Weekly Income Alert – June 6, 2025

Good morning. Welcome to Weekly Income Alert.

I see a lot of you are in a cheery mood in the chat.

As you know, Marc is on the tour abroad, so I’m gonna be covering.

My name is Anthony Summers, director of trading, and, I’ve been at the Oxford Club for over ten years now.

Some of you may be familiar with me. Some of you may not. But, overall, I’ve had a really close, working relationship with Marc and especially on this trading system.

So I’m going to be covering for him for, a few weeks.

Overall, I know that, this is still relatively new, so there’s gonna be plenty of questions as there should be.

So I’m definitely gonna answer, as many of your questions as as possible. We’re probably gonna start with the trade, element first before we get to the questions.

But, feel free to put them in the chat, and I’ll start looking at them as soon as I can.

I know before we start, I do wanna say that, it’s really exciting to actually see, how many people have been interested in this in this system. As the director of trading, you know, that’s pretty much my my job to help create strategies that I think are, obviously effective, but also simple enough that, you know, an ordinary person can can use it.

You know, I think of myself as a pretty down to earth simple person.

I like strategies that work but, don’t require too much complication. And I think, spreads or options in general can feel that way sometimes, but I hope that we can show that overall, it’s actually not as complicated as most people make it seem.

So, yeah.

Let’s actually get into the trade this week.

Let me just go ahead and share my screen.

Hold on one second.

Okay. So, for those of you who are relatively new, you’re gonna see us using me and Marc both happen to use Schwab.

So things could look a little different depending on what your brokerage account is, but for the most part, there should be some similarities.

We’re trading the Russell two thousand index options.

There are other, options out I mean, excuse me, other indexes out there that you could apply this strategy to. But overall, we found that it’s been extremely successful, with this index.

By the way, you may hear either my daughter crying in the background or my cat whining, so please try to ignore that. But, anyway, yeah, with the Russell two thousand index, you know, there’s also, the ETF, which, is IWM, which some people, may be more familiar with trading.

But we prefer the index for a number of reasons.

One of them, which Marc has mentioned, is that there are tax benefits to trading the index options versus, ETF options.

But the main thing for me in developing the strategy with Mark was that, the index options are cash settled.

What that ultimately means is that, even in the case that we were assigned hypothetically, these trades, if the index falls below, our strike price at expiration, You don’t have to worry about having to buy, the stock or the ETF, which would normally be the case with the index options. It’s just settled in cash, so it makes things easier.

So let’s kinda start here.

I already have this kinda preloaded, but generally speaking, this is the, symbol that we’ll be looking for.

We’re gonna be trading index options that are either gonna be the monthly option or the weekly. So sometimes with the weeklies, you’ll have to put a w in there depending on the broker, so it it will show up as RUTW.

Let’s actually see if that pops up. Yeah. So the Schwab, they’re sticking with RUT, but, in some cases, it may be RUTW.

So let’s go ahead and put that in.

And, this is a vertical put spread.

At least that’s the nomenclature you use on Schwab.

But for the most part, all you really need to know is that it’s a put spread.

These other details are not really as important, especially since we can change things if things don’t look right. I’m gonna go ahead and put vertical.

So these two dates should be the same.

We’re gonna be going three weeks out, which is standard to this strategy.

So let’s actually go there we go.

RUTW and, the twenty let me double check.

Yeah. Twenty seventh is the third week from now.

Right now, the Russell is trading around, let’s say, twenty one twenty.

And, what we found with this strategy is that historically, the ideal strike price range to choose from, is generally three percent below where the index is currently trading.

You know, there’s been a bit of volatility lately.

Obviously, if you pay attention to politics and things going on with the administration, there’s a lot of reactivity in the market to every tweet, every, you know, comment made.

So, we’re gonna be going a little bit lower.

But generally speaking, three percent below where the index currently is is what we’re targeting. And there’s a reason for that. I’ll get into what we after we’re done with the trade when we get into some of the questions because I know some of you have had asked about why that is.

But for now, we’re actually gonna go, a little bit lower.

I actually spoke with Mark about this, so we’re gonna be going down to the twenty thirty.

Put twenty thirty, and, twenty twenty will be the put that we’re buying.

And, the reason for that, ten dollar difference is because we’re basically limiting our risk, within the range of these two strike prices. So, ten dollars times a hundred.

Options are in hundred dollar excuse me, in hundred multiples. So when you buy one option, you are, in effect, controlling a hundred of whatever the underlying asset is.

So that’s just how the pricing works with options.

So the ten dollar strike price difference, times a hundred, that’s a thousand dollars. So that’s the max capital that you really need to make this trade.

And then if you look at the the price here, this is going to be the amount of credit that we get back for the trade.

So the capital at risk is actually that thousand dollars minus whatever our net credit. So max, we’re gonna, be risking eight fifty to collect this one fifty, which if you do the math, is a pretty good return.

Also, when we put in this order, you wanna make sure that we’re, you may see net credit. I know what Marc has done this. It shows net credit. I have limit credit here. As long as it’s a credit, you know, you should be fine.

And as far as the price that we’re looking for, generally speaking, you wanna be between the bid and the ask. So that’s gonna be this number here. As you can see, that’s kinda moving around a bit.

We can probably take one fifty, but, as Marc has mentioned in the past, sometimes just to make sure that you can get filled, You wanna go a little bit lower.

So I see it going back and forth between one forty and well, that was extreme, one fifteen, but between one forty and one fifty.

So let’s actually just stick with one forty on this one.

Okay.

I prefer to keep this as a a day.

If you wanna do good to cancel, that’s perfectly fine. It’s kinda up to your discretion. But, generally, I’ll choose, to have the order go in either for the end of the day or I just won’t put the trade in.

So let’s make sure everything’s correct.

Set it open. Oh, and I should actually clarify.

When we are selling the option, it’s gonna be the higher strike price, and when we’re buying the option, it’s gonna be the lower strike price. So you don’t wanna swap these two and sell the twenty twenty and buy the twenty thirty.

And, again, I’ll get into that a little bit when we go over, some of the questions, but, basically, we are if you were looking at the price chart, we’re selling the put that’s closest to the current price and buying the put that’s furthest from the current price.

So, let’s put in our trade.

I’m gonna put review order and, let’s see.

Generally, this would be in Marc’s account, so we would be placing a tray. I’m doing it in mine, so, I’m not gonna be pressing it right now. But, I am going to put this into the chat so that you guys can get an official alert.

So let me go ahead and type that out.

One thirty.

Okay. One forty.

Okay.

K.

And I see it’s posted, so that’s the official alert.

Let me get out of the sharing screen. Okay. So, yeah, so that’s how you put in the trade.

Again, it might look a little different in different brokerage accounts, but that’s more or less, you know, the step by step. And so let me start looking at some of the questions, in the chat.

One sec. Got a lot of comments here, so give me a moment to look through.

I see it.

One or two people that mentioned no sound.

Hopefully, that’s no longer the case.

I don’t see many other people mentioning it, so let’s I’ll just assume it’s it’s not a problem.

Okay. Let’s see.

Would you say something?

I’m actually looking for some questions, Comments on where you guys are living. On E Trade, do I choose put spread?

Yeah. Yeah.

That’s that’s if it doesn’t specifically say vertical or calendar or anything like that, it just says put spread, that that should be good.

My Schwab won’t go to six twenty seven.

Only six twenty. Yeah. If, if you notice when I was putting in the trade, next to the expiration date, it showed RUT, and there was a toggle if you clicked it and put RUTW, then it probably would have showed up. Otherwise, it’s gonna default to the monthly options.

So, hopefully, you saw that when I was putting in the trade.

If not, and you haven’t yet, you should be able to go back and do that now.

Okay. Robinhood?

I don’t trade spreads in Robinhood, so I I haven’t really looked I’ve used Robinhood for trading, but, I have not tried to use this strategy in Robinhood, so I can look into that.

But, generally speaking, I have not Robinhood doesn’t seem like a ideal platform for spreads, but I I’ll look into that because I know that that’s an increasingly popular brokerage account or or broker, I should say.

Again, I have used Robinhood, but it’s usually just for for stocks or individual options. Nothing nothing like spread trades.

Good to see.

First trade ended out of the money.

Yeah. I mean, so far, the market has been moving in the direction that we want.

It hasn’t been super, super volatile. It’s been pretty steady.

Even the past week, you know, the rustles up.

So overall, I think that you’re gonna see a lot of success with this strategy as long as there aren’t any kinda major events that that drop the index more than we’ve accounted for, which is what I wanna get into in a minute.

You know, what we’re factoring in in our strike price selection is that the market could drop, of course, but within a somewhat normal range.

What I mean by that is I actually wanted to very quickly go over a visual that I I hope is not too complicated, but I think it’s helpful.

I’m actually gonna share my screen again real quick.

One second.

Yeah. So you can kinda ignore a lot of the numbers here. But, when we created this strategy, the idea was that we wanted to intelligently select what strike prices we were gonna trade, and we wanted to do that based on what the actual variability in the index price movements are. What I mean by that is that over, say, the past year, which, our most recent backtest was based on, how much does the index move week to week.

And then over time, you can kinda do, like, a rolling back test of that.

And based off what the average weekly return is and what that looks like over a long period of time, we basically took a statistical analysis. We do this in Excel. It kinda makes it a lot easier. And so if you look at a normal distribution like this chart, you know, the average quote, unquote, weekly return would be like this line. And then anything between these two lines is what’s called, within one standard deviation.

All that really means, and this is these numbers here are kinda more relevant, is that about sixty eight percent of the time, your weekly returns will be in this range.

Okay? So you can kinda round up to seventy. So seventy percent of the time, you should expect the weekly return of the index to be within one standard deviation.

And so when we’re choosing a strike price below the index, we’re trying to get a strike price that reflects basically this line here.

Meaning, if the index is if the price is here, let’s say it’s a thousand, and the average return is point five percent or something like that per week, realistically, the widest return you might see is two to three percent, within this, one standard deviation.

Again, this is not an Excel. I don’t I’m not trying to overcomplicate things, but I just wanted to explain that there’s basically a mathematical reason for why we do that, and it’s automatically done in Excel.

But what we found is that over time, it’s basically about three percent, where you’re gonna have that ideal strike price underneath the current price of the index.

And that’s why we have a pretty high, success rate in the back test.

It’s been, like, eighty six percent.

We did the same thing in, some bear markets recently, and, you know, it’s worked out.

I expect that, occasionally, we may widen that if things are going down, more than usual.

If there’s increased volatility, obviously, that could affect the number.

But the backtest has shown that, that’s a pretty standard, way to choose our strike price, and so that’ll kinda be the default.

Can you show the example in Fidelity?

Yeah. I might try to do that next week, actually, just to switch it up.

I’ll maybe break out the Fidelity account and show how to do that because, obviously, not everyone is, on Schwab, so I think that that’ll make things easier.

On the phone app, I click to buy an option. It shows me a drop down.

Oh, I thought that was a question. Do we need to do anything with the June option?

The June sixth option?

You don’t have to do anything with these. We we want them to expire in the money.

If, you know, we have discretion to get out of a trade early if things are not moving our way.

But as of right now, it it doesn’t seem like there’s any reason to do that, so you just let it expire.

Still no sound. I mean, some it sounds like some people have that problem, but I’m assuming not everyone.

So, unfortunately, I’m not totally sure why that would be. I haven’t been notified that it’s on my end, so maybe the moderators might be able to help you with that.

I have done credit spreads a lot, and you win a lot, but the risk reward is so bad that a couple of losses and you’re underwater. Very frustrating.

Yeah. I I think that that’s a very valid, point about credit spreads that if you don’t have a precise method for how you’re gonna do them, you know, you can win good money, but then you can have big losses.

And I think that that’s why we wanted to set things up the way we have, with the little statistical rundown I just went through. We’re trying to make this, we’re trying to put the odds in on our side, and the back test shows that doing it this way does that very well.

But there’s still room for improvement.

I think that, over time, we’re gonna be able to, maybe increase those odds even more, I think, with, with, time and experience.

Are we letting the yeah. We’re letting the options expire.

They should be for, profit. So you don’t have to do anything. Just let them expire.

I see a lot of you have got also gotten, filled at that price, so that’s good.

Do we always buy just one quantity, or how many should we purchase?

You can buy as many as you’d like.

Generally, you’re gonna probably see Marc or I, execute, you know, one, spread, but, you can I mean, it’s really up to your discretion?

You know, it all depends on, how much you wanna risk, how much, cash you have available, and all of that.

Adding w to rut doesn’t work. Yeah.

So I I think I know what you’re referring to there. If, if you’re talking about in Schwab, when you type it initially, the dollar sign r u t w, it doesn’t come up. If you put dollar sign r u t, and then select vertical spread, you’ll and I could go back, show this, if it’s easier.

Let me actually do that just just to clarify.

Okay. Let me share my screen again.

Yeah. So if you r u t, let’s go with vertical split.

Here, you would select r u t w.

Now if you had typed it in here, it doesn’t seem to, populate.

So I know that’s probably a bit tricky there.

Looks like it’s maybe I crashed something, but, hopefully, you just saw, that quick demonstration. If you put the w here, it doesn’t and at least in Schwab, it doesn’t populate.

But, once you click RUTW and then you have the the spread set up, you’ll see a toggle for RUT, and it lets you select RUTW.

K. Let me just look at more questions.

Thanks for explaining the reasoning behind the short strike selection. Yeah.

Like I said, it it we we do this in Excel, and we did it on a rolling, basically, the past twelve months of the index, weekly returns.

And so over time, the number could theoretically change, but three percent is kinda like the typical for example, sometimes it’ll be, like, two point eight seven. You know? And other times, it could be, like, three point one three or something. So it it seems to hover around three percent. So this is really easy number to remember.

Also, I for those who are not super familiar with spreads, you might be wondering why we’re buying one of the put options at all. And, obviously, we’re selling one to collect the premium or credit, and we’re buying another one which costs us money. So you might be wondering why do we we do it at all. And I think as I mentioned, briefly earlier, we’re doing it to limit our total capital that we’re risking.

By closing excuse me. By buying, another put option, ten points below the strike price of the one we’re selling, we’re basically limiting it to a thousand dollars.

And then if you factor in the net credit we’re getting, we’re lowering our risk even more.

So in this case, for roughly one forty in net credit, we our risk is about eight sixty. So if we collect at the end of three weeks, which is likely, you do the math real quick.

It’s, let’s see, one forty, and sixty.

It’s like a sixteen percent return. You know? I mean, it’s it’s pretty good considering how short term this is.

Obviously, there’s risk involved that things don’t go our way. So buying that put helps us cap that risk.

In this case.

I changed from E Trade to Schwab, and the trade finally went through.

Okay. Good. Yeah.

Yeah.

I mean, I personally don’t use E Trade, so I I may have to look into I might have to look into what things look like step by step there for those of you who do use it.

Marc and I generally use Schwab.

I do have Fidelity, though, so I may do a demonstration on there, for those of you who do have it.

Why pick a three week expiration?

Yeah. That’s actually a really good question.

Initially, I actually wanted to make these even shorter term.

So, originally, I actually looked at, weekly options, like, that expire the next week.

But the thing about options is that there’s an element called time decay, which means that, as you get closer and closer to the expiration date, there’s, the value of the option decreases more and more, especially if it’s, out of the money or, yeah.

So the problem with the weekly trades, if they expire in a week, is that the value drops really, really quickly, which seems like a benefit at first.

But the problem is that, the amount of premium that you get is a lot lower. So for the risk you’re taking, it doesn’t really work out.

You may hear my cat in the background.

You can’t ignore that.

But, and so we also looked at options that expire two weeks out, and it was kinda the same thing.

And then we looked at options that expire three weeks out, and we just thought it was just the sweet spot where you get enough premium. It’s just far away enough that the time decay doesn’t, completely drop the premium.

There’s also just enough volume.

That’s another thing. If if the option expires next week, there’s probably gonna be less people trading it. And so the three weeks out kinda just felt like a sweet spot.

Theoretically, you you could do longer, obviously, but then you also have a longer period of time for the trade to go against you. So for now, I think, three weeks out is just that sweet spot that we wanna keep trading.

But, you know, if we do further back tests, in the future and we find that, you know, four weeks out works even better or anything like that, you know, we could always switch, over to doing that. We really wanna be as data driven as possible.

So, you know, as as long as the the data says that this is the most effective way to do it, that’s what we’re gonna wanna do.

And Marc and I, in general, tend to be very disciplined in how we trade. So unless the data says otherwise, we’re just gonna keep doing, you know, what what the strategy tells us to do.

Why does my broker TradeStation want me to have a minimum of two thousand in my account before making this trade. I have enough.

Yeah. I’m not sure.

You may have to yeah. You might wanna contact them and ask them specifically.

I can’t really think of a reason why that would be.

So, I mean, generally, all you would need for a single spread trade, and if the strike price difference is ten dollars, you only need a thousand and change. You wanna factor in some trading costs.

But, but two thousand, I’m not I’m not really sure.

I mean, you may wanna double check if maybe you selected, two strike prices that were twenty dollars apart and maybe by accident.

Otherwise, I would I would try to reach out and ask.

That’s caroline sixty eight. Let’s see.

Remember not to risk more money than you’re willing to lose. Yeah.

I mean, obviously, that’s a fair point. And like I said, we factor in, in in the nature of these trades that we’re trying not to lose more than a thousand dollars minus the net credit.

But if you wanna make more trades, or sorry. If you wanna, execute more than one spread, that’s gonna multiply. So it all comes down to what your risk tolerance is.

It hasn’t been filled at Fidelity.

I know some of these comments are maybe ten minutes ago, but, yeah, I mean, if you have a, you know, an order that, gets canceled by the end of the day, I mean, you would you could just let it leave it alone.

You know, hopefully, it does get filled. It’s been filled for a lot of people so far. I think most people might be using Schwab, but, I would assume that, there’s similar volume on on Fidelity, so there really shouldn’t be an issue. Hopefully, by now, it’s been filled.

But, otherwise, I would just, you know, leave the trade alone and then and, you know, see what happens.

In a volatile market we are at today, we gapped up twenty twenty five points above yesterday’s closing. Thanks for selecting a lower strike price. But once you recommend increase the short strike by five percent to give us even even further cushion?

Yes. You could do that. So I think I mentioned that, you know, the the way the math works, it is definitely based on volatility, and usually it’s three percent. Like I said, today we actually went a bit lower.

I I we were kinda trying to just give ourselves some cushion.

But, yeah, usually three percent works.

Things tend to get more volatile, especially when, the market starts to drop.

If there’s a lot of down trading action, you’ll see much more volatility that could get factored into the math of how we choose our strike prices.

But right now, you know, we still we still have a bullish outlook.

You know, if things go down, we also would consider using calls instead of puts.

So there’s a lot of things that we could change up depending on what happens.

But, again, three percent is roughly standard.

Today, we went a bit lower, actually.

So, yes, I mean, sometimes it’s appropriate to add a little more cushion.

I understood from Marc that we always exit the day before expiration.

Unless unusual circumstances.

The idea is to let them expire.

And I think Marc mentioned, I wanna say last week that, with the monthly options, they occasionally well, not occasionally. The monthly options the last trading day is the day before, which would be a Thursday.

And so in certain cases, we may get out of the trade early. It would have to be that Thursday.

I don’t I don’t believe he was saying that we would always do that.

I think he was saying that in the unusual circumstances, we would exit the day before expiration.

Fidelity shows a midpoint of one forty five. Should I go with that limit or drop?

You can choose so whenever you see the midpoint, it’s gonna change, you know, second by second.

So, obviously, I put in a limit at one forty, but, I mean, you’re definitely free to go above or below that.

The idea is that you really don’t wanna go above the midpoint, and if you wanna get filled, going a little bit under is to your benefit. So if you see one forty five, you could go one forty. If you happen to see one fifty by the time you get into your brokerage account and you go with one forty five, that’s fine.

You know, just know that, that the general idea is that the midpoint is as as high as you roughly wanna go.

I’m not filled yet. Should adjust my price.

I I don’t know what fill I mean, you maybe you used the one forty that I, sent out in the alert. But, you know, again, the price adjusts or changes, second by second, so, I wouldn’t change it.

You know, at that point, you’re kinda trying to chase the price, and you don’t wanna do that.

You wanna just let the limit order work.

And if you’re not filled, you know, worst case scenario, you don’t want to you don’t want to, like I said, you don’t wanna chase the price.

You don’t wanna chase the trade. You wanna let them come to you in terms that you are setting.

That’s just true for being a disciplined trader in general.

There’s gonna be times where we may not get filled, and, you know, we’re just gonna move on and and look for the next trade.

So, you know, if that happens to you, you don’t wanna look at it as a lost opportunity.

You really wanna look at it more as a a a risk management approach.

If you don’t get the price you want, oh, well, and and you just kinda move on.

Did you factor in commissions during your back tests?

No. In in the back tests, we, you know, we kinda stuck straight with the the the the index options the index prices and the index option numbers.

You know, the the the back test doesn’t factor in things like commission cost because that’s also something that kinda changes from broker to broker.

I mean, some brokers don’t even have commissions.

It kinda depends on what you use and but, a lot of these commissions are are are so low these days that, you know, I I think it doesn’t really hurt the backtest very much when you do count them in.

What would you do to minimize a sixty hit if we lose? I think I understand that question.

I mean, if we lose the trick you know, losses are part of trading.

You know, I think what we’ve done in constructing the trade is try to minimize the capital at risk. And, you know, if it’s lost, it’s lost.

We’re gonna just move on to the next trade and keep following our discipline. I mean, ultimately, losses are factored into the strategy.

There’s going to be some, but the other eighty six roughly percent of the time, you know, we’re gonna be winning. So, that’s already factored into the general strategy.

If one trade loses, we don’t suddenly change up, you know, what we’re doing just because of that one loss.

What is the net credit supposed to be?

So I’m not sure if you’re asking specifically, like, what the number should be or or what a net credit is, but, assuming it’s the latter, the net credit is how much money you’re basically earning as a premium for the tree.

So, we’re selling a put, so which means we’re getting something income, essentially, and it’s credited to our account. We don’t actually get the money until the trades expire, so it’s credited to us. And then we’re also buying a put which costs money. So the difference between what we earned and what we spent is the net credit.

Do you think using stop loss limit on spreads is too limiting and unnecessary?

I you know, personally, I think it’s almost always a good idea with options to use limit orders.

There’s a lot there’s a lot of, volatility with options in general. So, personally, I think that it’s a good idea, but it’s not always something that you have to do.

I mean, I think if you’re comfortable with, where the market is right now with with those spreads and you just wanna, you know, put an open order and I mean, that’s that’s fine. But in general, I think it’s more about trader discipline to say, I wanna try to get the best price at this moment.

Like I said, sometimes you might not get filled and a part of you is gonna feel like, oh, I should have just put the limit price higher or not put a limit price at all.

But in the long term, I think with experience, you realize that having some control over the prices you get filled at is a big part of increasing your success long term. It’s a direct factor in your profitability as well.

You know, sometimes it’s it’s gonna seem like a no brainer to put in a limit order. There’s gonna be other times where it’s gonna seem like it’s, a hindrance.

But overall, I think it’s, better to do it than not.

Do you need to set aside three thousand to do three trades? Yeah. So the thousand dollars is per trade.

So since you’re gonna generally be holding three over the over any period of time, you’re gonna probably be in three trades.

So you would need roughly three thousand, you know, plus some cushion for for fees, in your account to be in all three trades at a given time.

Are Friday expirations always better than other days of the week?

You know, there’s recently, there’s been it’s, you know, zero DTE opt options have been, like, a big thing and all that, and that’s that’s cool and all. I I think, you know, remember with our strategy, we’re we’re not only focused on trades that are expiring roughly three weeks out, but we’re we’re focusing on them because they have a number of benefits, some of which I mentioned already.

One of them is also volume and things of that nature.

Sometimes when you don’t trade options that are more typical, like an option that does expire monthly or on a Friday, There are less people trading it.

There’s less volume. It’s harder to get filled. So there are other kinda secondary factors to why we may not do that, and they’re not all necessarily based off of having backtested that information.

It’s more just experience with the market. It’s just sometimes easier to, you know, again, trade monthlies or trade weeklies to expire on on Fridays because that’s what most other people are doing.

Why doesn’t Schwab give me credit this morning on the options expiring today?

Yeah.

So the option expires so with monthly options, they expire on the third Friday of the month, and the price that they are filled at is based on the opening price. With weeklies, I believe it’s the price at the end of the or, actually, I might be flipping those two right now.

I apologize.

I believe it’s monthly. It’s the this at the end of the day and and weeklies is the open. I apologize if I’m flipping those two right now, top of my head.

So depending on what Mark which trademark was talking about, that may be why he said that, it would be expiring in the morning.

Do institutions do these trades?

Yeah.

Institutional investors do these trades, but I think what you need to factor in when it comes to big money institutions is that they have a lot more money to trade, and therefore, their trades make bigger waves in the market. So they they don’t necessarily throw in millions of dollars into, you know, a spread or something like that.

They they may have their individual traders trading smaller accounts, but, they’re not just throwing, you know, millions of dollars into a single spread trade or anything like that.

It it would completely mess up the market for them to do something like that.

Also, which is a topic of its own, but a lot of this institutional investors, tend to not operate in the public market. They actually have private, kinda like dark trading markets that they they do their trades in. So, sometimes it’s actually hard to follow their trades for that reason.

I think as of a year or two ago, I was reading some research, and it was like most of their trades are done privately now.

So, so it’s actually interesting to consider whether or not they do these trades now, in private, and we just don’t, see their effects on the market.

What is the stop loss if the index is tanking hard many days in a row?

Say your trade for one fifty credit is now three hundred against you. We don’t wanna accept the maximum eight fifty loss in any case. So what is our stop loss?

That’s a very good question.

I don’t know that we have a fixed rule for that.

It’s it’s a bit too, I’m gonna say, Marc’s discretion.

You know, this is his service primarily.

And so he definitely has discretion to if if you know Marc well, he he’s also a really good, technical analyst. And so that’s something he looks at a lot too when it comes to, stock charts, indexes.

And so if he feels like the trade, for technical reasons is going against us, he may just say, hey. You know what?

We’re gonna get out now, you know, move on to the next trade. But this we don’t really have, like, a fixed rule around what that looks like or, you know, exactly, as you put it, a stop loss.

We don’t have exact number for that.

But you’re right that, you know, there’s probably a certain amount of pain, if the market’s moving against us that we wanna suffer. And if it’s easier to just exit early, you know, we can definitely do that.

Okay.

I think, for today, I think we might be good. If you guys have more questions, you can always continue putting them in the chat, where you can email us.

But, hopefully, I was able to answer a good amount of them today.

You know, I’ll be also covering next week, while Marc is out, and the week after that. And so if there’s anything I haven’t addressed, I’ll try to address them next week. But, overall, hopefully, you’re enjoying your time with us and having fun and, enjoying these trades.

So, for now, I’ll sign off, and I’ll I’ll see you next week.