1. TRADING COURSE www.optionstradingiq.com
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2. DISCLAIMER
Any information contained in this presentation is for educational purposes only. Neither IQ Financial Services, LLC or Gavin McMaster are licensed financial advisors, registered investment advisors, or registered broker dealers. Neither do they provide investment advice, financial advice or make investment recommendations and they are not in the business of transacting trades. Nothing in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer to buy or sell by IQ Financial Services, LLC or Gavin McMaster of any particular security, transaction or investment.
Any trades and / or results covered in this presentation may or may not be live trades.
All trades and trading results are believed to be accurately presented. However, since the trades may not have been executed in the market, the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Therefore there can be no guarantee of accuracy or completeness.
No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown.
The risk of loss in trading securities and options in particular can be substantial. Customers must consider all relevant risk factors, including their own personal financial circumstances, before making any financial transaction. Options involve risk and are not suitable for all investors. See the Options Disclosure Document: Characteristics and Risks of Standardized Options, available from
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3. The Great Depression
1935
1942
1952
1954
1959 3
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4. OUTLINE 6 Strategies A Little Bit of Theory Guidelines TRADING PLANS
Preparation
This Week 4
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5. 6 STRATEGIES Iron Condor Bearish Butterfly Iron Trapdoor
Diagonal Spreads
Weekly Butterfly Spreads
The Wheel 5
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6. WHAT IS AN IRON CONDOR?
*Please note that the prices and other statistics on the table below are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions 6
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7. PROBABILITY 7
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8. WHAT IS AN IRON CONDOR? 8
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9. WHY TRADE IRON CONDORS? Consistent Monthly Income High Probability
Easy To Manage
Avoids Overtrading
Non-Directional
Short Vega 9
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10. BEARISH BUTTERFLY Low Maintenance Allows You To Scale In
Does Well In Most Markets 10
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11. INITIAL POSITION
*Please note that the prices and other statistics on the table below are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions 11
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12. INITIAL PAYOFF GRAPH 12
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13. FULLY SCALED GRAPH 13
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14. IRON TRAPDOOR Reduced Vega Exposure Profit Zone on the Downside
Lower Risk on the Upside
Handles Fast Moving Markets Better Than IC 14
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15. IRON TRAPDOOR
*Please note that the prices and other statistics on the table below are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions 15
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16. IRON TRAPDOOR 16
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17. DIAGONAL SPREADS Positive Vega Short-term Trade
Can Use to Hedge Other Positions
Ideal if Zero Cost or Slight Credit 17
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18. DIAGONAL SPREADS Entry Feb 20th Exit Feb 26th 18
*Please note that the prices and other statistics on the table below are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions 18
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19. DIAGONAL SPREADS 19
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20. 20

21. Weekly Butterflies Very Cheap Way to Gain Directional Exposure
Potentially Large Payoff if Index Pins the Strike
Can Trade Double or Single Butterflies
Set and Forget Strategy
Best to Enter Double Butterflies After 1-2 Week Chop 21
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22. November 14th Entry 22
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23. November 21st Settlement23
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24. THE WHEEL STRATEGY Similar to Covered Call Strategy
Longer Term Strategy With Monthly Income
Buy Stocks For Less
Need Strict Trading Rules 24
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25. 25

26. SELLING PUTS Sell a Put. In Other Words, You Are Short A Put
You Have The Obligation To Buy At The Strike Price
You Receive Premium 26
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27. WHY SELL PUTS Great Way To Get Long A Stock
Purchase Stock For Less Than The Current Price
If Stock Is Flat Or Rises, You Collect Premium Income
Can Keep Collecting Premium Income 27
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28. TAKING OWNERSHIP
If The Stock Falls Below The Strike Price, You Are Assigned on 100 Shares
Now You Can Start Your Wheel Trade 28
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29. THE PROCESS Have To Be Willing To Own 200 Shares of The Stock
Sell 1 Put. If the put expires worthless, revert to step 1 and sell another put.
Once assigned on the short put, you hold 100 shares. If you are still bullish on the stock, write another put. At the same time you sell a covered call on the 100 shares.
If the stock falls, the 2nd put is assigned, completing the investors’ total order of 200 shares. 29

30. THE PROCESS
Now that you own 200 shares, sell 2 covered calls against those shares
The chosen strike price and expiry month will be determined by the investors’ outlook on the stock
Once the stock rises and the 200 shares are called away you can repeat the process 30
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31. BENEFITS OF THE WHEEL
Put and call selling helps generate significant monthly income
Shares can be purchased for less than their current price
Option premium effectively reduces the average cost of the share purchase
Dividends received from holding the shares will produce another source of income
By adhering to a strict process, you can take some of the emotion out of your investment decision making 31

32. RISKS OF THE WHEEL
Losses can mount up quickly if you do not have stop losses in place
Traders should be wary not to be enticed by stocks that have high option premium. High option premiums mean the stock is more volatile
This strategy should only be attempted on stocks you are willing to own 32
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33. 2008 - 2009 Stocks Continuing To Fall
End Up Selling Calls For Less Than Your Cost Basis
Wheel Still Performed Better Than Outright Stock Ownership
Need To Use A Stop Loss 33
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34. 34

35. GUIDELINES Allocations 35
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36. GUIDELINES
Greeks 36
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37. TRADING PLANS 37
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38. PREPARATION Set Up Trading Log / Journal Paper trade – Min. 3-6 months38
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39. THIS WEEK Opening Trades Trading Log 39
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40. THANK YOU! www.optionstradingiq.com
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