by birtanpublished on August 20, 2020

for perfection all right ladies and gentlemen i got to watch this coming into july 22nd 2020 and i am betting 50 000 on tesla earnings kind of not really but actually i want to go

Over a play i'm going to see i'm going to consider this i have two options it has two different risk rewards i could make up to 40 or 50 000 but the risk or it would take either 60 000

Risk or like a 15 000 risk so we might take the latter end but i will go over that play with you in a few of the alternatives as well as well as some of the other plays that we need to be looking at

I guess for tomorrow and this week but we have a lot of stuff to go over it is all earnings related we saw other companies report today we're going to have earnings continuation

So i hope you are ready it is earning season but some people are like wow there's a lot of stuff but it's like boring and slow don't forget this hasn't been the biggest week yet so we're getting some

Big companies but get ready we need to talk about it we got the keys we got the plays that we made today didn't make too many but there is still a few cycles and rotations we should be looking at

And a few other things as well too and then the plays for tomorrow but let us not delay you guys know what you need to do drop your thumbs up on the video make sure you're subscribed and if you don't know we are live monday through friday

30 minutes before open is the first link in the description and it is pinned in the comments we better see you there in the morning it's free99 it costs you nothing to join youtube.com

Stock market you can post the place see the plays watch the watch list come to life and watch a bunch of people watching somebody make trades who watches the news and then

Makes a watch list after all of that while you're watching this and the most important thing you need to do post your watches below let us know what you're looking to get any plays comments

Remixes anything post them below and source that info shout out to chad but right off the bat as far as the keys in getting in everything we're going to start here because today

Was a pretty big day we were up like three 400 points on the dow but then all throughout the day we kind of sold off or later in the day was a really really weird close but one key thing we've been talking about

The vix and the s p notice the vix closed up 1.5 today even though the s p was up and everything else so everything but the nasdaq did good but we saw normal rotations today then it fell out

However i will say in the midst of all this all the companies we have this seems like a typical earnings mode so i wouldn't read too much into it but as far as everything else the market really is in

That earnings mode but it is still early really what you got to watch for is the waves and bursts and that's what we were seeing even this morning it kind of felt like a wave or you'll

Start to see certain companies certain industries it's like they will just pop off out of nowhere so today you really saw the dow and a few companies that had earnings and are leading into earnings they just

Started shooting up but then we saw the nasdaq sell off today so pay attention for that because that's what we're probably going to see and that's what's happening this week because it is early

You're not seeing all of the big companies report you're seeing some of them so you're really going to see them move in waves and this is what i even mean with the continuation some of the companies

That report today and this week and then the ones that reported last week once these waves and bursts hit you're going to start to really see them hit their continuations a good example

Watch netflix throughout the next few days and even the next few weeks as we get into the bigger earnings weeks that's how kind of the market is going to move but that is the first thing i guess as far

As it even leads into the play again we're just gonna talk about the earnings plays here today i'll go over them but another main thing with the market because right now unless there is really really big news or something

Geopolitical that is really of scale that could move it again there is a pandemic so maybe that again anything new beyond that but right now for the most part the market is going to react

To earnings but the vaccines in the biotechs these are important and this has been coming up even there was that press conference with the president after hours but he said there's two companies entering the

Final stage and then there's four others close behind but we saw some rumors from some companies and that was one of the only plays i made today but you guys have seen how that's been

Affecting stuff that's really been the only thing independent other than that as we get earnings and then the data following earnings and then investor reactions that is what is going to move the market unless there is other news

But watch out for that as far as tomorrow there's going to be a few companies in the morning and then we've already had uh some of the companies already seen a few companies report but after hours tomorrow the main ones i'm

Going to be looking at tesla microsoft chipotle and csx transportation so i think these could be some movers again comment below it is earning season shout out all the people sourcing the

Info but post that below these are the ones i think are gonna move so we'll see but the main one we are really gonna look into is tesla don't be too jumpy with earnings again there's a lot of

Different companies that still haven't reported yet so just don't have two specific or short-term expectations the earnings is going to hit in a wave and

In a burst depending on the reports that we see that come out moving forward so keep that in mind but now let us talk about this tesla place so i hope you're ready ladies and gentlemen

Let us get into the plays right off the bat well i have a few different plays so we will start with this tesla play however snapchat had its earnings surprisingly

I was actually a little bit busy here i didn't get to look at the report but for the most part uh the initial reaction and why the stock moved they went down they said that the uh expectations wiser which has been my

Main focus kind of with a lot of these companies during earnings season how they've been talking about guidance and all that but snap said that daily active users pick pickup that they initially

Saw it fell off faster than they expected so that makes sense facebook reacted a little bit after hours but this continuation is going to be important we have this in the long term

Portfolio we talked about this yesterday but i'm going to look to even sell puts on this or i do want to see how the market takes this this could move a lot tomorrow so again

Keep that in mind that's something important but the main thing i need to look into is i want to see the fundamentally how they reported in that whole path to profitability thing we needed to take

Another look at that but besides that now let's let's talk about the tesla this is the plate i want to do it is a jade lizard wtf that's just like i mean a lot of people hear this name

Like what is this this is a very complex options trade so ladies and gentlemen this is not a recommendation educational purpose only i hope you know that do not try this i am a professional do

Not try this at home this is like a circus clown and you're watching me make a dive you were cheering me on but don't try this you should not try to swallow fire that is what it's of jade lizard

Honestly if any of you go it's like have you seen the movie holes i okay but really i can't stress enough this is a big risk play i may not do it i honestly might just want to sell a put

But again this is still risky so you guys know how we've done it you've seen me do this a few times i want to take the highest probability trade while at the same time you know it's gonna be risky it's gonna make us

Nervous it involves selling premium again so if you don't know what you're doing don't even come close to doing this don't even try to replicate this in any way especially if you guys saw

The last tesla play because if you don't know what you're doing or if you don't have the account balance to maintain the margin requirement on this trade

You can get stopped out and and that could that really would it gets crazy you saw what happened last trade with how much we were down if you sold out or you stopped out of that you would be in a very very bad position

And we ended up winning so keep that in mind but what the jade lizard is if you're at least familiar with selling options it is uh it's a short strangle where you're

Pretty much selling a call and a put at the same time hoping that the stock stays in between this price and both of these contracts expire so this is beneficial now because

The premium is very very high on tesla it's pricing in about a 200 move for earnings so it is a short strangle with insurance right here on the short call side by buying a call above it so

You come here it says jade lizards normal jade lizard you can see right there it's just that short strangle with a insurance on the call side so what makes this safe is because when you sell a put at the end of the day

You can lose a lot of money but you're just required to buy the stock so worst case scenario on this trade you'll see here here's the max risk reward this one says 10 000 is what you make and if the

Price is higher than 14.43 you can make up to ten thousand dollars however if it ends up below that tesla you would end up losing up to a hundred forty four thousand that's because

You would be forced to buy a hundred shares so you could always stop yourself out and take a five ten twenty thousand dollar loss depending on how much it drops however at the end of the day this play by

Selling the put your only real risk is everything goes wrong against you on the downside is that you're required to buy the shares and that's if the stock goes down so as you see here

As long as the stock price stays above 1400 you win 1443 because at 1443 all these contracts would expire worthless and you would still be able to make some money now

This is the key you have to realize you're collecting premium here and then you could lose money if it goes in the money this is your max possible so we could talk about this and i could break this down a lot but what i

Want to do with this play you could sell one close to the money but really what it really came down to that made a lot more sense would just be selling a put deep in the money or even close to the money i really thought

About it there's pretty much two options here and this is what i meant to explain even with the jade lizard stuff you'll see with what i'm saying though i need the good one where is it it's like 4 000.

Yeah it's like a 1950. i think we'll do this one for uh simplicity's sake but what you could do is sell this july 24th 1950 put for 39 000 so you would collect 39 000 bucks you

Would need up to 66 000 you could do this as a credit spread but it would change a little bit around but pretty much this is the the key about this is that you're getting

So much premium because it's not only in the money but then tesla's pricing and so much that right now your break even is tesla has to stay above 15.51

So think about that for a second because you're collecting 40 000 in premium you're getting the stock 400 cheaper than what you're agreeing to buy it at so even though you're selling

A deep in the money play you're agreeing to buy the stock at 19.50 but then you're getting paid 40 000 up front so even if you have to exercise it your real cost basis on this

Trade would be 15.51 that's why it's saying anything above 1551 now you make money so now this is a put in the money if you are shorting this trade you make

Money if this trade expires out of the money so now if tesla shoots up to two thousand dollars after earnings and this play is now out of the money because it's

In the money put and now tesla's above it you would actually just make forty thousand 000 by the end of this week so i kind of like that possibility because now you could see if that happens or in

This case if it goes above 1950 to get that 40 000 that's about two standard deviations out of the money because tesla's price again again about 220 230 dollars so this is the trade that i like but now

Also understand you're making money because the premium is really high that's what even makes this so attractive so pardon part because it's deep in the money but now you guys understand how

This moves again if you don't understand this don't try any of this but what's happening is that if now the stock shoots up let's say it goes up to 200

Expected well if this goes up 200 this would be worth 200 less so even though it'd be still be in the money wouldn't expire out of the money if the stock did move 200 up for earnings

You would make that 20 000 pretty much off of the contract because this would get twenty thousand dollars cheaper intrinsically so that's how even though it's in the money and you're getting an

Initial amount and it's saying you can make up to forty thousand that's if and only if it expires completely out of the money and that would be that would take a lot more but if it

Made the normal expected move what would happen well you'd make about 20 000 so then what does that really mean you could do is that you could just sell this put right here you get 10

000 for the at the money by shorting this contract but now your breakeven's like 14.57 100 below because you're collecting a hundred dollars in premium and then if it does the

200 move up you would make 10 000 if it shoots down now that 200 you would only lose i think 10 000 whereas in this case now you have to think if i sold that 1950

And the stock moves 200 down now you have to realize we are agreeing to buy tesla at 19.50 or this in the money put would get 20 200 deeper in the money so

That is your risk that means if i shorted this put and the stock made the expected move on the way down if i did end up selling this plan collecting that 39 000

I would lose about twenty thousand bucks or the premium would increase by twenty thousand dollars so then if you got assigned so on and so forth but that's the first play it's crazy do not try that i think i'm gonna make some

Type of play on this i need to sleep on it and think about it however kind of breaking it down for you we'll see what happens but besides that watch microsoft i'm going to be looking at the calls to

Even hedge some of the puts because i have a lot more puts and i said sadly i'm just looking for the grim reaper as far as this earnings because kind of agree with kramer on the upside stuff but

We will see so watch microsoft again i already have the puts and we're down on those even as a premium check we got september like 145 puts at like 56 cents and they're down to 30. so they're down like 50

But that means the calls i think are a little bit more expensive so we'll see but watch them and then finally i know i think this has to do with i guess people started talking about

Them being mentioned in like a study and then some other people said it was because the pressure that trump was going to have but all of the vaccine stocks started moving at once but we made a play on ino today

I did a a decent sized play i did five of the contracts for next week so it's really risky because it expires soon but you guys saw what happened with myrna i

Wanted to make a quicker flip i'm still holding all 200 shares so if you guys remember we bought i know shares a long time ago let's see um we got him a few months ago and even

Then my strategy with these ino shares where is it right there yeah we got 200 of them we bought them at 798 but remember we sold covered calls on these so i'm still holding them i want to sell covered calls on it

However i kind of wanted to play some of the momentum just with how important some of these biotechs have been and even that whole mania that we've talked about so i grabbed those 43 calls i bought five

Of them for 67 cents again given the nature of it i'll probably want to just get my initial investment back as soon as possible and go from there but that was the final play i did texas instruments

Puts to hedge the play but they reported they surprised we talked about this they actually issued upward guidance uh oh man it sucks that they came back down but they they they popped off i

Think they showed something pretty impressive here today again i don't know if you guys remember but it kind of looks like that one time we hit it i think that's exactly what happened they had a big earnings

They popped up and then they moved around so watch up for the upgrades and watch pre-market but i think texas is going to have a crazy continuation so i'm in that play i'm biased we're still holding those earnings calls but i

Grabbed those puts we're gonna lose on those we spent about 80 bucks but we have the 300 in remaining profits on the uh other calls that we bought yesterday so watch them again i know microsoft tesla just pray

For me watch boeing i like them again they had a lot of different news as far as the plane but again as far as earning season is i mean watch microsoft

Watch tesla kind of how those premiums play out will tell us stuff but i'm still in those strangles and they kind of tell us something but now the strangles have switched on me remember the other day i told you they

Were up now they're down so the premiums are getting all over the place because again there's been a lot of whip sawing but that whip sawing has been slowing the marking keeping prices stable with less

Time on the contracts that is that theta burn it's just a lot of smoke and mirrors and makes you just it just hits you out of nowhere it's weird but watch them watch facebook they reacted to the snapchat

Today and you can kind of see how they're kind of capped out but we'll see what happens with them but watch them watch ual they reported they made uh not too big of a move so kind of interesting i mean just in case

They do surprise and make a move i really don't like them but you never know what this earnings season watch coca-cola they reported today and they they moved a lot larger than expected

They didn't close as strong but watch for them on a continuation i think they could really surprise uh chipotle has earnings tomorrow they're just a big move they're at eleven hundred dollars oh my gosh dude

What that i mean dude i don't i mean yeah that this could be a big surprise actually hold that's insane um but i've lost a lot of money on chipotle puts uh from march so we'll see

But damn chipotle gets you guys and you get you with chipotle in your life man that's crazy so watch the video again with uh texas instruments and some of the chip makers i think that will be a

Big mover and actually put them up on the daily i was looking at this they could break out here so i want to see the prices again they report a little bit later so don't get

Too jumpy and again think about what i just explained with the theta burn don't get lured into the sirens of theta and buying now but watch that microsoft like we said finally the vix i think this was very

Important like i brought up today that the fact that it's up with the market kind of being pretty strong besides that close so watch out for that watch out tlt but again tlt hasn't really been as cool

The fed looks like they got it looks like the fed has gotten the bonds under control you've seen lqd and all that so keep that all in mind but it's earnings mode that is going to be

The key it is going to come fast while at the same time coming slow so i hope you're ready but that is your watches ladies and gentlemen make sure you're hydra healthy ready to

Go make sure you post your watch let's make sure we see you there in the morning i need the armor on i need the helmet shining i need your budgets balanced i need you to focus baby

Don't get too jumpy don't get lured into the short term don't let the sirens trick you into it be smart get initial investments look at the balance cash balance what are you comfortable with what are you okay with

And understand there's opportunity and we still need to finish out the end of the year so don't get too jumpy baby but the colt loves you i'd love you almost see you in the morning let's

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