Weekly Income Alert – November 28, 2025

Hi, everyone. Welcome to Weekly Income Alert. I’m Marc Lichtenfeld. Welcome to everyone who has been with us for a while, as well as to all the new folks. So glad that you are here. Hope you had a great Thanksgiving. Hey, do me a favor.

Let me know if you had trouble logging in today because we’ve had a couple of staff members who had a little bit of trouble. So, we just want to see if this is just somebody on their computer or if you guys were having some trouble. Looks like quite a few of you were having it. So, I don’t know. I’m not sure what the issue is if it’s Yeah, it looks like several login attempts. So, we’ll try to get that fixed on our end, although you guys are here already, so you’re the lucky ones, but hopefully we’ll get that resolved.

But great to be with you on Thanksgiving.

The day after, I should say, if I’m taking up more of the screen than usual, it’s because I ate my weight in carbs yesterday. So, we’ll try to fix that over the next week. But here’s what we’re going to do today.

If you’ve been with us for a while, you know how it works. If you’re new, what I want to do today is start off talking about the markets and the existing trades. Then we’ll get to the new trade and we’ll get to all that pretty quickly. And that way, if you’ve been with us for a while and you know the drill, you’re free to get on with your day and go hang out with the family if you have family around.

Or, hey, maybe you need a few minutes more of solitude in the office or the spare bedroom where you have your computer and you can tell the kids, Hey, I’m working on earning some money for Christmas presents, so leave me alone for the next hour. So, you’re welcome to stay. But I will try to get through kind of the market commentary and the trade fairly quickly, and then we’ll get to all the Q and A that I know many of you probably have. So that’s how we’ll handle it.

For those of you who have been with us for a while, I’d love for you to, if you could, help some of the new people if they have questions, especially specific broker questions, since, you know, I’m not on like Interactive Brokers or Fidelity. Some of the other brokerages I use Schwab, which I’ll be demonstrating. So, if people do have questions about those specific brokerages and you can help them, really appreciate if you help with that as you guys have been doing for months. That’s one of the really nice things about this community is everyone’s helping each other and new people have questions and people who’ve been doing this for a while jump in and help them along.

So, it’s one of the things I’m most grateful for actually about this weekly income alert. And it’s the thing that I look forward to the most all week long as far my work week is spending the time with you guys. So thank you very much for all that.

All right. So let’s talk real quickly about the market. So markets turned on a dime after, you know, a couple of weeks of being weak.

And today’s trade that expires today, the November twenty eighth trade, will expire worthless, which if you’re new, that’s a great thing. That’s exactly what we want. Remember, we are selling first. We’re selling high and then hopefully buying low.

And the lowest you can buy is zero. And that’s basically what this trade is designed to do. So we sell the trade, we sell the credit spread when we enter the trade, and then hopefully it expires worthless and we keep all the money. And then it looks like that’s what’s going to happen today.

Of course, anything can happen in next couple of hours. Remember, today is a shortened trading day. Market closes at one today.

So, we’re looking like we’re in real good shape. We’re going to keep the full credit from three weeks ago, which is our official trade was two point three five dollars two thirty five dollars might be a little bit different for you. Next week’s expiration is the two thousand two and ninety, two thousand three hundred.

Right now that’s looking real good. Again, anything can happen in a week, but it’s certainly looking quite strong.

The trade that we entered last week, and last week for the first time in six months, I switched gears and I went to a bearish trade.

And that’s obviously not in good shape right now because the market, like I said, turned on a dime and went straight up after that.

The reason that I did, as a reminder, the reason I did that was I was seeing things in the market that were very concerning to me. I was seeing new highs. We’re seeing fewer new highs. So, the trend of new highs was going down.

Breadth was weakening. Breadth is the number of stocks that are up versus the number that are down. That was weakening. I was seeing key support levels broken, and I was seeing that the financials were underperforming.

And generally speaking, the stock market has a hard time doing well when financials aren’t participating. And lastly, November is typically quite a strong period in the market. And the fact that the market was not behaving well in a typically strong period was very concerning for me too. So decided to take a bearish position last week.

And even though it’s not working out right now, we still have two more weeks to go. Anything could happen.

And I think it’s still a decent hedge in that we’re going to have other long positions, and I’m not one hundred percent convinced we’re out of the woods as far as kind of what happened a couple of weeks ago with the way the market behaved. So, we’ll have to see. We’ll see what goes on over the next couple of weeks and see if we need to trade our way out of the position. So, one common question that I get, especially for new people, is will we get out of positions early?

Sometimes we will. And if we need to, I’ll certainly let you know if we’re going to do that on this bearish position. But right now, we’ve got two weeks to go and so we’re holding steady there.

So, let’s get to the new trade. I am going back to the bull trade because that’s our default, right? Our default is a bullish position because when we did the backtest, eighty six percent of the time were winners and it was with the bull put spread. And that happened in all kinds of markets.

So our default is the bull, but we will, like I said, move to a call bearish spread occasionally when I think it’s necessary. Last week I did, but right now I’m perfectly fine going back to our default, which is the bull spread. So let’s go Oh, and just so you know, especially if you’re new, because I was talking about trades expiring worthless, or if today is your first trade that is expiring, when a trade expires, we don’t have to do anything. We don’t have to close it out.

It just disappears from our account and the money is already in our account because when we sell a credit, the money hits our account the minute we sell that credit spread. But what’s happening is one thousand dollars per credit spread is being held in your account. And then once that trade expires, that thousand dollars is freed up. And so then you can do what you want with that thousand dollars.

You could take it out. But you don’t have to do anything. You don’t have to close the trade. It’ll just disappear when it expires worthless.

So let’s get to today’s trade. Now, for the new people, this might be a little confusing in that every week, so every Friday, we’re placing a trade and that’s going to expire typically in the afternoon. And you don’t have to make a decision or anything. The trades expire the close on Friday afternoon.

On the trades that expire on the third Fridays of the month, there’s a choice between an AM expiration and PM expiration. So PM is the default for all the others, but the third Friday, there is an AM option or a PM option.

And today, because three weeks from now, which is how we usually trade, we trade these expirations three weeks out, three weeks from now is December nineteenth, that’s the third Friday. So today we’re going to do the AM trade, the AM expiration. And that means that you have the options expire on the morning on Friday, not the afternoon, on the morning. And the last chance to trade it is Thursday afternoon.

So, as soon as the market opens Friday, the trade is over. And so, you cannot trade it on Friday. If you plan on getting out, you have to get out on Thursday or earlier, but you can’t get out on Friday because as soon as that opening bell rings on Friday, that’s the price that determines whether we’ve had a win or a loss. Typically, it is the closing price.

But if we trade the AM option, it’s the opening price on that Friday. So, on Friday, December nineteenth. So, the last chance to trade it will be right before the close on Thursday, the eighteenth. So, the reason that I am trading the AM and that we often do, not always, but often is because the volume, the liquidity is much, much higher on those AM trades than the PM trades.

So, that’s usually why I do it.

Basically, more liquidity, the better chance of getting a fill, both entering a trade and exiting if we need to. So I’m just going do a little quick math here to see where the market is and where we’re going to make this trade and see what the volume looks like.

So it looks like Okay. All right. So I’ve got the trade. Let me I’ve got my Schwab account. So I’m going to share my screen and let me do that in one second here.

Okay, so this is my Schwab account. And again, if you’re on a different broker, it’s going to look a little bit different. And some of the things might slightly different, but basically the idea is going to be fairly consistent across all the brokers. If you’re having trouble with, you know, if you can’t see something on your broker site that we’re seeing that I’m showing on the screen here, again, the community.

People are very happy to help. But also, talk to your broker. That’s often the best way to do it because they are extremely familiar with their site and they can tell you things. But certainly try putting it into the community first here in the chat and we’ll see if we can get you an answer.

So, we’re trading the Russell two thousand index. That’s what we always trade. And we’re not trading the ETF, which is IWM. We’re trading the index itself. And there’s a couple of reasons for that.

The most important one is you cannot be assigned. So when you trade a stock or an ETF option, you can be assigned at any time before expiration. So if you’re selling a put, somebody can make you buy that put, buy that stock or ETF at any time.

You can’t do that with an index. You can’t be forced to buy an index. The only thing that can happen is at expiration, there’s what’s called a cash settlement. And if the trade’s a loss, then money will come out of your account.

If the trade’s a win, then nothing happens. You just keep the money. So that’s really, really important. We can never be assigned early on an index.

So on Schwab, you trade the Russell two thousand, it’s dollar sign R U T. I believe on Fidelity, it might be dot R U T.

Every broker might have slightly different ways of expressing the index. That’s one of the weird things about indexes. If you’re trading a stock, if you’re trading meta stock, the symbol is META. And that’s going be the case across every broker in the world.

Indexes, they all kind of have their own way of displaying it. So, with Schwab, it’s dollar sign R U T. I believe Fidelity is .R U T.

Yep, people are confirming that. I’m not sure what Interactive Brokers is, but it’s .R U T on Fidelity, dollar sign R U T. So you put that in and you can see strategy on Schwab.

It defaults to call. We want to change that to vertical put.

Now on your broker, it might say put spread or put or bear put. This would be a bull put, but you definitely want a put spread. And the reason that we want to put it in as a spread is because if we change any of these variables, the other one will change automatically. So for example, if we were to change the date to January, you can see on the bottom, this one automatically changes, because the put spread will have the same date. So I’m going to move this back to December, there’s no confusion. So it’s December nineteenth is the expiration that we’re going for. It’s three weeks from now.

And now we’re going to change the strike price here. So you can see two thousand four hundred and eighty, two thousand five hundred, that’s just what it loaded at. That’s not what we’re doing. We are going to trade the two thousand four hundred twenty and twenty four point one zero put spreads.

Okay, so when you do that, you’ll see down here, it defaulted to net credit. You want to make sure that you are getting a credit, okay? A debit means you’re paying money. We’re not doing that.

That’s not what the strategy is. This strategy is generating income every week. The money hits your account the minute we place the trade. So this needs to be a net credit.

If it says net debit, then you’ve done something wrong. You probably put the buy strike price higher than the sell strike price.

Why this is important to walk you through the mechanics of the trade. Right now, the Russell is trading at twenty four ninety eight. We’re saying that if the Russell falls below twenty four point two zero, we’re basically writing somebody an insurance policy, right? We’re saying we’ll take on the responsibility of paying you out if the Russell falls below two thousand four hundred and twenty. We’re selling that to somebody.

They’re taking on the risk of owning the Russell, and we’re hedging their risk for them and taking credit for it, right? Just like an insurance company does. But then we are buying a put as our own insurance so that if the market were to fall hard, we can’t lose more than the difference between ten points, which is one thousand dollars because options trade in one hundred unit increments. So, ten points times one hundred is one thousand dollars minus the credit that we are receiving, which right now looks at the midpoint is about two forty, it looks like.

So, the most you can lose on this trade is seven sixty dollars if you got filled at two forty, because that’s one thousand dollars If this trade goes totally wrong, dollars one thousand would come out of our account, but we’ll have collected two forty dollars today. So, at the end of the trade, the loss would be seven sixty dollars So, those are the mechanics of the trade. Now really, really important here on the price here. So you can see ninety cents here is on the bid, two point two five is on the midpoint, five twenty is on the ask.

So, typically when you are buying stock, you buy, I always say buy between the bid and the ask, but if you’re buying at the market, it would be at the ask. If you’re selling at the market, you’d be selling on the bid. You can see how wide these are, and that’s very typical in spreads. We never ever, ever want to sell a spread at the market because you will get a very, very bad price.

You’re not getting a fair price for it. So we’re always going for somewhere in the middle here. And and when you load up a a spread trade in your brokerage account, it’ll show you that midpoint just like it does here. So that two zero five two dollars right now is that midpoint.

And so that’s what we’re going to try to get as our price.

So, I put in a limit price down here. Now, what I typically do is I will put in a limit price just a little bit below the mid price just to give myself a better chance of getting the trade executed because you’re not guaranteed to get that trade at that mid price. So we want to see we want to try to make sure that we do get filled. And so what I will do and I’m not saying that you have to do this, but what I will do is to try to get well, I’ll place that that limit order just a little bit below, sometimes five to ten cents, depending on where the mid price is, to try to ensure that we get filled.

If, I suggest you try to get every penny you can out of this trade. So go for the midpoint. And then if you don’t get filled, can always lower it a few minutes later. That’s usually not a problem.

So you can see today the midpoint is falling even though the index isn’t moving that much. I think that’s because today is the Friday after Thanksgiving, so it is pretty quiet out there. Normally, we don’t see that. Normally, the trade does not move as people are coming into the trade.

We’re actually seeing it drop pretty precipitously right now, I think because people are placing this trade. Again, that’s never happened in the six months we’ve been doing. It’s just happening right now because of the Friday after Thanksgiving. It’s a little quiet right now.

So, I’m actually going to put the limit price higher and see if we can get filled. Normally, don’t do this, but right now the market makers are trying to take advantage of us.

When we trade stocks and options on especially thinly traded stocks and options. This kind of action can happen all the time where the market makers will play games with you. Trading index options, it really doesn’t happen often at all.

And again, in the six months we’ve been doing this, we’ve been doing this since May, I’ve never seen it happen. So you can see the midpoint jumped from one point six zero to two point two zero dollars even though the index didn’t even move. So it’s because today is the Friday after Thanksgiving and it’s a very, very quiet day. Normally, the market is much, much more smooth and organized and we never ever see this with this kind of action.

So, we’re back at two point two zero dollars again, now down to one point eight five dollars I’m going to put my limit at two point one zero dollars I think that’s about fair.

So, that’s what I recommend. Put your limit at two ten. If you don’t get filled, you can always lower it later, but I would give it some time. In the past, and it’s only happened once, but in the past, we once didn’t get filled till one in the afternoon.

Usually it’s within minutes, if not seconds, but it can take a little bit of time, especially if the market starts moving. The market’s not really moving today. Again, I think the market makers are just playing some games. I think we’re all going get filled.

I see somebody just said they got filled at two ten.

So let me review the order.

Okay, so you can see, let me just move this window here. So you can see we’ve got the prices here. This is the estimated amount. So if we get filled at two ten, we’re going to get two ten dollars that’s per credit. If you’re trading two contracts, then you would get four twenty dollars If you were trading five dollars it would be ten fifty dollars There is commissions and fees, so you can see what the total amount would be. So, before I place my order, you can go ahead and place it and let me know if you get filled.

Alison says, are we doing RUTW? No, we’re doing RUT because we’re trading the AMs, not the PMs this week because December nineteenth is the third Friday. So, it’s the AMs. So, I’m going to go ahead and send out the alert to everyone, and this is the way I do it.

So we set up the trade. For those of you who are watching the broadcast live, I say go ahead and place it. Then I send it out to everyone who may not be watching, and then I place the order myself in my account. So let me go ahead and place this trade.

So we said it’s the twenty four 20s and the twenty four 10s.

Looks like people are getting filled at two ten, that’s good.

All right, I am going to submit this trade to make it official.

Alright, I’ve sent the trade out. Now I’m going to place the trade myself.

Alright, I placed it.

Let me just take a look at my account to see if I got filled yet.

Sometimes, like I said, it can take a little while, especially today it’s a little quiet out there in the market, so it might be so I did not get filled at two ten yet, but we’ll see. I’m not too concerned about it. It looks like other people are getting filled, so sometimes it just takes a little while.

So, I’m going to stop sharing my screen right now, and we will get to your questions.

Raj says, I’ve been trading these spreads for about six weeks. I’ve noodled all over my Schwab account. Cannot find any record of the net credit I should be getting. Can you tell me where to look on my Schwab account?

All right, so let me take a look before I share it again. Let me take a look at my screen. So when you go to, hang on, let me So I just bring it up my Schwab account here. Okay, so if you go to on Schwab, if you go to Account and then Positions, you’ll see the open positions.

Let me share this screen again.

Okay, so when you go to account and then positions, this is what it looks like, and these are the positions that are open.

And then you can see where it says shows what your cost basis is, what the gain and loss is.

Now, keep in mind, it’s showing you each individual position. Oh, so I did get filled because it’s listed right here. So, example, the one that’s expiring today, this November twenty eighth right here. So, we lost two thousand five hundred dollars on the put that we bought, which is expected, but we’ve made two thousand seven hundred and forty one on the one that we sold. So Schwab lists them individually.

So you’d have to, I guess, do the math yourself. When you there should be a place to find let me see.

Let me see if there’s for order status.

So if you go to trade and order status, let’s see what that comes up with.

Yeah, so you can see it says vertical put spread filled two point one zero dollars So, you could go to, you know, today, you could go to past fourteen days, and it’ll show you, yeah, credit two ten, credit four twenty, credit two fifty five. So, that’s where you can do it. And I’m sure Fidelity is the same. If you go to order status and you can see your filled trades, you’ll see exactly where you were filled.

Let’s see, Glenn says, What is the symbol in TOS, which is Think or Swim by Schwab? That will be R U T.

So you can do that. And when you’re trading even the weeklies, you can trade it just as R U T. If you put in R U T W, I don’t think that works. So it will just be R U T on thinkorswim.

So again, you know, Schwab on their website is dollar sign R U T, but on Schwab’s trading platform, it’s just plain R U T, Fidelity. R U T.

Walter said he had problems logging in. Yeah, I apologize for that. It looked like a lot of people had problems. What’s the status on the bear call?

We’re holding steady right now. We’ve got two weeks to go. And although the market has turned and become quite strong since then, there are still some things out there that are concerning. And so I’m very comfortable having this hedge on because we have two other bullish positions right now.

So we’re going to give it a little bit more time and see what happens. If the market does come in a little bit, we can claw some of that back. We’re going to take that day by day, but right now, we’re not doing anything on that.

Yes, again, apologies for I don’t know what happened this morning, but there was trouble logging in.

Let’s see.

Couldn’t get filled on RUTW right yet. Today we’re not trading RUTW. Typically we are, but when we’re trading an expiration on the third Fridays, have a decision to make, whether it’s going to be the PM trade, which is R U T W or the AM trade, which is R U T. Again, this is on Schwab.

And today we’re trading the AM. And we’re often trading the AM trade on the third Fridays because the volume is so much higher. And it’s better for your entries and especially your exits. If we need to trade out of it, it’s really better when there’s a lot more liquidity, a lot more open interest, lot more volume.

So it just makes it easier to get in and out of trades.

So Dave331 says, I put in the trade for December nineteenth, but not AM. Does that matter? So it depends on if it said a. M.

Or p. M. If you had a choice when you were placing the trade. If you placed it for the p.

M. Trade, it’s not the end of the world. It just means you just have an extra day you know, for that trade until expiration. So if, you know, if the market’s going against us and it’s, you know, we’re heading right up to Friday morning and we’re at around break even, you know, we’re slightly ahead of the game, then you just might want to trade out of it and close it rather than take the chance.

But, you know, that’s something we can deal with as you get closer to expiration. Generally speaking, it’s not that big of a deal. The only difference is, again, you’ll have that whole Friday where the trade will still be live versus where it will it will end first thing in the morning on the A. M.

There was not a choice for you to choose A. M. Or P. M, then the default will be AM for the December nineteenth trade.

Normally it will be PM, but for December nineteenth, like I showed you on the Schwab, December nineteenth is the monthly trade and that will be the AM trade. But again, if you did place the PM trade, it’s not the end of the world. You’ll just have that extra day to trade and wait till expiration.

Jonathan D406, do you let the November twenty eight spread trade expire? Do you close it? So we are typically letting winning trades expire. They expire worthless and we don’t have to do anything. If you were to close it out, then you would incur a commission. Granted, they’re usually pretty small, as you saw on my Schwab account. For one credit spread, it was a little over a dollar.

But there’s no reason to. If the index was real close to our strike, let’s say, what was our strike today? It was twenty three point two zero. So let’s say the Russell was trading right around two thousand three and twenty or even slightly underneath it. Yeah, we might want to close it out just to make sure we’re out with a win and it’s worth paying that dollar, two, whatever you’re paying in commissions, that might be worth doing. But when we’re reasonably confident that it’s going to expire worthless, we just want to let it expire worthless. We don’t have to do anything.

The money just stays in our account and the trade just disappears from your account. You keep all the money. And that’s basically the plan every week. That’s what we want to do. And that’s mostly what we have done.

As you know, you know, we don’t have one hundred percent track record. We have had a few losses.

But for I think all but one of the wins, just let them expire worthless and didn’t have to do anything. So, that’s always going to be the plan. But again, we’ll manage that as we get real close to expiration.

If we’re concerned that a winning trade could become a losing trade or that we’ll have to give up some of our gains, then that’s something we can trade out of and is sometimes worth it. But generally, we’re letting it expire worthless. Easy peasy. So that’s another great thing about the strategy. You place the trade and if it goes your way, you don’t have to do another thing after that.

Mark said you said two thousand three hundred twenty, two thousand three ten. I was talking about today’s expiration, the one that expires today, not the one we just added.

So Glenn says, I am on MUMOO. The minimum I can find on the chain is twenty fourseventy.

So I’m not familiar with MUMO, but there should be a way of scrolling up or sometimes in like a pull down menu, it might say just the five closest strike prices to the current, there should be a way of choosing more strike prices. So, it’s ten, twenty, thirty strike prices, whatever it is, there should be a way of finding more strike prices than just the ones that are kind of bunched right around the current price. If you can’t find it, definitely ask somebody at the broker because you should absolutely be able to trade these strike prices.

Dave E6287, is there a replay? There is always a replay. We send it out shortly after.

I can’t recall exactly what time the video gets sent. It takes a little bit of time for it to get, I don’t even know, it’s not produced, but for it to get saved and then put an email and sent out. But it does get saved. Absolutely gets sent out.

Larry losses, November twenty eighth. Russell won’t close until the end of the day. Correct. But today’s end of the day is at one because it’s the holiday weekend and today’s a shortened trading day in the market. So, one is the close for the market. So, it will close at one today.

And speaking of the holiday week, by the way, today is, as I’m sure you know, you’ve probably seen an ad or two online and on your TV. Today is Black Friday. And we actually do have a Black Friday special.

You know, right now, today’s trade closes with a winner, meaning the trade that expires today will be twenty three for twenty six. So another winner. And I’m hoping that you’ll be interested in staying with us for the long term. So we have a Black Friday special to renew.

I believe it’s the best pricing we’ve ever offered since it is Black Friday. So Rachel, if you wouldn’t mind putting up the link, anyone who wants to make sure that they’re going to be getting these trades and making money week after week for longer than you, your original one year subscription, we’d love to have you longer and the price is going to be excellent. So, Rachel put up the link right there at the top. So definitely encourage you if you’re interested in staying with us, this is going to be a fantastic price. So hopefully you will do that.

Glenn says, should you always try to get filled on the Friday or seeking high credit, leave it ride for a day or so? Great question. So we place our orders day only, not good till canceled. We want to get filled on Friday. And the reason is so Friday’s volatility is typically slightly higher, which means we’re going to get a little bit more money for our trade.

Also, know that Fridays typically are the best days to trade this type of trade because we’ve we’ve run the back test. And importantly, anything can happen between Friday’s close and Monday’s open. And if you have an order out there that’s good till canceled, which means exactly what it sounds like, that the order is open until you cancel it and the market changes, you could get filled at a bad price. So for example, you put in your price today, limit price two point one zero dollars and Monday the market opens much lower.

Your order is out there saying you’re willing to trade the spread at two point one zero dollars you might get filled at two point one zero dollars when now the real market is three dollars and you got screwed because you had an open order. So if you’re I always like to have my orders and even if I’m just trading a stock day only, because then if the next day I can just go in and reassess. So if you didn’t get filled today and you wanted to go back into the market on Monday, you’d want to see where the market is trading on Monday and not simply, have that open order because the market makers will play games with you sometimes.

They will, you know, you’re saying, Hey, this is the price I’m willing to trade it at. They say, fine, I’ll make that trade for you, even though it’s not a fair price anymore. So, that’s why I always had good I always had the day only as my time limit on the trade, not good till cancel. You can always go back in the next day and place the trade yourself.

But I strongly encourage day only orders.

So, is a really good question by William. I noticed that I can close my two contracts that expire next week for only four dollars The Russell would have to collapse about eight percent for me to lose those two contracts, which is unlikely, but for four dollars wouldn’t it be worth it for me to close them now instead of rising, losing two thousand dollars That seems like a great deal. Take the bird in the hand. Am I missing something? Any advice, please? So, as you know, I can’t give personal advice, but from a risk reward standpoint, that seems to make sense. I’m not seeing that on my screen.

Oh, okay, I see what you’re saying. Yeah, on my screen, it’s a little bit higher than that, but yeah, I understand what you’re saying there. So, think that’s a very fair question where if you can close it out for next to nothing. Generally speaking, I usually don’t recommend closing out a trade early. We want to capture every dollar that we can because to be fair, when there is a losing trade, it will often eat up a week, two, even three weeks worth of win. So we want to make sure every win that we have is for the maximum that we can.

But like William pointed out, you know, you’re pretty close here to one hundred percent win. So if you want to take that win right here, close it out. You know, there’ll be a little bit of commission. But I’m not going to argue with you if you do that from a risk reward standpoint.

That’s not a crazy idea at all. I’m not going to do it today. I’ll probably look at it early next week, see where the market is and see if that makes sense to just close that out. But yeah, don’t think that’s a crazy notion at all.

So J. L. Mallowan says, is there usually enough open interest to trade in or out of fifty contracts or even one hundred contracts? So when you’re trading an index option, it’s very, very different than trading a stock option or even an ETF.

Sometimes if you want to trade big size like that in an ETF or stock, it can get messy because the volume and open interest just might not be there. With the indexes, that’s really never a problem. The indexes themselves are so liquid. There’s so much going on that when you think about it, typically we have anywhere from seven hundred to one thousand people on this call.

You know, we have many more that are not on the call, but that are trading weekly income alert. You know, we don’t know exactly how many people are making the trade versus just kind of watching and learning. But whatever it is, there’s a decent amount of volume going into these options every single week. And because they’re index options, it’s never a problem.

There’s tons of liquidity here in index options. Another reason to trade index options. I mean, the IWM, the ETF for the Russell two thousand is certainly a very liquid ETF, no doubt about it. But the index options themselves are extremely liquid and it’s never been a problem.

So, if you are trading decent size, then you’re not going have a problem getting filled. The one thing I will say, you’re trading a big amount, just make sure that you’re approaching it from a risk tolerance level that if you do understand completely what the maximum loss can be and that you can handle that because, you know, you want to make sure you never get wiped out on one trade. That’s the worst mistake any trader can make in any situation. You want to make sure you always have enough ammo to continue to trade and stay in the game and make back any losses that you might incur.

Oh, interesting. Andy says Fidelity limits you to twenty contracts per trade on the Russell. Interesting. I wonder if that’s total or if you could, let’s say, move your strike prices five points away and place another trade. That’s interesting. We’ll have to look into that. I hadn’t heard that before.

So Peter R. Says, Your offer says that we would have access as long as you publish. What if six months from now you decide to stop publishing and close the weekly alert? I don’t anticipate that happening at all.

That’s a very fair question. And we have closed other services in the past, no doubt about it. It’s usually after quite a few years of them running. And this one, you know, I’ll be totally upfront.

It’s you know, the track record is fantastic. So, we certainly don’t want to close it then. And we have new members joining all the time. So, we have no incentive to close this.

So, that’s not going to happen anytime soon. I promise you that. So, don’t worry about that. We will be running this for the foreseeable future.

Like I said, it’s one of my favorite parts of the whole trading week, so I don’t want to give that up quite so easily. I’ll have to claw it out of my hands if they wanted to stop doing this.

Yes, another question about the twelve point one two dollars trade on the bearish trade. Again, we’re not doing anything right now. We still have two weeks to go. As you guys have seen before, a lot can change in two weeks in the market.

So we’re not going to make any changes at this point because I mean, really at this point, the the loss is pretty much close to the maximum loss right there. So there’s there’s there’s no incentive to close it out right now. So, you know, we’ll see if we can get some of that back at some point. There’s two weeks to go.

A lot can happen. And again, you know, the market was great the last week, a week and a half. Before that, it was really, really tough. So, I’m not convinced that we’re just going straight up for the next three weeks.

I think there’s going to be some bouncing around here and there. And so, we’re going give it a little bit of time to work itself out and see what happens.

Joseph, where does the Russell need for us to close to be profitable on the twelve twelve trade? So the trade that expires on December twelfth, that’s a twenty three ninety, twenty three eighty. So we need it to close at, let’s say we got four twenty for it. So we need it to close at twenty three eighty four twenty is our breakeven.

So figure twenty three point eight four is our breakeven below twenty three point eight four and profitable. Again, that’s a bearish trade. That was the one bearish trade we put on. So that’s where we needed to go.

All right.

WMP says twelve twelve trade is dead. Let’s be real.

You could be right, but, you know, a lot of people were probably saying the same thing about, all the bull spreads that we had and bullish trades back when the market was tanking. You know, people tend to get very, very emotional and have recency bias based on what’s happening today in the market and what happened yesterday. And, you know, you may be very well right. You may be right.

That might that trade might not end up working out. But we still have two weeks and the market is very different today than it was two weeks ago. So, anything can happen. We’ll see what happens.

Maryland says, Could we sell a put spread right now for twelve point one two dollars to counter the calls? I mean, you you can do what you want. It’s your money. I’m not recommending that right now.

One thing that you should know about me with trading and it’s when I make a trade, I’ll certainly be willing to trade out of something that’s not working. Change my mind, you know, of course. But once I make a trade, I’m basically not looking in the rearview mirror, meaning if we take a loss, I’m not kind of harping on it. Same thing if we take a win, I’m not harping on it.

I’m just moving forward. And so if this trade for December twelfth doesn’t work out, I’m not looking at putting on a put spread to hedge it. We just put on a put spread for December nineteenth. We have another bullish position.

So that’s how I’m looking at that.

To try to then add a put spread for December twelfth where the credit is going to be a lot smaller. And then if that doesn’t work and let’s say the market goes back down, then we’re losing money on this bull spread, but we might not have even made enough money back on the call spread.

You know, it’s not a sure thing that that is going to help and it actually could hurt even worse if the trade doesn’t work out. So I’m not looking to hedge that trade. If it doesn’t work out, it didn’t work out and we move on. But today’s bull put spread, assuming, let’s just assume that this call spread doesn’t work out at all.

We have next week’s bull put spread that hopefully expires worthless and the one that we just put on today. So, the bull market is just continuing and a few weeks ago was just kind of an aberration, Then we are going to take a loss and it stinks, but the rest of these are going to make up for it. And again, right now, we’re twenty three for twenty six. That makes up for the losses even when the losses are decent sized.

So I’m not putting on a twelve twelve put spread. You want to do that, again, it’s your money. You have to do what’s best for you. I’m not recommending that.

Coaches, hey guys, options are risky. They can be a poor man’s Vegas. If you’re afraid of losing some money, don’t do options.

I will counter coach T’s statement, though, because the way we’re training it here is quite conservative. This is a conservative strategy. When you’re selling options and getting a credit, that’s not Vegas. I mean, you’re the house there, you know?

So, yeah, sometimes a whale sits down at your blackjack table and has a big win and the house loses money. But generally, the house wins. And that’s exactly what’s happening here. We’re the house.

When you sell options, you’re the house. So, you’re the casino. So, you’re the one generally making money over the long term. And that’s what I love about the strategy. Again, there’s going to be losses here and there, just like, you know, Caesars will lose money when somebody sits down and hits a jackpot. But, you know, there are a of bright lights and a lot of big entertainment and a lot of free food that is paid for in Las Vegas by gamblers losing money. And in this case, we’re the ones selling them that insurance, selling them the opportunity to gamble or to hedge their bets or however you want to look at it.

So, disagree with that. If you’re buying puts and calls, yeah, that’s speculative. You can hit some home runs, absolutely. And look, we love doing that.

Love doing that too. But this is very much an income strategy generated to every week, just kind of grind it out and generate income every week rather than speculating and hoping to hit a home run.

LJM says, Free food? They don’t do that anymore?

I didn’t know that. Oh, we have our Oxford Club Investment U Conference in Las Vegas coming up in March. I thought you could get tickets to the buffet if a good gambler. Hopefully, they still have free drinks on the casino floor. I haven’t been there in a long time.

Let’s see.

So Patrick, a fair criticism for those of us started a month ago, not good. I’m personally down three thousand dollars to four. Yeah. So we hit a rough spot.

No doubt about it. So we were I think we had one loss in twenty something. I think we were like twenty one for twenty two. We hit two losses in a row.

We were still right in line with the back tested results. Back tested results, excuse me, were eighty six percent. We were at eighty eight percent. We do have an open loss right now with that call spread, but we have we’re going take a win today.

We should be taking a win hopefully next week. So again, you know, if you joined last month, I apologize. Was just bad timing in that for the first time in six months, we took two losses in a row. But this strategy generally produces winners most weeks, eighty six percent in the backtest and now it will be slightly higher than eighty eight percent in real time over six months.

So, this is not a one month strategy. If you’re hoping to come in, make a whole bunch of money in one month and deem it a success, that’s not the way this works. This is a week after week after week strategy. As somebody said, you you get on base every day.

Like I said, you know, Pete Rose, Tony Gwynn are the greatest hitters in baseball because they just they hit singles and doubles every week. They just, you know, every day, they just got on base, got on base, got on base. That’s what we’re doing. It’s the speculators that need to hit those home runs.

We don’t. We’re selling them their opportunity to hit home runs. And we’re just collecting that income week after week after week. So, this is really a slow but steady wins the race strategy.

I would say it’s certainly quicker than, you know, investing.

Look, I love dividend stocks. You guys know that. But rather than, you know, investing in a four percent, five percent dividend stock for twenty years. This is obviously different than that, but it is a slow and steady wins a race where we’re kind of calm, just grinding it out week after week, collecting that income.

And I promise you, as we get past these two weeks where we’ve hit a rough spot and we’re making some money week after week, you’re going to absolutely love it and be thrilled. And so, yeah, if you started a month ago, that was not the best timing as far as our track record is concerned. But for five months straight, we had nothing but winners for the most part. So, I’m very confident that’s going to continue.

D. Doug says, I’m new to this. I did not trade today. I used Fidelity. Where can I find more detail on how to place the trade on the Fidelity platform? So if you go to your account trade options, I believe on Fidelity there should be a place where you can choose a put spread or a vertical spread and you would choose puts.

But I would talk to somebody at Fidelity for sure. Maybe somebody here knows some places that you can look. But I’ve definitely talked to somebody at Fidelity if you can’t find it on the website or their platform and say, hey, I’m trying to place a put spread. I can’t find exactly where it is. Let me know how to do it. They’ll be happy to help you.

Let’s see.

Alright, we’re getting close.

Where’s the page to get text alerts? So Rachel, if you wouldn’t mind putting up that link so anybody who wants to make sure they get text alerts can get signed up for that.

So Nick123 says, still haven’t gone filled at two fifteen. Should I lower it or wait?

I just lost that. Or wait since the market is slow.

So, I had my limit price at two ten dollars and it looked like a lot of people got filled at two ten dollars Let me see where we’re trading at right now. Dollars twenty four point nine nine, so pretty much right about where we were.

Again, I can’t give personal advice.

What I do recommend is if you don’t get filled at the price you’re looking for, you can lower it by a nickel and see if you get filled.

If today were a regular trading day, I might say, hey, give it give it a little bit more time. But because it’s concentrated, because the market closes at one, you might want lower that price a little bit in order to get filled. You want to make sure you get filled today and especially because your two fifteen was above my limit price. So if you want to make sure you get filled, you can try putting in at two ten and see if that works.

It looks like a lot of people did get filled at two ten. Generally speaking, I don’t recommend going below the limit price unless the market is moving against you. If the market was ripping higher, then you would have to settle for a lower limit price. But right now, it’s staying right around there.

Carol says I did lower my price from two fifteen to two ten and got filled. Yeah. So CSS says it got filled two twelve.

Yeah. So yeah, you can play around with that a little bit. And you do have about two more hours until the market closes today.

Eddie C, thank you. This is the best option service I’ve ever used. Thank you very much for that, Eddie. I’d love it.

Yeah, Mike says he just got filled at two ten.

Let’s see, let’s try to get to one more question.

Donnie V. Says let’s oh, I just lost that. Where’d it go?

All right, now I can’t find it.

John M. Says many brokerages have training videos on YouTube. Otherwise, call account services for assistance. Yeah, and we have a lot of options material on our website, on the weekly income alert website.

There’s my options tutorials. There’s lot of things. It won’t be specific to your broker, obviously. It won’t tell you where to find it on your broker site.

But you know, you can also, I would assume if you just went to YouTube and said, you know, trade spreads on Fidelity, there’ll be something there to show you. There’s so much content online for that kind of thing, just instructional videos like where I can find something.

I bet you could find it there. But your broker is really going to be the best place to find that.

Joe says, Time for a turkey sandwich. I guess you’ve got some leftovers.

Mike H. L. Says, Is it normal that on IBKR TradeStation the bid ask shows twenty cents, three seventy? This is crazy.

So, I can’t speak about TradeStation, but yeah, on these spreads, remember I was showing you how wide the spread was between the bid and the ask. That’s why we always go with the midpoint because you never want to sell on the bid. You never want to buy in the ask when you’re trading these spreads. And often, I mean, even when I’m just recommending a speculative option saying, you know, buy a call on a stock that I’m recommending, I’m usually always recommending buy between the bid and the ask because spreads can be wide and the market makers will rip you off if they can. So, don’t pay too much attention to what the bid and what the ask is. You really want to be focused on that midpoint. And that’s generally you’re going to get filled there usually.

We’ve really never had a problem. Today was kind of the wonkiest situation we’ve ever had. And again, that’s because it’s the Friday after Thanksgiving. Normally, when we put the limit price at that midpoint or like a nickel below it, boom.

You see the chat lighting up. Got filled, got filled, got filled. So, really that midpoint is your guide. Don’t worry about where the bid and the ask is.

And that goes also for when you’re checking on your positions. You might have sold a two ten and then you look and you see you know, the spread is something like you said, or I’ve seen crazier things like, you know, dollars zero five and eight dollars or something. And, you know, really that midpoint would be closer to four dollars And that’s going to be what you would gauge where the position really is trading because that’s likely where you would get filled. So, that’s a really, really good point.

Don’t pay attention to the bids in the ask. Really, the midpoint is the main price that you want.

All right, last question, AR00, my first time question after three weeks, do we need to do something or does it expire automatically unless we get notification to get out early? Correct. It will expire automatically. If we need to trade out of it, I will let you know.

Sometimes we’ve even done it here on the Friday broadcast and I share my screen and show you exactly how to get out of it. But assuming that we’re not and it’s expiring, we just let it expire. We don’t have to do anything. It expires worthless.

The trade disappears from your account. The one thousand dollars per spread is the hold is lifted and you just move on. That’s kind of the really nice thing. You just move on with your day.

So, with that said, I wish you all an amazing Black Friday. Again, we do have this Black Friday special. If you want to make sure you are going to be trading with us well into twenty twenty six and beyond, hope you take us up on that. We still have a fantastic track record.

We’ll be twenty three for twenty six as of today’s close. And I plan on doing everything in my power to keep that going. So have a great holiday weekend, and I will talk to you next Friday. Take care, everyone.