How Cheaper Flies Make More Money

All right, we are live. How you doing, friends? It is Tuesday. This is the Zero

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Days to Expiration podcast and we do this every Monday, Tuesday, Wednesday morning at 9:15 a.m. where I provide

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presentation on zero DTE trading the way we do it, which is extreme asymmetry. That means an extreme risk-to-reward,

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very small risk, very large reward to affect a very particular outcome and that is to help you become consistently

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profitable, independent, and trade at a pro level. So today we're going to go,

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as I said yesterday, talk about some of the fundamentals of this strategy and perhaps the most basic fundamental is

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that asymmetry. And so that's what we're going to talk about today. and in particular where it all stemmed from something called the 10% debit rule. Oh,

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I realized that I am Let's switch cameras. There we go. Let's turn close that laptop there.

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All right, we are set. I need to get my presentation up. Let's see. Where are you? There you are, Mr. PowerPoint.

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Make it nice and big and then we'll get to it. So, I produce a a PowerPoint

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presentation for all of these, for most of them anyways, for most of these shows.

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And I will put the link down in the description. I don't believe it's there right now, but it will be there a little later on. So, if you wanted to get that PowerPoint and then look at it later,

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it'll all be there for you. So,

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let's let's get this going. Ah, there we go.

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I should put this in presentation mode or something. Only if I knew how.

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This will do. And hold on. Cool. All right. The 10% debit rule. Now, what

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does that mean? The the 10% debit rule is really the most basic thing that we

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that we say in terms of setting up your trade. By the way, if you have any questions or comments, please in the

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comments, just say what you'd like. I'll I'll monitor those. And if you like this presentation and you like what I'm doing here, give it a thumbs up. I really appreciate it.

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So, the 10% debit rule, perhaps the single

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most important pre-trade filter that you can apply to a zero DTE butterfly. I guess I didn't mention that earlier, but

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if you've been watching this with any regularity, then you know that we trade out of the money butterflies.

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And the reason why we trade them out of the money is so that we can push them far enough out so we can achieve that small risk, large potential reward. And

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then through our management process, we can get the majority of our profits outside that butterfly and occasionally

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get inside of it. But that's for another story. We'll talk about profit management and how we actually go about

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all of that. This is really the setup that would allow will allow us to get that and why we do it in the first place.

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So this rule is really what separates pro-level results from random outcomes.

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And I don't say that very I don't say that lightly at all. In fact, you'll find out exactly where I discovered the

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10% debit rule and when I discovered it and what we've done since then to improve upon it, but it is our most basic rule for setting up a trade. Now,

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again, I'm doing all this for really three purposes. to help you become consistently profitable,

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be independent as a trader, understand why you're doing the things that I am purporting and to trade at a pro level.

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All right, so let's think about this random versus pro.

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So a random trader whatever they do it it pays whatever the chain shows hopes that the market goes

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their way and equity curve looks like a coin flip or big peaks and troughs. The prolevel trader filters every trade

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through rules and this one rule is extremely important. They skip the ones that fail and let the 30% hit rate compound. When I say 30% hit rate,

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let's be clear. I choose 30% as our base level. With this strategy, you can

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easily be very successful with as little as a 30% win rate. Now, most people that do the strategy for the zero DTE type of

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setup are going to see something between a 45 and a 55% win rate. And you might think, man, that is awfully small,

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right? Shouldn't I be going after the high win rate? Here's the the thing that you perhaps don't understand or haven't

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really thought about. While a high win rate sounds fantastic and intuitive,

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there is a fundamental flaw with it. And it's just like going to the track. If you want to bet on the winning horse,

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you're going to have to pay a lot of money to get what is potentially a relatively sure bet. So you have to pay a lot to get a little. In other words,

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you have to risk a lot to get a little.

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Now you think that the risk is good, so you don't mind paying that amount of money to get that small win. It works

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exactly the same way in trading. If you want to have certainty or well relative certainty that you're going to win or a

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high win rate, then you have to risk a lot of money. And in trading, it's far more exaggerated than say a horse race.

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So, in order to get that 80% or 90% win rate, you have to put a commensurate

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amount of risk up front. Now, you might think I'm protected from the risk because it's a low probability that I'll

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hit it. And besides, I'll be able to risk manage my way out of it. And of course, I'm probably telling you

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something that you know for sure that's not necessarily what happens. And in fact, I can tell you for a fact that for

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95% of you, eventually over a fiveyear period, it definitely doesn't. And that within that period, you're bound to

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break an account or bust an account. And that's just the reality of things. So,

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what is it about high win rate that is appealing? I think we all like that dopamine drip that we get when we have that high win rate and small little

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returns. we feel good about ourselves and we can excuse away those big losses that we get that tend to wipe out

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potentially weeks worth of our hard work. Now, you don't have to trade that way.

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You just have to give up the idea that a high win rate is the answer. The answer is not high win rate. The answer is

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getting risk adjusted returns. In other words, big returns for the amount of risk that you put on. And if you lose,

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make sure that that risk is super small so it doesn't hurt.

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See, you go the high win rate and every loss hurts. Not just a little bit, but dramatically hurts. It's really bad. So that's what we're trying to avoid here.

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And this is what the 10% debit rule is all about. Now, what does the 10% debit rule mean?

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We need to advance in the slides here.

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We already went through there. We're going to make you consistently profitable, independent, and trade at a pro level. What separates pros from

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random outcomes? Yeah. See, I failed you. I failed you. All right. 10% debit

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rule. The the 10% debit rule means that we want to position our butterfly and

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push it far enough out of the money so that the debit never exceeds 10% of the width of the fly. So for a 25 wide fly,

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we want to push it far enough out of the money so that the debit is no more than $2.50 or a 50 wide fly, no more than $5

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and so on. That's what the 10% debit rule is. So you might wonder where did this come from?

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Who decided that the 10% debit rule was the standard? And what does it actually do for you?

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Some of you may or may not know that long long time ago I was the chief architect of a very large Fortune50

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company called Sun Microsystems and the chief architect of the professional services and that meant

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that I was in charge of all of our professional services clientele,

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our tier one clients and the vast majority of those at that time during the dotcom era were on Wall Street. They were also in the northeast with the insurance companies and the big banks.

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So those are those were my customers and I oversaw major projects that involved thousands and thousands of developers

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and dozens of projects with the biggest websites in the world. That was literally my job and I used to commute down to New York City and go there on

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Mondays and come back on Thursdays. But I had a place right down by Wall Street and I my office was actually in the

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World Trade Center, Tower 1. And so I would our customers were like the NASDAQ exchange (NDAQ), the American Exchange, Credit

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Swiss, TDM Trade, HSB (HSBC), all of the biggest banks and options, the brokerages and ex exchanges were all

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right there. Those were my clients and we were doing projects for them. They all use Sun hardware and Sun technology.

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And so often I had the opportunity to go down onto the exchange floors and hang out there to oversee the projects of

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course, but it also gave me the opportunity to talk with a lot of the floor traders. And that's where I discovered the 10% debit rule. They were

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trading there's the market. They were trading zerodt options and using what they called the 10% debit rule. And

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that's exactly what I had just said is they made sure that the the cost of their flies were no more than 10%. And

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the reason why I think they chose the 10%, this is just my speculation, was that as they're transmitting orders to the runners off the floor, they have to

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give hand signals and stuff. And so they already know what they're going to do.

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And I think 10% was the standard. It was easy to transmit that information. They just had to give quantity or whatever.

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But they also did it because it had a certain effect on their trades. It set them up for the best possible

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risk adjusted return that they could affect on that strategy. And I thought it was very interesting.

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Of course, I wasn't really a full-time trader at the time. I I was a technologist and I traded, but wasn't

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until a little bit later that I started when we started seeing weekly options come and then finally indexes that did

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options three times a week that I started to see the efficacy of this whole methodology.

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And a 10% debit results in a 1:9 risk-to-reward ratio.

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Now, there's a reason why floor traders are doing any kind of strategy, and it's because it's like evolution. They got

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there through millions and millions of trades and they learn what works and what doesn't work. And so, that's what

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intrigued me. And so, I started investigating that and looking at this whole idea of pushing things out of the money, not going for these high return trades or high win rate trades.

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And in talking to the the floor traders,

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I knew that all of them had essentially a 50% win rate, which at first didn't make a lot of sense to me. Why were prot

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traders banking on a 50% win rate? And the reason is because it's the realistic win rate. They know and they knew that they couldn't predict which way the

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market was going to go on any given day and that it was a coin flip. But what they could control was how big their

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losses were and what the potential was for their winners. And that's the key. And that's what the 10% debit rule does.

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It gives you that 1:9 risk-to-reward ratio. Means that when I lose small,

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when I win much bigger than my losses and over time, that results in a positive equity curve. That bottom left,

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top right thing that we all are looking for. All right, that piece of information right there deserves a

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thumbs up 100%. Because if you follow that, that thing alone is going to make

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or turn your trading career around. I guarantee that. Anyways, we'll we'll go on from here, but that is exactly where

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it comes from. I later learned that asymmetry isn't limited to 10% or 1 to nine. In fact, as you you could push

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this out to 1 to 15, 1 to 20, or even further. I've done trades as asymmetric as 1 to 50 and still found success.

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That's the key. All right, let's go on to the next slide here. Here we go.

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Now, what I what I discovered the reality of this trade was that this ratio or the amount of time that

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you get a a position in the money very closely mapped the same odds of

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getting in the money with a long call or a long put.

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And if you don't know what those odds are, you might think that buying a long call or a long put is a highly leveraged

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play, which it is. But did you know that you only get into in the money or a long

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call, a long put only ends up in the money at expiration about 12% of the time.

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And I started making the connection with the 10% debit rule. I realized that the butterfly where most people think

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getting inside the butterfly profit tent is the goal, it is not. But in order to get in the money or in the profit tent,

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that only happens about 12 12% of the time. So it's the same ratio as getting into the profit into in the money on a

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long call or long put. It's a kind of a universal standard and that's where they're at. And when you start looking at how it's placed

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relative to where everybody else is trading, the front edge of that butterfly is getting right at about that

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one standard deviation mark. Right about that point where most other traders are shying away from those odds. Most

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traders want to trade within that one standard deviation or the expected move

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because they believe that gives them the best opportunity to get into the money and because they believe that is the goal regardless of what the risk is. And

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what I'm saying is that's really the fallacy. That's the problem that most people most traders are falling into thinking that is the goal and it isn't.

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It's not the optimum.

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It's Let's see. I'll go on to the the next slide that kind of illustrates this. When you put a trade on, let's and

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you're putting it out of the money. This is an illustration of where the butterfly might lie. And you can see the

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at the money area here. That's where you where the current spot price is. There are two things that can happen.

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And this is universal. And you thinking that you know which way the market's going to go is not the question here because we all know that there's about a

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50/50 chance that it goes towards your strategy or away from your strategy.

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And this is exactly what these floor traders knew too. And that's why they knew that their win rate was around 50%.

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So it's either going to go towards your strategy or away from it. The key is to make sure that if it goes away from it,

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which will be about 50% of the time, you want to make those losses small. And if it goes towards your strategy, you want to have a strategy that will be able to

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return more than what you lost on the other 50%.

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And that return is all predicated on the risk-to-reward and the optionality that you're that you're going after. So that

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is the key. So what I found was that they were breaking down their trade into what is essentially three zones.

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There's zone zero which is the loss but there's zone one where about 37 12% of

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the time the market would end up or move somewhere in that area.

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50% of the time it would go against 10%

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of the time it would end up in one of the zone 2 areas and 2 and a.5% of these that time it would end up in what a lot of people call the pinned trade.

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Now again if you look at that the 10%

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plus 2 and a.5% there's that 12 and a half% again that's where it comes from and right on the edge of zone one and

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zone 2 that is also right where the expected move is and all of this started to click with me and I started realizing

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that these weren't just this 10% debit rule wasn't just haphazard it was purposefully placed in order to affect

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that ratio and that positioning for a very good reason because it all

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ended up or resulted in superior risk adjusted returns. That's the key. That is the number one key

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here. All right, let's go on to that next slide,

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slide eight. So, why lower debits drive higher returns?

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So the reality is that the further out you push your fly, yes, your win rate may go down a little bit, but not that

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much. In fact, sometimes it it may increase. The reality is that most people don't understand that you're not trying to get inside of the profit tent.

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There is huge profit to be made in that zone one area, that 37 and a half% of

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the time. In fact, the vast that's where the vast majority of your profits are going to be made. And the cool part about it is that relative to the risk

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that you take, those returns tend to average anywhere from 25% to 250% of the

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risk. So just think about that. that if you have a spectrum of returns that are between 25 and 250% of the risk, that

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means that many times that you're making substantially more than the losses that you're taking. And what I found was that

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in the practice of this strategy that just taking those trades, that 37 12% of

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the time in zone one tends to offset completely the trades that go against you.

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So that means that you're left with essentially a tie for those trades versus the losses. And now you have left

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over the other trades, the 12 1.5% of those trades where you're making substantially more.

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And that's what elevates your account. And that's the key. You're setting this up for mostly a tie.

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Most of the time you're in a position where you're becoming essentially the best possible loser or the best possible winner, however you want to look at it.

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But by by trading that, it's keeping you in the game and keeping you solvent and keeping you flat or relatively flat,

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maybe even slightly above in preparation for the inevitable, and that is those out- of-the- money trades.

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Now, how often do they happen? In the course of a day, while it only ends up in in the money about 12 and a half% of

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the time by expiration, but in the course of a day, it can actually exceed the expected move a fair amount of time.

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In fact, the amount of times that it exceeds expected move is well above 12

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a.5%. Now it might retrace and come back or whatever but in the course of that

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session it exceeds expected move by as much as 19%.

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So that means that almost 20% of the time you're going to have an opportunity to make an outsized gain

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by managing that trade. That's key. So it's not just the 12 and a half% of the time that you're making that money.

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That's that expiration that is there's an intraday move that can as much as 20% of the time end up inside of that tent.

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And your job is to manage that trade and take that profit. That results in inordinate size returns anywhere from 250 to 450%.

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And if it just so happens that it does end up in that profit tent and you can hold on to it to the end of the day,

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there's the possibility of making up to500%.

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So now you can see the math is starting to work with you. You're seeing that most of the time you're playing for that tie, but about 20% of that time you're

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making huge returns. And that's what elevates your account and you it ends up in a kind of a stairstep equity curve. But I'm going to show you

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that in a bit. But just to show you that that actually works. So here's another reality.

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A lot of people think that if they choose narrower flies, it'll get them closer to the money and give them a better chance. And while that's true,

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there are things about a narrow fly from an options point of view from a premium decay rate

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and gamma and the opportunity that you have with narrower flies versus wider flies. Wider flies generally give you a

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much earlier chance at making profit because the gamma is much higher. In other words, the sensitivity to price or

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the value of your position goes up faster with wider flies, even though they're further placed further out. And

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so, here's the the the result. If you put a 20 wide fly versus a 35 or 40 wide

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fly with the same relative debit, so in other words, the same 10%.

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an equivalent move towards your fly will make more money on the 35 wide fly than it will on the 20 wide fly.

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So in other words, the same relative amount, and what I mean by that is the same 10%

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debit. You might think that it's materially more if I pay there. That's true. But I would say that even if you go down and pay approximately the same

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and push that bigger fly even further out, it'll still make more money on the same move towards your strategy. So in

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every way that you look at it, trading wider and further out of the money pays more as a percent of the risk that you take. Now that sounds counterintuitive,

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but I challenge you to go and check it.

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Go get your think or swim. Set up those flies and look at the same move for the same percent risk to the potential

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reward. And you'll find that the same move makes more money for le makes more profit for less risk.

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And that's the key. That's it right there in a nutshell.

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All right. There's a question. I have a question that is not technical one but lo logistical. What is the physical activity of managing profit?

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Do you stare at your screen all day? If that's true, I'll do it. But what do you

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do? This is day trading. So, yeah, you get into a position you're managing the trade. Does it mean that you have to

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stare at the screen all day? Not necessarily. You only have to stare at it when you're in the money or in the profit. And once you've gotten profit,

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you need to manage it.

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And we have a complete management methodology that we use that and strategy that helps you re maintain the profit that you've achieved.

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And we'll talk about that at some other time where I'll go into great detail about what the profit management strategy is. In fact, there are other

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episodes that I've given already where I've talked about it, but I'll go into great detail with exactly what we're doing. Essentially, what you're doing is

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you're putting on a dynamic trailing stop.

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All right, James is asking why then don't you just do the widest fly possible? There is diminishing returns.

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That's why once you get over on the SPX anyways, once you get over a 50 wide fly, the returns start diminishing or

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not increasing. So in other words, you start spending a little bit more for the wider fly, but it doesn't give you a requisite better risk adjusted return.

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So with the SPX,

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between 20 and 50 is the sweet spot. For the NDX, it's much bigger than that. It's almost three and a half times that.

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So it's more 75 to 250 wide. And that is its range. It's all relative to the size of the index.

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So that's that's why essentially and you can test this out. You can go and put a 50 wide and then try to put a 60 or 70 wide SPX and you start realizing, man,

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I'm not really getting the same kind of return that I get on the 50 wide. It starts diminishing.

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So that's why. All right.

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Same with different debit, different trade. This is really what I'm trying to explain

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that that the math works for S&P and it's relative to no matter what you're trading too. You could be

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trading the S&P, the NDX. You could also trade the oil futures like the CL or

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gold futures, the GC. They both have five five expirations per week. So they make fantastic day trading alternatives.

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Particularly the CL, it has a lot more volatility and so you can get really good results with that. But there are

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caveats to that because it has different expiration rules and so forth and you really have to know what you're doing.

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We primarily trade the S&P or we can trade the NDX or you can trade the E-

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27 minutes, 39 seconds

mini S&P futures which is about half the size of the S&P or even the XSP which is

27:46

27 minutes, 46 seconds

also an index but it's onetenth the size of the S&P and it works fantastic as well. All with the same kind of ratio

27:54

27 minutes, 54 seconds

and end result potential but the SPX by far is the most liquid and the easiest

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28 minutes, 1 second

is cash settled. There's no problem with assignment or anything like that after expiration. We generally like the SPX.

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28 minutes, 10 seconds

The NDX is a little bit more of a wild card because it's volatility and its liquidity. Volatility is higher, but the liquidity is lower. SPX is is the sweet spot for sure.

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28 minutes, 22 seconds

And let's move on. How to scan for sub 10% flies.

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28 minutes, 29 seconds

This is the tough part. Unless you have a fly in the wall app, then it's a lot easier. But we scan for flies by

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28 minutes, 38 seconds

basically going to the options chain and having a good idea of where we how far out we want to be and take a guess at it and construct our fly and see where the

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28 minutes, 47 seconds

debit is. And if it's too much, then we then we push it out a little further. If it's if it's costing too little or it is

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28 minutes, 56 seconds

acceptable. So, in other words, if it's 30 wide and we're paying $3, then we we're right where we want to be. But if I can go another strike out and pay,

29:05

29 minutes, 5 seconds

say, $2, that would be cool. But if I go another strike out and I only pay 290,

29:10

29 minutes, 10 seconds

that's not a big enough change in the debit for me to justify going another strike out. But how do I know that

29:17

29 minutes, 17 seconds

without actually constructing it and then seeing that? And that takes time to construct that. And by the time you find

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29 minutes, 25 seconds

the right debit that you want, maybe the opportunity for entry isn't as good as when you first started to search for that fly. And I have a solution to that.

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29 minutes, 35 seconds

And let me see if I can bring that up right now and show you. And that is our fly-in-the-wall app, which is

29:44

29 minutes, 44 seconds

specifically designed to allow us to find Let's see here. There we go. So,

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29 minutes, 52 seconds

this is the Flyinthewall app. It's a beta product that I've been developing for the past several months and it is a

29:59

29 minutes, 59 seconds

full-fledged options analysis platform with all the same kind of facilities that you might find in Thinker Swim and actually things that Thinker Swimim does

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30 minutes, 6 seconds

not have nor does any broker have. And the cool part about this is the convexity heat map over here which has

30:15

30 minutes, 15 seconds

the entire options chain and you can choose any width fly that you want. This is geared towards butterflies. You can also look at it from the point of view

30:22

30 minutes, 22 seconds

of verticals as well, but we're looking at butterflies. And these are all these tiles represent the center strike of a

30:29

30 minutes, 29 seconds

butterfly. So if I know that I want to put on a 30 wide callfly, I can go to the 30 wide column and I can look for

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30 minutes, 39 seconds

the price that I want to pay. So right here is $327 and then the next tile is $2.37. It's 90

30:47

30 minutes, 47 seconds

cents cheaper. Now, the 10% debit rule would might bring me to that $3 mark,

30:52

30 minutes, 52 seconds

but I can go one strike out further and choose that and click on it and then put it into my into my analyzer. And there I

31:01

31 minutes, 1 second

am. Now, if I want to bring that right to Thinker Swim, I can copy the script and then paste it right into my Thinker

31:08

31 minutes, 8 seconds

Swim. And within seconds, I have chosen an optimally priced fly. I know why it's optimally priced and I know the

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31 minutes, 17 seconds

relationship between that and other strategies around it. And you're saving

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31 minutes, 23 seconds

at least 90% of your time and picking the right fly, the right moment for the right price and then getting to execute

31:31

31 minutes, 31 seconds

that within seconds rather than minutes or even longer. So anyways, that's how we do it. And let's go back to the presentation.

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31 minutes, 42 seconds

That's a benefit of joining our service, the flyinthewal.ai.

31:47

31 minutes, 47 seconds

We have a trial that you can join and you'll have access to that tool. But more importantly, you'll have access to our Discord and uh daily coaching and live streams, great service.

32:01

32 minutes, 1 second

Anyways, let's go to the next slide.

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32 minutes, 5 seconds

So, none of this really matters. Here's the coach coming out. unless you can execute these things in a consistent manner.

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32 minutes, 14 seconds

And a lot of this has to do with you shedding your preconceived notions

32:21

32 minutes, 21 seconds

that what you're doing is the way that you need to go. For instance, the high win rate idea. Letting go of that is not

32:29

32 minutes, 29 seconds

easy. And but it is necessary in order for you to accept what is the thing that you're actually after. not high win rate

32:38

32 minutes, 38 seconds

but risk adjusted returns and that requires an amount of discipline in following that strategy

32:45

32 minutes, 45 seconds

and you'll go back and to the very first week that I started this whole series I that's what I started off with was

32:53

32 minutes, 53 seconds

routine and developing that routine that discipline is what will get you there and that's really what the coaching

33:00

33 minutes

service is all about too I'll help you establish that routine and then stay on track. As a coach, I'm there to just

33:09

33 minutes, 9 seconds

like a sports coach to help you stay focused on what the what the goal is.

33:15

33 minutes, 15 seconds

So, the path to success really is you're not there to try to predict the close.

33:23

33 minutes, 23 seconds

You're there to put yourself in the best riskadjusted opportunity

33:30

33 minutes, 30 seconds

and then practice the fundamentals of your routine which is preparation,

33:37

33 minutes, 37 seconds

execution and then reflection which means basically you set up your trade,

33:42

33 minutes, 42 seconds

you execute it with what I'm talking about here with the right setup and manage it and then execute that profit.

33:53

33 minutes, 53 seconds

taking and then at the end you need to reflect on that. You need to log it. You need to journal it so that you can turn that into one big continuous improvement

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34 minutes, 1 second

loop. And what is the result? You could have an equity curve that looks like this. These are actual trades that I've

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34 minutes, 8 seconds

taken in the service. Every single trade has been recorded in the service.

34:14

34 minutes, 14 seconds

And over time, you can see this is a pretty good sample size over the course of a few years. 730 trades. Oh, the win

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34 minutes, 22 seconds

rate. That's not correct. I don't know what happened there, but my win rate is actually around 48%. That's I don't know what happened there,

34:30

34 minutes, 30 seconds

but anyways, my average win to average loss with a around a 50% win rate, anything over one will make you money.

34:38

34 minutes, 38 seconds

Anything closer to two is going to make you substantial money. But the key parts here is my average risk-to-reward almost

34:45

34 minutes, 45 seconds

1 to 10 and max draw down never went beyond 6%. Most pro traders, the gold

34:53

34 minutes, 53 seconds

standard is to have a max draw down less than 10%. And you'll see that most of the time my draw down never really exceeded 3 and a half. Most of the time

35:01

35 minutes, 1 second

even under 2%. And the times when it did get to that max draw down of 6%.

35:08

35 minutes, 8 seconds

I recovered very quickly.

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35 minutes, 11 seconds

And we'll do other other episodes where we'll talk about position sizing and how you can use

35:18

35 minutes, 18 seconds

position sizing to to manage that draw down. But anyways, this is what a a pro account looks like. Very little

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35 minutes, 27 seconds

volatility in my returns and starting to curve up and compound.

35:33

35 minutes, 33 seconds

And if you look very closely, you'll see it is that roundabout or stair step where I I make advances, go sideways,

35:40

35 minutes, 40 seconds

make advances, go sideways, advances,

35:42

35 minutes, 42 seconds

sideways, all the way up. That is the key. Where do you paste it in thinker

35:48

35 minutes, 48 seconds

swim? In the order entry pane. So that's the little tab that's down below. If you click on it, it pops up and there's a

35:57

35 minutes, 57 seconds

little clipboard where you would click and that would take whatever's on your clipboard and paste it into the order entry.

36:05

36 minutes, 5 seconds

If you're if it's confusing about where exactly that is. I don't know. I don't know if I have Thinker Swim up here. Do

36:12

36 minutes, 12 seconds

I? Oh, yeah, I do. All right. Maybe I can demonstrate it. All right. We'll do that.

36:19

36 minutes, 19 seconds

Let's demonstrate it. So, we'll go to here and we'll copy it.

36:30

36 minutes, 30 seconds

There it's copied. And then the next step is to go to Thinker Swim

36:36

36 minutes, 36 seconds

and you click the order entry that's right here. And you see this little paste button. Click there and it pastes

36:44

36 minutes, 44 seconds

it right in there. And then I can analyze the trade or send it to the market. So there's my trade that I just

36:51

36 minutes, 51 seconds

brought in. Bam. That quick. So hopefully that was useful to you. I mean that that's got to deserve a thumbs up.

37:00

37 minutes

That's a great feature. And let's see back to the presentation.

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37 minutes, 6 seconds

As I said earlier, 10% is our max that we will pay, but we'll go down as little as 5%. And again, this is the sweet

37:14

37 minutes, 14 seconds

spot. You'll find that a risk-to-reward between five and 10% the of the debit or I'm sorry of the width will give you

37:23

37 minutes, 23 seconds

that sweet spot. And that's anywhere from a 1 to 9 to 1 to 18 riskto-reward.

37:28

37 minutes, 28 seconds

When you start playing these types of trades a little further out, maybe 2D or four or 5 DTE, you can start pushing the

37:36

37 minutes, 36 seconds

flies even further out and start looking at risk-to-rewards as big as 1 to 25, 1

37:44

37 minutes, 44 seconds

to 30, even 1 to 50 and they're still effective and you can make substantial money or return on the risk that you take. Risk adjusted returns.

37:55

37 minutes, 55 seconds

You're not limited just to 10% or even 5%. It can go much depending on the strategy. We'll talk about those

38:02

38 minutes, 2 seconds

different types of campaigns in future episodes where we're not just looking at zero DTE. We're also looking at multi-day DTE. They're different types

38:11

38 minutes, 11 seconds

of campaigns. They're different than the zero DTE obviously, but it's all the same philosophy, same concept, and it works fantastic.

38:19

38 minutes, 19 seconds

The great part about all of this is that you're never really in in jeopardy or you're never in really any kind of

38:27

38 minutes, 27 seconds

anxious position because your draw downs are always small, your risk is always small and managing the profits is pretty calm and serene type of activity.

38:37

38 minutes, 37 seconds

All right,

38:39

38 minutes, 39 seconds

so where do we do all this? We do this on flyinthewall. That's flyinthewall.ai AI

38:45

38 minutes, 45 seconds

slashtry and that will get you a an observer a trial membership. And when you're an observer trial membership,

38:53

38 minutes, 53 seconds

you'll have full access to everything for four weeks. And you can do it week by week if you'd like and quit at any time. So there's virtually no risk to you.

39:02

39 minutes, 2 seconds

All right, there we go. Again,

39:06

39 minutes, 6 seconds

our goal is to make you help you become consistently profitable, become an independent trader, and trade at a pro

39:13

39 minutes, 13 seconds

level. Let me bring back the big head. I want to thank you all for showing up and asking the questions.

39:22

39 minutes, 22 seconds

Again, I'd love to see that thumbs up and subscribe if you haven't already.

39:26

39 minutes, 26 seconds

Join Fly in the Wall as an observer. Try it out. You won't regret it. Again, it

39:33

39 minutes, 33 seconds

is a coaching service that focuses on zero DTE trading that will help you trade at a pro level. All right, thank

39:42

39 minutes, 42 seconds

you all very much. We'll see you tomorrow. I don't remember exactly what I'm talking about tomorrow, but it's going to be a good one. And I'll take this presentation. I'll make sure that it's included in the description below.