🚨IMPORTANT🚨Things YOU Need to Know about Net Premiums to Become a BETTER Trader!! — Transcript

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1. 0:04it's best to actually know actual
2. 0:06contracts that are bullish right so like
3. 0:08yes it looks kind of bullish but like if
4. 0:10you don't actually see any contracts
5. 0:12actually I have a I have an idea so like
6. 0:15you guys probably saw yeah I was going
7. 0:17to suggest the Nvidia Nvidia and 100
8. 0:20strike
9. 0:22calls so we saw these hit uh take your
10. 0:26attention to this side right here so we
11. 0:28see
12. 0:3136 mil in calls ask side calls on the
13. 0:3611th which is this thing right here the
14. 0:39hover over is annoying like so this
15. 0:41activity right here the 11th of
16. 0:43March um what did it look like on the
17. 0:4611th of March so on the 11th of March
18. 0:48like yes we do see so like if you just
19. 0:51looked at it let's actually just do that
20. 0:53right now I think I can get there how do
21. 0:55I get there all right so we're looking
22. 0:57at the net Prem chart
23. 1:01for the 11th so if I go back here so on
24. 1:04the 11th at like 10:30 at like 10:30 in
25. 1:09the morning to 12ish there was all that
26. 1:1336 mil
27. 1:15activity so like yes I do see like I
28. 1:18know we we know that this happened right
29. 1:20because I just went over it so we see
30. 1:22from 10:30 to like 12 like yes there was
31. 1:25like a pretty solid impact of net
32. 1:26activity but if you just looked at this
33. 1:29you'd have no idea you might even think
34. 1:31holy like in the morning there's
35. 1:33this guy let's actually go back and try
36. 1:35to find it right now so we're looking
37. 1:36for March 11th at like
38. 1:419 we'll say like
39. 1:439:49 in
40. 1:46change excuse me 949 and
41. 1:50change so I want to go to like
42. 1:53N9 we'll go to
43. 1:57950 just for the sake of find what we
44. 2:00want to find we'll just go to a put I
45. 2:02want
46. 2:05Nvidia let's do like 5K
47. 2:09maybe
48. 2:11uh probably let's just go like one mil
49. 2:14see what comes
50. 2:15up all right so I think we found our
51. 2:19culprit um
52. 2:22from like
53. 2:259:46 to 9:48 so like in 2 minutes there
54. 2:30was on the 139 put expiring next week
55. 2:34there was all
56. 2:36that mostly at the ask activity on this
57. 2:40put what happened to the open interest
58. 2:42which was closing activity this is
59. 2:45actually another great uh another great
60. 2:47learning moment I guess so again where
61. 2:51would the Nvidia chart go so again that
62. 2:54huge jump and put premium at the
63. 2:56beginning of the day let's just say
64. 2:58we're looking at it live right I go here
65. 3:00I see holy this is coming in right
66. 3:03now let's look at it all right so I see
67. 3:07again we we wouldn't see all this
68. 3:09information right here we wouldn't even
69. 3:10see this chart we would see a chart from
70. 3:11a different day we would see it uh it
71. 3:13would look like this so we would see uh
72. 3:18oh my God like you know 20,000 20,000
73. 3:21volume uh it was so far in the money at
74. 3:25the time but we see 20,000 volume but
75. 3:26like all there's there's a lot of open
76. 3:28interest right we just went over soone
77. 3:29someone requested that spy put uh that
78. 3:32was like the 480 spy put for next week
79. 3:34that one had way more open interest in
80. 3:36volume this one not so much but if you
81. 3:38just look if you just look down here and
82. 3:41you can even use the chart but let's
83. 3:43just look down here first so if you just
84. 3:44look at the Historical open interest you
85. 3:46come down here and you say oh wow on
86. 3:48this day just a few days ago there was
87. 3:51also 20,000 volume give or take the open
88. 3:53interest went up 20,000 give or take uh
89. 3:57I wonder if they are the same person uh
90. 4:01and lo and behold the next day the open
91. 4:03interest dropped to such a degree that
92. 4:05you could easily determine that they
93. 4:08were the same person indeed so if you
94. 4:10look at the chart
95. 4:13someone if they were they might have
96. 4:15bought these they might have sold these
97. 4:16who knows what we do know for 100%
98. 4:19certainty is that someone opened a whole
99. 4:21bunch of these on this day and they
100. 4:23closed a whole bunch of these on this
101. 4:25day but their close their close filled
102. 4:28at the ask which made the chart jump
103. 4:31like this when in fact this
104. 4:35activity it's like it was it it's like
105. 4:38it's it's meaningless is I mean it
106. 4:39depends like right if maybe if this is
107. 4:41if this was a long position that someone
108. 4:43closed then it's it could be bullish
109. 4:46right oh someone just someone just
110. 4:47banked on their Nvidia puts now they're
111. 4:49closing up shop or the alternative could
112. 4:51be someone you know got smoked and
113. 4:53they're that they're now closing it up
114. 4:55but either way just by looking at this
115. 4:58chart you'd have no idea right we just
116. 5:00did like 2 seconds not 2 seconds I'm
117. 5:02exaggerating like you know 2 minutes of
118. 5:04research and we found out that this was
119. 5:06probably not anything that we really
120. 5:08needed to be concerned about right uh
121. 5:12and then again on the 11th all that
122. 5:15crazy all this crazy flow right here
123. 5:17yeah there's you know it comes up here
124. 5:20but it doesn't stand out like crazy it
125. 5:22doesn't stand out as much as this I can
126. 5:23tell you that much right we can all
127. 5:24agree there so I think that's a that's a
128. 5:26pretty good example so you can't just
129. 5:29blind look at this and say oh the call
130. 5:31the put premium went up I bet like you
131. 5:33know someone bought puts like maybe they
132. 5:36did all we know for certain is that some
133. 5:37aside puts took place right here another
134. 5:39thing that the chart doesn't tell you is
135. 5:41whether or not the activity is multi-leg
136. 5:43or not let's see here uh if I just take
137. 5:46two seconds to look for a big multile
138. 5:49roll kind that we see very frequently
139. 5:52well if I just type in like Tesla will
140. 5:54come
141. 5:56up so we see quite frequently these like
142. 6:00four leer things that like I don't think
143. 6:03have any directionality any meaning to
144. 6:06them at all this just some big hedge
145. 6:09funds way of doing whatever they need to
146. 6:12do right people way smarter than us came
147. 6:13up with this whatever they're doing but
148. 6:17so we see four
149. 6:19phills these two ones that are expiring
150. 6:22today are being closed like
151. 6:24100% uh these ones that are expiring
152. 6:27next week are being opened 100%
153. 6:29um but you can see
154. 6:33that uh so we have a Midfield right here
155. 6:35which like I said earlier 5 minutes ago
156. 6:38would have no impact on the net premium
157. 6:40so this this would have no impact
158. 6:42underneath that we have a bids side call
159. 6:45for
160. 6:474.15 million so this transaction reduces
161. 6:51the net premium chart the call line by
162. 6:544.1 uh 4.15 million these two are just
163. 6:58so small so like we won't even think we
164. 6:59won't even talk about them but this like
165. 7:01super complex trade that like probably
166. 7:04doesn't actually mean
167. 7:06anything uh dropped the call Premium 4
168. 7:08and a half mil or 4.15 mil on the 14th
169. 7:13at 11:15 so let's see if we can see that
170. 7:16in the impact time did I say it was
171. 7:191115 so you can't even see it because
172. 7:21like so much other happened 11:15
173. 7:23is like right there so you you can see
174. 7:25just like a tiny pixel drop right there
175. 7:28like that's all that was like like Tes
176. 7:30like I said Tesa there's just so much
177. 7:31stuff going on it's hard to read so yeah
178. 7:33just a lot of things to think about not
179. 7:35everything is As It Seems