everybody this is Tom Smith from trade Monster uh why don't we go ahead and get started um thank you very much for joining us this is one of another one of our editions of our free education web we' like to host and we have it with Chuck Hughes today Chuck is probably our biggest contributor to free education uh he provides a lot of free materials to his clients to potential clients people that follow him Etc regarding different strategies he's been in the game for a very very long time and I feel very comfortable uh in his presentations and explanations of different option strategies and stock strategies those of you that want to take a look at this particular webinar in an archive format you can download it you can play it back as many times as you want pause it whatever we'll have it listed here on myrad monster.com come over here to the webinar archive section I'll have it posted tomorrow morning's time right in the June section it will be the first one in June if you have questions for us regarding burage uh free to contact us again my trade monster has all our contact information uh we're execution full service Brokers we're experts at executing options uh if you have questions regarding that feel free to contact us otherwise why don't we go ahead and get started Chuck are you with us yeah can you hear me Tom Chuck thanks again for taking the time to do this and uh to join us today I'm going to go ahead and give you the presenter role and we can get started here sounds good it's C now okay I'm GNA Click Share my desktop can you see my screen we can I'm going to go into the uh so mode here for the introduction and um thank you for taking the time to put on these educ webinars for everyone and uh today we want about u a lowrisk Str straty foring stocks and options okay we off uh talking about a low-risk spread strategy for trading options and then we'll take a look at a strategy for trading stocks and you have a Q session um at the end of the presentation today spread strategy I've been using for a long time for training options and in general leverag so they provide more profit potential compared to Stock Investing but with this incre potential also comes base and risk so what I'm going do is take a look at at a typical opt trade and we can take a look at the the risk involved in purchasing a call option now is a chain for Home Depot and Home Depot when I took snapshot was traing at 7773 and let's take a look at the the August 77 and a half call options which is the the money option and it's trading at B 20 and ask of 330 so what we're do is we're going to assume we're going to buy this call option for Home Depot and we'll take a look at the risk profile for an option purchase trade as I plug in the price for Home Depot the option strike and the option premium and use my option Pur calculator to calculate the profit loss potential for this option trade and assumes the ulator assumes various price changes in Home Depot stock at option expiration in this example from a 10% increase in the stock to a% decline in the stock so can see that option expiration if Home Dep stock is flat at 7730 7773 will realize a 92% loss and if home deal is down 5% or more at expiration of course this would be 100% loss so we can see that along leverage that option provides uh there's also that increased risk so so uh you don't want to put yourself in a position where you're going to lose 100% of your Capital so use an opt spread strategy I'll show you about that your losses to a small amount and yet does not limit the profit potential for an option purchase so this is this is a great strategy for um type of market so again call option purchase uh we can experience uh big losses if the stock is flat at expiration or down if you want to trade options and you want to purchase call options if you would be profitable that requires that you uh correct about the direction direction of the underlying stock but you have to be correct about the T the price move because that's to occur before expiration so if you're not correct about the direct end time it could result in 100% loss as we've just seen with the Home Depot example I'm doing now a price chart of of the which is the volatility index and this uh measures fear in the market and wherever you see one of these uh price spikes in the Vex that represents a uh in the market here's the current selloff in the market indicated by a spike in the volatility index so each one of these represents a selloff in the market so you're buying call options and at any point in here if your timing is wrong and you get one of these Market sell-offs that in a 100% loss on your option trade so the strategy we're at now been forming well in this type of Market where you have these periodic sell-offs in the market and to call this the market neutral strategy because we take a position position on both sides of the market we take a bullish position and we also take a bearish position and this Marshall strategy provides us with the increased profit potential with option trading without the high risk and I'm going to show some examples of took recently maximum risk for these option trades where is 8 to 8% uh 100 % so the most I could lose on these trades was around the 6 to 8% level at time the potential as you'll see uh not capped with these Market neutral set the market spreads allows to take uh lowrisk option position in a that's already had a large move and I'll show you several examples of that so uh a of these um in various sectors have had large moves recently and uh I'm going to show you a way that you can participate in these price uptrends uh with very low risk uh Market neutral spread is created by purchasing a call option and a put option so require that you short an option with the mark neutral spread if you have a big down move in the stock that can result in a large profit for the market neutral spread and exles of that with this strategy you don't have to worry about putting in a protective stop for your option have to worry about bad earrings reports or big moves in the stock because you're protected by the put option so it's a very uh risk R way to trade options this is a daily uh price chart for Home Depot and we can see over the last year Home Depot had a pretty big move and um it becomes if you want to take a position in Home Depot how you do it after it's head such a big move uh and still have a lowrisk trade if you enter down here of course um you you're ahead and you don't have to worry about it but if you're um if you wanted to take miss this big move in home depill and you want to take a position now Market neutral spreads are a great a way to participate in this move low risk so what I um the depot six call at 1875 this is a copy of my broke confirmations here and you can see that I purchased the call 1875 and then I also purchased the Home Depot 8 put at 312 so buying this uh 60 strike call and buying the 80 stri put but Market neutral option spread and of course call profit as the price of Home Depot stock increases and put option profits as the price of Home Depot stock decreases so this is what I call a market neutral spread because you have a bull position and a bearish position so let take a look at The Profit potential for this sprad I created last week and U what is I um uh the stock price of Home Depot and the call strike that I purchased uh the 60 strike call in the pre 1875 and purchased the 80 strike put at 312 I used the market neutral calculator to calculate profit loss potential for this spread trade and assumes various changes in Home Depot uh stock at operation in this example from a 40% increase in the stock to% decrease in the stock and the the calculator uh calculate the uh profit loss based on these assumed moves Home Depot stock so see that if Home Depot stops flat or to% maximum loss would be 88.6% for this spread also even maximum loss is 8.6% can see if the price of Home Depot stock increases that are potential is not CA so the percent move in the stock results in a 21% increase uh or 21% protion profit and a 30% increase in the stock results in a 93% return for this spread so your PRS are not capped as the stock moves up in price but you're capped and we see that the uh maximum loss with the spread trade is 88.6% and if Home Depot stock takes a big uh drop they also can profit from this spread as we see a 40% drop would result a 49% return for the spread so um the M risk with this trade is 8.6% the potential is not capped and the stock moves up in price The Profit increases this is a way to take a lowrisk trade in participate in this uh uptrend with Home Depot stock and this will profit even if there's a down move in Home Depot stock so your could be wrong and you just your 8 8% 88.6% loss and then you can enter a another trade at a later date so the here is if your timing is wrong you just take your eight points per loss and then you move on to the next trade and with this type of spread you don't have to worry about play protective stop your position because it's protected with the put option you have to worry about bad earnings reports or big down moves in the stock you simply body the spread you hold to and uh if you're wrong you just move on to the next trade use the prim three step process for selecting these Market neutral trades and uh I'll just go through this briefly uh with trade select use a three-step process to stocks and options with the best profit potential and step one is we use my Trend following system to determine the price trend and then step two is we want to confirm that price trend and determine the extent of the buying or selling pressure for that stock and isolate the very best uh profit opportunities and then step three is we use the Kil channels to select a lowrisk entry point so go through this process uh to select stock and option trades with the best profit potential so Step One is we use my tring system to determine the price trend and this system can also isolate bearish opportunities as well so it's uh also successful during bare markets in selecting positions and the goal with a trend following system is to quantitatively measure the buying and selling pressure of a stock and this allows us to follow the trend instead of trying to predict the trend and this allows us to use a system instead of using U decision Mak theem I use is a very one it's the 50-day EMA and day EMA and the EMA is simply the exponential moving average in the exponent moving average is aage price of a stock over aied period of time with weight given to the most recent daily bar so we use the 50 exponential moving average in relation to the 100 day exponential moving average and if the 50-day EMA is above the 100 day EMA then the stocks on a Buy Signal if the 50-day EMA is below the 100 day EMA the stop on a cell signal so Prim select to select the Home Depot Market neutral trade price chart daily chart of Home Depot and the vertical line here are the da price movement of Home Depot and this blue line is the day EMA the red right here is the day EMA so we can see that the uh EMA blue line is above the 100 day EMA line so Home Depot was on a Buy Signal two a prime trade select is we want to confirm trend on any given day there could be several hundred stocks on Buy Signal according to the EMA Trend fing system so what we want to do is use Trend information indicators and reach that number of stocks on a buy down to the stocks with the best profit potential and the trend confirmation indicators I use is unbalanced volume and that measures volume flow with a single um easyto read line volume flow precedes the price movement and helps sustain the price trend so we like to see positive unbalance volume line to confirm the price uptrend unbalanced volume line is calculated when a closes up for the day volume is added to the line and when it closes down for the day volume is subtracted from the line and of total these additions and subtractions for the obv line here's an example OB V Line in the lower part of this uh price chart and and here's the price chart for home stock these vertical lines uh we have the blue line is a 50-day EMA we see that's above the 100 day EMA so it's on a Buy Signal but we also confirm this price uptrend with line and we can see um in the chart here that the obb line is sloping up so we're not interested in the numer value of the obv line we just want to see it sloping up firm this um price uptrend another confirmation indicator we like to use is the new 52- we high list and I I've discover over and years of trading that stocks that make this new 52 we high list are in a very powerful up Trend and they tend to continue their uptrend so we like to uh focus on stocks that are making a new 52 week high and this allows us to firm the price trend and then to further narrow down that list of buy stocks to stocks with the greatest uh profit potential so simple uh stock doesn't make this new 52e high list unless it's in a very powerful price uptrend so this is a great way to turn the price uptrend and another uh daily price chart of Home Depo stock and we can see uh from the movement that it's Home Depo stock has been making a series of new 52- we highs so this again confirms this price uptrend along with an UPS sloping on balance volume line third step in our Prime trade select is we use the uh Kelner channels to select a lowrisk entry point for our trade and it's especially important if we're trying to enter this trade after the Buy Signal has already occurred so this uh the B actually for home was uh prior to the time frame depicted on chart so uh it must have been in mid 2011 or early 2012 uh so it's been on a uh for a long time so if you enter this trade after the Buy Signal do that is to select a lowrisk entry point using the Kelner Channel channels can help us select trade entry and exit points uh also provide high probability buy and sell signals they also help us select option strike prices and also another way I use these Kelner channels is it allows me to focus on stocks that have a repetitive and predictive price pattern and I'll show you some examples of that a uh the price chart for Depot the ver the vertical line here are the the price chart or daily movement of Home Depot stock and I have the three Kelner channels overlaid the daily price movement and we see uh the upper is this blue line here uh theel is the in the middle here and then of course we have the channel uh with this Lower Blue Line and this is calculated Center Line the dotted line is the 20-day exponential moving average for the stock and then Other M low channels are two times the average true range of the past 10 days uh dra drawn at equal distance points from the middle line so this these counter channels um are basically as an overbought oversold indicator and we when the uh price movement of the stock is up near this upper Channel or above it that St this the stock is getting overbought it's usually going to correct at after being overbought and we can see that overbought here corrected overbought corrected corrected overbought corrected so um using the stock get overbought it's it's going to retrace back to the middle Channel or the lower Kelner Channel and so then the stock becomes oversold and it get down near this lower then that usually sets up a rally in the stock we can see the stock will move back up to the middle Channel or back up to the upper channel so we can see it got over rally oversold rally oversold rally oversold rally and we're currently um the middle Channel and it got down near the um lower here last week so um see right now that um who is somewhat oversold and this is probably a good inch point if get back into the stock as it it rised near this lower Channel and uh is the middle channel the the idea is is trading near the upper Channel or above the upper channel uh I want to buy if the stock is trading retraces back towards the middle Channel or the that usually sets up a good uh buying opportunity because it's it's getting oversold the other uses for these um Kilner channels is it allow us to focus on stocks that have repetitive and predictive patterns just simply avoid the stocks that have no clear Trend and what I did is I um price chart this is Johnson and Johnson you can see that uh the price of the stock is very repetitive and predictive so when the stock gets up above the upper Channel it retrace back to the middle or lower Channel and when it traces to the middle or lower Channel it usually rys so it has a very of price pattern um as opposed to uh the lower chart which is Alcoa and we can see there's really no clear Trend here um no clear uh PR pattern so I simply avoid stocks like this and I'll just focus on stocks like j& J and this makes my life much easier in um to eliminate stocks that have no clear Trend and just focus on these ones with repetitive price patterns here's another example this is for Kellogg and we see a very uh predictive uh repetitive price pattern here uh the lower art is U FCX again no real clear Trend um you really can't get a feel for where this stock is going next so I just simply avoid stocks like that there's too many good opportunities like Kellog to focus on uh rather trade this type of a St Whirlpool um again very um competitive predictive price pattern versus really no clear trend there's no reason to even uh try figure out where this Stock's going so again uh the chanels are very useful uh helping us uh just focus on the stocks that had these repetitive uh price patterns so a look at um the healthcare EF and we can see that it's on a uh trade select uh Buy Signal and the EMA we can see right here the daily price movement um the 50-day EMA is above the 100 day EMA that's not displayed on this chart this is a Kelner Channel chart but um know that it that the F day is in fact above the 100 day uh we can see that the healthc care um a series of new 52- we highs in Balance volume line is sloping up here's a good example of the healthare ETF being being on a prime trade select uh signal I created a um maral uh Bas on My Parade select process for the healthcare ETF uh which is symbol XLV and I copy of my brokerage confirmations here and you can see that the 30 call at 1348 uh I bought the 49 strike put at 37 so this created a market neutral spread I took both a bullish and a bearish position in the healthare E and the um Market neutral calculator profal for this trade and again this assumes various price changes in the healthcare ETF in this example from a 40% increase in the price to a 60% decline in the price and we can see that the uh maximum risk for this trade is 5.7% and again the profit potential is not capped if the healthc care EF continues to increase in price then our profit potential continues to increase and allows us to to a low risk trade in care sector uh it's in a very strong uptrend right now so uh this allows us to um EST a position in this Health Care sector with a maximum risk of 5.7% so even if we're wrong adoption expiration we can take um another position we can just take our 5% loss and then move on to the next trade so and again we don't have to worry about placing a protective stop or big moves in the uh ETF uh because we have the put option protction in place and that protects us and also if there's a big down move in the ETF that would all uh profit and more example of a market neutral I took this was for foods and chess y uh you can see daily um price here um it's uh in a pric uptrend it's making a Ser 52- we highs and we have have an UPS sloping on bance volume lines this qu as a Buy Signal using the select process and um had and established a mark trade for Hershey and my brokerage confirmation shows that I bought uh 65 strike call at 2397 I bought the N Strike put at 264 um if you no these uh prices for these options are numbers two 2.64 that's how I wound up with a odd number um in the price on these options one more example of the profit loss potential for this neutral uh trade and uh the maximum risk on this trade is 1% again the um uh the profit potential is not capped as the stock moves up in price so as a stock moves up in price we can see that our profit potential also moves up in price a big down move in the stock of course would also result in a profit on this uh spread trade so again you don't have to worry about placing a protective stop with this with this type of op position uh you don't have to worry about bad earns reports you don't have to worry about big down moves in the stock you're fully protected with the uh purchase of the put option so let's uh summarize the advantage of these Market spreads um the market neutral strategy uh provid us with an increased profit potential available with options which are leveraged uh with the high risk and we saw several examples where the U our maximum risk was in the six to 8% Zone instead of risking 100% and at the same time the profit potential is not CA with these neutral spread trades it allows us to take a lowrisk position in that's already had a large move and we saw in the case of Home Depot in the health care sector and her they already a large move but uh with this Market neutral spread we can take a position in these uh VAR stocks and sectors that have already large move and still have a very limited risking this trade after a large move uh the spreads don't require shorting an option and a down move in the stock um res for the spread and we don't have to worry about protective stops uh bar reports or uh moves in the stock and I think uh Market neutral uh spread trade recommendations with advisory service and uh I'm looking the current um open TR profit results for these Market neutral spreads we have a $330,000 open trade profit and we average return of 246 uh percent with uh Market neutral uh trade so if you want to get updates on the of these various strategies you can just log on to we option alert.com uh click trade results and then uh it'll display the um trade results for the various uh strategies option strategies including uh the market neutral uh portfolio talk about a low risk strategy for trading stocks and we Market neutral strategy uh stocks that allows us to invest in stocks with very low risk and we can limit our stock trade to as low as one to two% and I'll show you some examples of recent stock trades I took uh with very low risk and um at the same time the uh profit potential is not capped with uh the market neutral um uh strategy and here's a uh um a chart uh of the VIX Index and again we can see the spikes in the VIX Index each one of these represents a u a market s and if stock and you have bad timing in this type of a market then get stopped out of your position if your timing is not correct so strategy we'll discuss Nows us to um enter trade with very low risk so the timing of when you enter the trade really isn't that important so what's about uh Arctic neutral stocks it's also known as a merry put and put uh strategy allow us uh take a lowrisk position in a stock that's already had a large move I'll show you some examples of that uh and the put spreads is created by per stock and purchasing a option and it doesn't require shorting an option so purchase the stock that's a bullish position and when we purchase the put option that's a bearish position so this is another um so-called Market neutral type trade where you have both bullish position and a bearish position at the same time and have to worry about placing protective stops with this marriage strategy and you don't have to worry about bad earnings reports for the stocks or big down moves in the stocks because your position is um protected by purchasing the put option so it's a very lowrisk way to invest in stocks uh low stress low uh way to invest in stocks and I'll show you some examples here of recent uh um more or married put trades I took in stocks and there's a daily price chart of the Vanguard High Yield ETF and see this has had a very strong move over the past year very very powerful uptrend these bidden paying stocks have been doing very well in this uh low interest rate environment and what I did was I took snap uh from yahu Finance of the top 10 Holdings in the Vanguard dividend ETF and we can see it's uh the top 10 Holdings include mobile Microsoft GE Chevron ja AT&T proor and gamble fiser Walmart and JP Morgan so the ETF is full of these uh High dividend paying stocks and Performing very well uh this type of Market environment and these these stocks are actually still undervalued even after this big move because the average trailing 12mon PE for these the stocks in this ETF is 13 and that's not forward P that's the trailing 12 Monon PE of 13 so these I consider as still undervalued uh dividend which which helps in terms it helps uh put a four under these stocks with with with the end so a very low risk way to approach the market we can see that uh these Den paying stocks have been doing very well uh over the past year so the question is how to enter this um G we a lot of risk still participate in the uh upside potential of this ETF so it was I took a married put position and displaying my confirmations here and you can see bought shars of the dividend uh Vanguard dividend High which is symbol V bought 200 of the shares at 772 and then I also bought 58 strike puts at 135 so I have both a long here and short possession and this allows me um a lowrisk way to enter uh then uh the stock dividend sector a um spread order actually to enter this trade here's a a snapshot of the order I entered to uh used to enter this uh married put trade and allowed me to save on the commissions and also uh they' ask uh um between the the the stock and the U option so I I typically use the uh spread trades to save on uh transaction costs and uh this is shot of the married put calcor of trade and this Cate The Profit loss potential for this trade assuming various PES in the uh ETF in this example from a 30% increase price to a 60% decrease in price can see um that if the is flat at an expiration 20% or 40% or even 60% highly unlikely but uh just put these in here just to show you that the maximum risk for this trade is only 1.1% so that's a very lowrisk way to enter this sector and again if you're about your timing then you can just move on to the next trade you take your 1% loss and you move on to the next trade so this great lowrisk way to um invest in stocks and ETFs so with u Mary put my maximum risk was 1.1% uh the potential is not cacked um and stock moves up in price the Prof increases so we can see if uh the has a 10% increase in price uh spread will produce a 88.2% return a 20% increase in the stock price results in 18% spread profit 30% increase in the ETF results in a 27.7% so you can see we give up a bit of the potential by using this spread trade but same time um the uh is and in this example to just 1.1% so that's a tradeoff I'm willing to take um I'll I'll take a little bit less profit potential example if U if he 20% uh price increase you get an 18% return for these so you have a slightly lower profit potential with the spre that's the cost of the spread uh but also gives you peace of mind knowing that uh your maximum loss is 1.1% and you don't have to worry about placing a protective stop um bad earnings reports or big down moves because you know that your risk is only 1.1% so uh if you have bad timing with this trade you just take your loss and move on to the next trade R I apologize back to that screen you're going out about five weeks on that um we having a lot of questions regarding time duration um you typically work with weeklys in go out you know kind monthly with with the uh married uh put trades and the market neutral option spread trades I go out um uh I normally use monthly options and I'll go out one two or three months or even long longer and I mix up the duration uh to diversify my portfolio so to answer your question I can I use the monthly options and I'll go out anywhere from one to two to three months uh or longer and the prime TR select uh trade section process to select these married put trades and we can see uh from the prart of the um ETF that it's been making a series of new 52- we highs um and we also have an uploading on balance volume line to confirm this price uptrend and then we see that the TF is retraced down towards the um ber Kelner channel so that but a good buy point a lowrisk entry uh to get into this um this sector so um the prime trade select to um help select these trades and let's take a look now at um the healthare sector and we can see from this price chart again this is another sector that's been having um a very uh strong performance over the past year and uh we can see recently it reached down towards the uh lower kelter this presents a good buying opportunity stocks getting oversold here or the ET getting oversold here so I took another married put possession um in the health care sector this is a snapshot of 10 Holdings in the health care sector XLV we can see J&J fizer Merc and Gilead science so this also includes uh bch stocks which have been performing very well in with this uh price performance this sector is really uh we've been on a tear over the past year so uh if you want to get a low rentry and participate in this move in the healthcare sector uh what you can do is um uh de married put trade which I did and my uh brokerage confirmations show that I bought bought 100 shares at 4862 bought the uh 49 strike put at 20 23 and of course this uh created and mared put trade the spray I used to to enter this p uh we're buying the uh XV in this case and then buying to open uh the July 20th um 49 strike put this is monthly option so we bought the 59 uh strike put and this is a spread order to uh save on the transaction cost and there's the uh loss potential for this married put uh spread trade and um we can see that if the ETF uh is flat at option expiration or uh declines then my maximum risk on this uh Mary put is 1.3% so again a low risk way to ipate in this Health Care sector and again my U profit potential is not capped as the price of the ETF moves up then your uh profit potential also moves up so the way to um uh participate in this sector that's already had a big move but um if you want to jump in now this is a lowrisk way to do that here's one more example of American put this is for uh an Corp stock and we can see recently um was above the upper channel retrac to the middle Channel a uh a good buy opportunity so confirmation show I bought uh te of US Bank cor 565 and bought two of the uh July 36 puts at 111 the uh risk Pro for this trade and again assuming various price changes in the stock in this example from a 30% increase to a 60% Decline and we can see that if the stock is flat or deally my maximum risk is 1.5% so to worry about a baring report for US Bank cour down move and I don't have to place to protective stop I simply uh buy my stock buy my put to protect the stock and then just wait till option expiration and if I just take uh another trade at that point so make Mary put uh recommendations in my advisory service show the uh current uh portfolio we have $115,000 profit average return of 67.3% for married uh put uh portfolio so that uh concludes my uh presentation for today and um I learned a little bit about how to um trade the markets with very low risk and um Market neutral spread strategy and the marry put strategy allow you to participate in stocks and sectors that have had these big moves uh and at the same time have lowrisk U entry so uh I have to take any uh questions at this point and again if you want to uh get an update on the various um uh stock option and spread portfolios just log on to uh weekly option alert.com and trade results and you can see uh the performance for these various um stock option and spread uh portfolios so I'd be glad to take any uh questions at this point we we've got a lot of questions that getting asked Chuck you you reference the 52 KY list do you certain publication that you reference that to find out that list that's a good question uh barchart.com has um a uh function uh if you select stocks and then in the left hand column you can you'll see the choice a link that goes to the 52 Week lest you simply click link and it will display all the stocks for that day um that are being a new 52- we high and that actually a great to start your trade selection is just start out with that new 52- we high list because those are the stocks out there and one do makes a 52- we High it tends to stay in a price uptrend and it have many many months of um up moving price once it makes that 52- week high list so I normally check that list on a daily basis I can also get a really good feel for the markets because I know which sectors are performing well by that new 52- we high list I see a lot of uh stocks in the financial sector that are making do 52- we highs I want to uh that sector because it's it's a very strong up move so uh great place to start your uh trade selection just look at that new the2 we high list and and select a a stock in each uh in maybe different sectors to get your uh selection going according to this particular web you did today this was really trying to take the stress out of trading and and I adjusted it and I understand that uh a lot of the clients in some of your slides Chuck you said we're going to avoid this particular thing because of the volatility um do the elner channels view it quite often does that make you feel that you can read the volatility based on those channels a little better for this type of strategy as opposed to using Deltas or Greeks or something of that nature yes yeah I think that simply looking at those Kelner channels uh it's a very powerful tool and I think you'll get a lot more out of that than seeing the Greeks um because in only back to pull those up and you instantly see if a stock is competitive price pattern uh versus one that does not have a repetitive price pattern so the on that have no clear Trend and are all M want to Simply avoid those kind of stocks because too hard to try to figure out where the next price move is going to be whether it's up or down so Kel channels uh give us an instant picture uh of the uh volatility and price pattern of a stock and then you can simply just focus on those stocks I showed you a few examples that have those very repetitive uh patterns and it's much better much easier to profit when you focus on those type of stocks versus stock that has no clear TR no idea where where that Stock's headed sure Chuck uh with screenshot that we're looking at right now obviously you you portfolio you miss a lot of your own assets in in various type of strategies and in different accounts with the particular strategies that we covered today what would you say the Prof percentage of your portfolio would these particular strategies yeah that's a good a good question um everybody has a different tolerance so um to do in my own portfolio I I trade uh two uh retirement accounts I have a profit sharing plan and a defined benefit plan so there's qualified retirement account so uh what retirement money so-called safe money so that up between U the covered strategy the married put strategy um the mark neutral option strategy and um the option option uh purchase and the stock purchase and the ETF purchase so there a lot I use a lot of different strategies But to answer your question um I have 20 to 30% of my portfolio in these uh Market neutral spreads I have 30 to 40 to 50% in the covered calls and then uh the rest is a mixture of tion purchases and stock purchases and I try to limit my directional trades purchase trades just % or less of my portfolio because of the risk involved with uh purchasing options so uh for for my risk tolerance and uh my safe money in my retirement accounts I'll the option purchases than 10% of my portfolio at all times uh just because of the risk involved now on that I'm I'm going to throw this out there to you as the last question we're getting this from uh numerous uh attendees including Conrad Smith um I know you're pretty risk averse gotu but what do you feel any comments on the new status of the new mini options that are coming to Market yes I I heard about that and that's very exciting and um uh that'll be a great way for the investors to do these married puts and covered calls because if the married put or the covered call strategy you have to buy 100 shares of stock and uh and then buy a p for the married put or you sell a call option for the covered call but with the new mini options you can buy just 10 shares of a stock and sell a call option to create a call or just shares of stock and buy a good option with the mini option contract so I think that's a great way for the smaller investors have a diversified portfolio of both covered call and married puts so I think it's great for uh small investor and uh I'm really excited about and I think it was that's the idea to reduce the um option on track from 100 shares to 10 shares that'll allow a lot more people to participate in these more these lowrisk type strategies where you have to buy 100 shares of the stock nice to see a little more liquidity coming to the market they're going to do it with five five different uh positions at that time but obviously it' be nice um for those of you that want to contact Brad's um CH Port staff you can contact Brad the toll-free numbers up there they'll be able to address a lot of the questions regarding Chuck's strategies they're very good at that um his portfolios Etc uh Chuck I'm going to post real quick I'm going to take over the presentation row uh for one purpose only for those of you that want to view a recording of today's webinar we're that post it on myrad monster.com I'll post it sometime tomorrow afternoon if you give me one moment I'll put that up there but uh Chuck is pretty allowing us to post these so Chuck I thank you for that um you come on by my my it's up now it'll be here posted on the rightand side under webinar under month of June you just click play and you'll be able to uh go through the webinar which Chuck just did his presentation Chuck I want to thank you again for doing this I know that you're our biggest presenter and um probably our biggest contributor to free education and we appreciate that and I hope you can come out and us again next month oh love to do that Tom and thanks again for uh taking the time to uh up these educational webinars which I think are very useful uh in uh explaining my various strategies and how they work and uh we all appreciate you taking the time to uh set this up thanks Chuck and again as usual thank you very much the presentation was great and for all of you that have joined us before coming out again and for your newcomers if you have any questions uh by means contact Chuck support staff or you can contact us here at Trad monster my trader.com has our communication out there so thanks joining us Chuck thanks again I hope everyone has a wonderful weekend okay you Tom have a great night night everybody everybody the e for