Managing 20 Trades?
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Managing 20 Trades?

John F. Carter - February 18, 2016

Hey everybody, this is John, and welcome to the free video. Crazy trading day, crazy trading week, incredibly profitable. The model account here hit new all-time highs today. We started off at $185,000. Today, closed at $272,000. Of course, that's net liquidating value. We'll see what is in store for tomorrow. Currently up $90,000 there.

Let's do quick review of our positions. We are flat the end. I did a scalp, got stopped out on that. We've got all of our directional trades are about out, where the easy move--we've been talking about a bounce back to 1920 on the S&P's. We got it. So the easy move is over. All we're left with are spreads.

Got a spread on Apple. Got a spread on Amazon. In Buffalo Wild, that's directional. We're looking for a little bit more there. We've got a straddle on Citibank. Most of these expire this week. Small trade on Clorox. Directional on CNG, killed it on that one. Some puts on FXY, a little bit larger term trade there. Straddle on GILD. Put credit spread on Google, we did this morning. Put credit spread on GoPro, did it yesterday. Put credit spread on Netflix. A lot of action on Priceline. We didn't actually hold through earnings. Those are just iron condors that we put on today. Closed out QQQ, SPX PM, that's our hedge, in case we go back to 1920. Then we got SPYders, which we got out of that directional trade today, and then WYNN is actually at almost max profit as well.

So what's a quick recap of these trades? This is what I have that expires Friday. What I've positioned for is, we have no more directional trades. These are all spreads, and if we're choppy to slightly down, that's fine. If we're choppy to slightly up, that's a little better. But I don't want a big move down. If I wake up tomorrow and the NASDAQ is down 100 points, then I'll be doing a little scrambling. I think what's going to happen is we actually rally into expiration Friday--chop, grind into expiration Friday--and then we sell off next week. All of these expire on Friday.

So we got fifty of the 195 put credit spreads on Apple, looking for $100 push with that high open interest there. This 505/495 put credit spread on Amazon is at 90% of max profit. We sold the straddle today on Citibank for a 40 pin. On Friday, Facebook 104/100 put credit spreads. GILD, 89 straddles for a potential pin on Friday. Google? We did this one this morning when it filled the gap. Texted that one out. I'm not sure if you guys are even aware that we put texts out, but in part of our Gold Membership Plan, we actually do text alerts. We got fifty of the 95/90 put credit spreads on Netflix, and then there's the put credit spread on Priceline, iron condor on Priceline, SPX PM iron fly, the WYNN put credit spread, which is pretty much at max profit, GoPro, and then the only directional one.

So, as of Friday's close, I'll be out of all these. Ideally a lot of them will expire worthless, or we're gonna buy back the short side for a nickel. And then I'm planning to hold over the weekend some Buffalo Wild monthly calls, CMG monthly calls, and some puts on FXY.

The interesting thing here: We were looking for that move back up to 1901. It was a no-brainer move. Based on the SKEW, and I talked about this a couple of times, but when the SKEW drops down here to 117, you do not want to be short. Okay? That is the very definition of short death. So when we saw that, we covered all shorts, went long, which is kind of scary, but you've got to follow your indicators. So we got what I called the the easy move.

Now the question is, we have a squeeze that's about to fire. In talking to people, everybody here is still short this market. They've been shorting this rally all the way up. Everybody. That means that we are going to destroy shorts. So I think we keep going higher, but at this point, I'll be honest. I'm a scared bull. I've closed out all my directional trades. I mean, that was the trade of the year, so far. How much higher can we go on short-covering? I like some of these stocks like CMG, Buffalo Wild, we're starting to catch a bid. But I really want to be getting more conservative and focusing on spreads.

So, one question I've been asked a lot is, literally, how do we navigate these markets? They're so volatile. And the best way to be able to navigate markets like this is to understand correlations. And the best person who understands correlations in terms of currencies and things like that is Raghee Horner. So we are setting up a class with her.
Strategy class Thursday, Feb 18, 6 pm - 9 pm Central. Live trading on Friday, February 19, essentially during the entire trading day.

So, simple rules and strategies for thriving in the current conditions. She loves these kind of markets. These are the topics that she'll be covering. You've got using fundamentals and technicals to find opportunity amidst confusion and uncertainty. There's certainly a lot of that. How to day trade markets and also set up bigger trades. The two simple indicators that she uses to define trending and non-trending markets, as well as the specific setups and mindset to avoid the common account killers and volatile conditions using her I.C.E. system to identify opportunities in any market and time frame, and the best types of chopped trade, and what chop can tell you about the markets.

Her three hour strategy class is just $197. If you would like to do the live trading, her strategy class plus the live trading, this is $297. That includes that. This will be incredibly valuable, especially for what's going on in the markets right now, to kind of get you up to speed on all the stuff. Hope it helps! Have a great night, and we'll see at the next update.