Warning. Charts in this presentation were produced with TC2000 with permission and our thanks.

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2 Disclaimer Investing in the stock market or any investment issue or security is considered speculative, and any individual who chooses to invest in any kind of securities should perform his/her own due diligence before making any investment decision. Investors should use information contained within the TechniTrader videos as basic information, and should research further before forming an opinion regarding the merits of investing in certain securities. Statements and information made are subject to individual interpretation, and are not recommendations for any security or any product of any nature. All information, slides, charts, and printed materials are for educational purposes only, and are not to be construed to be investment advice. Information provided herein is believed to be true and accurate. Using these materials shall not create an offer to buy or sell stock in any security in which information is disseminated, nor shall it create any relationship, agency otherwise between the buyer/viewer and Decisions Unlimited, Inc. Decisions Unlimited, Inc. dba TechniTrader, and its employees in no event, shall be liable for any direct, indirect, incidental, punitive, or consequential damages of any kind whatsoever with respect to the information contained in this DVD or video. Warning Copyright Decisions Unlimited, Inc. All rights reserved. The FBI investigates allegations of criminal copyright infringement. (Title 17, U.S. Code, Section 506) Federal Law provides severe civil and criminal penalties for the unauthorized reproduction, distribution, or exhibition of copyrighted motion pictures, including this educational program, videos, and/or DVDs (Title U.S. Code, Section 501 & 506) for monetary or non-monetary gains. Charts in this presentation were produced with TC2000 with permission and our thanks.

3 Beginner Options Traders Introductory Lesson In this lesson, we will introduce you beginning option traders how we trade options. For beginners, trading options is very confusing. There are so many different processes and so many things you need to learn, all of which can be utterly confusing.

4 Trading Options = Confusing

5 Complicated Analysis, 60+ Strategies Strike Price Options Chains Implied Volatility Historical Volatility Open Interest Put versus Call Greeks Time Decay Expiration Date Option Exercise Intrinsic Value

6 Introducing a Simpler Way

7 We teach a much simpler way of trading options for beginners and novice traders who want to find an easier way to trade options. It s a step by step process that is simple to learn and makes trading options fun again. It all starts with the stock chart, which tells us all about the option contract. Everything we need to know about buying the option contract, selecting the option and the chain, is in the stock chart. So let s take a look at this

8 Chart Tells Us Best Option Contract TechniTrader Springboard Entry Signal Option entry price (for strike) Option stop loss (or trailing profit stop) Option run length, (points gain) (for risk analysis) Option run time, (expiration month)

9 We first find an entry signal. Our example chart shows what is called the Springboard entry signal, which is taught at TechniTrader. It gives you the option entry price for the strike price. Then, we take a look at our stop loss. Where are we going to protect our capital should the contract go against us? This gives us the option stop loss or the trailing profit stop. Then, we look to see how far the stock can move up in points. This gives us the Option Run Length, the Points to Gain for reward/risk analysis, and tells you when to exit the option contract. Then, we study the chart to find out how long it will take for the stock to get to the target price. This gives us the option run time for deciding on the expiration month of the option contract. It is very important to know the length of time it will take a stock to run to your target for trading options. EVERYTHING YOU NEED TO KNOW IS IN THE STOCK CHART

10 Stock Chart Analysis Data Symbol: XYZ Date 00/00/00 Support Low Resistance Run time 3wks Options Chain Lookup ITM ATM OTM OTM

11 Now let s see how to apply this to making a decision on which option contract to buy. We take what we learned from our stock chart analysis and look up the option chains to plug into the TechniTrader Stock & Option calculator. TechniTrader s Stock & Option Long Call Calculator makes trading options fun and easy. All you do is enter: The date The stock symbol The day s high from the stock chart The support low from your stock chart The resistance level from your stock chart The potential run gain The amount of time it s going to take The ITM, ATM, OTM1, and OTM2 contract prices (You ll enter the exact expiration date and option symbol after you have calculated to decide on which option to buy.) And the calculator does the rest of the work for you. It will tell you which of the option contracts is going to be the lowest-risk with the highest potential. That tells you exactly how to trade the option.

12 mmddyy ABC mmdd Mar 20 Call days Feb 150 Feb 150

13 Easy Option Trading Checklist Checklist for Trading Options the TechniTrader way: 1. Study the stock chart to find a buy signal. 2. Determine the support level for a stop loss. 3. Determine how far the stock will run. 4. Calculate how long it will take to move that many points. 5. Enter this data into the TechniTrader Trading Calculator. 6. Choose your option contract based on risk. 7. Buy the option contract. 8. Exit at or before target price.

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