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1 7:00 pm Central Time

2 2 Trading Strategies for Impending Volatile Markets with Don Kaufman

3 3 Risk Disclosure We Are Not Financial Advisors or a Broker/Dealer: Neither TheoTrade nor any of its officers, employees, representatives, agents, or independent contractors are, in such capacities, licensed financial advisors, registered investment advisers, or registered broker-dealers. TheoTrade does not provide investment or financial advice or make investment recommendations, nor is it in the business of transacting trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion, endorsement, or offer by TheoTrade of any particular security, transaction, or investment. Securities Used as Examples: The security used in this example is used for illustrative purposes only. TheoTrade is not recommending that you buy or sell this security. Past performance shown in examples may not be indicative of future performance. Return on Investment ROI Examples: The security used in this example is for illustrative purposes only. The calculation used to determine the return on investment ROI does not include the number of trades, commissions, or any other factors used to determine ROI. The ROI calculation measures the profitability of investment and, as such, there are alternate methods to calculate/express it. All information provided are for educational purposes only and does not imply, express, or guarantee future returns. Past performance shown in examples may not be indicative of future performance. Investing Risk: Trading securities can involve high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon, or risk tolerance. Options Trading Risk: Options trading is generally more complex than stock trading and may not be suitable for some investors. Granting options and some other options strategies can result in the loss of more than the original amount invested. Before trading options, a person should review the document Characteristics and Risks of Standardized Options, available from your broker or any exchange on which options are traded. No part of this presentation may be copied, recorded, or rebroadcast in any form without the prior written consent of TheoTrade. No Soliciting. No Recording. No Photography.

4 4 Copyright Disclaimer All rights reserved. This Material may not be reproduced or distributed, in whole or in part, without prior written permission of TheoTrade, LLC. Any other reproduction or distribution, in whatever form and by whatever media, is expressly prohibited without the prior written consent of TheoTrade, LLC. For further information, please contact: TheoTrade, LLC N. Scottsdale Rd. # 410 Telephone: support@theotrade.com

5 5 Don Kaufman Co-Founder and Lead Instructor at TheoTrade Industry-leading options strategist Derivatives Risk Manager 20 year trading career 18 years of thinkorswim platform experience

7 Copyright 2018 TheoTrade, LLC. All Rights Reserved 7 About TheoTrade TheoTrade Specializes in education for options, futures, and stocks. Founded by professional traders and trading educators each with a minimum of 15 years experience, several with many decades TheoTrade is here to help you mitigate the risks in the market, while learning a skill set that can last a lifetime.

8 Your TheoTrade Instructors Jeff Bierman Analyst, Trader, & Former Chief Technician for TD Ameritrade Matt Williamson market neutral/premium selling options strategist Corey Rosenbloom Senior Strategist & Swing Trader Brandon Chapman CMT Macro Economics, Technicals and Fundamentals Steve Slim Miller - 43 year veteran stock, options, futures trader Tony Rago - Nasdaq Futures and Intraday Strategist

9 9 Monkeys Throwing Darts The last 10 years monkeys throwing darts made money However, moving forward you will need a definitive skill set. What we intend to do tonight is introduce you to the skills and more importantly the criteria needed to thrive in markets.

10 10 All Good FED things MUST come to an END Starting in 2018 the Federal Reserve is effectively departing the marketplace and will commence contracting the 4.5 trillion dollar balance sheet. As FED capital declines, interest rates will increase investors and traders will be forced to unwind positions in countless marketplaces. In effect, as the Fed pulls away the punch bowl capital markets will become increasingly volatile.

11 11

13 Copyright 2018 TheoTrade, LLC. All Rights Reserved 13 The writing is on the Wall literally! The FED will continue to raise rates and contract the balance sheet, Central Banks around the world have already started to follow suit. Moving forward you need to be fully aware the FED no longer has your back! It is time to get back to SELLING Options Premium as increases in volatility are forthcoming.

14 Copyright 2018 TheoTrade, LLC. All Rights Reserved 14 Higher Interest Rates Produce Volatility In a higher interest rate environment the following are relevant: Cost to finance positions for major trading firms increases substantially, the cost of carry for net positions makes firms contract capital from markets. Stock buy backs become less viable as firms can no longer borrow capital at rockbottom rates in order to purchase their own stock. Fixed income once again becomes appetizing as being paid 4% on capital looks excellent compared to the last decade! Consumer debt becomes a burden, as rates increase so do defaults. Housing valuations slow or decrease, the ability to borrow against equity within the home stalls. Car sales faulter, zero-percent loans are drying up, and discounts are getting hard to find as automakers preserve profits.

Fixed income once again becomes appetizing.

Consumer debt becomes a burden, as rates increase so do

You need to be smarter than your competition!

23 Copyright 2018 TheoTrade, LLC. All Rights Reserved 23 Today we will discover a non-directional trade logic you can use in order to profit from stock, index, or ETF volatility without taking on drastic risks!

24 24 Learning to SELL Options Many have heard through the grapevine selling options is the way to make money Well if you have experimented with selling options you know full well there is definitely RISK involved. Today s session will separate the myths from the real risks and the fact from the fiction in selling options premium.

25 25 Don t Panic, You Can Do This You may know NOTHING about options and that is ok for today s session! For starters, look to grasp the big concepts regarding probability and risk. So let s dive right in

26 Probability and Profitability Your trading is based on probability. You and I can create trades all day long with a 90% probability of success and still lose money. Probability alone does NOT make you profitable. Remember that!

27 27 Markets Are a Trade Off Markets are a series of trade offs. Higher probability equals Higher RISK! You can be right 90% of the time and still lose money! So where can I find an edge? That's what you here for right? Great, then get ready because I m about to show you something very important:

28 Premium Selling Logic! 100

29 Selling Out of the Money Options 100 If the stock expires below the short strike, you keep the credit. Sell 110 call for 1.50 credit

30 High Probability Credit Spread 100 If the stock expires below the short strike, you keep the credit. Sell 110 call for 1.50 credit Buy 115 call for.50 debit Selling 110 call Buying 115 call Net Credit $1.00 Maximum Risk $4.00

31 31 80% probability and the 20% hammer 80% sounds great but 20% of the time the market rips your face off. When you trade high probability strategies and you re wrong, you get hammered. And the market is just evil enough to allow you to make money 3 or 4 times, you increase contract size then Train wreck! Your losses exceed the gains on the previous 3 trades. I know I know it s like I can see your account. Well for the previous 15 years, I could

32 32 I Can Fix It, I Know I Can Fix It... Fix is a really dirty word in trading. 15 years in the brokerage business has made me a bit cynical regarding good trades gone bad. Any time you are fixing a trade you are adding more risk to an already losing trade and racking up transaction costs. Yes some fixes may work but the very notion of fixing a trade throws good capital after bad.

33 Yesterday s Trash Take a car drive it off a cliff and bring it to a body shop. The body shop will tell you the same thing about the car that I am going to say about your losing trade. It s a piece of junk, let it go. Do it right learn how to correct good POSITIONS gone bad!

34 Selling Premium the RIGHT WAY! 34

35 Copyright 2018 TheoTrade, LLC. All Rights Reserved 35 Fear NOT Selling Premium! You may not know options OR have limited experience in placing options trades. DO NOT let options intimidate you! You need these strategies for the forseeable market future! We can show you HOW and WHEN to place these trades in a matter of a few hours. TheoTrade creates detailed recipes for every strategy including Selling Premium. You would not bake a cake without a recipe, so why trade without one?

46 Copyright 2018 TheoTrade, LLC. All Rights Reserved 46 Trading is about Answering the What Ifs What might be a good stock or ETF candidate for a short position? What is the correct options expiration cycle to buy put? How much capital do I commit to these positions? What Strike Price Options do I sell and how many? What Strike Price Options do I buy?

47 Copyright 2018 TheoTrade, LLC. All Rights Reserved 47 TheoTrade Has Your Answers We Build Recipes with definitive criteria and checklists for each strategy and each unique variable you will encounter.

49 Copyright 2018 TheoTrade, LLC. All Rights Reserved 49 The Secret is in the Sauce Now you may be thinking hey I can read about this strategy anywhere and can do this; well think again The following strategy and corresponding criteria requires the utmost attention to detail. We spent YEARS fine tuning this trade setup and criteria, when we approach the section on criteria FOLLOW the STEPS to build a trade! Here is how YOU can Selling Premium and Minimize Risk

50 50 Selling Premium and Minimize Risk Workshop Curriculum The logic behind selling premium so you understand why these trades work right now How to build an options inventory so you spread your risk across products and time A professional trader's guide to capital allocation so you know exactly what to risk at all times The Greeks demystified so you know how to use the Greeks to maximize your returns and minimize your risk The key to all long term traders is risk management. If you understand how to manage your risk you will thrive in the markets.

51 Copyright 2018 TheoTrade, LLC. All Rights Reserved 51 Selling Premium and Minimize Risk Trade Instructor: Don Kaufman 4 hour course is available immediately with 24/7 access Class slide deck that includes entry and exit criteria checklist available immediately for download. $297 *Class qualifies you for a reduced commissions rate*

52 Copyright 2018 TheoTrade, LLC. All Rights Reserved 52 You ve been there done that Many of you tuning in have been through the gauntlet of paid classes, indicators, secret squirrel black boxes and more Only to find just BUY this one last thing to make all the difference? But wait there is more! We at TheoTRADE have had enough of the educational garbage and sales pitches and we intend to put and end to it!

53 Copyright 2018 TheoTrade, LLC. All Rights Reserved 53 Disrupt Financial Education! TheoTRADE is built by professional traders with a minimum of 15 years experience, not professional salespeople. Educating you is our ONLY goal and we will demonstrate it. Today we shall forever change the way you view education Introducing TotalTheo Unlimited Streaming Monthly Membership!

54 Copyright 2018 TheoTrade, LLC. All Rights Reserved 54 TotalTheo Unlimited ONLY $99 per month How to Selling Premium and Minimize Risk is INCLUDED in the TotalTheo Unlimited Monthly Streaming Membership ACCESS to OVER 75 Trading Classes! ALL available immediately On-Demand New Monthly Classes Live Trading Chat Room: Traders Provide Real Trade Ideas and Real-Time Market Insights and Analysis broadcasting live 6 hours per day. Indicators 59 proprietary indicators and scans. ed Trade Ideas Daily Coaching Sessions with Timely Topics on Stocks, Options and Futures Instructors directly answer your trading questions via ! TheoTrade.com/all

55 What Members are Saying: 55

56 Copyright 2018 TheoTrade, LLC. All Rights Reserved 56 It s As If We Are Giving You $200, Take The Money Selling Premium and Minimize Risk $297 one time fee Selling Premium and Minimize Risk TotalTheo Unlimited Streaming $99 per month Selling Premium and Managing Risk Over 75 classes New monthly classes Daily live trading and chat room Archived 24/7 ed trade ideas Trading indicators and scans Daily coaching sessions

58 What Members are Saying: 58

HOW TO FIND PROFITABLE TRADES IN TODAY'S MARKET with Don Kaufman

1 HOW TO FIND PROFITABLE TRADES IN TODAY'S MARKET with Don Kaufman 2 Risk Disclosure We Are Not Financial Advisors or a Broker/Dealer: Neither TheoTrade nor any of its officers, employees, representatives,