I want to take some profits.
So I thought it would be fun
to trade my account live
so that you can watch how I'm
closing a few trades where
right now I'm up nicely.
I think it's over $1,000, so
I decided to take some profits.
I want to show you exactly
why I'm taking profits.
I wanted to explain to you exactly
how I'm doing it.
And I want to explain to you what a
trading platform looks like
and how you actually place trades.
Does that sound good?
Then let's get started.
In a moment, I'm going to show you
my trading account, the smaller
account that I've set up to trade,
mainly options here in
this crisis as we had the stock
market crash.
And the account is up nicely, and I
want to show you how to close a
few trades.
So here you see my account, and
we'll talk about all these different
elements that you see.
You see for today, I'm up $1,500,
so that's pretty good.
Now, when you're trading,
it doesn't matter what trading
platform you use, whether you're
using Interactive Brokers,
which is the trading platform that I
have here, or TD Ameritrade,
or Fidelity, or E-Trade
or, God forbid, Robinhood
but
that's a different story.
Anyhow, all of these platforms
will have the same
four elements that I'm going to show
you here on my platform.
First of all, right here you see
in the upper left, there is a way
where I can enter the
orders. And that's what we're going
to do in just a moment.
Your platform will have the same.
It doesn't matter what platform
you're using, if you're using a
broker or platform you will have
a place to enter orders.
Now, here you see some basic
information about the stock
or the option that you want to
trade.
So here in Interactive Brokers,
there's a few bars or candles.
I'm not using it a whole lot as you
know, I like to use TradingView
and PowerX Optimizer,
my own software here in order
to find the trades and place the
trades. So down here
in the lower right, you see the open
orders and you see right now
there is no open orders.
But in the upper right,
this is where you see actually
the positions that I'm in right now.
You see, I have a BA put
that I sold, a Tesla
put that I sold, a Disney put,
an MGM put and a Delta
Airlines put. So basically
my bet was with these
puts that I believe that all
of these companies stay
above a certain price.
And you see the strike price is
right here.
I was betting, or I am betting that
Boeing will stay above $100
by April 9th.
So out of the five trades that
I have I want to close three of
them today. And here's why.
So you see Boeing, for example,
I sold at a $1.34.
And right now it is trading at
$0.34.
So that's okay there's still some
value in this option.
But take a look at this, Disney
here, I sold it for
$0.89 and a half cents, $0.90
almost.
And right now, there's only
$0.06 left in there.
Now, here, I
did sell 5 of these
puts and
out of these 5 puts and they're now
worth $0.06
so if I hold them until
Friday or Thursday, because Friday
is Good Friday the exchanges are
closed. But if I would hold it, I
would make an additional $30.
So as you can see right now, already
made $420.
And if I wait a few more
days, I would make another $30.
But for me, that's not worth it,
because if something happens
over the next few days and Disney
crashes and burns,
I might get in trouble.
So here I like to say don't be
a d*ck for a tick, all right?
I mean, if you can take $420
off the table and therefore reduce
your risk in this trade
to zero, to nothing,
why would you go for
the remaining $0.06,
the remaining $30
here? To me, that doesn't
make sense. So this is why I want to
show you how to close this trade.
So I sold 5
of these put options.
So since I sold it a few days
ago, I now need to buy
it back.
So I'm clicking on this and this
will automatically bring me up here
in the upper left where there's my
trading window.
See again, I sold 5,
so what do I need to do now?
I need to buy it back.
So I select buy.
The quantity I want to use
my whole position size I want to buy
5 back.
Now I want to use a limit order.
And here's why I want to show it to
you. So right now, there
are people who are saying, "I want
to buy them for
$0.05." And there's some people
saying, "Well, I'm going to
sell them to you for $0.06."
Let me just see if I can
hit up one of these guys
who say, "All right, I want to sell
at $0.06," and say,
"I'm going to take you up on your
offer." Because again, right now I'm
buying.
So that's why I'm using a limit
order of $0.06.
I'm going to hit submit.
As soon as I do it will appear
in the lower right, right here.
And then hopefully get filled
right away.
All right.
So let's do this.
We are closing.
We are buying.
Double-checking 5
of these Disney puts.
I'm going to hit submit.
OK. It said "order partially
filled." You probably can't hear it.
But you see right now out of my 5,
1 person already said, "All right,
let's do this deal." And look at
this.
Now, the ask jumped
up to $0.07.
Tricky. Tricky.
So it seems that there was one
person who said, "Yeah, I
am willing to buy it from you
for $0.06." And right now,
let's see, we'll let it sit here,
but you see the quantity
on the lower right it says 1 out
of 1 filled, 4
are still outstanding.
So we'll leave it here for a little
bit. And otherwise, I'll raise my
limit to $0.07
because again, what is the
difference?
Options are trading in 100 packs.
So a cent different means
there's a dollar difference.
Again, don't be a d*ck for tick,
right?
We don't have to really fight
for the last dollar here.
Again, I'm talking about
$420 and you see up here
realized.
So this is what already happened
today, I already got $82.
So let's see if we can sell the
other ones as well.
By the way, as you can see right
now, this account is at around
$33,000.
This is a small account that I
started out two weeks ago
at $25,000.
So right now this account is up
around $8,000
in two weeks.
Not bad at all.
Are you enjoying this thus far?
Because if you do, do me a favor and
give me a thumbs up right now,
because this way I know the videos
that you prefer watching and I'll do
more of these.
And this is why it really helps me
when you let me know, "Yes, we like
this." So click on like right now.
And again, if this your first time
here, and you think "That's pretty
cool." Click on subscribe
to subscribe to this channel because
this way you get a notification
whenever I go live, which is every
weekday at 3:30 Central
Time. All right, let's actually
close a few other trades.
So I want to talk about the
Delta Airline trade.
So with Delta Airline,
I'm betting that it stays above
$15 by April
17th.
But let's take a look at this.
Let's take a look at the chart here
of Delta Airlines.
And you see thus far it has
been doing good.
I did this a few days ago.
We're still trading at $22.
So we play I have plenty of room to
go down to $15.
However, Delta Airlines,
look at this, is reporting earnings
on April 8th in two
days from now.
I don't want to get caught in the
earnings. Who knows what they're
saying?
They might plummet down.
And on this trade thus far, I'm up
$314.
So might as well take some
profits here.
Because today is an up day, again,
markets are up almost 6%.
So on up days, these
are great days to take profits.
On down days when the market
is going down, that's
when we want to look for new trading
opportunities when selling puts.
So I'm going to Delta and the same
here, here is my position is minus
10. So I want to buy back
10 of these Delta positions.
And you see here,
again, this is where I want to buy
10. And somebody is willing to sell
for $0.43.
And there's a bunch of other guys
willing to buy at $0.42.
So I'm going to hit the ask here
and placing the order, let's
see if here we get filled with our
whole 10 lot
or if you have the same here, like
with Disney that we get split
fills.
So let's click on submit.
Yes, overwrite and transmit.
And the same.
It says order is partially
filled.
They filled all of it, all 10 are
being filled.
So you see right now my realized
profits jumped up from $300
and what was it?
$83 before to
$383.
OK.
So we are still sitting there with
Disney.
We might have to raise
our bid a little
bit here, because right now we
are bidding $0.06
and you see somebody is
willing to sell to us
at $0.07.
Still have some time right now it's
14 minutes until the markets close.
So we'll let it sit here for just
a moment. Now, MGM, and let
me explain to you why I want to
close out my MGM trade.
First of all, this is a trade where
I bet that MGM will stay above
$3 by
June 19th.
Let's take a look at this.
So MGM, which is MGM Resorts,
will stay above $3.
And yes, of course, look at this,
they're trading at $12.
Is it likely that they will stay
above $3?
Yes, it is.
But I'm more
of a short term trader.
I do not want to remain
in this trade for another two
and a half months
because if I do,
I can make an additional
$21 per contract.
Okay.
I have 20 contracts here.
So this means an additional
$400.
I already made, I'm already up
right now close to
$1,100.
So, and this was in a matter
of a few weeks.
I can't remember exactly when I
entered, maybe two weeks ago?
So if I can make in two weeks
$1,100, do I really
want to wait another 10
weeks to make the remaining
$400?
Doesn't make sense to me.
Let's get out of the trade, free up
some of the buying power and then
we can look for new opportunities
when the market are going down,
when markets are going down.
So same here.
How do we do this?
We click on this one.
And here we had a position of
negative 20.
So we want to buy
20, and oh, that's
good we can work the order here.
So take a look at this.
We have people who are willing to
buy at $0.19 and
we have others who are willing to
sell for $0.22.
Here's what we're gonna do.
We jump ahead.
Do you want to mess with these guys
a little bit? We're gonna mess with
them.
So you see, I'm jumping out of the
buyers because there's a bunch of
buyers right now saying, "We are
willing to pay a maximum of
$0.19." I'm going to say right
now, "I'm willing to pay
$0.20."
Okay, so here's what will happen.
As soon as I submit the order
this bid will jump from $0.19
to $0.20.
My $0.20.
Want to do this?
All right. So let's click submit.
Yes, overwrite and transmit.
Look at this. They're changed to
$0.20. I'm the buyer now.
I'm the one who is now bidding
$0.20.
There's a bunch of other guys who
want to beat $.19,
and I'm standing out of the crowd.
So this is the cool thing about
trading here.
So you can see trading it's
a level playing field.
So I just submitted the order
and you see it right now, if you
open your trading platform right
now, you will see me there sitting
with my $0.20.
See, nobody is taking me up on this.
Nobody.
I'm gonna raise this to $0.21.
So I would get filled immediately if
I would say, "Oh, yeah, I'm buying
for $0.22, because on the
one hand, you have buyers who are
willing to pay a maximum
price and then there's sellers
who are willing to sell for a
minimum price, right?
And when we meet in the middle, when
buyers and sellers meet,
that's when a trade takes place.
So that's what you're seeing right
now live, I mean, this is
actually how trading works.
I want to buy something and somebody
else wants to sell.
And now we will see if I can jump
in there. Woo, look at this, you
see, the sellers were at $0.22.
They are coming down.
So I moved up from $0.19
to $0.20.
And the sellers are saying, "Hey,
we don't want to have $0.22 anymore.
How about $0.21?"
And you know what?
I'm going to take them up on the
offer.
I'm going to take them up, I'm
changing it here to $0.21.
And I'm submitting it and I say,
"You know what?
Since you are moving in my
direction, you're a good guy.
I'm going to buy from you." Let's
click on update.
Boom. We are partially filled and
we are fully filled.
So now thus far we realized
$1,400 of the profits.
That's pretty good. So $1,400
right now deposited in my account.
Again, you see the account is now
at $33,000.
Now we still have our, our Disney.
Oh, there you go.
Yes, we got filled
on Disney.
That's awesome.
Okay.
It seems that these people
got tired. You see, we were patient.
We were bidding $0.06 and they were
moving up to $0.07.
But now they came down and said,
"All right, you can buy
it from us for $0.06." So
that's great.
So you see right now the realized
profit up here jumped up
to $1,800.
So $1,800
realized today?
Not bad at all.