Watch Tom Preston Build and Place a Trade Live on Air

Let's check out Sienna. And I have stocks I want to look at, but it's I like to I like to see what you folks are are looking at. Sienna filled on S&P 480. And by the way, this is the only network. Tasty Live is the only place where you actually see us trading live. Okay. [laughter] Um, so we're I'm I'm a trader. I'm doing this just like you folks are. So Sienna stocks at 38680. So right however around 385. Let's just see does it have any other Yes. Five point strikes everywhere. Let's go for I don't know. Talk about expirations in a second. Let's see which way it's headed. So let's say down five points up five points. Yeah. The skew is pointed to the upside even. So here's the deal. Here's what I want you folks to think about for a second. See how the stock's at 386. So obviously it's closer to 385 than 390, right? It's a buck away from 85 and four bucks away from 90. So because it's closer to 385, I would expect this 380 put to be a little bit richer than it is. Okay, that's why when I see compare the 390 to the 395 call to the 380 put that 1610 and the market's kind of wided here, but the that 16 I look ask price to ask price offer to offer. Um I would expect this to be a little bit uh richer than it is. um even though this is only 16 1610 I was because this is four points further out of the money. So that's kind of what we're looking at here. I'm thinking yeah I mean actually right now 385 so 1930 versus 1640. Yeah, it's basically basically um bullish in here. I see the skew point to the upside in here. So I'm going to agree with you Sue in that. Let's go out. Let's check the chart for volatility. One moment please. So I'm looking at volatility. Volatility is overall 65%. That's pretty high. I don't care the IV ranks 24%. Overall V is 20 or 65, excuse me. Is relatively stable. Little bit of rally in the stock. So let's go. Let's say 14 days. See what we get. Um or is there any more liquid options out? No, those aren't. No. Let's do 42 days. I don't want to go out that far in this stock. Um, let's just stick with 14. See what we get. So, what do I do? I find an option that has about a 68 69% profit expiring worthless. Let's start with the 62 halves. Sell that by the 60s. What do I get? Do I get a third of the width of the strikes? A third of the width of 2 and a half. It would be 88 85 83 cents. Not getting it with this spread. Let's pull it up one strike. There we go. 85. So, what do I like about this trade? Well, Su is bullish on Sienna. It's good enough for me. Skew is pointed to the upside. I like it. Um 71% probability making off max profit. Max profit 85. Half that's about 42 bucks versus about 100 $165 of max risk. That riskreward ratio is a decent return on capital if I am right. And if uh Sienna stays up over the next couple of weeks or next week actually um let's ship it. Ship it. Uh light two. So what is light? What is it? Is it just plain light in here? Lmentum holdings. So is that what you're talking about? I think it's just light. Well, it's it's Yeah, I don't love the markets in there. Let's take a look at the short side. ESTs. Let's check these things out. Okay, I these markets are relatively tight. He's bearish on a EST Space Mobile 9% IV rank. 74% IV. Let's sell a call spread. Let's check the skew. 5875 right in between here. Yeah. Okay. So, down to up to Yeah, excuse me to the upside. But you know what? Let's see what we get for a twopoint spread here. No, I'm not getting it. Yeah, I'm not getting it here. I'm not getting the getting the numbers I like here. Let's check out a buy the 60s, sell the 58s. No, I'm not getting it. I'm not getting numbers I want to see in here. Not getting numbers in that. Um, let's move on to