Video summary
The video begins with an introduction to "Power Hour," emphasizing a disciplined trading mindset focused on process rather than gambling or immediate profits. The host reviews the market conditions at the end of the day, noting that while major indices like the S&P and Nasdaq were down, sectors such as gold, silver, oil, natural gas, and soybeans performed well. Despite some early challenges with significant slippage on certain option positions due to a brief news-driven dip related to political events, the trader managed to recover losses from over $1,600 to end the day in profit. A notable success was a Microsoft trade that yielded a $1,600 gain before giving back some profits during subsequent attempts to short below pre-market lows which ultimately failed due to choppy market action around key support levels.
Throughout the session, the host details various complex option strategies employed to navigate volatility and potential earnings moves. He discusses entering double calendar spreads on Hims Health (HIMS), noting that while these options are relatively cheap for a stock trading under $32, they have historically exceeded expected move only 10% of the time over five years. Consequently, he opted for delta-neutral calendar spread strategies to capitalize on low implied volatility without directional risk. Additionally, he highlights his use of hedged iron condors and downside verticals that were transformed from previous days' positions, aiming for specific profit targets if certain price levels are breached by expiration. The host also mentions upcoming economic reports like CPI and PPI scheduled for later in the week, as well as a list of companies reporting earnings after hours or before market open to help viewers plan their own strategies.
As the trading day winds down toward Market on Close (MOC), attention shifts to large-scale butterfly spreads on the S&P 500 index options, specifically focusing on strikes around 45 and 55. The host explains his strategy of waiting until the previous day or early morning to enter these long-dated hedges to improve profit ratios as time decays, though he eventually places half-size orders near market close hoping for a bounce in the underlying index. With the S&P fluctuating between lows around 43 and highs nearing 50 during the final minutes, several large sell-side imbalances are recorded on major indices like Nasdaq and Russell. The host cancels some pending orders as prices move against them but remains optimistic about capturing small profits or breaking even if the market stabilizes near key levels before the bell rings.
The video concludes with a wrap-up of the day's activities, acknowledging that while directional trading was not ideal given the mixed performance across sectors and indices, premium selling strategies provided decent returns for those who entered early. The host addresses technical updates to his Flux app, including new help guides, comparison toggles for multiple spreads, and alert features, though he notes limitations regarding futures alerts due to modeling complexities. He informs viewers that live streams will be suspended for the remainder of the week before returning bright and early on Monday, encouraging traders to review their plans while maintaining a focus on probability and long-term consistency rather than short-term fluctuations or external noise like political statements affecting market sentiment.
Read the full video transcript
Hey, [music] it's the end of the day,
almost time for the bell. How many
options will [music] you sell? Fire up
your platform. Get ready to enter. But
first, let's get the mindset centered.
Hey. Hey, let's [music] go. We're not
here to gamble. We're here to trade. We
follow the plan. That's how we get paid.
[music]
Test it, trade it, have success. Find
what works for you and forget the rest.
Stats and probabilities is [music] what
we're about. Time to dismiss greed and
doubt. Focus on the process, not the
money [music] and the profits. We'll
flow like honey. Power our lives. Let's
start the show. Come on, trade hackers,
[music] get ready to go. Zero day
options. Time to make bank. Get locked
and loaded, then be ready to blank. Hey,
[music]
flow like honey, my friends. Flow like
honey. S&P unchanged, NASDAQ down 44,
Russell down 16, Dow down 143, gold is
up 1%, silver's up 4%. Notes and bonds a
little bit red. 10 tenure yield up
almost 1%. Oil up almost five. Same with
same with natural gas. Soybeans finished
up a third. Wheat and corn pretty flat.
Euro down about a quarter percent. The
pound slightly green. Bitcoin down 2%
and the VIX is up 3% from Friday's close
currently at 15.35.
As far as my trades today,
my bicks have battled back. I had a
double stop with some monster slippage
early. I had 290 of slippage on one uh
tunch and 510 on another
uh put from that little news little
little Trump dip. Uh but other than
that, I've got a bunch still open. Um
one, two, three, four, five, six. I
stopped entering after 113 just because
a $2 strike was only 10 wide.
So getting pretty pretty narrow. So I
went ahead and shut him down after that.
So, little bit less tanches than normal,
but I was down over 1,600. Now I'm up
about five or so.
Uh, day trades,
uh, had a $1,600 winner on Microsoft.
That was from previous day high and got
out right about this white line.
pushed up a little bit more than that
before it reversed. That was good for
1,600, but then I gave some of it back
on the Q's. I gave back 1,100 on the
Q's,
trying to short below pre-market low,
which is this green line right here. You
can see on the 15-minute chart, it
dipped and popped and held above it one,
two, three, four, five times.
uh finally closed below it, but that
didn't help either. Bounced right back
up and just been kind of chopping around
that area. Kind [snorts] of that 721 to
70 72050 area is just holding really
well in the cues.
Uh what else did I do? Entered a new
time fly today.
Oh, I entered a uh I need to get this
posted. I entered a
double calendar
Uh, it's gone nowhere. So, I just closed
out five of 12.
I'm going to hold seven overnight. I
just got as the uh intro music was
playing, I got filled on that five. So,
let me just note that in the trade
channel before I forget.
So, I'll hold seven of those overnight.
And then uh I've got my 1DTE from Friday
which I transformed into a downside
vertical but that
oh no this is the one today. This is the
one DTE iron condor today I transformed
into a downside vertical. Minimum profit
340
uh max 1340
if it expires tomorrow below 7720.
And then the one that I did uh Friday
was an upside vertical. It's also going
to it's or it's going to expire today
for minimum profit of plus 500.
I did a hedge to iron condor that I
entered on Friday,
managed to today.
Um if we keep moving up, my minimum
profit is 575.
If we keep moving up, this little ledge
here above 70 is over 2,000
and then a max profit which would be
over 7790 which I don't expect but
that'd be about that'd be a little over
7K.
Uh I've still got number 204 that I
transformed last week. It's inside that
range.
and
that's about it.
Uh, no econ reports today.
Just a little
Trump blip.
No econ reports tomorrow. And then we've
got CPI Wednesday, PPI Thursday,
Friday, retail sales, consumer
sentiment, and inflation expectations.
didn't think I was going to be
interested in an earnings play, but
looking at HIMS
and then the options are more liquid
than I expected as well. HIMS uh reports
after the bell today, it has only
exceeded the expected move 10% of the
time over the last 5 years.
So, I'm going to look at a
delta neutral calendar spread.
Hims has an expected move of about $4.70
or 15%.
These might actually be too cheap. It's
only a $32 stock. Let's see
front option selling the 4 DTE.
Let's look at the September 4 back
here. I'll bring this up so you can see
what I'm doing here.
Uh that'll get us 88 cent calendar.
What about the 11th? That'll give us
over a buck.
Him's alltime high was about 73.
It's at 3164.
See what I can get filled at here.
no fill at a dollar.
No fill at a buck 05.
Looks like it's kind of running away
from me.
No fill at a dollar10.
I'm going to let it sit at a$112
for a little bit. See if I get filled.
Other earnings this week after the close
tomorrow, SMCI and Cororeweave
before the open Wednesday, AMCR, Nebius,
and Jumia.
After the close Wednesday, Cisco
before the open Thursday bullish
S&P of a dip
down to 7753. Three.
Isel on here?
No. Moel.
Elliot. No. [clears throat] Elliot.
Anybody else? Bicked today.
I know Moel posted he got hit with some
slippage on his.
Where my bicker at?
Uh, by the way, I um
post this here.
I posted a video in the hedged iron
condor thread. I just posted a link
right there
um of a video kind of explaining how to
how to break down the structure into
individual vertical spreads. So, for
anyone interested, that might be
helpful.
Also, a bunch of new updates to Flux
pushed out this morning.
primarily on the analyzer.
Well, first thing I created a uh a docs
a help how-to guide section.
So, if you click on that, it's a full
detailed how-to guide on every function
and feature
in the uh in the app
listed under by tab. So, you got the
analyzer,
calendar, spread, IV,
earnings, NT scanner, zero DTE, and
everything so forth and so on.
And then the major uh releases today
I'll just hit on a couple things is
um is the compare toggle.
So, for example, if you have more than
one spread on here,
this pops up and you can traditionally
it just had the combined version of
anything of multiple spreads that you
were looking at, but now you can compare
them as well, which gives you kind of a
an overlay view.
So, that can be helpful. You can also
take the T0 lines off if you want. Just
look at the expiration lines to kind of
clean it up.
Added alerts for both the spread and
price. Also added history
for the underlying as well as the spread
price history.
So those are a couple of the main
things.
several other little little things.
S&P staying red
S&P has not come close to its expected
move today.
Upside marked around 84,
got up to about 74.
downside marked right at previous day
low
which is about 7719.
Yes, Bruno, I knocked out several of
your suggestions.
I like it.
VIX getting a little bouncy up to 15.45
highs of day for VIX.
Biggest individual stock movers, AMC was
down six%, Riot down four,
Intel down three, Coin down two and a
half, Nvidia down two.
biggest screen. Airbnb up three and a
half. Uber up three and a half. SNDK up
three. Oracle up three.
Uh I'll have to check into futures.
Kish,
we've got futures on the NT, so I assume
that shouldn't be a problem. But, uh,
the the problem is on the on the alert.
Oh, well, I mean, right now the alerts
are just tied to whatever you have
graphed.
So, the spread
and can't I can't graph futures. So, but
we'll see. Maybe I'll uh
Yeah, let me think about that. I'll add
it to my list.
Got about
15 minutes till MOC.
What else is going on? You guys doing
anything good today?
Hopefully nobody got hurt too bad by
that little blip. I know there's some
some bad slippage out there, but
Other than that little dip, premium
selling should have been pretty decent.
Not an awesome day for directional
unless you caught something early like
that.
That Microsoft trade was a nice one.
PLTR was strong early.
A couple people caught that.
SpaceX starting to bounce.
Almost up to highs of day.
Yeah. Let's see what are
what are the Mahomes trading at
S&P's at 53
55. Butterfly is already at a buck
65ish.
Yeah, that could be an early fill.
I don't know if it'll get there before
MOC, but
definitely looks like it's going to be
early unless we start moving.
Iran's going to wait until after Trump's
tenure before they start negotiating.
Interesting.
Hey Chris, going back to your uh
question about alerts on ES
So since you're not you can't really do
anything with ES on flux, wouldn't it
make more sense just to use trading view
or toss to set alerts on that?
I assume that's what you do now
because modeling futures options for one
is just it's kind of a nightmare with
all the different you got the options
expiration plus the futures expiration
they're always a little wacky so I'm not
even going to go down that route.
SpaceX. Here we go.
Taking off. Little late day pump out of
SpaceX.
today. You have an XL. What's an XL?
Oh.
Uh, I've entered them at all times. ends
of day, Kellen.
Um, the one I entered for tomorrow.
Let's see.
The one I entered for tomorrow, I
entered at 140 central.
So, two4 about an hour ago.
What you'll notice on those is
so the the rick the hedge part
um
the the difference between the iron
condor that you sell and the reverse
iron condor that you buy for the hedge
on a percentage basis the obviously
because they're further out.
Those are going to the hedge is going to
get cheaper the longer you wait.
So, even even waiting until tomorrow
morning, you're going to have bigger
wing profits. Uh I like to do it the day
before though, just in case we get a
nice overnight gap.
But, um but you could even do it
tomorrow morning.
because I was I started off doing them
like six days out, five days out, four,
three I and I and I kept kind of getting
less and less duration because I noticed
the ratio between the iron condor and
the hedge kept getting better the longer
I would wait. So now I just do it the
day before.
AMD staying below previous day low. MU
just went back in the red.
I need above 55 if I'm going to get
anything better than minimum profit on
today's hedged iron condor.
But I've got some bicks that would not
like much above 55.
got some 55 and 60
strikes.
So, it just depends on who I want to
root for at the end of the day, I guess.
Six minutes till
Abosh is on the 55 Mahomes. Everybody,
there's your warning.
There's your warning.
55 butterflies currently trading for
about 170 or so.
I'm going to go half size today unless
we get a decent MOC number.
Hasn't been easy to move five points
today.
especially this afternoon.
Oh, looks like Trump just ended some
remarks in the Oval Office.
Statements on the juice. Let's see.
Trump and Iran. We still have ability to
escalate.
Trump on Iran. US is going to ask for
money for damages Iran has done. That
was part of his tweet or post.
The straight is open.
US is the only one that has control of
Hormuz.
Straight is still a little complex
because of occasional mines.
Trump spoke to Worsh once briefly a few
days ago.
That's it.
Well, I thought my bicks were toast
early. Now I'm up over 2500.
If
if we can stay in a tight range the rest
of the day.
Nor did that last update on flux fix
that problem of copying from toss to
flux and flux to toss. Should have
should have uh fixed that issue.
I didn't understand your question the
first when you first posted it, but once
I got on there and fiddled with it, I
saw exactly what you're talking about.
Got about 90 seconds till MOC.
Nor, are you ignoring me?
SpaceX still staying strong.
One minute remaining for the mark on
close imbalance.
55 butterfly
looks like it's around $1.75.
Maybe more.
I'm going to put a half
a little five lot order in on the
55 at two bucks.
10 seconds.
Market on close imbalance S&P 500
sellside 1.3 billion NASDAQ 100 sellside
1.4 4 billion down 30 sellside 487
million max 7 sellside sign 567 million
1 something billion sellside
I'm going to put an order on the 50s as
well
just going to go half size here.
Yeah. 1.2 billion sellside.
down to 48.
I'm going to cancel my 55.
Put one on the 45.
we get back up to 50, it should fill.
Looks like it's close.
You got to compartmentalize. Abosh,
every trade is its own probabilistic has
its own probabilistic outcome.
Think in terms of many occurrences over
time.
SPX down to 46.
If we can bounce just another point or
two, that 50 should fill.
Still got a lot of time.
filled on the fitties
1.2 Two billion. Sorry, Moa. One spot.
Two billion. Sellside.
Moel. I'm in a uh Do you take any
earnings? I'm in a HIMS calendar.
only exceeds the expected move 10% of
the time.
Whoa, there's a little bounce back right
back to 50.
I'm getting an Amber alert on my phone.
Independence, Missouri. White 2026 Ford
Expedition.
[snorts] All right, let's get away from
50. We've got a full Well, got a little
over four minutes.
I posted mine up above, Moel, if you
want to see it.
I went a little bit further out in the
back because they're so cheap.
SPX sitting at 48.
Google's bouncing. Microsoft is
bouncing. So is Amazon and Apple and
Meta.
Nvidia falling,
Tesla bouncing.
Chips are dropping.
SMH
coming down hard, says AMD and MU.
Getting close to my break even at 47.
Yeah, it was an early fill TS trades.
I went half size.
Almost down to lows of day in SPX.
Lows hit about 43. We're at 46.
I want the 45 for the full enchilada.
For the max enchilada, I need 45
There's 46.
Just a little little pin right below
lows of day would be beautiful.
We're into the 45 handle.
Less than two minutes. Chip still
falling.
Back up to 47.
Hopefully TS trades didn't come in and
ruin everybody's day.
Oh,
[gasps]
apparently I had not taken the HIMS
trade yet. I just got filled at a$112.
Had my order in and I forgot about it.
SPX at 48 TS. Look at what you did
everybody. There's 50.
Chips are still falling.
Google's pushing hard. New highs of day
in Google
20 seconds. All right. If we're going to
go up, we got to get above 53. At least
there's 52.
There's 53. Okay, maybe we going the
upside. Let's go 55. Let's go green on
the day. SPX, you got three seconds.
Order [bell] cancelled.
>> And
>> order cancelled.
>> Oh,
we might have get a two cent profit. 53
is the break even. Looks like 775302.
We might have got our commission back.
Maybe. We'll see where it settles.
All right. That is a wrap for the day.
We back tomorrow
bright and early live streaming for the
day trading right at the market open and
back for power hour again. Don't forget
check the live stream calendar. I will
be out the last few days of the week. So
no live streams Wednesday, Thursday or
Friday. That's posted in the live stream
schedule channel. [snorts] Uh otherwise
have a good night. We'll talk to you
soon.