Technically Speaking: Technical Analysis & Options | James Boyd | 1-29-20

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hello and welcome to technically
speaking my name is James Boyd we welcome you here to Fed Day January 29th
we welcome bill grace Theresa Alfred Cathy Jill Yoko and many others here we
welcome you you might say hey James where’s Pat Pat’s out of the office this
week I used to cover this class Pat took it over and then Here I am back for this
week so it’s great to be with you as we talk about technical analysis and
options now first off as we’re getting going you can also follow me on Twitter
you could go to twitter.com type in James Boyd or my handle is Jay Boyd
underscore TDA just for a quick as we’re getting started here today we’ll talk
about what the Fed is gonna announce and we’ll be watching remember that options
are not suitable for all investors special risk and heritage trading
options also make sure that you’ve read the previously provided copy of the
characteristics and risk of standardized options and also remember that all
investing involves risk also remember that in order to demonstrate the
function of the platform we’re going to look at past examples and current
examples and remember that t v– ameritrade does not make raker
recommendations determine suitability of any security or strategy you get to pick
the stock you get to pick the strategy now as we also talked about the option
greeks be familiar with what they mean and today our agenda and learning
outcome we’ll take a look at the index update remember the Fed wasn’t actually
not supposed to increase or decrease rates that are expect to keep them
stable we’ll talk about that the the major thing we want to take a look at is
what is the outcome in terms of the language going forward from the Fed
we’ll take a look at how the indexes are holding up Fed does keep those rates
unchanged now when we will talk about earnings traits we did an earnings trade
well McDonald’s and Apple will take a look at kind of how those played out but
then I’m going to talk about current traits like Microsoft like Facebook and
then we’re going to talk about stocks and options and examples and our
learning outcome really here today is really to identify how to trade more
comfortably around earnings with defining the risk understanding what the
real risk is and the potential rewards so with no further ado let’s hop
right in and what I’m going to do here is let’s go to just the SPX first off
and when we take a look at the SPX you’re going to see that the SPX is
sitting right about that 30 period moving average which is about 30 to 56
we said the marker that we want to be looking for to see if we can’t get back
above is about 30 to 80 for the price action currently so far double check
that yeah you should be seeing that okay I’ll be watching that okay look okay now
the level that we want to watch what’s really to see if the price action
couldn’t get above 32 84 to get that momentum back current index value is 32
88 so sing some of the momentum come back in we’ll talk about maybe what are
some of the key drivers of that’s driving that when we take a look at the
ndx the Nasdaq we’re gonna take a look at some of those stocks here today
the Nasdaq did get back above the ten period moving average we said the level
to watch there was ninety seventy-six price action here today or the index
level 90 135 okay now last we’ll take a look at is really the vixx vixx actually
did pop to almost near nineteen two days ago vixx is that’s fifteen forty three
so still kind of seeing the expansion of volatility but we also have to remember
that a lot of stocks have earnings this week and upcoming the one thing that we
might want to be watching okay is really when the interest rates on tnx are going
down some of these bond investors might be more concerned about where the
economy might be going you’d like to actually see this rate kind of stabilize
if that rate keeps going down that would not be good for the stock market
longer-term shorter term maybe but longer-term typically is not great you
want to kind of see this rate start to stabilize and a chart that we’ve been
watching all week has has really been what we call what some investors called
dr. copper and you’re going to see that copper has just been well been and
loaded on to the downside and that is an unusual chart at that ferocity okay so
two things we don’t like to see in terms of a let’s call it up
barish watch number one the movement and interest rates lower needs to find the
support level number two need copper to actually stop going down and show that
the the overall global economy is actually stronger right now it’s kind of
being priced that it’s weakening okay and maybe could it be getting weaker
unusual price action copper we don’t see that type of move typically now let’s
take actually you look at this what I’m going to now do is let’s go to these
sectors real quick and if we go to the sector’s what you’re going to notice is
that we want to keep an eye on where the relative strength is now this is not
just in terms of a can an academic point of view we want to actually say hey how
is our portfolio aligned well if we take a look at the sector’s for let’s say the
last week okay so here’s the sector’s we’re looking at the indexes so IX you
would be utilities ixt would be technology etc ixi would be industrials
now what you’re going to notice is it’s still the utilities that’s been grinding
the strongest for the week but also the strongest for the month could you
imagine if you didn’t have any utilities of diversification probably sick right
now second we’re gonna see that technology
it was only up a tenth of a percent but six percent for the month and last but
not least you’re gonna see industrials Boeing getting a lift here today okay
that was bad I didn’t mean it to come out like that but you know what I mean
and you’re gonna see you’re gonna see that really for the month about one
point six to Danaher DHR couple the other industrial names been actually
quite strong here now the one thing I want to kind of really bring up is
really looking at so when we’re looking at performance we like to look at a
one-month okay yes that’s going to give us kind of a longer-term picture of what
the trend is higher highs higher lows if there’s been an upward trend if we see
whatever has the highest percentage it tells us there’s a greater chance of an
uptrend whatever has a negative percent that probably tells us the downtrend so
if we’re looking for upward transfer we probably be
starting in the middle and then working our way up but if you’re gonna start
from the bottom of the list it’s gonna be tougher to find really trends if
you’re looking at base materials health care probably still could there I really
meant to say basic materials and energy as those have been some of the worst and
also we would include financials so when you’re looking at trends it’s okay to
start with the one month but if you want to see maybe relative strengths what has
really moved the strongest over the last week feel free to look at the one week
percentile okay or the one week percentage returns if you like to trade
bold flags that might be where you try to find pulse okay all right so let’s go
ahead and do this let’s take a look at a number of so fed just want to give you a
quick update the Fed did not change the interest rates they left it stable we’ll
take a quick look after a couple moments where’s the SPX is it holding up yeah
sbx looks like a little hammer time so far back above that ten day moving
average that’s how it’s holding up so far haven’t heard the full comments yet
now what we’re gonna do is we’re gonna talk about a position so let’s go to
agenda item number two here was we wanted to take a look at these earnings
traits okay so we talked about the index update no major change their momentum
coming back on the Nasdaq and then the SP so far second what we want to talk
about is really these earnings trades in the past examples we want to talk about
just take a quick look is really the Apple position which was entered
yesterday and then the McDonald’s position and then what we’re going to do
is going to talk about current positions that we can look at to see if we can’t
maybe get a little bump on earnings so let’s do it so let’s now go ahead so
what I’m going to do is going to bring up the monitor tab let’s really start
with this Apple position now what you’re going to notice is the position that we
had was the 300 foot now what you’re going to notice is don’t have the
position anymore it says zero okay well if we go up to the filled orders
what you’re going to notice is two positions were filled today well the
position that was filled was it bought back the 21 February 300 put for a
dollar 78 now yesterday that was sold for 495 okay
495 and you’re gonna also see in this case we set a buyback at 250 now here’s
where I want to really make sure you’re clear on this sold for 495 said buy it
back buy limit at 250 well the price today opened up below
that the paper money account said the limit of what the account was willing to
buy that option for was 250 so if you’re the buyer and someone said hey I know
you’re willing to pay 250 but are you okay with paying less well if you’re the
buyer of course so today the price gets filled at less
than what we were willing to pay or the most we were willing to pay the 250 so
if we kind of look at this and say look from 495 okay so 495 – dollar 78 that
position from yesterday was about three hundred and seventeen dollars and if you
don’t mind I’m gonna take out about just round down to two dollars of transaction
fees not really it’d be a dollar thirty but about three hundred fifteen dollars
from that short put yesterday okay coming into today the trade didn’t last
very long but that’s what happened okay just stating what happened the
other position that we actually had was a stock position on Mickey D’s now I
want to make sure that you know where to find your trades so if we go to the
monitor tab right there one if we go to the account statement – I’m going to
click on the account statement and once we go they count statement we’re going
to say look let’s click on to the number of days back so just like a checking
account online check let’s say you go to the online bank you want to check the
history in your account same idea here let’s go back through
now if you say teams I don’t really want to go through each one of these there is
a shortcut right here in this box we can say look can you go back 30 days ago
just like a checking account can we just type in the symbol of MCD and see the
entry in the exit let’s do that so if we type in MCD now instead of going one by
one by one just like Ana’s checking account we can see when the trade was
purchased here we could also see when the trade was sold let’s go back take a
quick look so is January 7th the stock was entered
60 shares and the stock was actually sold 60 shares now when we come back
let’s go back and take a quick gander at this MCD let’s go back to the seventh
let’s go back and kind of see what was the investor seeing so the date I’m
gonna put a little X well I won’t exit because it’s gonna but I’ll kind of put
an arrow it’s right there okay so if we kind of look and say what type of entry
was that well price action above the 10 day moving average James you always say
that I wonder why second we actually see the price action
was not only above the 10 the momentum moving average the price action was
above the 30 had recently broken out had a hammer candle and that actually
technically would also be close above the high of the low day okay
now if we take a look at this the stock ran up pull back cut them more of like a
flag ran up pullback and then you really get more of like a flag probably right
around that 209 or about the 210 price level now today we had a price target on
it and matter of fact I looked at it yesterday and that should have that
probably hit us out three or four days ago
it actually overshot our target on this day I checked by about 18 cents the page
money account did not fill it high likelihood that probably would have
filled if it wasn’t paper money okay that day that red candle they hit our
price target okay nevertheless it didn’t sell stock
actually kind of pulls back some bounces back up to
he hits it out so that’s what that trade was it was really here – really there we
got a piece of that move that was really about 60 shares let’s look at the price
appreciation go back to the monitor stock difference there if we take a look
at that you’re gonna see that was about $13 we’ll get exact here – 1401 – 201 35
it was about $12 and 66 cents per share had 60 shares so that was about seven
hundred fifty nine dollars let’s not transaction fee would be zero
okay because we’re talking to us list of stock so the ones that closed out the
Apple and then the X the McDonald’s those are about $1100 let one thousand
one hundred and nine dollars so those close so if you look at this account in
the last let’s say from the beginning of the year we’ve had four closed trades
Apple Intel knee actually five Apple knee Intel actually four and McDonald’s
those were entered and exited on all of them okay now do you think four trades
is too many Apple me Intel McDonald’s do you think if you told someone you had
four entries and exits in one month so far do you think they would call you a
day trader i I don’t think so I mean you know average is if you said there’s four
weeks in January it’s really saying on average you had an entry and exit on
average once per week now let me ask you a question do you think it’s helpful
that we keep you updated what’s what’s happening with the positions or do you
care now to me I see so many times people just talk about entry entry entry
entry I I don’t really think people see the full picture what’s going on so I
want you to be able to see the full cycle why we actually looked at the
position taking the entry in position sizing managing the position
in the position and then doing the math on the backside and saying what happened
okay all right now let’s go ahead here and let’s kind of go back to the agenda
what we said which was so we talked about the past trades we talked about
the index check yearns yeah let’s talk about current ones now can anyone
actually tell me what is actually coming out with earnings like today like just
just it hearing about it less than two hours what what are some stocks that are
coming out with earnings now if you don’t know this and I’m not saying you
know everything about let’s say the TD Ameritrade website but there’s actually
one spot that I really enjoy the TD Ameritrade website for sure that you
could use quite frequently for dividends and earnings but one thing you could
actually do is you can go right to the TD Ameritrade website what you could do
is you can go to research and ideas and on research and ideas right on the TD
Ameritrade website you can go to where it says calendar so we were on the TD
Ameritrade website research and ideas we’re gonna go right to calendar once we
go to calendar what you’re now going to see is it nicely labeled here okay
aller excuse me all events earnings dividends etc you can also get ratings
changes okay which is kind of important especially with like stocks like
Facebook that was guided up here today we’ll take a look at that in just a
moment but if we said hey today being the 29th of January click on the 29th of
January if we scroll down it’s just gonna pull up everything underneath the
Sun of which company actually have earnings and it just gives a couple of
these so far ok Microsoft Facebook ma MasterCard AT&T etc now if I for example
let’s say just said look I just want to see let’s say just the earnings itself
ok same thing and I open that up and now I get the bigger list of now I’m looking
at all the earnings ok if I said look I want to see the dividends of today just
click on the dividends and now we can actually see there they are so in a
table format a and you could rank you could actually
click on symbol it listed a to Z okay there you go so let me go back to right
up at the very top click on earnings scroll down and load them behold here’s
Microsoft lo and behold here’s Facebook now let’s take a look at this now by the
way there’s a couple of companies PayPal this is after the market so we’ll note
that we have MasterCard they were before so that’s not now this is after the
market this is after the market so the ones we’re going to really take a look
at here right now are Microsoft Facebook we’re also going to look at little
PayPal okay now let’s take a look at this so one of
the stocks and there’s been a question that’s been asked to me and I want to
kind of hit on this so when we go take a look at let’s say Microsoft the trend
and let’s go back and see the bigger picture okay so when we go back and look
at let’s say a three-year weekly chart you will see the longer-term trend of
Microsoft now go back about a year ago we thought it was at all-time high we
said six months ago as an all-time high the stock has continued to rise those
earnings per share have actually been going up as well if you take a look at
what’s been happening on the weekly chart is we had a run up in the price
one week pull back push one week pull back push to the upside
one week pullback bullish and golfing again now if you take a look at
Microsoft here today with the earnings coming in the after hours what you’re
going to notice is we fell down to the 30 period moving average this was our
update followed by the gap let me circle the gap that’s weird gapped up from the
previous day but then we closed above the high of that most recent low day if
you count green candles okay as the low day today’s price action
you’re going to see that we’re nudging really a ball the previous high okay now
if we take a look at this you’re going to kind of see more of a hammer-like
candle if you are saying that we’re nearer to support okay now when we go to
herself what you’re gonna notice is if we click on the trade what you’re going
to now see it is on the option table is the implied volatility starts at 50
comes down to thirty two twenty seven twenty five twenty three so if we look
at the volatility curve if you want to call it that you’re gonna see that it
starts high and then you go out in time and the volatility drops now that’s
that’s kind of unique a little bit because if you sold options in the short
term those are the ones that have higher implied volatility if you were gonna be
a buyer of an option you might choose to maybe go a little bit further out where
those options are maybe not as expensive because the implied volatility is lower
that makes sense so what I’m going to do in this case is we’re gonna go look and
see we’re gonna double check this we’re gonna left click right on the ask price
left click on the ask price number two we’re gonna come down to the single
order first triggers seq remember all this means is step one buy the stock
step one buy the stock step two first triggers seq then we’re gonna come down
and say could we buy an option as a way to protect the shares and again this
comes really back to what we said in terms of the learning outcome the
learning outcome is identify how to trade more comfortably around earnings
with defining the risk alright let’s talk about what we will mean by that
okay so now what you’re gonna see is if we were to go out now here’s the deal
historically we’ve talked about going thirty to forty days out until
expiration okay do you have to know in this case I’m showing you this is only
twenty three this means that your protection obviously doesn’t last as
long second you’re not paying as much for that protection if you take a look
at this when we talk about protection we’re talking about buying a put below
the current stock price one sixty eight so we actually have two opts well at
least two options this one this one this right those are the strikes below now
what you’re gonna see is if we’re gonna try to pick maybe a strike with a delta
between 30 to 40 now we’re really looking at more like this one the 165 or
maybe the 162 etc the difference between the 165 and the 162 is just how much
risk you’re willing to take where do you want that defined risk so what I’m gonna
do now is I’m gonna actually left click right on that 165 right there
now what I want to do now is I want to go back to this big chart and I want to
kind of I’m gonna ask you some questions and then what I’m gonna have you do is
I’m gonna have you guide us really through how like some of the numbers of
the trade okay and this is the fun time trust me okay
sometimes investors do you get goose bumps when they start running the
numbers and because maybe they get nervous maybe they get excited not
necessarily because we’re trying to get emotional we’re just trying to say look
let’s run the numbers like a banker okay let’s kind of evaluate we’re or drew
risk and let’s look at the risk profile so first off what you’re gonna see is if
we bought that stock and I’m gonna make it big so everyone at home can see that
and if you don’t mind I’m gonna say 160 850 okay it’s really at 160 849 but just
just let’s just stick with even numbers okay now what you’re gonna see is if we
bought that put that put is not free and let’s mark that right there and then
also let’s mark really where we have a right to sell so right here we’re going
to say look if the stock were to go down we have a right to sell it 165 so what I
want you to do is the stock risk the stock risk is really going to be in this
case about three dollars and fifty cents that’s the stock risk okay all that is
is the difference between those two numbers but you gotta remember is we’re
not in this case we’re paying for that right and we’re going to add the two
dollars and 79 cents so if we add those two together we get I told you this
wasn’t hard just basic edition here so subtraction and addition that is really
going to be about six dollars and twenty-nine cents this is how much we’re
risking for every hundred shares a stock from now until expiration which is 23
days to expiration now if the stock were to go down below
this strike of the 165 if it were the gap down to 150 gapped down to 145 it
doesn’t matter we have a defined risk at let’s say 165 so when we’re position
sizing if we said look we could risk $1000 or $750 we would be doing 100
shares of stock and one put okay now type that in type in if you understand
where we got those numbers tell me if you feel comfortable with that okay now
what I’m going to do is I also want to make sure you’re clear on something and
I’ll just mention this briefly I’m going to right click on that stock line down
below analyze the trade and what you now see is we now go to the analyze the risk
profile and now we could just see what the risk profile looks of just having
100 shares of stock not to complicate it here’s the current stock price saying
that the stock goes up we make money the stuff unrealized stock goes down we lose
money unrealized pretty basic it’s just
graphing the profit and loss but if we add this last piece right click on that
put let’s analyze that trade if we do that let’s bring it back let’s kind of
see what we have so now what you’re going to see in this case is current
stock price 168 44 you’re going to notice that right here that green line
right about the 165 put line all of a sudden that line goes flat that’s art
that’s our max loss okay that stock goes further and further and further down
there is a max loss of this trade now here’s what I really want you to
pay attention to this line right there that red line that’s the break-even as
far as today and if we go out let me change this day here if we go out to the
21st of February let’s kind of put that in if we go out to the 21st of February
you just make sure I got that right make sure that’s set up right we go
forward to the 21st of February it’s gonna really show that break-even so the
stock by the 21st of February needs to be at that level so this is where we are
today ok all it’s doing is its adding on the pup price which is two dollars and
80 cents so the stop would need to go up two dollars and eighty cents for us to
break even it has to be above that 171 Ischia
if not the overall position is down okay now what are you kind of hoping well
you’re hoping that the stock gaps to the upside and anything above and beyond 171
ish is potential profit so let’s go in and put this trade in to do this we go
confirm and send no member transaction fee to buy the stock zero okay you like
that round numbers you guys okay with that
for us base listed equity it’s number two the option one contract sixty-five
cents now what you’re gonna see in this case is wonder if the stock were to go
down some what would have a partial the max loss wonder if the stock goes down a
lot and then closes below the strike price and we didn’t do anything
what still gives us the right to sell those shares at the strike price we
would have a max loss scenario if we go ahead and say send that order let’s put
that in and now those shares fill that 168 there it is
we bought the put okay now the one other thing we always mention is really
looking at how much are we paying for the put relative to the shares the put
the $2.80 relative to the stock price it was about
one point seven three okay point seven three less than two that
some you might look at okay now if we take a look at this let’s kind of go
back to another example so if we pull up let’s say Facebook now Facebook is in
the portfolio as well let’s go back to the portfolio let’s bring it up the
current portfolio now does have twenty eight shares of stock on it okay right
now and you’ll see those right there okay I’m gonna try to be a little bit
more aggressive here let’s kind of talk about the example of maybe how we might
try to be aggressive we go back to the charts we zoom in on this now when we
take a look at it from a technical point of view the stock when we take a look at
the trend really had a prior high it really had a base and then it just went
kind of higher higher low higher high higher low higher high higher low James
I’m sick of that when you say that well I hope you I hope you’ve got a piece of
that trend because the thing is it’s not fun to say higher high higher low if you
didn’t write any of them now someone said to me one time well who can’t make
money when the market goes up trust me there are some people that don’t trade
what they see they trade what they feel okay we’re just trying to put on trades
that are matching the trends now if you take over this this reason pullback to
the thirty period moving average and here it is now the reason why we’re
talking about this one is you’ll notice that the implied volatility it’s not the
highest of where it is but it’s not the lowest either so if we go back and take
a look at this about thirty seven and a half here we are about thirty one and
maybe the lows probably sitting here right about 25 all right so you’re not
at the high you’re not at the low it means if we were to sell something okay
if we were to sell something the premiums might be well they’d be better
obviously than if they were at 22 the bigger the volatility the bigger the
premiums the bigger the premiums the lower the break-even
the the lower the break-even the more
absorption that if the stock were to go down we might be able to take on some
negative price action to a point now if we were going to look to let’s say sell
a put spread or a short punt now what we’re going to do in this case is when
the volatility is high the investor can still sell something farther out and
still get some premium well let’s go take a look at this okay so if we look
at say Facebook and what we’re gonna do in this case is let’s go look at that
let’s just call the implied volatility curve if you want to well if we look at
the curve if we were to plot this what you’re gonna see is the current where we
are now the implied volatility 71 and then if you go out about 30 or so about
thirty seven days the implied volatility really drops like a stone okay now some
options here you got weekly officers got monthly options if we chose let’s say 23
days to expiration or if we chose a little bit further out I’m going to show
you some variation we’re gonna actually we’re gonna look at the difference here
of the 51 days to expiration and we’re gonna look at these ones right here at
the monthly options those who are probably going to have the ones where
there’s more liquidity well if we look at the 2121 February’s let’s move that
out 21 February’s what you’re going to notice is 23 days expiration if we look
at the ones that let’s say just had a strike with a delta closer to 30
well that would really in this case be about the $4 premium or 390 if we chose
something maybe in the middle between the Delta of 30 to 40 you’re getting a
little bit more yes not massively it’s about 85 cents from here to here okay if
we win it a little bit further out let’s say 51 days expiration don’t have
exactly the same numbers but if we did go a little bit further out you’re
selling farther out a to try to get a bigger premium to that if that were to
have maybe negative price action you could have some
time to try to see if it could go back up but if you don’t mind on the shares
if you don’t mind to have an option that might be a little bit more volatile you
might choose the option that for example is closer to expiration and has the
higher time decay burn so what I’m going to do in this case is we’re gonna right
click right on that bid we’re gonna sell custom and what we’re gonna do is we’re
going to go with stop now just kind of like on the example we did yesterday
that option is actually sitting here about 395 now in this case what I’m
gonna show bill talked about the 65% earlier in yesterday but if what I’m
gonna do is I’m going to take 495 that’s excuse me 395 and I’m going to show the
example that hey wonder if we were gonna try to make 65% okay so think about this
like a pie not saying you would do this but if you ate 65% of the pie okay
probably not all in one sitting and then you only left 35% for your spouse that
wouldn’t be very nice but maybe they said okay well if we 65% and only left
35% all we’re really doing is just saying we’re taking 395 times
0.35 and what that will do is when we do that let’s verify that that’s correct
let’s make sure tell me if we’re right point three five am I right or wrong
tell me we right or wrong it’s not right so what we need to do is we need to
change that number to really a dollar 38 tell me if you got the same thing we’re
gonna go stop to a limit date OGT see now what this will show we’re trying to
sell it here okay we’re trying to sell it there we’re trying to buy it back
here at this price at the most or lower okay just like in the example that I
showed before now if we bought that option back at a
dollar 38 it’s saying what would Facebook need to do to probably get to
that price level it’s saying that Facebook from where it is now would need
to really get up about a dollar skimming eight dollars and 43 cents that does not
assume time decay that does not assume the implied volatility dropping now I’m
going to show this one quick so let’s say the stock does not have as good of
the reaction as maybe Apple did if we go to Theo price if I type in let’s reset
this and let’s say to Morrow that let’s say Facebook does not go up $5 but it
goes down $5 boo let’s say that it did and all of a sudden let’s kind of see
the reaction of what would happen well if we sold it for about 395 the option
if the stock were to go down five would go up to about 561 but that’s really
assuming that volatility stays the same volatility earnings that volatility
typically should drop typically and if we subtract 5% what you’re going to
notice is the stock went down five okay and the implied volatility went down
five you’re going to see that barely lost anything really lost on realize
about 60 cents if the stock let’s say had the implied volatility dropped by
about a percent okay five dollars down eight percent on the implied volatility
that means that those options broke even okay right there so it’s kind of
interesting if Facebook is down five dollars and that implied volatility
drops a the short putt would be probably near broken even based upon the field
price that we’re seeing so this is really interesting let’s kind of see how
that plays out and that order right there let’s go back to that order we’re
gonna show one exact one contract remember we have 395 that’s what we sell
for buying a back trying to it a dollar 38 and if we buy it back for a dollar 38
now what we’re going to go ahead and do is say confirm and send there it is and
now what you’re going to see in this case is we have sixty-five cents we’re
buying it back for there it is right there and the buying power factors the
broker wants to really make sure that we have enough money in the account okay
then we have enough money in the account if we were put those shares of stock now
if that’s what we want to do we’re going to go ahead and say send that order now
what I want to do is I want to kind of go back and I want to look and see if
there’s any questions that you have so let’s just kind of take a quick moment
here let’s look at the orders that were filled so far so we did the example on
Microsoft excuse me so let me go back so we did in Microsoft right there the
second order that we actually did right there is we did the short put on
Facebook the 215 now what questions maybe do you have got
about seven minutes left do you have any questions okay yeah so now one comment
that kind of came out just real quick was regarding the calendar to go to the
calendar it’s not the only place it’s a place to go the TV mayor trade website
research and ideas go right to calendar if we do that okay right there what
you’re now going to notice is if we scroll down you’re now gonna see that we
can just pull up anything okay like earnings okay dividends ratings
change things like that equity IPOs conferences events but one thing I want
to bring out is if you said James I’m trying to kind of plan for next week you
could actually see how many items were happening for the next week but you do
need to click on what is it that you’re looking for if we clicked on earnings we
could see how many stocks were actually coming up for earnings next week or how
many stocks are actually coming up with dividend okay okay good all right now
let’s look at let’s go to another stocke here so what I want to do is if
we take a look at let’s say I’m gonna bring up a couple stocks and some of the
stocks that we’ve been seeing in the market whether we look at the Dow or
whether we look at let’s say the Nasdaq some stocks they’ve been kind of
drooping down so whenever you look at a chart one thing I want your eyes to see
is when stocks run up and they pull back and when the stock pulls back you get
what we call a diagonal resistance the stock runs up and that kind of pulls
back and then it really breaks above the diagonal resistance the stock runs up
and then that actually in this case pulls back and when that stock pulls
back and then starts to get above the diagonal level resistance we’re kind of
sitting where the price was making lower lows lower highs to where that stock now
might be starting to the Bulls might be rien gauging after the pullback meaning
there there’s more buyers and sellers at the current time and that price action
is starting to push back up so if you made it think about this as bull Flags
more on an intermediate basis okay that’s really what I want you to
thinking about here now if you look at let’s say Lulu what you’ll notice is
today in Lulu you are seeing a break above the diagonal resistance line on
Lulu okay today so far where we are today with about 90 minutes left if we
go back to let’s say another stock let’s say like Costco you’re gonna see where
Costco really broke the horizontal and sometimes what can happen as we say oh
my gosh I missed the breakout right yeah I’m never on time well the biggest thing
is it broke out yes made a higher I yes but then the stock actually pulled back
kissed not really but touched I should say that
horizontal resistance could that be changing into the new support and the
price is kind of back above that temporary moving average interesting
thing on casco here it’s a little run up on the price pullback
I don’t know about where you live but where I live in central Salt Lake here
went to Costco like the middle of day on Friday last week and it was no joke it
you thought was the end of the world it’s amazing in the middle of the day so
you are seeing more of an intermediate flag on a stock like Costco now if we
also take a look at that other one PayPal PayPal what you’re gonna see is
setting up for that longer term potential cop so when we take a look at
that cup what you’re going to notice is prior high we see a base low higher low
higher low James does that ever get old not really higher low and you’re gonna
see this coming into earnings now here’s the deal how do we know the stock is
going to go up on earnings we don’t know that what we’re looking for is the see
can it hold post the earnings can hold about the 114 support level okay so the
investors have bought the stock prior to the earnings with what with the
expectation that the earnings is going to be good they don’t know for sure but
it’s probably they’re thinking that it could be good we’re gonna find out and
that one actually also has earnings this afternoon now what you’re going to
notice is that resistance on PayPal is right about 121 and if that stock were
to really break out a resistance you know you’re really talking about one
that might have a longer-term trend that my tree emerge if the stock can start to
breach the 121 so those are some stocks I really wanted to sprinkle in here
today now I want to make an also a quick reference to I did send out a survey
link to you in the chat okay it’s a quick four questions asking you about
the survey today just asking you how did you like it do you have any comments
about it did you like the past application management example did you
like the current did we talk about the demonstrating of a platform etc also the
one thing I want to make mention is the classes that are really in this yellow
color right on the webcast calendar make sure that you’re getting into these
classes where Cameron May talks about on Friday
yellow classes the yellow boxes are about whole portfolio management whole
portfolio management of trading a long-term portfolio whole portfolio
management the reason why stress the whole portfolio management of an ETF
portfolio is because we’re not talking about just investing 10 percent of our
portfolio we’re talking – paper money account investing the whole thing and
that’s really important because someone might be doing really well with ten or
twenty percent of their portfolio but maybe are you becoming comfortable with
how do you can potentially invest the whole portfolio okay so I would pick
really two of these and say in your calendar that they are in your calendar
you had ten those classes on a live end or a recorded basis okay so other thing
we want to bring out here today is coming up just momentarily I will be we
will be having Michael Fairborn really be talking about short verticals after
Mike Fairborn actually talks about short verticals he does a great job at that as
well I’ll come back and I’ll teach the classroom callers and synthetics at
three central these are the agenda items we talked about and the learning
outcomes we did place two trades with the earnings in mind here today I will
talk about those fall through the traits tomorrow to see how they played out over
the earnings with that said thank you so much for your comments and your
participation and I’m going to also tell Pat thank you for letting me cover in
his class today and you guys were wonderful as well so with that said
thank you so much for your comments and your questions remember what we talked
about here today we did demonstrate the functionality phone we did use actual
symbols there are examples that are not recommendations make sure that any
investment decision you make in your self-directed portfolio is up to you and
it’s your responsibility to for those trades so with that said thank you so
much take care have a great day stay tuned for Mike Fairborn coming up just
shortly you

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