because you don't know the material. And who's to say that person's going to be around forever? When they leave, you're stuck. you haven't learned anything from the experience. Uh if you're following my trades, I try and tell you everything that went into the decision. So, you know, based on my writings what the system is and what the basis for the trade is. So, you can actually learn in doing [clears throat] so. But there's nothing like putting your own money at risk and having your own hypothesis, forming your own game plan, knowing when you're right, knowing when you need to stop out. Those are all learning experiences that you have to have. And if you're following someone uh that you don't know, good luck with that because most of the people that are out there are not great traders or posting trades. So, um you're just in perpetual apprenticeship. You never learn how to trade for yourself. That's the problem I have. And [clears throat] my standard is always, you know, never trust someone's P& L that they're posting. Never trust someone who says, "I just made this on a Reddit post. " That is why I post for better or for worse every trade in real time. This is the trade. This is how much it cost. This is the position size. I put the position size because if you want, you can go to time and sales, which is in any broker, and you can see, oh yeah, he did make that trade two years ago when I was doing 500 con call contracts and 10,000 shares in Nvidia. You could easily see in time sales, yes, I made that trade. So, it's confirmed these trades were made and then I post the exit in real time. You can't fake that. That can't be photoshopped. That can't be AI. There's nothing you can do. You can just look at he went in this day on this time and this amount and exited here. That was a profit or not a profit. You can just add it up yourself and then you'll know this is a profitable trader or not a profitable trader. anyone else. I'm not saying everyone's lying, but a lot of people are. If they're not doing

### Segment 12 (60:00 - 65:00) [1:00:00]

that, and I look, I understand it's a pain. Trust me, it's a pain in the ass to do that. But if they're not doing that, you're right to have a bit of skepticism. — Harry, are you still long? Hilton, I have to laugh because we had somebody asking you for six months. — Oh my god, I remember that. No, I'm not. Um, — yeah. I wonder if they were following. — Oh my god. — Yeah. You know, in the chat room, every time you post a trade, you know, — a day later, are you still in this trade? You know, they're following you. — I think I've missed — two times posting an exit in like five years. So, if I didn't post an exit, I'm still in the trade. You can just look um just to run down because I can run down these super quick in my chat room here. Uh someone wants to know is Riven a good short? Uh no, it's pretty much flat today. It's very low volume today. It's been low volume uh pretty much since uh beginning at middle December. Uh but it's between two SMAs. I would not take driven as a short AXO N. uh that thing's been beaten off to hell today, particularly because it's in the aerospace industry and everyone else is doing well there. Um so it is pulling down that sector. If it closes below the 50 SMA, it's not bad, but uh it's a very expensive stock and that is one it only has monthly options on it. So it's not easy to play because the next option is going to be in February uh 20th. uh CNX uh CNXC um again it it's you know just barely broken below the SMA50 but the volume is way 258,000 shares on an average number of shares of a million a day that is very low volume. Um I would uh tend to stay away from that. Um and do I maintain a list of rejects like stocks? Yeah, I don't trade [ __ ] Boeing. I hate it. I can't stand it. Uh I don't trade ABBV. There are a couple of stocks like that. I don't trade airlines. You saw me I think I took a short in Delta Airlines uh this week and I said when I posted I said I normally don't even trade airlines. Okay. So I'm already kind of expecting the worst, but this does have the technical footprint that I look for. So I'm going to take the trade. And of course I lost like 20 cents on it. That last one that we had up CXN or something. I did like that chart, but yes, if it's a low volume stock, I like the fact that the stock was very orderly when it sells off and the rally that it recently had was very orderly and the fact that it's rolling over now and blowing through those major moving averages. I did like that, too. But yeah, if it's a light volume stock, you got to be careful. — Okay. — Uh the other one too, RIVN. So, let me take a quick look at that. I agree with Harry because your downside is limited because it is between two major moving averages here. So, you don't have a lot of room to the 200 day. You don't also have on an M5 basis enough strength in here. See how it's waffling back and forth. This tells you that buyers and sellers are in balance and there's no momentum behind it. So, what are the odds that it's going to go down and chase that 200 day moving average? Not great. If you had like I had in Lulu that straight tight price action drift drifting lower on heavy volume, what's the what are the odds of it testing a 200 day moving average? Pretty good in that scenario. Could I take that day trade and ride it down to it? Yes, because there's some room in there, but you don't have any of that. But this is a nice steady decline in here. So, yeah, I don't think there's a trade in there for you right now. Do I believe trading micro small caps is a viable method? Many traders and exit claim to do it profitably. Seems way too viable, risky to be consistent with small caps. The problem with these small caps, there's many problems with it. But a trader follows technicals, right? That's just it. You live by the sword, you die by the sword. And technicals are to break it down to the simplest definition, the correct level of support and resistance. The better you are at identifying what those are, the better trader you will be. Those levels are different over different time frames. So the support, resistance, intraday might be VWAP and daily might be the SMA 200. Whatever it is, these small cap stocks do not respect technicals. They are extremely volatile. They generally have a low float and because of that, they can move through different technical lines of support and resistance like they weren't even there. It could be

### Segment 13 (65:00 - 70:00) [1:05:00]

based on a news. anything. It could be based on one rich person just buying a whole bunch of shares or dumping shares. So that makes it very volatile and it doesn't it basically makes you a momentum trader. And a momentum trading is one of the more difficult types of trading you can do. So no, I would not recommend it. But I would recommend someone said, "Do you recommend taking the one option free trial after reading the wiki? " Yeah, of course I do. Uh I'm a member there. I've been a member there for five, six years. I've been wick for all that time. Uh, I think the chat room and the options software is one of the best resources out there. You need to find a good community uh to bounce ideas off of, to get trade ideas off of, and to learn. So, yeah, if you're done with the wiki, I absolutely uh recommend uh joining up on the free trial. — Make sure to read my course, the system. Took me three years to write that. It's not the wiki. It's very different from the wiki. I think you're g going to gain a lot of knowledge just doing that. So yeah, while you're there, obviously check out the source of the trades which is Option Stalker Pro and then take a look at the community. And what's interesting is you can see that it's not just me posting trades or Harry posting trades. You're going to see a lot of really great trades from our members. And that's because they've taken the time to learn the system. This is something that can be replicated. So that should be your takeaway. It doesn't matter if I can trade. Harry can trade. It matters that you can learn how to do this yourself. Yes, Curly Games, your GE short at VWAP today was good. It wasn't just luck. It was a good trade. The stock is below the SMAs. It's relatively weak today. It's now five days, four days after earnings. It stayed below. It never bounced back. You shorted it at VWOP. Good trade. It's still staying below VWOP right now. It's still a good short right now. So, it wasn't luck. — Nice trade. When you look at the five-minute chart, you understand the nature of the stock. You can see that it makes lots of moves up and down. So, it may generally be in a downtrend and it's below those major moving averages. But what you do not want to do on a stock like this is you see this drop in these stacked long red candles. You do not want to be shorting in here. Why not? because it does this all the time. Okay, so wait for that bounce to play out. Wait to see signs of resistance. In this case, it's at VWAP. Long wicks here. All right, this is my opportunity to short. You get your nice move lower. You can take gains in here. If you're looking to hold this overnight and swing it, uh you can. You've got that resistance level. Unfortunately, right now, I think shorts are a little bit on the dangerous side because you've got a market making a new all-time high. You got major tech earnings coming out tonight. So, I'm not super gonzo about carrying a lot of bearish short swing trades overnight. So, that's your decision. Day trade, awesome. How high are the fees I pay for a trade? Mine are quite high. Making profits is really hard. Um, I wouldn't compare. Minds are pretty low. I trade high volume. A lot of trades negotiate those way down. All I can tell you is you can negotiate them. If you're on Thinker Swim, for example, you can call up Schwab and say, "Look, this is the you take this is the total number of trades I make. Look at the volume I want a deal on your commissions. " And they generally will work with you and lower it. And if you do that, you can do that a couple of times a year, lower it, and then six months later, call again, lower it again. You can negotiate those fees down. Obviously to things like Trade Earier or something, you pay one flat fee, right? It the interface isn't as good, but you have one flat fee that you're paying and it covers all your trades. So, there's a tradeoff there. Um, there's two weird trades here. So, an AV AV AV, oh, it looks like it's holding 300. No, it's down eight $7. 40 today, and this is anticipating a reversal. Go with the trend. This thing is weak right now. It just broke the 100 SMA. It Yeah, it looks like it has support at 300, but that doesn't mean you should be going long here. If it breaks that support, it's going to keep dropping. Same thing. CRDO, someone meant it's like this is flat today. You guys aren't looking for stocks that are relatively strong or relatively weak. And that should be your first stop. Is it strong or weak to the market? If it isn't strong to the market or relatively weak to the market doesn't matter. Nothing else matters there. That means institutions aren't involved. Institutions are not buying or selling that stock. And you want to be on the side of institutions.

### Segment 14 (70:00 - 75:00) [1:10:00]

So when I look at AVAV, you are predicting the flight of a bat. Okay? [clears throat] We want to be predicting the flight of a goose that's in a type V formation. ideally flying south in October. Look at this thing. Oh my god. You think you're going to be able to predict that future price movement? No. What should you be looking for? Okay, this is the poster child. Somebody asked about it today. This is the kind of chart you want to be trading for crying out loud. That I can predict. Okay, it's going higher. How do I know that? because it won't have this pattern unless institutions are buying the heck out of it. AV they're undecided. They're all over the freaking place on that. You can't predict what the hell this thing is going to do from one day to the other. Please don't trade stocks like this. Find the STXs of the world. You're going to have to really search hard. There are a few dozen of them. You don't need anything else. Once you find them, put them on your watch list. That's all you need to trade. — Is it running? — Okay. Sorry. Google. — Google. Is it running out of steam? Let's No. Jesus. Look at this. This is the type of pattern that you want to buy. Okay. This is it. Fine. three dozen of these. Don't look at anything else. This is what you want to trade. It dips, you buy it. Okay? It's that simple. Institutions are accumulating this stock. You can sell naked puts on it. You can sell out of the money bullish put spreads on it. Can trade almost any option strategy. This stock is going higher. Okay. Now, it's got earnings coming up. Would I be taking those positions now ahead of earnings? Wait, see it what the earnings reaction is. But this is a phenomenal stock. — Eric, you've been longing this a bunch of times. I've been longing it I love this stock. It's great. It's really got a lot. Yeah. Just — Yeah. — Phenomenal. — So, no, it's not running out of steam. How would I know if it does run out of steam? Nice big kachchunka sell off. Big drop. Can't recover. doesn't get anywhere near the previous high. Starts to roll over from that bounce. Double high, lower, double top, lower high. Yes. Okay. Only then can I start to consider shorting? Would I ever consider using short uh smart glasses for trading if it helps? I mean, I am a early about I use tech as much as I can, but you know what? I use chat GPT for trading right now. No, I would not. It's not good for it. You can just try and it's not great. Um, if something works, I will use it. I don't care what it is, but I have a very high standard for saying something is going to work, but I will try it. I mean, if it helps, if it makes things easier, great. If it gives me more information, great. If not, then no. I will not just jump on the latest trend. You got to find out um for yourself. Uh, you are going to use smart glasses, Pete. — I have a hard time with glasses. I mean, I wear sunglasses, but uh, every time I wear anything, any other type of glasses, my eyes go haywire, so my eyes are already shot. No, I don't plan on it. It's true. Um, someone asked about EXP. Um, and is it a good short? I mean, wow, just put in a huge red candle right now. Uh when you asked me, not really, but it's actually it's not a bad short here. It rejected the 50. Uh it's below the EMA 15. It started out today on a nice, it was like, you know, a rocket ship all the way up to 272 and the thing's lost $6 in the last two hours. Um it is dropping. I haven't seen any news on it, but just on the technicals alone, yeah, the spread is huge on this thing though. you got a 40 cent bit ass spread on just buying the stock. So something's happening with this and it's probably because the volume is [ __ ] Uh 5006 so it's going to come in around 800,000 shares today about less than 50% of its normal. Uh but you know it technically it's a good trade just the volume isn't there for it for me. Yeah, it make the swings are way too wild for me. And if you again, if you pick a stock like this up around VWAP is where you need to be shorting it. Okay, look at these stacked long green candles early in the day. So, it starts to

### Segment 15 (75:00 - 80:00) [1:15:00]

retrace around VWAP in here. Might have a short there. All right, somebody's trying to reach me. Sorry about that, everyone. I usually turn this off in the meantime. When reviewing trades, Pete, how can you tell if it was a good trade and not just luck? Is it technicals that led you to take the trade and read on the market? I can tell you as a statistician, uh if you are consistently profitable, it is not luck. Right now, any given trade, there could be bad luck or good luck. What you have to look at and zoom out is overall are you if you're a consistently profitable trader that is impossible to be luck. You cannot be lucky consistently. Even if every trade's a coin flip, you cannot flip a coin on heads, you know, a number of times in a row. So you need to obviously if you journal and you journal well, you can put in this was an emotional trade, a revenge trade. I was on tilt. I was, you know, whatever. I was gambling. But overall, if you're following the technicals and your setups are working, then you know it's not luck on any given trade, you could, you know, make a good trade and then all a sudden news breaks and it jumps up and you make a lot of money on it. It could have been both luck and technicals at the same time, but you just it's kind of trade individualistic, but you really gota over the long term, you're not going to survive on luck. Lot of questions. NVTs, a good long. Let's see. What do we got here? Uh, let's see. Got a gap up. It's got to get out of this compression right in here. Okay. It's just not doing anything in here. If you can get through this horizontal resistance, it's got earnings coming up. Ah, you're quite a ways. Now, there's nothing here. This is just chopping back and forth. So, any price movement that you might have today is simply random. Need volume. Need a breakout. Hey, I think I like NVTS. Well, great. Click right here. Set a GTC alert. If it breaks through that level, you'll get an alert. You need it to happen on heavy volume. Do we recommend trading more stocks or more options? Um, not profitable yet. If you're trading options, it's harder. I mean, look, this is the advantage of having a larger account. You should always trade stock if you can, right? You're getting a oneto one. You the leverage on options goes to way if you're doing onetoone on stock and you have unlimited money to trade them. You're always going to be better off trading stock. There's no time limit on it, right? You could trade a stock. You know, if I go long Nvidia right now, it's not a bad long. I go long Nvidia and it and I'm in the stock and it drops and I'm able to hold Nvidia. I can hold it for as long as I want and it keeps dropping. You know what? I can just tuck that in my long term. Wait for it to come back because eventually Nvidia is going to go over 200. Just a matter of when. If I'm holding an option, I can't do that, right? But small accounts need options. So there is that tension there between the two where you're getting a much better return and you could trade stocks that you otherwise wouldn't be able to trade because they're cost prohibitive by using options. But if you're not right and your options are draining of value, you're losing. It's a ticking time bomb. So when you can always trade stock if you can afford to trade the stock, but trading options is usually what you have to do if you have a smaller account. question earlier about CRDO. Okay, love it in here. Nice tight quarterly p price action moving higher. Beautiful in here. Now go horizontal trading range all over the place in between it. Let's take a look at another stock that someone mentioned. WDC. Yes. Yes. Yes. This is what we want to be trading. Another question on APH. Yes. This is the kind of stock we want to be trading, folks. This is what you should be looking for. Okay. So, now you've got a pullback. It bounces off the 50-day moving average and AVWAP E. You had earnings before the open. So, you want to make sure that this bounce is holding in here. I like the stock. This is what drives my decision making. the left side of the chart. But we need to make sure that this stock is not going to go into a CRDO pattern where now it's just waffling back and forth within a trading range. So watch it. After earnings, three, four, five days

### Segment 16 (80:00 - 85:00) [1:20:00]

you're going to get a feel for whether or not this support is holding. If it is, start off by selling an out of the money bullish put spread. You can use the 100 day moving average. You could even sell a naked put at the 50-day if the stock continues to rally up from here. So, in general, I think it's probably going to bounce in here and this will probably be a good entry. Nice pick. Two questions in a row. They have to deal with each other. How do you deal with the anxiety of when buying a stock at or near the all-time highs? And then someone right after that asked about CCJ. Well, CCJ is at the all-time high. So, they can go hand in hand. a stock. Buying a stock at the all-time high is good. And the reason is that there's no bag holders, right? There's nobody who's in that stock above that price who's looking to sell because they need to get out. Everyone who bought that stock is now in profit if it's at an all-time high. You're not nobody's losing money. See, the only reason someone would sell is to take profit. And if a stock is doing that well, like CCJ, that's a beautiful chart. Orderly up. Everything about CCJ is exactly what you want to go along. But your anxiety in it is wrapped around this mindset of higher prices is not good. You have this grocery store mindset that, oh, this was $5 yesterday. It's $4 today. It's on sale for the same product. I'm getting the same product for $4 and I could have got yesterday for five. That's a good deal. I'll buy it. It's a dollar off. great for going to the supermarket. That's the right mentality if you want to save money. If you're doing stocks and you take that mentality to stocks, you're going to get all tripped up because in stocks, a higher price means institutions are in there buying it. They're buying it for a reason. And you want to get in on that trend. I want a stock that's worth more today than it was yesterday. Not one if I'm going long, not one that is cheaper today than it was yesterday. So, you have to reverse that me mentality, which is what's causing the mindset, which is it's a higher price and now it's going to start to drop. Well, if you look at CCJ, well, great. It hit a all-time high on uh January 9th, if you were thinking, "Oh, no. I shouldn't buy it then. " Well, you missed the chance buying it at 110. If you thought that same thing on 116 when it was at 115, uh you'd be like, "Oh, no. I'm anxiety. It's alltime high. I better get out. " Nope. Now it's at 130. You would have missed that up again. It's now breaking the all-time high again today, breaking out of compression. This is a good long. CCJ is the type of stock you want to be going long. And if you're [clears throat] nervous that the rug is going to get pulled out from under you, most of that is because traders, for whatever reason, think it's an all ornone proposition. I've either got to put my whole freaking account into it or I don't trade it at all. Take a small tiny position. Take a starter position. Okay, you're not going to think twice about it. You don't have any emotional attachment to it. Now, it's above the EMA 8, so it's a little extended. How about selling it out of the money? Naked put on it. All right. If the stock pulls back, would I buy it below the EMA8? Sure. at this breakout level right in here? Sure. Well, then sell an out of the money naked put on it. If you don't get assigned, you're going to generate income off it. Hey, that's not a bad consolation prize. Scale into the position. And the way that you scale into positions back in here, if you start accumulating a position in CCJ, you buy the breakout with a starter position. Stock goes through a compression. You get some profit taking. There's some supply that needs to be worked off. Hey, the dip, the compression was brief and shallow. Oh, breakout. Add to the position. Okay, now your average cost is way down here. Oh, we compress compress. We broke out again. Your average cost is way down here. What's your downside? If the stock rolls over, I can bail on the position at a profit because my average cost is way down here. Are you going to bail on the position? No. Because you can see from the price action institutions are in there bidding for it. You want to ride their coattails. That's where the confidence comes from. Confidence is going to come from building positions and from the left side of the chart. That's how you deal with your emotions. Opinion trading outside normal hours. I generally don't like it. You don't have the volume. Again, let me just keep repeating this. You are traders. You follow technicals. Technicals are based on support and resistance. They're based on volume.

### Segment 17 (85:00 - 90:00) [1:25:00]

Anything that disrupts that, a stock that is inordinately newsy, uh low volume stocks, small float stocks, afterhour stocks, those stocks are going to be susceptible to not following the technicals. in an after hours stock if you know particularly if it's a stock that's m moving after hours the technicals aren't going to matter as much the volume isn't there for it to matter as much and so when you take that away you're momentum trading and when you are momentum trading unless you are an expert momentum trader it is not going to work out well for you so I do not recommend trading outside normal hours at all very good advice very choppy price action. So, wait till normal hours. Wait till you have concrete evidence of that price movement. Someone had asked earlier about TSM. So, I've got this diagonal spread on. Do I wait until Monday morning or do I close the position on Friday? Depends where's the stock at. If it's at uh if I'm short a 34750 call and the stock's at 348, then I've got to make a decision. and I got to buy that option back in, then I will sell the option out a week. I'd like to do it on Fridays if I can. But a lot of it too has to do with the momentum in the stock. If I feel that the stock has got nice upward momentum and that it's continuing to break out, then I may not sell the option the next week. I can hold off. I have that latitude to do it. So, uh, if I want to, I could do it on Friday. So I would prefer to do that so that over the weekend I've already you come in Monday there's going to be some time decay in the position. It's going to be harder for me to sell that option Monday morning than it would be Friday afternoon. So — the same don't — have any don't have any rigid thinking. Okay. It's not as mechanical as you might think. Evaluate the situation and don't look for a mechanical method. just kind of go with the flow and evaluate what the stock is doing. — My suggestion for this person who's still asking, you know, when I trade a stock, the stocks versus options, the stock makes a couple of dollar moves, I need to have a huge position to make a profit. Yes, you do. That of course there in lies the rub. That is the problem. Uh try this. Uh if you want to go long on a stock instead of and you know you can only afford to buy 10 shares or something, um buy a deep in the money call option instead and make it a few weeks out. Yes, it'll be it won't be as pricey as you think because it'll be close to one on the stock. It's a few weeks out, so you're not going to get that much time decay on it. Um, and then use that as your trade. Um, and you'll get much more leverage. You know, it goes up a dollar, you only bought one contract, you'll make a $100 on the trade, whereas normally you would have needed a hundred shares uh to do that. So, you know, go the deeper in the money you are, the more you're closer to one-on-one uh equity with the stock. Um, that would be my suggestion there. Um, I might actually take CCJ as a uh as a trade here for the small account challenge. U someone asked about crowd. I don't look anything at crowd right now. It's flat. It's not relatively [clears throat] strong or weak SMS. I wouldn't touch it. But I like CCJ a lot. All right, we are getting close to the FOMC statement. So, I think we can wrap up today's session. And uh you know, what do I expect today? Somebody asked about which zero DTE option should I buy into the FOMC? Don't do any crying out loud. You're going to have a lot of volatility. And what I'm expecting today is a lot of back and forth. A couple of giant long green candles, red candles, no real movement. Uh obviously those options are going to be priced very high because they're going to be expecting some kind of volatility on the news. They're not going to be cutting rates. So and there shouldn't be any huge change in rhetoric. But even if there were, trading after the FOMC statement is typically a very low probability proposition and you should wait for the press conference. There is a press conference today. So often the initial move that you see will be reversed during the press conference. Even if you trade the number today, oftentimes whatever happens, the initial knee-jerk reaction today could reverse tomorrow. And that could be very likely why because the FOMC statement doesn't mean diddly today. It's the earnings that are coming after the close that are going to have the

### Segment 18 (90:00 - 90:00) [1:30:00]

biggest impact in the earnings that are coming out tomorrow. Both Harry and I hope that there's a huge earnings reaction in the next week because this market has got to get out of this malaise. Got to get some movement in here. — Yep. Gonna be interesting. All right, everyone. Thanks for your questions and comments. posted on the pod. [clears throat] Keep us posted on the podcast, Terry. Look forward to being aboard and we'll try and do another one of these in uh two or three weeks. We will see you then. Thanks so much for attending. — Thanks everyone. Excited for your book, Pete. Talk soon. — Thank you.