We're discussing about last week's Watchlist how we came up with a few of the names and how to perform during the week We'll talk about Facebook and you Expedia Las Vegas Sands Let's get this through and start with Facebook look at how we I'll put it back to one hour chart we Mentioned Facebook on Monday where this Was a breach under an old support at 326 look at this bottom here and this bottom there One thing that came Destrike me was This is what it looked like on Monday was on a rapid descent and I was under the impression that this Could Could be looking for Triggering stops and then we could probably pop a little above This down turn line instead. I mean if we continue this I Mean, it's it looks like it's always it's it continues to go down And then it could bounce from there That's not why we're watching it and I'll show you why I was watching it in the first place, so<PHONE_NUMBER> was an old support We breached under and on Monday. I was like, okay, if we can stick above that I've mentioned and we've played this over and over again the line between 330 and 3 330 and 335 is a channel where it kind of stays in I mean if you continue that it Probably looks like that and it would probably looks like this here So it's a channel where it stays in between now. We're lower than that channel in the second channel below and I was under the impression that if we were Going to step back above this line the 322 line We could probably reach the top of the second channel which was 335 but instead of breaking it we Tested that old support again. Why was this support ma zoom out a little bit to show you and on the daily you'll see how This I mean it clearly shows how It was support From pretty much a long time Yes We breached a little under but 332 322 is 60 is a long time support So this is why it made it to the watch list because we were Attempting to breach under And then it's it grabbed support and it became Above it so The idea was why were we watching it? We were breaching support. However, it felt like it could pop above again so I'm going to still watch it because we're holding pretty well on this 322 6 and We prefer to buy the bottom than to get caught in the middle, right? Because if you get caught in the middle somewhere here, it's either, you know, you read that you get into profit You read you want to be in at the bottom for that for that play now next ticker over is M you now this one used to be the black sheet of the semiconductors now It's getting some love and given the fact that Semiconductors the man is extremely high and this one is not different It has a lot of strength and if you compare the strength it has better the rest of the market It is doing very very well and this is why on Monday we were watching it We hit all time high me screw We hit all-time high the week before Here at 98 45 and on Monday we were opening on old support I'll show you that in a second and when it sticks to support It shows you that maybe we can bounce and retest The level that we had and if you look at this here 98 45 and this is another 98 and this is very close to closing to the 98 where it closed at 97 50 something well 36 on the day, but this this is after hours We are very close to a triple top and trying to break through here So we were watching it on Monday made it to the watch list because we were on support Where from I'll show you that in a second. Let's move out here This is the one hour chart and look at what it looks like It used to be this guy that went to buy all the way up to here and no I'm going to sell so it became this point became resistance. This is not so long ago, right? It's 27 21st of December and and then We are using this yellow line the 91 ish line as support which We tested on Monday morning Remember I told you Facebook we tested under the old support now This one is right on it and it showed that it has a lot of strength When a mark even the one the market's pulling back this one is still writing pretty well now next one over is is Expedia X EX PE and if you look at the chart It looks very similar to what we had just seen on MU on Monday and made it to our list because of this we were here on support right and Here look at how we're testing support again. We hit a high there Sounded what I showed you with Facebook and then we hit the bottom and want to be in When it takes off just to give you a small idea From here to there during the week from Monday to Thursday to 190 see the 190 calls went from 90 cents to a Four dollar total and this is next week Expiration not ending on Friday next week expiration So they went from 99 cents to four dollars just on this upper move so We made it to the the the watch list for a reason came on support right there on Monday Also, it was upgraded twice To a buy rating and had a raised Price target, so these are the things that we look for support Upgrades and This was a PT raise so this Expedia made it to wash list for these reasons now next one over Now this one is Las Vegas Sands LVS. It made it to the wash list on if I believe Tuesday not on Monday. So basically we had Monday the bottom I'll show you right here the bottom was breaking through and I'm not gonna lie here pretend that we got in on this Play no because it made it to my wash list Here and here's why look at this yellow line again, you know, it's support and support Yes broke through pretty much just like Facebook did right and then it regained Here Started the day before ahead of support higher than support and What I liked about it are a few things. It was upgraded. Yes, but we have Chinese New Year coming up and a lot of people are going to Macau For the Chinese New Year, which is pretty much the Las Vegas of near Hong Kong Had a lot has a lot of casinos there. So Yes, this was a good possibility since we were holding support that we could rise Towards the Chinese New Year coming up. Also, let's meet. Let me zoom out from this showing you how this this support line is Pretty strong. Look at how it used to be Pretty much testing here on support it tested support again tested support again and then it broke under and Basically, sometimes I think that they're going fishing. They're grabbing a lot of stops Cheap shares and then next day what happens? We're still above support and off we go for the move and what happened on Friday Here is they got they have changed a few of the regulations for Macau basically now this is becoming very bullish for them and Remember that Thursday We had Delta Airlines Recording also had Expedia. We just talked about earlier in the week. So basically to travel Sector is doing pretty well this week. So this is why this made it to the Watchlist so remember things that I'm looking at are a reason in this particular case We have the Chinese New Year coming up. We have the It was upgraded The sector is doing pretty well and I'm looking at the chart. I mean it looks decent. It looks like it's really well Bouncing on support on all of these points. So remember When we say it gets upgraded it doesn't mean it's going to go up Means people that are going to look at it It might create volume and sometimes if they're creating volume for good reasons like this particular case It makes it pop and go higher. So I hope this helps I will try to post a recap of watch list As often as possible and thanks for watching folks


We found a piece. Alright. Good luck on your next mission. Yeah. Have fun in space. Right. Happy Halloween. Do you guys have a favorite Halloween costume you ever wore? This is my 7th year of being an astronaut and I have two costumes because I outgrew one of them. Wow. It's your day job and your Halloween costume. It's a super cute costume so far. That is a tough one. That keeps you warm. One year I made a mistake of being... A lot of wizards come out on Halloween. Hermione. Favorite character. So that is a great costume. And we have Hermione's best friend. And I just can't seem to put it down. Well, do you want to hear a deer joke? I do indeed. So, what do you call a deer with no eyes? There's more. Okay. What do you call a deer with no eyes and no legs? Tell us. Still. No idea. Oh. Because we can't move. We might have some more trick-or-treaters coming along. I don't see a witch over there. I'm not sure what they are though. She looks like a very scary witch. I do see a broom. Yeah. Unless she's cleaning. So guys, how do you feel about the rain outside?  I think despite it, trick-or-treaters are still having a really fun time. I mean, I remember going trick-or-treating in the snow before. Yeah. This is nothing. In Vermont, you've got to do it. Hello! Do you know what your costume is? Your costumes kind of match. Well, you two look amazing. Do you guys want to smile for the cameras? So much. Yeah, have a happy Halloween. Stay dry. I've come in a long... Oh my goodness. Oh, tell me how you made your hair so glittery. That is so cool. I have a feeling we'll be seeing a lot of Black Panthers this Halloween. I think so.  Yeah. You look really good. I love your face paint. And who are you? Yeah, thank you. Happy Halloween! The Grim Reaper. Grim Reaper? Oh, and we have a very scary person coming along. I am scared. Are you Jason? You look great. We've got some pretty cute trick-or-treaters today. A lot of superheroes, which is always good. I think superheroes are a pretty consistent costume every year. Did you ever dress up as a superhero? Astronaut, ladies? No, this is all I got. I mean, I was a banana, but that's not a superhero. Well, I was Batgirl one year. And it was pretty chilly because it was a small dress. So where is the best place to go trick-or-treating in Montpelier? College Street. College Street? I agree. College Street as well. College Street in downtown? Yeah. And there's that one house that does all the decorations at the top of College Street and always looks amazing. I think their electricity bill must be pretty high. Yes, I would imagine so. Yeah, they do. They do decorations for every single season. I'm pretty sure you're not a trick-or-treater, so you're going to have to give that back. We have coming along. Looks like we have a princess. Very nice. What's your joke? What does Jupiter wear to hold up? Very funny. Ron, you can't blame her. Superman, yeah. Superman, you have some pretty big muscles. The citizens. I mean, looks like we might have some trick-or-treaters coming in through there. For any specific team? Patrick Henry High School.  Can you do a cheer for us? I don't really know any cheers. You turn around so the camera can see your awesome costume. Happy Halloween. Oh, you have some candy. Oh boy, that game is so creepy. Yes, it does go down. Open the space. Hello, hello, Miss Red Riding Hood. Would you like some candy? Yeah, take whatever you want. Of course, stay away from wolves. You might have some more kids coming along. What are they dressed up as though? I think this year we're seeing a good mix of classic costumes like princesses and Red Riding Hood and also a good mix of very modern costumes.  Of course you do. I prefer Christmas just because I like presents. How about you, astronaut? Hanukkah is my favorite because you get presents for a whole week. That's even better. True. I think the theme here is presents. Yeah, we just like getting stuff. You're stuck on the ground. Halloween. At least you have a very honest kitty. So were there any years that you didn't dress up for Halloween? I have dressed up every single year just because how can you not? Exactly. When you get a chance to dress up, you've got to dress up. What about you, Nadia? I have always dressed up as well. What were you last year? That is a good question and now that I think about it, I may not have dressed up last year. Then you were lying. I see bacon over there. Oh my. The best breakfast food. We have a bacon costume. I think I might see some monsters. Not really sure though. What do you guys think? I think some unicorns. Yes. And a robber maybe? Some animals? He's a paper? Oh wait, you're right. That's such a good idea. A little bit clearer on the costumes here. I think it is a piece of paper. What's the most creative costume you guys think you've seen? Well hello. I don't know. Come on over. I'll have to find out. See some more and then I'll let you know. Happy Halloween. Can you tell me what your costume is? Your Squirtle. Nice Pokemon.  I am. That is really good. Let's see, a unicorn and a unicorn and also a unicorn or a pony? A pony, nice. Thank you. Happy Halloween. We've had a lot of unicorns today. Do you agree? I had a chance to be a unicorn. I wouldn't pass that up. I should just do it anyway. Even when it's not Halloween? Okay, I'll come to school as a unicorn. Thanks. I think I might see some minions. Oh yeah. I see Pikachu over there. For unicorns, that is definitely a consistent costume. Eliana, do all the buttons on your helmet work? They do not, only two of them. Actually, okay, one of them works. The other one used to have a recording that would play inside, but it broke because my sister left my helmet in the rain. That seems a little dangerous for when you go on your missions. I know, I'll have to get them repaired soon. Yeah, you better. Happy Halloween. Are you guys minions? You wanted to be a minion? I'll repair before my next mission. Yeah, so when is your next mission? It's not going to be for another two years or so because we need to get all the equipment ready again. Ah, okay. We need to have some new astronauts go into training too. Can I be an astronaut and go into space? Do they let animals go? I mean... They let monkeys, so why not deers? I don't know. Maybe I'll let you come, because you're my friend. Hi, do you want some candy?  Do it for your service, Mr. Firefighter. A teenage mutant ninja turtle. Lovely, lovely princess. Princess? Do you know where are you the princess of? Wait. Is this Elsa? I think it's from Frozen. I think so too. She's my favorite. Anyways, I think I should be allowed to go into space. Will you put me on your mission suit? I think it's a suit that could fit those antlers of yours. Or just chop them off. Like an extra large... No! Ow! I guess you're not coming. I'm not going to chop off my antlers just to go into space. I think just an extra large helmet would work. Yeah, that would work perfectly fine. It won't meet the requirement. I want to go to space. Where is your next mission too? We're probably just going to be going back to Mars. Well, that's boring. I guess you really won't be coming. You should go to Pluto. Which planet do you most want to go to? How long would it take? Come on. You should know this. You went to astronaut school. Which planet do you most want to go to? I want to go... Reaper? That is pretty scary. And what is your costume? Uh, Freddy Krueger. That is so scary. Wow. And let's see. Is this a My Little Pony? Which one are you? She is my favorite My Little Pony. Wait, so what planet do you want to go to? We can actually go to... We will be able to go to Mars. It's because of how it's more similar to Earth than the others. And the other ones are just way too dangerous. And it would just take a lot of planning to go there. I think you should go to the Sun. If you could go to any planet? If I could go to any planet, I would go to Jupiter. No, Saturn. It's gorgeous. I would love to go to Saturn. Okay, I'll keep that in mind. I'll go to Saturn next time. Where would you go? Yeah. Where would I go? That's a good question. I would go to Venus. I would go to Venus too. Because it's super warm. So I would never get cold. Yeah. I would go to Venus. Looks like we've got a low in the trigger treaters right now. I think you should do your... deer in the headlights a bit. I have to save it for when it's actually appropriate. It's like a reaction. It's not just something I can do. Come on now, Aliana. Okay, well, next person who comes in, you better act shocked, alright? Okay. You can do this time for deers right now. Yeah, where's your... I know, I forgot my vest. I am risking it. You would just have to protect me. And you're orange enough, so... I'll just put you in a space suit and then we'll... I could go to space. No, I will do it for your protection here on Earth. I will not bring you to space. So, Nadia, are you actually from the 1920s or are you just mocking me? Well, she is ancient, so... No, I actually am from the 1920s. I traveled through time... You did? ...in my time machine. And I'm here just for tonight, for this Halloween. So this isn't actually a costume. It's just like your normal look. This is my regular outfit. Hello. Hello. Mr. Policeman. I'm dressed up with a nice tie. Ooh, very fancy. I see a car. I see headlights. Oh, my goodness. There's a car with headlights. Whoa. I couldn't have timed that. Cars and deers do not mix, so I won't be able to talk to this little kid. But you can. I do not want to get run over. Like, we might have a deer trapped in the headlights. What? A lot. From Frozen has been a pretty popular car. You see another Elsa, so... Again, on the Frozen theme. Lots of movie characters. Mm-hmm. Where are some kids? What was your favorite Halloween costume ever? What was your least favorite Halloween costume ever? My least favorite was when I dressed up with a piece of bubblegum, and I had these two giant laminated pieces of paper, and it was like I had one here and one here. What did you dress up as?   Interesting. What flavor? Just like original. Bubble. And it was horrible because it was super windy and the paper would flap. Hello, Mr. Knight. Your costume looks amazing. Thank you for slaying dragons and protecting the realm. Happy Halloween. Oh, my goodness. Looks like that knight had a sword. Yeah, or a jousting. Well, thank you, Candy Refiller. Red Sox player. Red Sox player. Do you want to talk about who you just won the World Series? Ah, okay. He's probably talked about that a lot recently. He has a paparazzi all talking to him. Would you like some candy, Mr. Firefighter? A piece of candy. Happy Halloween. Congratulations on just winning the World Series. How did it feel? And which player are you? Game Martinez. Nice. That's a good choice. You scary dragon. I should have put on my glasses. And we've got a doctor.  We have some sort of fluffy animal here. What do you guys think? It's a bear, a brown bear. Well, you look very cozy. Your costume? Well, your mom is very talented. Are you sure the camera, your awesome Lego costume? Yeah, isn't that super cool? I've always tried to make my costumes. It's never worked out as good as this. This is pretty impressive. Have a great Halloween. Happy Halloween. Do you want some candy? I don't even know any of the four things. Okay. Can you tell me what your costume is? Yes, have some candy. Can you tell me what your costume is? That is, but you guys look super awesome. Thank you. Happy Halloween. We have a couple more Legos. Another Fortnite character. Yeah. And which one are you? Again, don't know what that is, but awesome costume. Happy Halloween. Okay, let's see. What are these? Okay, cool. Oh my God, these look awesome. Legos, you think? They're cool. Are you an ice queen? Elsa. Elsa? You don't know what you're talking about. So do you have magic ice powers? Yeah, she does. Happy Halloween. Showing everyone your costumes. You can wave to the audience. Halloween with Elsa. Those are some cool goggles. They're pretty impressive. Oh, wow. He is a mad scientist. Do you want to show the camera your super cool costume? That is awesome. You look so great. Happy Halloween. Do you guys see through those costumes? Yes, they can see. And did you make your own costumes? You did? Wow. These turned out awesome. Yeah. Have some candy. Show the camera too. Yeah, show the camera your awesome costumes. Don't these look great? Hello. That would have been a bad combination. What time did you guys usually go trick-or-treating? Well, here's what I did. I'd go downtown, like four o'clock. I'd go for an hour. I'd go to all the stores. Then I'd go home. And then I'd go in my own neighborhood. Wow. And then I'd just get double the candy. And I'd be at all night. You know, I never went trick-or-treating downtown. And I think I must have been missing out. You really were. I never realized. You missed out on this? I know. Never got to be on TV. I never went trick-or-treating downtown either. I just waited until it was dark. And then I'd go out in my neighborhood and get some candy. Did you guys usually go trick-or-treating with your families or with your friends? Well, when I was young, I had to go with my parents. But when I was old enough, I would ditch them. What do you guys think is coming along right now? He is. He has a pretty cool cane, though, and a top hat. A fancy yellow coat, maybe? Yeah. Oh, is it the pink? What, your costume is? No. Okay. Black knight from Fortnight. A lot of Fortnight costumes. Have either of you ever played Fortnight? I know. We have a whole squad of Wonder Women coming. This is great. Also a popular costume this year. Yeah. It makes sense after... Can you tell us what your costume is? I have no idea. You have no idea? You're just here for the candy? It's a good costume. Happy Halloween. Wow. So you came out of the ocean just for Halloween. Well, happy Halloween. A secret agent. Secret agent? And how about your... The universe. What's your costume? A what? Some superhero? And you must be Justin Bieber. Yeah. Justin Bieber. That is fun. Can you show the camera your awesome costume? Justin Bieber. That's a good pun. And you, yeah. You are awesome. Really cool. How did you get your hair like that? Yes. Are you the Black Panther? Very nice. Very nice. Is he your favorite superhero? Yeah. Yeah? That's a good choice. Well, happy Halloween. Must be hard to grab with those claws. He has a toothpaste bag. That's kind of ironic. Oh my goodness. Uh-oh. There's a dinosaur. A dinosaur? Oh, what's your costume? A dinosaur? You're both dinosaurs? T-Rex. Can you do a T-Rex roar? Candy, so you don't eat us. The car was pretty scary. Oh, of course you would. And the wolf costume. I'm Jackson Marko. You actually just ask who's Jackson Marko. Yeah, we don't know who that is. That's right. Jackson Marko is a MHS alumni and engineer, astrophysics engineer. Wow. Astrophysics, that's not a real thing. Aerospace engineer in training. And being Jackson Marko, I love banana milk. Like some candy, Jackson? It'll make you feel better that he's gone. Which one's the best one? Twix. I haven't even examined all of these. Bye, Jackson. I don't know what you guys feel about that. Milky Way should be my favorite, but it's not. So what's your favorite Halloween candy? Twix, by far. What did you say? That's not my favorite. Twix. Oh, God, no. Twix. It's so good. Okay, what is it? I like nerd ropes. Nerd ropes are delicious. I got two one year. That's a little greedy, Eliana. Do we have some Harry Potter characters? Hello. So are you a specific character? Are you just from Harry Potter? What house are you in? House Ladybug. Would you like some candy? Hey, very cool. Maybe you should branch out from Astronaut. You missed out. No, I don't think so. Trick or treat. So what's your costume? You are pretty scary. Some R2-D2 on them. That's so cool. Even though there's rain. Yeah, you are.  Burrs. Yeah, I didn't know that. I'm a little scared. What is this super cool costume? A robot? That is so cool. And did you make it? That looks awesome. Happy Halloween. Yeah, we're showing everyone the awesome Halloween costumes. You want to wave? This is her moment. She's going to be a movie star. What are you talking about? Oh, yeah. Looks like it. But where is her sheet? An M&M for now. I'm a descendant. Yeah, so which one are you? That looks super cool. I love your hair. Who is obviously the best M&M, right? Clearly. I agree. Do you have a favorite M&M color? Blue. Blue? Okay, what about you? If you say anything other than blue, you're wrong. I like orange. That's orange to match your outfit. I'm telling you, Eliana, you need to branch out a little bit more. Everything in life isn't orange. Another type of animal. Is this a skeleton? Can you tell us what your costume is? Makeup looks awesome. What's your costume? Broken doll. Broken doll? I hope you get fixed. Yes, it's well enslaved. So withstand all the cold? It gets to be about negative 200 degrees on Mars at night. So I'm usually just fine. Be inside. You wouldn't sleep outside. Is that Draco Malfoy I see? Draco Malfoy, can you cast a spell for us? Wingardium Leviosa. Which is very likely in Vermont on Halloween. Is that from Legend of Zelda? Very nice. I'll link to it. You'll link to it. We have two links and you are obviously Luigi. It's super cool. I have to say it's been very hard not to eat this candy as we've been doing this.  Anyways, so let's go back to what is your favorite Halloween candy? Oh my God, two Ruth Bader Ginsburg. Two Ruth Bader Ginsburg. What is your favorite Halloween candy? That's gotta be the best. My what? Favorite Halloween candy. Oh, my favorite Halloween candy other than... What about Snickers? Those are my favorite. Ruth Bader Ginsburg. Ruth Bader Ginsburg. Can you tell us why you wanted to be her? I totally agree. You guys, you just want Halloween costumes. Oh, a great costume. My favorite Harry Potter character. Would you like some candy? Those are some awesome costumes. Another Harry Potter character. And who is this? This is a super cool costume. Can you tell us what your costume is? Evil scientist. That is pretty scary. You have a costume where you're just here for the candy to protect you from the rain. Little Wonder Woman. That is a super cool costume. Candy Miss Wonder Woman. Is that Medusa? Yeah, you are. Don't look at scary skeleton. You can't ruin Halloween. A sorceress. Hello. Can you tell us what your costume is? What your costume is? My favorite was your favorite. Oh, I thought you were ours. My favorite one was the Ruth Bader Ginsburg costume. Those are good, too. Stop. The birthday gift. I usually bought mine until I got older and then I started making them. Yeah, I was sort of...sometimes I made them. Can you show the camera your awesome costume? Can you show them your tail? Because that is an awesome tail. And you have some scaly gloves. That looks awesome. I'm really nice and warm. Can you tell us what your costume is? Your costume is mermaid? And it doubles as a hat. Functional and beautiful. Awesome. Happy Halloween. Straight to the camera. Your costume? Thank you. Looks great. I'm Jackson Marko. As I was early, I'm now Adam Blair because we have the Orca Media sign. And because I spend about 90% of my life here, I think this is accurate. Well, and the coffee. Adam Blair. And yeah, and the coffee as well. And I hope I'm...yeah, I'm glad that you're keeping this away because I brought the coffee, but I apologize. So this is great. It looks great. I don't want you to know. Go to Advertise. Can you tell us what you're dressed up as? Comptubers and astronauts are kind of similar. They both explore the galaxy. Or sometimes are really mean. Guys like Star Wars? Of course. I'm a big fan. Have you not seen it? I have seen it. You've seen all of them? Watch them. I'm more into Lost in Space. Oh, I love... I just watched it. Oh, maybe. Probably not. See that? Is that the Easter Bunny or just a regular bunny dude thing? Well, it's not Easter time, so... I think that looks like mine, but I want to make sure that she was safe. I didn't want her to have any radiation whatsoever, so I left her at home. Okay, so no bunnies in space either? No. Hop away. Might hop away, right? Other wizard coming along. That is a very popular costume this year. What is that? Do you think a samurai? Can you show the camera your awesome costume? Yeah, look at that. And you have cool swords in the back. Let's have some candy. Can you tell us what your costume is? Yes. I'm a guy from Naruto. Naruto. Very nice. And you are too. How did you make it your... Are you sure that's going to come out? Yes. You might be stuck like that forever. I guess we've got a paper crane over here. And the whole moon just happened, so... That's amazing. That's Jersey and Heist. Very nice. Have you ever been on an asteroid? No. We almost collided with one, but... Oh my goodness, that's pretty scary. Yeah, I know. You guys do a step out. A kitty. A witch. A witch, and are you a spider queen? Wow. You guys want to show the camera your costumes? Yeah. You can wave at it. There's some sort of cat guy, okay. What's your face go? Happy Halloween. And which one? Pretty costume? You can wave high.  Hey, Spider-Man. Grab some candy. We have a spider. Hey, Miss Sheep, do you want to show the camera?  You can too. You can wave high at the camera. I think we have a toothpick. This cool costume. Can you tell us what you are? Looks like we have the Wizard of Oz crew over there. The mouse is running all over the place. Over my shoes. But, yes, they are cool. Are you going to go trick-or-treating after this? I don't think so. My parents wouldn't take me. Your parents will take you and you can't go out without your parents. Yeah. Yeah. What about you, Flapper? I don't think I'm going trick-or-treating this year. Our costumes? What are your costumes? These aren't costumes. No. These are just... This is what we are. 1920s, actually. That explains a lot. Yes. And Evie is an actual deer. Tell us. What's trick-or-treating? What's Halloween like in the 1920s? You know... What was your favorite candy from the 1920s? My favorite candy from the 1920s. That's a good question, you know. Lots of chocolate. Can you tell us what your costume is? Ink? From Zelda? Yeah. Very nice. Like molasses and stuff. Can you tell us what your costume is? Awesome costume? You had honey. Are you Wednesday Adams? Do you want some candy? Wow. What's your costume? Yeah, it's too much work. Your costume is very pretty. Oh my goodness. I think I see a tiger coming on. I see Cookie Monster. Cookie Monster? Cozy costume. Yeah. Do you want some candy? You look great. Like our bumblebee is here to stay. Well, she is clearly going to be another movie star. It's not cookies, but hopefully it'll do. Got your cookies with you. Is that a cozy costume? You like Halloween? That's good. Very nice. Want to come get some candy? DJ. A DJ. A DJ. Do you play good songs? Yeah. Is there natural hair color? I think so. Maybe a dragon, do you think? A couple of dragons. How are you liking Halloween this year? I'll keep that in mind for next year. Happy Halloween. Happy Halloween. I think I might see some more Harry Potter characters coming up. A whole gang of Harry Potter characters. Harry Potter? People can only get turned green when he gets mad. Yeah, true. So clearly he's very mad right now. I don't want to be angry and throw our candy on the ground. Pretty princess. So we have a vampire and Elsa. Wow. Elsa? Do you want some candy, Elsa? What's your costume? No, you're just here for the candy. It makes sense. Take as much as you want. Oh, Frankenstein. You look awesome. Come have some candy, come have some candy. Wow, these are some very cool costumes. So can Frankenstein eat candy? I don't know, maybe. You'll find out tonight. No, I'm sure that you'll be happy to eat it. You look awesome. Looks like the Ladybug found the dress-up contest today. I was dressed up as Perry the Platypus from Phineas and Ferb. It was a very good costume. And what were you dressed up as? I'm a dearest. I don't go to school. Oh, the deer did not go to school. I just live in the woods. How do you learn to speak? All deer can speak. I talk with them all the time. Most deer are way more shy than you are. Why are you such a friendly deer? Actually, if you just get to know us, we're actually pretty friendly. People judge us really quickly after we run away from them. And are you a reindeer or just a regular deer? No, I'm just a regular deer, reindeer pretentious. So you cannot fly? How do you know? Maybe I could. Apparently the deer does not want to tell us. What? Show us. I can't right now. There's a ceiling. I'll hit the ceiling. Can you fly? Yes, I can. Without a rocket ship? Who else do we have coming along? Would you like any candy? What is this lovely costume? What are you dressed up as? It's awesome. Yeah, have some candy. Happy Halloween. That is a beautiful costume. The costumes we've seen tonight, I think we might be wrapping up. What do you think was your all-time favorite? Or was the most creative? Well, my all-time favorite was the grandma costume. She had the curler, she had her yarn. Her outfit was just amazing. I would agree. The grandma costume was a pretty cool one. With Bader Ginsburg. The beaver. I thought the crann and the broken crann bear was very smart. And the Legos. The Legos were very cool. All of those. It seems like it's winding down and it's time for us to go home and celebrate Halloween. Emily has to go off to her deer friends. I have to go back to the forest. I have to go back to the 1920s. Hop in your time machine. Eliana has to prepare for her mission to Mars soon. So, we are going to say we hope all of you and Montpelier have a really happy Halloween. Happy Halloween, guys!


In the previous module, we talked about how the density of connections within a system is a key metric to understanding its behavior and overall makeup. Going from low connectivity to high connectivity really involves a regime shift within the system. One way of understanding this process of change is through what is called unbundling. When we get a reduction in transaction costs, a homogeneous monolithic system can be broken up into small parts that are distributed out and then re-coordinated through this network of connections. This is a very deep and fundamental transformation to the system's entire architecture, but during the process it goes from being a bounded system to becoming a more complex distributed network. For example, up until a few hundred years ago, universities used to teach each individual almost all the technical knowledge that we had within just a few years. Students would then go out and apply this knowledge within some working environment. With the rise of modern science and engineering, this body of knowledge has become far too large and complex for any single person to learn. So we don't go on trying to teach everything to everyone. At some stage, universities start to break all this knowledge up, that is to say unbundle it into different departments. Students now learn within specific domains of expertise. They then go out into the workplace and join businesses that function as the mechanisms for reintegrating all this different knowledge and applying it to some set of tasks. With the rise of information technology, the reduction in trade tariffs, and the proliferation of the free market ideology, this unbundling process is essentially what has happened to our economies over the past few decades. Factories, production processes, services, national infrastructure systems, and even whole national economies have, through privatisation and globalisation, become unbundled. Components are no longer bound within centralised structures, but are increasingly distributed out and coordinated through multinational corporations, global markets and the Internet. This is only set to continue as the Internet becomes an ever more important platform for production. We can outsource tasks and bring together teams from the other side of the planet in just a few clicks. Today, small businesses can build and orchestrate global supply networks online. This unbundling process is an important mechanism for dealing with a high level of complexity that monolithic systems are not designed for. It is central to dealing with the kind of volatile, uncertain and complex environment The large organisations find themselves within in the 21st century. This unbundling process is part of the significance of networks within post-industrial economies. Networks are a very informal system of organisation, which is in contrast to our more traditional formal organisations like hierarchies, whose structure has to be predefined and then the components fit into it. For example, we have job roles in our businesses, and employees have to fit into them. In these formal organisations, we would typically define the whole structure to the business before it starts operating, and once defined, it is temporarily closed, meaning anyone can't just walk in off the street and take up a job in the business. We have to firstly decide that we need a new position. To find how this position will relate to all the other positions and then go through the process of finding and onboarding a new employee, this is the same for all of our industrial age, economic institutions and systems of organisation. From production processes to governments to banks, they are all well-defined, formal closed systems with a top-down chain of command that are optimised for relatively static and stable environments. Although this formal design may sometimes be the case with networks, such as corporate IT networks. Companies are typically not like this though, they are typically informal. They are often user-generated without a predefined formal structure. People, businesses, traders and other institutions just make connections whenever the marginal benefit is greater than the marginal cost. If we give people mobile phones, they will start talking to their friends. If we reduce trade barriers, companies will start trading across borders. Financial institutions can invest in high-growth emerging markets with good returns, then they will create these financial connections. This is the nature to networks, they just grow in an organic fashion. Whenever the transaction costs are low enough and the payoffs are high enough, no one planned or designed or even really manages the networks that run our global economy on its many different levels. The density of connections within a network are rarely evenly distributed out. Whether we're talking about a social network or a transportation network, some parts of the network will face higher transaction costs and will have a lower density of connections compared to other subsystems within the network that have a higher density of connections. For example, the transportation network to the country of Nepal has a low density due to the high cost of making transportation connections within the Himalayas, while other parts of the global logistic network like the Netherlands will be densely interconnected. This will give us a heterogeneous topology to the network that will significantly influence how something will flow across it and how quickly or slowly resources in the global network will permeate into any specific subset. The key to modeling all of this is the idea of network clustering, which is an important factor in the overall topology to a network. When an agent comes to make a connection, the costs and benefits of connecting to different nodes will typically not be evenly distributed. For example, because of the regulatory framework, trade between countries within Europe is easier than a country trading with another country outside of Europe. Due to this, the European economy forms a cluster within the global economic network where the nodes in this sub network interact more often and more intensely between each other than with other nodes outside of this subsystem. And this is an example of a cluster. This clustering will again give the network a heterogeneous topology and it is this topology that influences the flow of resources across the network, which is really the big question that we're interested in, because it is going to define who gets what. That is to say the macro level resource distribution pattern. If we remember the wealth is in the network, every component slice of the pie is in their access to the network. This is a very different vision to resource allocation. In our traditional paradigm, resource allocation is all about equilibrium, the efficient market's hypothesis. Markets always reach in equilibrium and clear. From the network perspective and equilibrium, where all prices across the market equalize would be a perfectly homogeneous network, which might exist in very simple environments, but heterogeneity across the network is much more likely, particularly when we use multiplex network models to capture how markets can be affected by heterogeneity within other socio-cultural networks. Going back to our previous example of the European economy. When the union was economically integrated, people thought that the higher wages in Germany would reach an equilibrium with lower wages in the southern European countries. This hasn't really happened though, the network has remained heterogeneous, most likely due to its interaction with other socio-political and cultural clusters within this multigraph. This is a good example of the kind of complex multidimensional analysis that needs to be done in order to get a real picture for what complex economic systems actually look like. Saying that things will equilibrate is nice in theory and may work in practice if we're dealing with very simple systems, but often the reality of these globally integrated networks like the European market is one of a much more messy, complex heterogeneous network. Lastly, as somewhat of a side note, we'll discuss informal economic systems. In economic analysis, we typically spend a lot of time focusing on formal economic systems such as large corporations or national economies. What typically goes relatively unnoticed is the informal economy. For example, in the country of India, 84% of employment comes from the informal economy. There are 11.7 million undocumented immigrants in the USA all working in some capacity in the informal economy. AirBnB and car sharing services like Uber are also part of the informal economy. All of these are still very much outside of our traditional system of formal economic organization. These informal network structures have developed in an organic fashion wherever there was a need for an economic function to be performed that lay outside of our traditional institutions. Network theory is a very appropriate tool to help us reason about these informal systems how they develop, grow and interact with formal economic systems and as we get this unbundling process of formal organizations that we discussed previously and the rise of networked organizations the boundary between these two formal and informal will likely become more blurred. In this video, we've been taking a look at network topology and how it relates to economic systems. We firstly talked about the process of unbundling where heightened connectivity disintegrates homogeneous formal organizations as they become distributed out and re-coordinated through networks. We talked about clustering as a key factor in overall network topology and how it gives rise to network heterogeneity, distinct subsystems within the network that will likely maintain it out of equilibrium. We finally mentioned how network analysis is an important tool for understanding and modeling informal economies.


Hello. OK. My name is Felipe. I'm from Brazil. And I'm talking about a performance evaluation of our lecture. So I'm a Q&A and a doctoral student of computer science at Brazil, a Federal University of Pernambuco. And my first question is, how many languages do you code and do you know? Raise your hand and who can know more than five languages, OK? More than 10 languages, OK? So by Wikipedia, we have 619 programming languages in the world. There's a lot of languages. There's a lot of languages. And why we have a lot of languages, OK? Why? Each language is a specific problem and have a specific future. But why so much language? OK, 619 is a lot of language. So we have a lot of applications. And the most popular language is Kino for everyone here, OK?  Everybody here knows sometimes maybe three languages. And the three languages is common Kino for everything here, OK? Everybody here. So what's the problem? OK, now we have a problem with massively scalable, OK, high available, concurrence, and falterance, OK? But sometimes I go, it's very common when you try to make a login at Twitter, is do you see this while? OK, it's the past. But why is it common in the past? Because the first version of the Twitter is writing in Ruby Rails, OK? And before the big ban of the Twitter, all back end core is changed by True Scala. And Facebook too, OK, Facebook, and it created a new compiler for C++ and called hip hop and changed the chat to Erlang.  It's very easy to write some application for web and create games for web at the network, OK? Network, social network. But we have a lot of guidelines in the web to describe for us, for help us to write any application for web. But if this specific application receives a lot, 1 million, 1 billion access, what's the problem? Problem, you need to change all back end core for another language. Or another solution is, oh, sorry. Another solution is pay more, pay more to host, OK. But this is a real solution. So allocate more servers for your application as ensure that your application stands up every. No, OK. Because your application works well with distributed environments. And so what's the real problem? The real problem is the most languages we are not designed to withstand massive conclusions, OK? A language based in shared memory model do not support the necessary scalability. And functional languages such as Erlang and Haskell is very hard to use. So if you don't need, don't care, use Erlang or Haskell, what do you do? OK. Alexei has a friendly syntax. It's a good idea to productivity. Add concourse, object, language, distribute, fail to tolerance, OK. Make sure systems stand up despite the failure. Alexei can use Erlang libraries and call Erlang code. It's very compability, OK. So what this is the sample of history, OK. Created by Joseph Valin, thanks Valin. And I started the position 2012 in the Tyobi. And we have good books by David Thomas, Samza Jurek, Simon Davon, and Benjamin Mitten, OK. And now the first, the first Alexei Koff, OK. OK. What Alexei is very used to learn to understand such like a Ruby, OK. Massive passages, not use a share memory, has a partner matching, a metaprogramming via macros, less comprehensions. And what do you need, OK. We need, now, back-end system for B applications where massive conclusion is tolerance failure is a hiccad, OK. And how do we want, OK, clear code and productivity, OK. It's very common. You can see a lot of applications using rails or jungle. We have a lot of applications with Java and PHP. But this language is real, all available research of the machine.  And when the big access, do you receive a big access? And what do you do?  But these languages not use all available research of the machine. And what do you do? You pay most. Most, more, more, more to host, OK. And so how can we do it, OK, using a lecture? But a lecture is a real language that support massive concurrency and terere tarara, yeah. So I will show you the specific benchmark to prove that Alexi used all available research and used all available research and can use to receive massive access, OK. These are specific tasks to prove that. This test, the Intel MPI benchmark is to make sure the massive concurrency, OK, massive access, OK, just created by Intel, OK. And the main goal is to make sure the efficiency and the latency and tolerance, OK. And all this I will show you with a beautiful code. OK, let's start. This specific benchmark have three categories, three different categories, OK, single transfer, only exchange one message between two processes, OK. We have two processes for the single transfer. Parallel transfer, one message exchange of process, but several parts communicate in parallel. And collective transfer, OK. Measure and pre-collective operations. And we can see three, pink-pink, the red, pink-pong, and send and receive. We built a specific three tests to prove that, OK. I'm not to use any collective because we can see that many languages not support all the tests for those three tests and not need to use another test, OK. Pink-pink, this benchmark make sure the efficiency and the treatment of blocking, OK. What we can see that we have one process and create two process and the one process send to another process the message. We have X bytes, OK. Pink-pong is very similar to pink-pink, but the message is obstructive, but in common message. You can see the picture here, OK. The pink-pink test is asynchronous, OK. Message is passing between two process and pink-pong is synchronized message, passing between two process. So, and pink-pink, we create a two process and the first process send a message with X bytes size to the second process. And the first process waiting, OK. Because the second process responds with the same message and the pink-pong is a synchronized message, OK. The first process send a message with X bytes to second process and the second process send another message to process one, OK. And send receive, the try the ring send receive is the simple test to parallel transfer, OK. Many process is created and each one sends to ring and receive to the left-hand neighbor in the chain, OK. A two process will report the big direction of the system as obtained by optimization function, OK. We can see this picture to a loss, OK. Massive creation of process, many, many process and the process one send to the ring process and receive to the left, OK. So, but to make sure the performance we need compare Alexi with another language and I will show you that we have 619 languages and more, OK. And keep ground, keep increasing the number of the language. And we use most popular language, OK, by GitHub, Tyobi and Stack Overflow questions and Spectrum. The list of the languages used for the test is Erlang, Alexi, Java, Scala, Python, Ruby, and Erlang. I think that this is our only language that anybody here maybe don't know, OK, or Erlang. But I will talk a little bit, the sun. This environment, environment configuration, OK. We use the three computers to run all the tests without any ghee to interface, OK. This is a version about the many language that we use. OK, Erlang is extension, OK, is extension for object oriented. It's a very, very good to understand the code and the syntax is close to Java, OK, making it easier to adopt object oriented programmers. We can see more info in this home page and the GitHub. And all this code that I will use in this test, you can see in this repository at GitHub. OK, that's the code. This is us, the first test, Ping Ping, OK, we pass in the message size and the repetition. We created a process, two process, and send the first message to another process. And receive, and before we finalize the two process. OK, we collect that, we store all the time for creating the process and passing the message, OK, is the code to Ping Ping, they receive and finalize. So this part is to couple the bandwidth and generate the code in the time second, microsecond. And this part we use in all the tests, to Ping Ping, Ping Pong, and send receive. OK, the experiments, the experiment, we need run a lot of repetitions, OK, 500, 5,000, 10,000, 100,000, and 1 million, OK, and change the message size for 5 kilobytes, 10 kilobytes, 500, no, 5,000 kilobytes, 10,000, 5,100,000, and 100,000. OK, this is the result. We can see in the top, the results of the ruby in the top of 500,000 repetitions, OK, and the passing the 5,000 kilobytes, OK, Python, and the purple is a pink is color, the blue is Java. In the same line, one result, and the same line, under we can see Erlang, Orlang, and a lecture, OK, is the same line, OK, a message with 10,000 kilobytes, rub not support, OK, because ruby, Python, and the Java, and the Scala, too, all those languages use a thread, OK, and just these languages with this size of the message, ping, ping, with the message 15,000 kilobytes, and this line is a repetition, 5,000, 10,000, 15,000, 100,000, 500,000, and 1 million, OK, this is a repetition, OK. We keep increasing the size of the message, and OK, this is a less of ping-pong. This is a code for ping-pong, but the only difference between the ping-pong and ping-pong is the process one send to process, a message to process two, the process two send another message to process one, OK, it's not the same, it's a synchronous test, and we just need to finalize the one process, OK. The first test, ruby, in the top, Python is a yellow, pink, a proposed Scala, Java is a blue, and the same line, you want one under the unorder, is our lang, our lang and alexi, OK, for all repetitions, ping-pong with the message 10,000 kilobytes, rub not support, ping-pong with the message 15,000, the size, our repetitions, we can see the curve of Python is a better, that's Scala, but not Java, OK. We calculate the mean and variance and the standard deviation to plot this graph, OK, ping-pong with the message 10,000, 100,000, sorry. So this is a little difference between our lang and alexi, but it's the mean, OK. Basically, it's the same line, rub not support, OK. The send receive is different because we have a past the message size, we have a past repetition and the number of the process, because we created a lot process, OK, many, many process, to pass in the message. We generate the data, start the time, create the process, and we measure this time to create all the process and send the message. The second part, the ringer node is the chime between the message passing. This specific benchmark is to measure the performance to use the library MPI, OK, the message pass interface. So the last part of the code, and let's the we're passing the one argument or more, there's a process number, iterations, and message size. So the first test, the first result, Python and a rub not support this test, OK, and Java stopped your work after 10,000s, OK, 10,000 repetition. But Scala keep a work, and then the same line, Erlang, Alexchi, and Orlang. And we increase the message size and the number of the process, OK. So receive 100 process and the message size, 15 kilobytes. So receive, so receive, OK. We test and repeat all the tests, all the suite, the tests, we repeat 10 times, OK, the same line, Erlang and Scala, and Erlang, and Alexchi, and Orlang, the little difference, the performance, and keeping crazy, keeping crazy, OK, keeping crazy. So Scala not support this test anymore, Java, and Python, and Ruby, OK. Just Erlang, Orlang, and Alexchi. So, and the most communicative language goes to Erlang, Alexchi, and Orlang. It's a clear superiority of the Erlang over other languages. And Alexchi and Orlang inherits the Erlang performance, OK. So this is a good point to see that it's very similar to the results of Erlang and Alexchi. How much close is Erlang for Alexchi? So these three languages is limited only to the host machine, and they use all available resources of the machine, OK. This is good for us. The results, Scala, Java, and Python, and Ruby unable to run the test to completion, OK. And stop work after 10,000 process for Java. And do not use all available resources of the machine. But these specific tasks is only to make sure the communicative, OK, and massive communication between the process and the threads, OK. But not measure the granularity of the language. And a good idea, we test to the granularity. But this probe keep for the future tests, OK. And this home site, we can see more about the computer language benchmark game. And we have a lot of other tests, OK. And we can see in this page all the code for any many language, but not Alexchi, not yet. And then we are working in this repository now, OK. And all contributors for this work is here. File, Yosemite, Miliano, Francisco, Benjamin for the Alexchi code review, and Joseph Alim, too, OK. Is this? Thank you.


Hey everyone, Lee Lowell here, smartoptionseller.com. How's everyone doing today? It is Saturday, August 7th, 2021. Welcome to another edition of our Saturday YouTube options educational videos. As you can see on your screen today, we are going to be talking about selling put options. Should you be using a cash account or a margin account? People send me questions, beginners from people who are selling options there and they wanna know, Lee, should I be selling these put options in a cash account or margin account? What's the difference? And I don't understand how the money works. Can you explain these things to me? Absolutely. So this is what we do here in our educational videos. We talk about an options trading topic. No matter what it is, people email me all the time. So I'm here to kinda educate you and enlighten you on how to trade options, how to become a better trader. So before we get started, I just wanna bring up one thing here. As we were talking about selling put options, I want everyone to please go to our website, smartoptionseller.com and download our free put selling basics ebook. So you go to our website, click on the put selling basics, put in your name and email address and we will send you a free copy. So let's get back to our little education here. Selling put options. Should you be using a cash account or a margin account? So let's take a step back and just explain what selling put options are and why using one of these different accounts is better or worse for you and it's all gonna depend on you. Now, when you sell a put option, what you're basically doing is you're obligating yourself to potentially buy a specific stock at a specific price by a specific time. And what price would you end up buying the stock at? Well, that's called the strike price, right? So if you sell a put option at a specific strike price, you're basically obligating yourself sometime in the future to potentially buy that stock at that price. Now, it's not a guarantee that you'll buy the stock because the stock has to move to a certain level in order for you to follow through and buy those shares of stock. So basically what you're doing is you're acting like an insurance company. You're selling somebody insurance on their stock that they may wanna sell their stock to you at some time in the future. And in exchange for your obligation, in exchange for your insurance, you're receiving a premium from that person. Just think about that. If you have car insurance and you pay the insurance company every month or every year, whatever, and as long as you don't get into a car accident, the insurance company keeps the money from you, keeps the money that you give them. It's the same thing when you sell a put option. Until a certain event happens, you're just going to keep that cash. And that's a source of income. A lot of people sell put options to create a current stream of income for themselves. But in the rare case that in this case, selling put option, if the stock falls from here to here, then you will be called upon to fulfill your obligation and buy those shares of stock. The good thing here that the insurance company doesn't have is that you as a put option seller, you control all the parameters. You can control what price that you would wanna buy the stock for in the future. So you get to pick the strike price and you pick the expiration date. The car insurance company, they have no control over when or if someone's ever going to get into a car accident. So you as a put option seller, you can control the strike price, the expiration date and for your obligation, you will collect a premium. But so that's the basics of selling a put option. But in order to actually sell a put option, you have to, these trades will have to be done in a stock brokerage account. Okay, so you have to have a broker account in order to sell put options. And you have to be approved to be able to sell put options.  So let's just say you're approved and you can sell put options. Now the question is, what kind of account should you sell these put options in? Do you use a cash account or a margin account? And let's explain the difference between the two. In a cash account, what will happen is when you sell a put option, you are obligated to, or your broker will hold a certain amount of funds aside while the trade is active. Now remember, you're not buying anything. You're not investing anything. So your money's not being debited from your account. Let's just say you buy 100 shares of a stock. And when you buy that stock, your broker debits your account for the price of the amount of shares that you bought. In this case, since you're selling the put option, you're not buying anything. You're actually selling it and you're getting money into your account, which is great. We love selling put options. But even so, your broker is going to hold a certain amount of your free cash funds aside. That's off limits. You can't use those funds while this trade is active. Once you sell the put option, a certain amount of money is gonna be held aside. Okay, it's not going anywhere. It's not being taken out of your account. It's just being put on hold. And so how much cash is going to be held aside when you sell a put option? Well, it depends on the strike price. It's completely dependent on the strike price. So let's look at my example here. When you sell put options in a cash account, your broker is going to hold aside 100% of the cost of if you actually went through with it and bought those shares of stock. Now you don't know if you're going to buy the shares of stock until expiration and it all depends on where the stock goes. But let's just say you had to follow through and buy those shares of stock. Let's look at our example here. Let's just say you sold a put option on a 100 strike put option, okay? That obligates you to buy 100 shares of stock at $100 a share. So that cost would be $10,000. The potential cost would be $10,000. So when you sell a put option on this 100 strike in a cash account, your broker is actually going to hold aside $10,000 of your free cash. Let's just say you have 100,000 in your account, 10,000 is held aside. Now you have $90,000 of free cash to play with. So your broker is holding aside $10,000. And that's what it would cost you to actually go ahead and buy those 100 shares at expiration. But since we don't know the outcome of the trade yet, we don't know if you're going to buy those shares yet. Your broker is still going to hold aside the full $10,000, even though you haven't bought anything yet. So you have to decide, is that something I wanna do? Do I wanna give up or hold aside $10,000 of my account when I haven't even bought the shares yet? So that's what happens in a cash account. Now a margin account is another kind of account that you can have at your broker, which in my opinion, I like to use a margin account better because your broker will only hold aside a fraction of that $10,000 aside while the trade is active. And while I mean the trade is active is until you actually close out the trade or you actually have to buy the shares. Now in a margin account, how much money will be held aside? It's a lot less than that $10,000. Most margin accounts today at most brokers today will hold anywhere between, right here, this is where my mouse is, anywhere from 10% to 20% of that full potential cost. So in this case, the full potential is $10,000. 10% to 20% of that is $1,000 to $2,000 that your broker will hold aside while the trade is active, okay? So that's 10% to 20%. It all depends on your broker. You have to find out what it is. Now, that's what's called the margin requirement. So when you sell a put option in a margin account, the margin requirement is somewhere in this 10% to 20% amount. Now, when the trade is over, that your free cash is released back to you. If the trade expires worthless and you don't have to go ahead and buy the shares of stock, those margin funds will be released back to you. But let's talk about this margin account here for a second. What's called the initial margin requirement is that 10% to 20%, so that's $1,000 to $2,000. And as the trade goes on, the stock fluctuates higher or lower, the margin requirement, this 10% to 20% can fluctuate higher or lower, depending on where the stock goes, all right? So if the stock starts to drop and it looks like, hey, you may actually have to buy those 100 shares of stock, the margin requirement will go up, meaning your broker wants to make sure you're good for that $10,000, so your margin can go up from 2,000 to 3,000 to 4,000. As the stock is dropping, your margin requirement will go up, can fluctuate. And people ask me all the time, do I have to pay money on, do I have to pay interest on this margin money? I don't understand. Margin requirement is completely different than the concept of buying on margin. Buying on margin is when you buy shares of stock and you pay for half the amount and you borrow the other 50% from your broker and you pay your broker interest on that margin money. That is not what we're doing when we sell options. When you sell options, it's called a margin requirement and it's just money that's held aside. There's no interest whatsoever that's involved with that, okay? So we talk about here the margin requirement.  It's completely up to you and it also depends on your broker. Now, one thing I do wanna point out is that in individual retirement accounts, at least here in the United States, you could not sell put options using margin. So when you sell a put option in an IRA and a retirement account, any kind of retirement account, you have to put up or keep aside the full 100% cost of the shares. That's just how it is. So if you wanna use margin, you have to do this in a non IRA margin account. Okay, so I wanna make sure we're clear on that. So when you sell put options in a margin account, you only have a fraction of your cash being held aside. And I think it's just a more efficient way to use your money because you don't know if you're gonna buy the stock. So why would you wanna put up 100% of the cost of that stock when you haven't even bought the shares yet? I just think it's an inefficient way to use your cash. So let's look at an example of how that actually works, how you can tell how much your broker is going to, how much margin requirement your broker will have when you sell a put option. Now I'll go into my, this is an interactive broker's account. This is a paper money account. This is not a real account, it's just fake money that everyone who has an interactive broker's account can have a fake account as well. So let's just take a look at AMD. This is option chains here, advanced micro devices. So we're gonna focus on the put options over here because that's what we're working on. So AMD's last trade price was $109.80. That's how it went out yesterday, Friday, August 6, 2021. So let's just say you're interested in selling the $75 put options on AMD. AMD's at just under $110 this year. You wanna sell these $75 put options because actually let's look at the $80 push put options because that's a $30 buffer, just about a $30 buffer between the current stock price and the strike price of $80. Now what you're going to do is if you sell an $80 put option on AMD, you're obligating yourself to buy 100 shares at $80 a share in October of 2021. AMD's at 110, AMD would have to drop all the way down to $80 in order for you to have to fulfill your obligation and buy those 100 shares. And you might be really happy about that because you get a $30 discount from where AMD is currently trading. So you're on the hook to buy 100 shares at $80 a share. That's an $8,000 potential cost to you somewhere down the road if AMD actually falls that far. If AMD doesn't fall that far, you don't have to buy the shares and you just keep the money that the put option by our pages. So how much money will you get? So the $80 puts it right here. Here's the bid ask comms. So on Friday, yesterday, August 6th, AMD 80 puts went out at 51 cent bid, 58 cent offer. Let's just say we can sell those things that in the middle, 55 cents a contract. That's 55 actual dollars that you will get when you sell one contract. You sell 10 contracts, you'll get $550, but then that obligates you to potentially buy 1,000 shares. So each option contract consists of 100 shares of stock. Let's make sure we understand that. So in order to invoke the trade, at least here in Interactive Brokers, if you wanna sell this put option, you click on the bid price and it's going to bring up an order ticket window. And it's for selling. You can see the action. The sell button is highlighted. You're gonna sell one contract of this $80 put and we're gonna put in a limit price of 55 cents a contract. So if the order goes through, you will have sold this contract for 55 cents a contract. That's 55 actual dollars that you will get deposited into your account. Now we're talking about what's the margin requirement? If this is done in a margin account, how much money is going to be held aside from your free cash while you sell this one put option contract? Well, you can click on the preview button and most brokers should have an account window like this that will tell you how much your potential margin requirement will be, your initial margin requirement will be when you first sell this put option. So here's the order preview window. We're gonna sell one contract, sell one of this AMD $80 put October for a limit price of 55 cents a contract. Now you have to multiply the price by 100 because that's a hundred shares. So you'll get actually $55 and down here you can see if filled, if you get filled, you will receive $55 into your account and here's the estimated commission for that one contract. Now here's where you wanna concentrate when you want to look for how much margin requirement and how much of your free cash will be held aside. Here's your current account balance and in these fake money accounts they start you off with a million dollars and it was a million 32 and after the trade you'll get roughly $53 after commissions put into your account. So this is how much money you'll have when the trade goes through. You'll have an extra $53 in your account. So concentrate here on these two numbers right here. This is the initial margin and this is the maintenance margin. We'll talk about that in a sec. But the initial margin is really the most important number because this is going to tell you right off the bat how much of your free cash is going to be held aside out of that potential 8,000. Remember buying 100 shares at $80 a share is a potential $8,000 investment if it comes to fruition. But the margin requirement is only $1,093. Okay, so that's a little over 10% that Interactive Brokers would be asking me to hold aside if I sell this put option. So let's just take a look. I'm gonna do my calculator. 1,093 divided by 8,000 is 13.6%. The margin requirement, the initial margin requirement is just 13.6% of that $8,000. So if you sell this put option you're gonna have to hold aside or your broker will hold aside $1,093. Out of your full cash balance. So out of my $1,000,000, I have to hold aside $1,093. Okay, that's what happens when you initially sell the contract. Now this maintenance margin of $860, which is just over 10%, is the minimum amount that you'll have to have on hold at all times while the trade is active. It can fluctuate higher than that, but at a minimum it's $860. Right now when you currently sell it, it's 1,093. And that can fluctuate higher or lower, depending on where the stock goes. Like I told you, if AMD starts to tick down from 110, down towards 80, your broker's gonna say, hey, it looks like you may have to buy these 100 shares, that'll cost $8,000. So they start to bump up your margin requirement.  It'll probably be higher than this $1,000 because AMD's stock price is starting to drop. So you use this order preview window to gauge how much your initial margin requirement would be and that's how much of your free cash balance will be held aside. Okay, so it's very simple to understand that. And each broker's probably a little different. So you wanna figure out how much each broker's going to hold aside. Now, if you were selling this, if you were making this potential trade in a cash account, the window, no, I don't do this in a cash account. So I'm just guessing the window is gonna say the margin is $8,000 because they're going to hold aside $8,000 in a cash account. So out of your million dollars, you're gonna have $8,000 held aside. Okay, so we close this out. We're gonna close this out because we're not actually putting this trade through. So that's really how it works when you're selling put options. Do you wanna do it in a cash account or do you wanna do it in a margin account? It's up to you to decide. Now, some people like to do it in a cash account because they like to know how much cash that they really might have to use if they have to go through and buy these shares as stock. So people will sell multiple put options on multiple different stocks using multiple contract amounts.  So in a cash account, you'll know at all times how much money's on the line. In a margin account, if you're selling multiple contracts on multiple stocks, the margin requirement is just a snapshot, just a small bit of how much cash will be held aside. So if everything craps out, if all the stocks fall at the same time and all your positions, you may have to come up with all this cash to pay for all these shares. And the margin requirement is only showing you a fraction of that. So you may get a load into a false sense of security of how much cash, free cash you actually have. And you don't wanna be hit with the dreaded margin call.  So you don't want that to happen because you may have positions that you don't want liquidated. So you need to be careful when you're trading with margin, you have to know at all times, where your current cash balance is and how much is being used or potentially going to be used if you have to buy all these shares of stocks. So just keep that in mind. That's why some people like to trade these, sell these put options in a cash account. All right, so that's really all about it for which account you can use for selling put options. Like I said, we like to use put options, selling put options in a margin account because it's better use of your money but also at the same time, you have to be aware of how much of your free cash you're using, okay? All right, so that's it. That's your little lesson for today. Let's quickly go back to our website, smartoptionsseller.com, talked about the free put selling basis guide and in this guide, I also talk about the margin requirements. So you can read about a little bit more. I pretty much say exactly what I've said here in this video, but if you want to read it, it's all in there. Also at our website, smartoptionsseller.com, we have our services tab. We have two newsletters. We have a naked put option selling newsletter and an option, a put option credit spread newsletter. Those are our two newsletters and we have our one-on-one coaching. If you need help getting to the next level, we can certainly help you with that. All right, so I hope this video has been helpful to you. Please don't forget to subscribe. Hit that red subscribe button in the bottom right hand corner of the video and turn on your notifications. You'll get, you'll know when I put out a new video. Please give me a thumbs up if you think this has been helpful. Leave me a comment. Also send me an email. I will always answer you. Okay, that's it for me today. I hope everyone has a great weekend and a great trading week ahead. This is Lee Lowell, signing off.


The Newsroom for Tech and Telecom Professionals. I'm Jamie Skado-Kataya of JSA. Joining me here at ITW 2017, we are honored to have Mr. Andrew Kwok. He's the President of International and Carrier Business at HGC. Andrew, thank you for joining us here. Jamie, it's my pleasure. Love to see you today in Sunday. And very good weather, Chicago. Chicago couldn't be more beautiful for our gathering here at the International Telecoms Week. And we have a very interesting conversation here. It is certainly a changing landscape for the telcos. Can you tell us what you're seeing and how the carrier's role is changing in the digital ecosystem? Okay. So, Jamie, you hit right on the nail. So, I think if I put it in this way, let me put it in this way is that they are a traditional business in the telecom occasion. And of course, there's a lot of disruptive models, so-called disruptive models in the market, namely created and lead by the ODDs. So, having said that, I think years ago, the people is afraid, worry about the ODD are taking away business. But having said that, I think up to this stage, the people start to embrace the ODD and try to cooperate with them. Some success, some fail, of course. So, for HGC, we are getting a lot of business, a lot of new friendship and everything from the ODD sector, which serve our business and also our emotional feelings much better because we don't see them as that's only disruptive. So, answering your question, what I see physically is that for the traditional business, of course, there's a lot of traditional business expansion, software-defined network is something that in the traditional market, we need to do. And other than that, SD-WAN, which is a software-defined, plus the security is also one of the major focus in the whole area. Certainly making global headlines today for sure. And so, with that SDN, SD-WAN, network security, how are our carriers' business models being affected and changing? So, yeah, this will change the carriers' business model in two ways. The first one is that we would like to provide a more one-stop solution for the customer, no matter their carrier customer or the enterprise customer. Only the reason is that once we software-defined our network, basically we're absorbing some of the functionality from the peripherals back into the core. So what is needed to be successful? Of course, our performance. Of course, our price structure. But on the other hand, with same importance is that we need to gain the trust of the customer because they're relying on you more and more, obviously your performance and everything has to be up to a standard that they feel comfortable. So I think this is a kind of, I don't call it a dilemma, but instead it is an evolution process. I love that word, an evolution process. And certainly there's new opportunities that are coming up through this disruption. Can you tell us a little bit more about that? Yes, again, the people talking about disruption. So we see disruption is on one hand of traditional interpretation of evolution, but on the other hand, it comes with opportunities. So let's say, let's cook some example. So we divide our OTT market into two pieces. One is the mega-sized OTT, if I would. Another one is medium-sized or a smaller OTT. For those mega-sized OTT, basically they're not only invert looking. What I mean by invert looking is that they look at their own territory, they look at their own country and launch the service. No, because of globalization, granularization and also personalization. Basically, no matter they see the opportunity that they need to expand or the market is actually pushing them to go global. So this is one piece of the opportunity that we observe. So we are bringing a lot of especially Asian OTT going to the global arena and we are serving them in a lot of different parts of the country. For those OTT, which what I call the mega-sized OTT, I have to use another team of people to serve them because they know what is telecommunication. But for the smaller sized OTT, basically they need a kind of turnkey OTT solution in which they keep their focus, their attention and also the resources back into their own core business. But they hand over all the communication requirement to the carrier, like HGC. So this is the both opportunity that I can see. Great answer. And so looking forward, what do you see coming down the pipe for HGC? For traditional business, for evolving business, I want both. I'm not greedy. But actually, we work for a listed company, we have to strive for the best benefit for this shareholder. But having said that, I think when you talk about the traditional business and also the evolving business, you cannot cut a very keen line between the both and you say that, okay, I focus on the traditional, I forget about the new business or vice versa because every telecommunication, no matter the product, the network and also your resources put in, I link closely to each other. So, forgive me by saying that I'm a dirty businessman, I would like to have both, but actually the market is pushing us to do well in both. Yes, and it's amazing and I'm loving what I'm hearing here today that you're being able to address both so well. So congratulations. Thanks for that. Congratulations. And for our viewers who want to learn more, where can they go? You can go to our website. You can go to YouTube. You can go to Chester. You can go to our Facebook. So basically we are communicating all the information out of those channels. And other than that, obviously, the best solution is that give us a call and let us visit you or we welcome you to visit our 21 office around the world. Wonderful. Thank you so much, Andrew. My pleasure. Your insight, your time, we really appreciate it. And thank you viewers for tuning in to JSA TV. Happy networking.