1 TRADING COURSE – SESSION 8 © Copyright 2014. Options Trading IQ. All Rights reserved

1

TRADING COURSE – SESSION 8www.optionstradingiq.com

© Copyright 2014. Options Trading IQ. All Rights reserved.

2 © Copyright 2014. Options Trading IQ. All Rights reserved.

DISCLAIMERDISCLAIMERAny 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.

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 www.optionstradingiq.com/risks

http://www.optionstradingiq.com/risks

3© Copyright 2014. Options Trading IQ. All Rights reserved.

OUTLINEOUTLINE


MARKET UPDATEMARKET UPDATE


STEPHENSTEPHEN


TRADE SERVICESTRADE SERVICES

Worth The Money? Many Ways to Skin a Cat

(1) Individual Credit spreads have only $2 between the shorts and the longs.

(2) Tend to trade the ETFs (e.g. IWM, SPY) rather than the indices.

(3) Little or no adjustments other than closing out half the trade. I have even seen them let the underlying go through both the short and long strike.

(4) No apparent consideration of Greeks or Greek ratios in putting on the trade. Only appear to look at percentage out of the money for the shorts and a directional expectation on the underlying.


TRADE SERVICESTRADE SERVICES

Don’t Just Blindly Follow

There are some attractions to the style of the Service. First, it can be more set and forget given the vastly smaller maximum loss potential ($2 difference between spread strikes) while the large theoretical loss in your trades pretty much forces you to keep on top of the trades and adjust. On the other hand, the Service does feel a bit more like gambling to me. So, is one style of trading Iron Condors more common that the other? Do others use your adjustment and exit guidelines or are those pretty much the result of your own work? I am just trying to get a better view of the broader picture here to see where I might fit in. I have been very happy with the Course. As I mentioned to you before, I am very happy that we had losing trades. This was a course, not an investment opportunity and there is no better learning experience than a very difficult market. You learn how to deal with it, and even more important you learn how you react to the setbacks. I loved it.


FINAL THOUGHTSFINAL THOUGHTS


YOUR THOUGHTSYOUR THOUGHTS

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© Copyright 2014. Options Trading IQ. All Rights reserved.

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1 TRADING COURSE – SESSION 8 © Copyright 2014. Options Trading IQ. All Rights reserved