[00:02] right tools, you are making it harder than it needs to be. In this video, I'm going to show you six powerful tools that can help you find better trades, manage risk, and become more consistent as a trader. The demos
[00:18] you'll see are excerpts from my recent full-day live stream, Theta Live. full-day live stream, Theta Live. Now, quick transparency before we start. The tools are affiliate partners of Theta Profits, which means I earn a
[00:33] commission if you sign up through the discount links in the description. That's it. I only partner with tools I generally believe provide real value to options traders.
[00:47] traders. Let's start with a brand new product. Let's start with a brand new product. Meet Wendy, your disciplined AI coach. Wendy is there to make sure you stick to your trading plan.
[01:00] Because we all know, don't we, that being disciplined is the most important key to success in options trading. key to success in options trading. Here is co-founder Omar Figueroa. We had
[01:14] dozens of years of trading, and we even found ourselves that we weren't even found ourselves that we weren't even following our own rules. So, we went to the market and we started asking around, "Hey, do you follow your rules? What's
[01:27] What's the trading process like? Do you Do you ever break those rules?" And most people were like, "Me, me, me." So, most people told us that they struggled to to follow those those rules, and that's what actually led us to create Wendy.
[01:41] Actually, we're a team from MIT, and we have the backing of Tom Sosnoff, who was the founder of tastytrade and thinkorswim, uh Jim Leitner, a hedge Yale endowment. So, we've been very lucky. Dozens of
[01:57] believe that we're really building something in a place where traders really need a lot of support. And that's why they um they gave us this opportunity to And I'm actually I'm actually really
[02:09] excited to show you what we built. So let's uh show it. So here's Wendy. Um when you first get on boarded to Wendy, you do an onboarding with Sam, Wendy on Telegram. Um we use our MIT chops uh and
[02:23] learning and AI engineering to be able to build a very robust uh model. And you when you get on boarded to Wendy, you have here Sam.
[02:35] profile. So my background is in behavioral psychology. So we use the same techniques that we use at the NFL, the NBA, the NHL to be able to profile you. Once we have your profile,
[02:49] now Wendy is going to be able to be your own trading consultant. So think like if you're a McKinsey and you're a big consulting firm and and and you have someone that has dozens of employees under you to be able to coach
[03:04] So I'm going to show you a couple of use beneficial to this group right here. And I actually this is my own Wendy account. I uh I trade zero DTE end of day end of day options. I actually created that
[03:18] strategy with Wendy. Uh so you can go to Wendy and say, "Hey Wendy, I I I have this much time. I I like to do long or cover calls or delta flies." Whatever you want to do, you can work with Wendy to develop those strategies as well cuz
[03:33] data, but Wendy has your data as well, too. You can also connect your broker and we can definitely combine these live market data with your own data to give you a very personalized uh experience, which
[03:48] out uh in the market. So, I dropped a chart here as you can see. Uh this is a FTX chart today.
[04:01] all day. And then this is what Wendy responded to me. So, Wendy goes ahead, she makes a She has many agents that she calls a tool, and she basically analyzes the chart. And
[04:14] then the most important thing is that Wendy tells me what to trade or not to trade depending on the chart based for my own strategy. When you see here end of day execution triggers, that's Wendy. End of day is my own strategy.
[04:29] Um I trade at the very last 10 minutes of the day. Um it's my I can tell you built with Wendy, but it's been very profitable for me, and I've only spent no more than 21 minutes trading this year. And I I have a win rate of plus
[04:41] 60%. So, uh this is all Wendy's doing actually, which is fun to do. So, this is Wendy here giving me a very detailed recommendations on what to accept or what we should be looking for when I get ready to trade
[04:56] one very cool example when you can drop a chart, any chart, and Wendy's going to give you that personalized feedback based on what you're trying to achieve based on what you're trying to achieve since Wendy understands your goals. GEX
[05:09] is another very important uh calculation that we tend to do on our end. So, as you can see here, that I'm looking for for entry and exit. So, this is very important.
[05:22] Um you can get GEX here. I I don't know a lot of great tools that can actually calculate this with live market data, live market data, and your own data, and then personalize that information to what you're trying to achieve with your
[05:34] strategy in any given time. The third use case is the levels. Uh Wendy is exceptional with the levels. Once again, we have live access to market data in real time. So, Wendy's taking that information, then he's
[05:48] taking what you're trying to achieve everything that Wendy does specifically to your goal and what you would like to be able to get accomplished. So, as I share this very personal personal
[06:03] uh chat, it's cool because Wendy's always telling me what to look out for when I'm trading uh and looking here. So, and and very very important, here's another example that I want to show you.
[06:17] Um I asked Wendy, "Hey, what are my rules and checklist?" And Wendy, once again, gives you a very detailed step-by-step process to be able to understand what am I doing
[06:31] and after the trade. And this is actually my own step-by-step process. And And what it look like and my rules. These are my rules. This is my process As you can see. And when I try to take in regards to big
[06:46] profit and stop loss as we do this. So, information with all of you to really get a good understanding of of what how Wendy can really support you in the long term. Um
[07:00] once again, we're a a very technical team out of MIT and CMU. We have great backers like Tom. Tom actually started using this tool. Tom Sosnoff. And Tom is working on his own AI tool uh to help traders. And he
[07:15] started using Wendy and he was just like, "Yeah, this is this is the way forward for trading." And we believe that everyone's going to have some sort of agents or group of agents uh with very very strong AI modeling to be able
[07:28] to make everyone better. Our goal is to make all of you better. And um so I wanted to share this with all of you so that you can have access. Next up is Option Omega, well known among retail traders as a fantastic tool to practice
[07:43] your strategies. But Option Omega offers also trade automation and trade modeling. Here is first CEO Troy McNeil who will demo backtesting and automation and then his colleague Matt Simon who will show
[07:59] how you can visualize and model your trades. I I look at all and all of the traders who trade discretionarily. Um I've never been good at it. And I was a
[08:12] and I wanted to be able to see through history if there were set-ups. You know, you see people saying put an iron condor and under these circumstances, you know, you'll win.
[08:26] But I wanted a chance to be able to look back through history and see if that was And that's kind of the premise of of Option Omega's. We try to go back to 2013 uh as far back as we can and look at
[08:40] different underlyings and different uh regime regimes and see if things would have worked through different times. Um and so that lends itself well if you can
[08:53] find strategies to automated trading um which we offer as well. And and so for me it's kind of been a journey of trying to figure out uh history is always a great teacher and I think we we
[09:06] to the degree we can, we should look back at history and see what has worked. the future but it at least can give you confidence. Uh in a similar way that I think X levels do. I think X levels give people
[09:20] a certain confidence. I think history of of trade strategies gives people a um to pull the trigger sometimes to look to know what to look for and what not to look for. And so we started it with that in mind
[09:33] engineers, we were just wanting to get into trading, but we wanted things to be as mechanical as possible. And that The reason for that is not because it's mechanical versus discretionary, but just I'm a pretty emotional person, and
[09:48] I found that if I have strategies that I try not to care about through sizing and try not to care about through sizing and things like that, that um I If I let the numbers play out, they might work out in my favor. So, that's what Option Omega
[10:00] is about. Maybe you will show us a bit. Sure. So, this is a This is a a strategy One of the things that I like about our our back testers um I trade double calendars a lot. I'm a
[10:14] Vega guy, a volatility guy, as they say. And so, um but DC double calendars have been through a drawdown uh really December into the first parts of the year. So, I've been trying to look at different
[10:28] ideas and maybe tweak some things about certain double calendars to see what's conditions. So, just to give you an example, this is a double calendar where normally you can you in Option Omega, you can choose, you know, strategies
[10:42] based on delta. This is a very simple strategy where you're you're selling a 7-day um uh a strangle at basically 15 points that open, and you're buying at 10 days past that, which makes it a double
[10:56] calendar. And it's a very, very simple strategy that I've just You put that on at 9:32 in the morning, and you take a dollar profit out of it. And it's little things like that that It's not about to me whether this strategy is a great
[11:10] strategy or not. I see Option Omega as an idea generator to try to think through the market to see what's happening and be able to tweak relatively quickly what you need to tweak to get things working. Because
[11:23] work through time, but at any given time set, they might be working well under a a different uh or a different condition or a different uh setup a little bit. And so, for instance, this one again is just um
[11:39] very, very a very, very tight iron condor. And so, you know, for instance, you can click on this and kind of visualize it and see what it looks like. And you know, the goal of this test is you're not
[11:52] you're not going to keep this on through expiration. You're not going to have this for 7 days. But you're going to basically have it on until you get a dollar out of it. Um as you can see, that's on average about a dollar or a
[12:05] dollar a a day, a dollar a dollar a day uh is year-to-date. And so, I think that's interesting because while, you know, you might think, well, the we VIX is in a
[12:18] uh pretty elevated state right now, we can go wider on our double calendars, wider on our put selling strategies. This is actually kind of inverting that knowledge and say, well, actually, what if we go really, really tight in these
[12:30] high VIX environments, how much quicker can we get out for a profit if you're ride? So, it's stuff like that that I find helpful just to be able to um test very quickly, iterate, and go from there.
[12:43] And if I start understand it correctly on your platform, if you have found back test like this that works and you want to trade it, you can automatic convert it into an automate automated trade.
[12:56] click of a button, can automate it, hook it up to your brokerage, and we will monitor the trade for you and um get in and get out at the conditions that you set. And so, our goal is for you to kind of be the research analyst for yourself,
[13:12] Option Alpha can handle the actual clicking of buttons to to operate the trade for you. I'm actually going to show kind of the we'll start backwards, and this is this is a demo account, by the way. So, this is like uh the numbers
[13:26] the game show, but this is a demo account and it's got a bunch of trades on and if you click view chart for all live trades, what it's going to do is live trades, what it's going to do is it's going to bring in the model for all
[13:39] of the trades that are on. So, you can see and all the trades on this account, it's got the Greeks of all of these positions just put a bunch of random stuff. It's got a bunch of zero day spreads, uh some
[13:54] one day, there's fly, a calendar and so you can see if you want to look at what are the Greeks like on all of these positions, you can do it in one click. So, if you have options automation. Now, I'm going to talk for a second just
[14:07] about the modeling platform. And And um this is a options model, right? And we have this I just set up a really simple I did
[14:19] it earlier today. Uh I set up like a uh a 30 apart uh you know, 30 wide iron condor. And what you can do with this what we noticed is there's a lot of folks trading zero DTE spreads with no knowledge of the Greeks.
[14:35] if you understand the Greeks, that can really add a tool into your toolbox that really add a tool into your toolbox that goes uh well beyond what you can do with without understanding them. So, if you look at this model as we move through
[14:50] time, what you can do is you can see the payoff graph and people get that, right? But you can also add different Greeks. So, if you want to see delta through time, you can look at the delta, you can see the delta down here,
[15:04] but as we move through time, you can see how the del- the delta would change as well. So, there's a lot of things that you can do with our tool and the Greeks. You can overlay multiple Greeks if you I mean, if you want all of them, you can
[15:17] all of them, but you know, delta and theta are probably the two most popular. You got Vega for a lot of uh uh time spread traders. You can model this in 3D as well. So, I'm going to keep this short and sweet. Last thing we'll
[15:30] this short and sweet. Last thing we'll do is just create a new model. And uh want to model out or dealer's choice? I can pick one. We have a We have a question from Robin Maria here. That modeling feature is so
[15:43] actually have a >> opened my eyes when I saw the model. So, what Okay. the double calendar. Here's a double calendar that I actually put on a little while ago um that actually expires today as a demo. So, this is one
[15:59] that I put on Wednesday. So, when I put it on it was a 5 7 and now it's a 0 2 and you can see it's right at the cusp of the profit tent for the puts. And it's very short Delta, right? It's long Theta short Delta Vega. So, if we have a
[16:14] move down, this thing will cook. Obviously, the the best case scenario a move to the heart of the profit tent, which is where the short put is at the which is where the short put is at the time of expiry. So, this is a model of a
[16:28] double calendar. And uh let me just show you real quick and I'll be conscious of time. We have a bunch of symbols on here. So, uh you guys were talking about oil earlier. So, you could do something like
[16:40] I'll just show you how it is. If you were bullish uh bullish oil, geopolitics are going to kind of keep cooking into the near future. We're at
[16:52] 160 now. You could do something like a call calendar or a call diagonal in the future and then you can model it out and see, okay, how does how does this look into the future? Add my Greeks to it.
[17:06] Etcetera, etc. So, you can even take off the P&L if you want entirely. But, what it allows you to do is it allows you to move through time and really see what are the Greeks going to do through time? If you notice, all these Greeks are
[17:19] updating together. You know, in in in as we model it, you can also change the volatility as well. So, for like that double calendar that we looked at, you could change the volatility on that. And just like on
[17:32] that on this, you can change the volatility of the individual legs. So, right in in a in a bullish setup like this, you you'd want probably you wouldn't want really uh the the the short to increase more
[17:45] than the long, but if they both went up the same amount, you can see what that would do or if uh they both decrease the same amount. So, very powerful tool, lets you do a lot of different things. Next up is Option Samurai, which is all
[17:59] about scanning the market and finding structured trade ideas. Let's say you have a strategy with specific criteria for when you should enter. For instance, that implied volatility is about a certain level.
[18:14] That's when Option Samurai will help you. you. Here is CEO Liv Graves. Uh Option Samurai is built for self-directed investors that are looking
[18:26] for a repeatable way to find trade ideas. They want consistency and they want to rely on themselves. In the core of the product is our option screener that basically takes the entire market and distill it into a manageable
[18:42] list of trade ideas. Actually, uh the the product started as an internal tool. I built it for myself. I'm a licensed portfolio manager and I was looking for a way for to find consistently trade ideas in different
[18:58] market conditions. So, I built it for myself and later uh we released it uh to everyone. I think that the best way is if I show you how we do it. So, um as an
[19:11] example, this is the main page of our screener. This is like the all scans page. This is where you have all your, uh, saved scans and predefined scans that we've created for you, uh, to give you ideas of what you can find. I we
[19:26] you know, selling puts, buying calls. We have butterflies and condors. And basically, we have a custom strategy so you can build whatever fits yourself. Since most of our trenders are, um, options sellers, I'm going to start with
[19:42] an example of selling puts on dividend aristocrats that if you are assigned, uh, the dividend yield is above 4%. So, before I explaining like the idea of this, a little bit of orientation, the
[19:57] this, a little bit of orientation, the results table is in the middle. On top, we have controls like, uh, save or, uh, export, etc. And on the left, you have all the filters that we use in order, uh, to get the scan results. Uh, there's
[20:12] no black boxes here. Uh, you can see everything we use. And if you read our documentation, you can see how we calculated this. And of course, you can, uh, change the filters and save it, and then it will fit your needs.
[20:26] Um, basically, also, if you click on each trade, you can see, uh, a table, sorry, like more details with, uh, stock chart. In the option tab, you see more,
[20:38] uh, the option data including implied volatility versus historical volatility. And in the strategy, you can see like the P&L chart, and you can control the assumptions we use like days to expiration and see how they affect your,
[20:51] uh, trades, like how changes in implied volatility will affect your trade. And basically, you have advanced analysis and on the short list of trades. Um, so the idea of this scan is that dividend aristocrats are dividend stocks
[21:06] that distribute and increase their dividend every year for the last 25 years. So, we can consider them as more of a stable stock and maybe like they won't go to zero. And we paired those stable stocks with
[21:22] selling puts, which is a high probability trade. And when we do that, it's more of a safer way of being long on different stocks.
[21:35] stocks. And the idea is that even if assigned a dividend paying stock. And maybe if you're doing calls, you have maybe if you're doing calls, you have two income streams. So, I like going on
[21:49] each trade. And then I can see the chart and I can see in the dash line the break-even point. So, for example, for Black & Decker, I like that the the
[22:01] break-even point is below support. And you can see in the results that this trade has almost 80% probability of profit priced in the options. The annualized return is
[22:15] 11.62%. And if you are assigned, And if you are assigned, the the intrinsic yield yield the the intrinsic yield yield dividend yield, sorry, is 5 and 1/2%.
[22:28] So, this is very quickly what happened here is we took 1.8 million options and we distilled it into a list that have three in this case trade ideas that you
[22:40] can analyze and search. And this was just one one theme. You can look for, you know, like high implied volatility with iron condors or you can build your own butterflies and have what you're looking
[22:55] for. And I think that the best way forward is if you go to Option Samurai, if you click the link in the YouTube or scan the QR code, uh you go and you can sign up for a free 14-days trial. There's no
[23:10] need for a credit card. And if you tell us that you come from Theta Profit or this live event, uh just send us a message and we'll increase it for 1 month free, so you can try us out yourself and feel free to contact us. We
[23:24] We're traders ourselves, so we're happy to talk with you. Next is another platform for advanced data. Mentor Q focuses on option flow and quantitative signals. It calls itself a quant engine for
[23:39] modern traders. Here is CEO Fabio Ruggeri. So, my background is in finance. I I studied finance in 2007. I worked at Bloomberg most of my career and I really worked very closely with the large quantitative
[23:55] funds that were using alternative data for building strategies, building hedges. So, what we've done at Mentor Q is we're trying to take this complex information that is available, but is really sometimes hard
[24:10] to access from retail traders, and we specifically focus on options. And the reason is very simple. We saw a trend changing in 2020 when we saw the whole I GameStop saga happening where option volume has really is now really driving
[24:26] most of the flow that we see there. So, what you see in this chart is uh the growth of option volume from the last 20 years. And when option volume was not as relevant before 2020, is now really dictating the flow. So, what we've done
[24:40] at Mentor Q is we actually built complex quant models that is trying to leverage the option data to potentially predict where the price will go, which they will react, and then we do it on multiple assets. So, for example, uh here is an
[24:54] example of the gamma levels that we provide on the NQ futures from this morning. So, uh before the news, we hit our one-day minimum for the day. Then, of course, uh with the news this morning, the price cut off all the way
[25:08] up and stalled at our core resistance level. So, we leverage this option data to predict where are the market reaction zones. Uh and we do that on uh stocks, ETFs, indices, futures, and crypto. Uh so, we
[25:21] cover about 1,400 plus asset and we do really a lot of really advanced models. So, this is really an output. Uh we also integrate with about 10 different trading applications. So, if you use TradingView, TrendSpider, NinjaTrader,
[25:35] and others, you can actually bring in that data directly into your platform. Also, we do provide access to our dashboard. Within our dashboard, you can access all our data. So, what you see here is, for example, our our gamma
[25:48] levels, our net gamma exposure chart, and a lot of our models. Uh we also build proprietary models like our Q-score here. Uh so, the Q-score is trying to give you an idea of whether an asset is bullish or bearish. And that
[26:01] can give you like a greater uh conviction with your signals, with your with your strategy on where the market could go. And for example, here, uh what we see here on on SPX, for example, when we see change in the score, typically uh
[26:15] like here and here, we see a really high uh trend change that you can use to the price could go. Uh on top of that, we built really our AI tools. So, the biggest challenge with
[26:28] option data is that it's really hard to understand it sometimes. A lot of traders do not really trade option, but they could use options to potentially um basically uh trade the asset that they that they that they like, whether it's
[26:41] futures, crypto, or stocks, right? So, what we've done is we've created our AI, our AI screen, our quantitative intelligence. And the goal of the AI is really to embrace a kind of three things. First, bring in all our
[26:56] knowledge with 20 plus years of experience, documentation, video. We have over 1,000 plus video lessons within our academy, research paper with data. So, this is an AI that has access to our data.
[27:11] So, one of the biggest challenge, of course, is that the AIs are great, but there's not really much they can do there. So, our AI, Queen, has access to all our models and data, and then we obviously train the AI to potentially
[27:24] bring in an intelligence layer. So, you can do a lot of things with our AI. You can screen, you can do research, you can do historical analysis, and so on. First, I want to step into why AI for trading can be really good and why AI
[27:38] for trading can be really bad. So, I think there's a lot of hype around the AI, but it's important to understand what AI can do well and what AI can maybe do less well. So, on the on the left hand side, AI can really do a lot
[27:51] of things managing unstructured documents, whether it's news article, all of those like textual documents. So, AI does an amazing job there. What AI doesn't really do a great job is managing structured data.
[28:06] a great job is managing structured data. So, numerical data, big spreadsheet, and traders need to make decision, right? So, you might ask ChatGPT, "Give me like the IV rank of Tesla." And it will give you a really good results, but most
[28:20] likely the data might not be correct because they do not have access to that data in many cases. So, this is why we built Queen, and then First of all, uh
[28:33] the traditional AI do not have access to our data. So, if you like the data that models, then of course, Queen can give you access to that. We built our quant engine to also have lower hallucination by design. So, the data that you see
[28:48] coming out of the AI most likely is going to be validated on our back end we built really the data structure and of course we also integrated and trained the model with our 20 plus years experience. We have quant team
[29:01] investment bankers and so on within our group. So you can access that also through Queen. So first of all, what can you do with Queen? So obviously here you can start a chat, but the the first step is really
[29:14] really start looking at the things that you can do. So you can do things like financial research, you can do things like screening, but let's let's start with something um
[29:27] really interesting. So for example, I want to compare the IV rank for Tesla, Apple, Nvidia, and Meta over the past 30 days and I want to see which one is the cheapest or richest asset. So what this does is basically
[29:42] leveraging our database, historical data as well. You can go back then basically it's going to actually give you some analysis. So right now we're seeing that Tesla is kind of rather cheapest in terms of IV rank and
[29:58] expensive. I think last week was Apple and Nvidia and basically this is going to give you an overview of how how to read the data. You can also come back here and we can do other things so like give me a report on a stock like for
[30:14] going to look at all our models. This is going to give you an analysis or really in-depth analysis similar to what an analyst would do by looking at a lot of different things like volatility, gamma, our proprietary
[30:28] model and basically now it's going to also allow you to access the data directly into the chat. So here you get access to our charts and then of course access to our charts and then of course you get all the full uh here, right?
[30:41] Really important. Uh any news item as well, we also have a lot of that. And then that can plan really your analysis for the stocks. Really great analysis. This would take an analyst, you know, hours or days potentially to put that
[30:55] Uh with Trend AI to give it to you on all the assets that we cover. obviously looking at news as well. Uh all of that stuff. But the most important part is that you can actually screen for information. So you can
[31:10] actually create custom advanced screener simply by describing example, uh let me give you an example here. So let's say that we believe that the market can rebound. We come here with a
[31:26] thesis. We have a view. We can start really uh putting really advanced prompts. So here what I'm looking for is stocks with a swing bias which is bullish, a momentum score between two and four, uh a price
[31:40] that is close to uh our put support within 10% uh and an option score greater than three with a call open interest in the top 30% of the universe, right? So here we get really a nice uh list of assets.
[31:56] And we can all start screening from there. But with that you can also come to our our uh explore section and you can look at for example iron condor plays. You can look at uh if you're an option seller, you can start looking at
[32:10] a lot of different uh metrics there. And you can always customize um basically the data uh based on your on your idea. And then here's the tool specifically focused on trading earnings with a data-driven
[32:26] approach. Earnings Watcher gives you historical data to analyze how different stocks typically move before and after earnings announcements. A practical and useful tool if you are into earnings trades.
[32:43] Here is Amin Gharbi. The problem is, as you asked, is about can we trade earnings basically in an easy way, in a smart way based on actually data-driven metrics and really
[32:56] approach earnings as a repeatable thing that week after week we use be driven by this data analysis to pick candidates
[33:09] for different strategies. So, perhaps your audience is not very familiar with have heard about earnings as being, you know, playing on gambles of stock going up or down on earnings. But, however, actually there is this whole world of
[33:23] basically. So, this is a bit of what you see in the screen, this quick tutorial to try to explain a little bit what are these strategies for your audience and how we help basically break them down and make them really accessible and
[33:36] easily researchable. These strategies have existed for decades. They really play around basically the implied volatility you can see here, there are different groups of strategies and how to play
[33:50] this. Since I don't have much time, let me actually jump into some concrete examples to see what are these strategies. So, the earnings that I'm sure people have heard a lot of about is the effect that
[34:05] a lot of about is the effect that implied volatility is elevated and rises higher basically before earnings than usual normal trading days. And this inflation of IV, this high IV, is the reason why there is
[34:18] such a a high implied move usually on earnings that the market tries to price in the upcoming move that will happen on earnings. The let's look here at a quick example of Chewy that's releasing later
[34:31] This is an example of how to play earnings. This is a strategy that happens before the release. So, we're really playing this rise up in earnings. into much things, this black curve basically is showing this
[34:44] trend of this at-the-money IV that we're trying to rise. So, this is just a simple sort of conservative strategy on earnings to play to be played before the release actually happens. And that really plays on, okay, statistically,
[34:57] how much do actually this IV rise and can make concretely positions like straddles, strangles, things like that profitable basically to exit before the release. This is one
[35:09] example, okay, that plays on the rise of IV. The second group of strategies that I'm sure a lot of people have heard of and a lot of you audience have discussed a little bit of this is selling options and buying options.
[35:21] This is what we call long and short volatility through earnings. You can think of basically earnings reactions that happen on the day of earnings as really measures from a statistical distribution. So, some data, some stocks
[35:34] will tend to be have a better profile for short volatility. Selling basically options and so here straddles, butterfly, things like that. was very
[35:46] recently, JD. What am I talking about is about this statistical edge? Well, you see the past moves, how they behave compared to the implied move. And so, quickly here you see this distribution of moves. This is
[35:58] really the gist of things of how week after week you can think of these moves as being drawn from this distribution. And so, studying this data, studying these different metrics can really pinpoint that how week after week
[36:10] actually the stock is better for long volatility, short volatility. This repeatable edge. Here quickly as I wrap up, let's go to another stock that's the symmetrical basically a good stock that's good for long volatility. So,
[36:22] here buying options going through the release. You can see MongoDB so that often beats its implied move. How notice how the moves from open to close really And so again, statistically, look at the distribution. This is how we can spot
[36:39] that okay, there's even if we lose on this specific name, we are really agnostic to the stock to the company itself. We're playing the data pattern behind it. Okay, so just to wrap up since I don't have a lot of them, these
[36:52] are just some examples of the the things you can do around earnings. Again, these strategies have been quite difficult to research and take on. Our tools basically help them make really the research accessible and actually fun
[37:04] also, John, because you know, it's always funny to whatever it is, Apple, Amazon, your grocery store, and actually play an see, this really implies basic knowledge of options. Once you're
[37:19] comfortable with calls, puts, what is this IV dynamic, etc., it's a really a fun playground to apply these. Again, data-driven, week after week, really with figuring this. You know, we say turning
[37:34] volatility to opportunity. From all this mess, actually find the good data points to rely on. Before we wrap up, I also want to include a sixth tool that I think a lot of options traders will find really useful, and that's Option Strat.
[37:49] This is a tool I use every day myself. Option Strat is very intuitive platform for building and visualizing option strategies. It is especially strong when
[38:01] it comes to quickly seeing payoff diagrams, adjusting strikes, and understanding how a trade behaves under different scenarios. What I personally like about Option Strat is how easy it is to use.
[38:15] Whether you're testing a new idea or just sanity checking a trade before you enter it, it's a very efficient tool. Let me just show you. Here is a trade I put on a few days ago. It is an iron condor on SPX expiring in the four weeks
[38:32] condor on SPX expiring in the four weeks from now on April 27th with the short put at 5,800 and the short call at 6,800. 6,800. So, 1,000 in distance between the
[38:45] shorts. I collected $703 I collected $703 and the max loss is 1,770. The graph now shows me how this looks exactly now. The thick line is the
[38:59] exactly now. The thick line is the situation today and the thinnest line is where it will be at expiration in four weeks. Now, I can very easily now see how this will develop as time passes. How the profit curve
[39:13] will widen if the market stays where it is today. But, I can also at any time is today. But, I can also at any time see, okay, if it turns up to 6,600, okay, this is where I will be at that time, etc. And of course, at the end it
[39:26] will look like this. But, another really useful functionality is that I can check how this will work and develop if the implied volatility is going down or up. I expect that implied volatility in this
[39:38] time period might might go down, which should give me the profit I want faster. But, if the implied volatility goes up, I will need to wait longer before I need
[39:50] to get the get the profit. Of course, in the end at expiration it will still be the same if the price stays where it is. Now, I often use Option Strat to set up
[40:02] more advanced trades. For instance, a time flies spread, which is a combination of a call broken wing butterfly and a put diagonal. These These trades are not always straightforward and it's very useful to
[40:17] have a tool like this to help you set it up and configure it as you want. So, let me show you. In this case, I will start with a call broken wing butterfly. I will set the expiration to the Friday,
[40:33] which is a week and a half from now. Let's just move this a bit out to to the shorts being around, let's say uh market today.
[40:48] We will put long here and here we have a broken wing butterfly. Well, let's also move it back here to current situation. But, this is a broken wing butterfly.
[41:02] Then, on the other end, I want put diagonals. So, we will sell a put that will just also in this case bring about 100 points down. We will bring about 100 points down. We will buy a put that will get 10 further down.
[41:17] On this one, we will have changed the expiration to the 13th of April. So, now expiration to the 13th of April. So, now I have basically here a time fly spread. But, now what I can do now is to play around with this to find, you know,
[41:31] play around with this to find, you know, the curve that I I like. Uh this is how it would develop if it is just like this. So, I would, you know, I would typically maybe take this one down a bit. Maybe I'll move the
[41:44] bit. Maybe I'll move the the whole call side up 10 points, etc. I can play around now to see until I get the until I get the trade and the curve that I want that looks as I would like it to
[41:59] be. And when that's done, that's when I will open the trade in my broker account. I find this very useful to play around and set and configure
[42:12] complicated trades like this. There are many other functionalities in Option Strat, but visualizing my trades and using them to configure the setup is
[42:24] what I personally use the most. Before you go, let's just recap the six tools. Wendy, your AI trading coach. Option Omega for a backtesting and automating your strategies and modeling
[42:40] your trades. Option Samurai for scanning and finding structured trade ideas. Mentat Q for advanced options data and market signals. Earnings Watcher for data-driven earning
[42:55] strategies, and Option Strat for visualizing and building your trades with ease. If you are serious about improving as an options trader, I highly recommend trying one or more of these tools and
[43:10] seeing which your style. You will find links to all of them in the description below. And let me know in the comments which of these tools are you already using and which one are you most interested in trying.
[43:24] Thanks for watching and I'll see you in the next video.