$1,000 day on $4800 capital trading 0DTE SPY $SPY

well good morning it's september the 11th 2020 uh friday september 11th though day to remember right and uh interesting day in the marketplace today as well we had a nice pop to the open uh this morning and then just kind of flattening out again today i have had a couple of requests to do some more zero data expiration trading videos so that's what we're gonna do today i've got about 4 800 of available capital capital in this particular account here and so because it's a smaller amount today uh rather than using the futures rather than using the spx i'm gonna use the spy to trade the markets here and um so again you can kind of see today these are five bar charts a five-minute uh candlesticks that i'm using here uh in the marketplace and we are just kind of uh selling off here the the nasdaq has gotten weaker obviously that's where the action is in the marketplace is the nasdaq right now if we look at that real quickly we could trade the queues as well you know that's an option as well to trade but i think i'm going to trade the spies to start with so we're going to go ahead and we're going to put in a trade initially to start this i'm going to do it on the on the strong side first i was looking at doing both legs uh simultaneously here again obviously use the september 11th expiration date this was what i was looking at right down here um and and and that still might be a viable uh a way to go that would use up about four thousand dollars of my capital i got 4 800 so that gives me just a little room to do some adjustments if i need to bring in about 800 of initial uh capital we kind of seem to be sitting in that area uh just flat there even though we've been up and down a little bit so i'm going to go ahead and try to fill that that'd be a credit of 34 cents bringing in about 800 it looks like we're close on the trade let's come in here and work that just a little bit drop it maybe one penny nap price is showing 31. so i might have to move this down just a little bit more man i should be in the ballpark there that's about a 4 000 trade bringing in 700 bucks there we go get filled at 32. get filled with 32. so there's that position open now uh i've got that working you can see that there in the risk analysis graph blow that up a little bit that's where we're sitting right now so again at this point you know market's just open we're up we're open about a half hour um obviously has a little bit of a bias to the downside there embarrass nature we're not exactly delta neutral put up about four thousand dollars brought in seven hundred dollars of initial credit we'll see how the day goes uh if uh i mean obviously it would be a great day for me but a boring day for the video if i never ever had to touch this all day long and just got the 700 bucks at the end of the day uh with the volatility that we've had recently uh i'm betting dollars to donuts so we're gonna have to do some kind of adjustment in here throughout the day so we'll check back in every hour or so see how it so 11 am now just checking back in i know you guys love these videos where you have to fight tooth and nail all day long to get your profit and it's just a battle and you got to do 20 adjustments and at the end of the day you end up victorious but these are the best days right here uh where you really you don't have much to do at all um we obviously are starting to sell off here right now and so i'm thinking about maybe just booking my profit at least on the put side and maybe adjusting that but to be honest i didn't sleep very well last night i got up at 5am this morning and so uh i went and took a nap for an hour set some alarms on here so that i'd be uh triggered if there was an if alarm would go off if i needed to take any action but it's been pretty solid up about 300 bucks uh which is uh pretty darn good considering where we're at here i'm gonna watch this here uh for just a little bit um because we are starting it does look like uh the sell-off here is starting to accelerate a little bit and if we get anywhere maybe down to the 33 40 level somewhere like right in here 332 40 excuse me 330 240. i'm probably going to look to cash in whatever profit is in this trade and then maybe reallocate so we'll just keep watching that and see where we end up here just uh maybe an hour from now so the sell-off is uh i don't know that it's intensifying but it is continuing down so i went ahead and i put a sell order in here i got a sell order at a 25 cent debit obviously we sold it for a 32 cent credit trying to get out at a 25 cent debit that's what the mid price is so we're close we're close on pricing i'm gonna let that order sit here for just a little bit and if i need to adjust it down i can i'd obviously like to get out of this current iteration of this trade at a profit and this would give me this give me a pretty decent profit overall a couple hundred bucks maybe something like that so i'm going to let that trade here just sit for just a little bit well it's about 11 30 and we really have sold off here we've really collapsed quite a bit and man that really sucked out almost all of my profit potential in this trade we were up 300 400 bucks at one point and uh this would if i got out here at this 25 cent debit and that's just over a hundred dollars profit still great you know still great because it will still give us a little bit of time here to reposition that but it does look a little bit here uh like we were starting to try to stabilize down here so based on that based on the fact that i'd like to get a little bit better out of this and that this has dropped down to 23 the mid price has dropped down to 23 cents and i still didn't get a feel here at 25 because there's just too much time still much too theta too much theta is still in that trade i'm going to go ahead and cancel that cell order uh and i'm just going to sit here and watch this i'm going to manually watch this for a little bit and if we can't hold this level i'm just gonna have to get out at whatever price it is just gonna have to get out and reposition for the day if we can hold this level then we should be better off so it's either just you know whatever happens here we're gonna dump it reposition for the rest of the day try to regroup or it holds and we don't need to do anything okay we are continuing to slide it's interesting now the s p uh percentage-wise is actually sliding more than the nasdaq um in terms of this sell-off that we're just seeing here right now and so step one here of this adjustment i'm going to go ahead and i'm going to roll down my call leg on this i've already got this set up here i'm going to roll down obviously same expiration zero date expiration now roll down from the 339 calls and the 341 calls uh and i'm going to try let's see no right there going to roll down to the 335s and the 337s 16 credit is what it's showing so we'll see what i can do fill wise here on this that would obviously help income-wise quite a bit bring the trade back into where it needs to be a little bit more still obviously need to probably do something on the put side bring that down to a credit of 15 326 bucks oh my computer is slow place that trade go to a 14 let's try a 13 net let's go 2 cents 278 bucks is what that would bring in still nothing it shows the trade working but i'm still not quite there replace it again let's go 11 cents that'd be 230 bucks [Music] this is the this is the trouble when you're trying to essentially do four traits in one order you're replacing one spread with another spread and the gnat is still falling on this 182 182 bucks okay what did i get okay i got filled at 12. that's not uh that's not as bad as i thought i had to drop my price all the way down to nine but ended up getting filled at 12 and just want to look at the numbers on what 12 would have been for me about a 234 dollar credit 234 on that adjustment right there so okay we're in there uh and we'll probably need to watch this just for a little bit more and then if i need to adjust the leg i can do that as well okay so this is how it works uh so i rolled the call leg down you can see the activity there brought in another 12 cent credit on rolling the call like down and of course time that just about perfectly or horribly however you want to look at it may have found the bottom here i don't know but we'll see we'll see but i think we still have enough room even from where we rolled that down to we've got enough room we actually went negative there on the trade uh for a little bit you know i think at one point here on the spy position where it showed that we are up 400 remember you got a lot of spreads that you got to deal with there to get out of that trade and it doesn't mean necessarily what the profit is showing you there is what you're going to be able to actually book by the time you work that trade down and slippage and whatnot but i think there was a solid 300 profit sitting in that trade and then the market just kind of fell away from us pretty quickly there and went negative there for just a little bit was able to roll that call leg down get a little bit more premium coming in and we're still on that uh put leg well we're sitting at a loss on the pull leg but overall overall for the day we're back at least we're back into the profit zone we're up about a hundred bucks uh well 70 bucks we're up something uh uh at least uh right now on the day and so and uh i think position wise let's just take a look at this real quickly i hadn't uh cleared this out and look at this i think yeah yeah we're we're pretty darn well centered right now so actually uh if the if the day continues on you can see right there our numbers that we're looking at here i think initially we were thinking that we could do about a 700 profit and right now uh with the adjustment even though we basically were wrong in our assumption there in what direction the market was going to move um we'd be at about 700 profit as well so the adjustment right now at least looks pretty darn solid we're pretty well positioned there hopefully all we've got to do here is wait out the market we've got just a touch over two hours left in the trading day so i thought we might get away without having to do an adjustment on this trade but it looks like no so let's continue to watch this again we're clicking down the hours here last couple of hours of the trading day left well it's noon two hours to go still in the trading session and we're still okay you know we're we've hammered back down to the lows of the day we're at the lows of the day right now as we speak and uh not equidistant obviously anymore but still okay i think just a touch just just like maybe seven cents below 331 so for all intents and purposes right around that 331 level i got about i got about 60 cents more downside that i can let this move um before i need to adjust that put leg of the trade so we are again we're back uh in the green we're up uh 160 170 bucks uh and we've got a lot of theta ton of theta there's almost 900 extrinsic value here so you know when you get to noon when you get to where there's two hours left to trading and one of the nice things i guess about you know trading the spx or the spy um or the queues for that matter uh versus the future is you don't gotta work i can't tell you how many times i've been bit with those 15 minutes of after hours trading with the futures contracts and we don't need to worry about that here so we've got basically just under two hours and it's a race against time it is really what we're just up against here a lot of extrinsic value here it would be awesome to see here two hours from now if we can expire without having to do anything else with this trade because it would be the perfect example of what an adjustment can and hopefully should be to you where we put on a trade we had the ability to maybe make 700 or something like that with the trade the the trade didn't quite work out we had to adjust it we had to take a little bit of a loss we adjusted it and again knock on wood here if we finish today without having to make another adjustment our profits will actually be better than what they would have been with the initial trade that'd be awesome right so let's see we got two hours to go one o'clock one hour to go and we are just clinging we are clinging to uh profits uh in retrospect probably shouldn't have dropped you know it's absolutely just insane right you talk about uh bad timing right down in here is where we rolled those call legs down and uh you know you wait 15 minutes and you would have seen that uptick and probably not rolled them down so what was being pressured which was the put leg is now great it's now hunky-dory and what's being pressured now is the call leg but we only have one hour left in the trading day and well i don't i mean the market has obviously come back quite a bit but i don't see it turning massively positive right now when i say we are just clinging we are right there we're showing it almost 300 profit in the trade right now all we gotta do here is tick up above 334 and that all starts disappearing so we're just right there you know if we were earlier in the day i'd go ahead and adjust there's really no adjustment we could still do a little adjustment you can still get some premium up until about 40 minutes before the close so we got maybe 20 minutes if we needed to adjust again um but again right now it's one of those race against the clock type deals as long as we can sit where we're at here we should be good going into the close so we'll see uh here in an hour if we don't need to do anything or earlier if we do okay so it's 108 right now we've got roughly 50 minutes 52 minutes before the market closes here and you guys have heard the phrase before patience is a virtue um this is where you have to be careful and not get trigger happy so you just got to kind of balance everything that's going on we're sitting on almost almost a five hundred dollar profit four or five hundred dollar profit right now but we still got five hundred dollars of extrinsic value sitting in that trade this last 40 minutes 50 minutes of trade man that's where the magic of this theta really takes place really happens um i was trying to get this there we go we are pretty well positioned still a little bit closer to the call side than the flip side but we're starting to give back a little bit more starting to take some of that back i think that we are really well positioned going into this remember again our numbers uh we got an initial 32 cent credit when we put on the iron condor i rolled the call leg down for an additional 12 cent credit so we're we're 40 what is that 44 cents is the credit um that we have in this trade right now 44 cents is the credit and right now as we speak computer is running slow slow slow uh right now we could get out at around 21 cents somewhere in that range so you know we have almost 800 of total profit potential now in this trade we'd be able to get out at about a 400 profit my goodness this is the challenge right you don't for heaven's sake you don't want to give up a 400-500 profit for some extra potential and see all of that vanish in the last 20 or 30 minutes so we're going to continue to watch this just because there is so much more additional profit potential sitting in this trade but any twitch any any big movement um i'm going to make sure and just unload this so that we can get whatever profit that we end up with because it looks like right now knock on wood it looks like we're going to end up with a pretty good day 144 16 minutes left in the trading day and i am embarrassed to show you this um i just let this thing get away from me i let this thing run a little bit too much obviously if we look at the analyses tab here you can see that of course we're pushing right up we're pushing right right up on that call leg uh that 3 35 leg in fact if we look at the chart here i do believe there was a little porsche maybe not right in there where we actually touched 335 and you know at that point what do you do when you're at that point and the trade is that close you just cross your fingers and you hope and crossing your fingers using hope as an investment strategy not a really good way to trade right so you guys have heard this before all my mentors already always told me move past paper trading get a real account even if you're doing 50 60 trades you gotta trade real money in the real market with real skin in the game because it'll change everything for you because that emotional aspect now is completely there you know even if it's fifty dollars on the line the emotional aspect is completely different than when you're just paper trading i can't tell you how many millions of dollars i've made paper trading because you put in a million dollars you throw it all into one trade if it doesn't hit you just go put another million dollars in your paper trading account right you would never trade that way with your own hard earned money at least hope not and that's kind of what happens here every time i make a video for you guys i want to try to push it i want to try to push the video or push the trade i should say to give us our best bang for our buck and really the rules are the rules for a reason and uh what did i just say just a couple of minutes ago we were sitting on a 400 profit or something like that and i'm like listen you know we got 400 right now it's in our pocket we just need to cash the check right don't throw that 400 away uh just to try to get another 400 or even more than that but we're lucking out basically that's that's all i can tell you here this trade hopefully knock on wood now we're uh 14 minutes out before the market closes we are so close uh up 500 bucks right now you know again prudence would dictate close the stupid thing out uh but we're so close to expiration that i'm gonna watch this here just because it does have so much uh additional profit potential in it um i was just looking yeah you know we're about 50 25 cents is what we could close it out for we're in a total credit of about 44 cents so yeah i'm gonna do what i tell everybody not to do uh and i'm just going to let this kind of ride here for the next uh what do we got now 13 minutes 13 minutes so we'll see how it goes here going into the clothes all right here we go into the clothes looks like we're good on the day looks like it's gonna work for us let's do a quick analysis let's do a quick review of this there we go there's the bell and we are good we are solid on that trade so obviously it hasn't fully settled yet if you look at that s p trade or excuse me that spy trade um it's showing a 936 dollar profit but we've still it's still showing 96 dollars of extrinsic value i actually put that down the actual profit when everything settles should be a thousand thirty dollars on forty eight hundred dollars so and if we look at that uh rate of return wise you know this is the question right is was this a good trade or not um a thousand thirty dollars divided by forty eight hundred dollars uh twenty twenty one twenty one percent uh in a day is that good guys i'm gonna tell you no i'm going to tell you it's not i'm going to tell you that we put the wings too close together on that i probably adjusted the call lake down on this too soon um this is great you know to to to conceive of and to think of that with five thousand dollars you could potentially make a thousand dollars a day like how cool of an idea is that right but i will just tell you that a trade like this is not sustainable it's too close on the probabilities this is a trade that we made what uh 21 percent return and it's a trade that by my rules is designed to make five percent like that would be pushing the limits right there is a five percent return on a five thousand dollar account maybe you bring in 200 250 so yeah we got uh we got lucky today i guess is the bottom line but overall good day guys hope you enjoyed the trade have a good weekend we'll talk to you soon

Channel: Scott Stewart

Views: 12,737

Rating: 4.9012346 out of 5

Keywords: $SPY, Trading, 0DTE

Id: uUPhhAok-mA

Length: 24min 15sec (1455 seconds)

Published: Fri Sep 11 2020