Disclaimer and Waiver of Claims
Read this prior to attending the Workshop or using this Workbook.
Options involve risk and are not suitable for all investors.
Every investor who uses optionsshould read and understand the publication
Characteristics and Risks of Standardized Options
Except where otherwise noted, all examples in the workshop and this workbook are hypothetical.You should not assume that the stocks and options pricing or profits from trades used asexamples during the workshop or in this workbook will be in accordance with actual pricing orresults in the market place. The examples used in examples in this manual or during anypresentation are not to be construed as a recommendation to purchase or sell any security orgroup of securities. In order to simplify the computations, commissions have not been included inthe examples used in the workshop and in these materials. Commission costs will impact theoutcome of all stock and option transactions and must be considered prior to entering into anytransactions. The results for all examples involving option transactions are “at expiration” unlessotherwise noted. Investors considering stocks or options should consult their tax advisor as tohow taxes may affect the outcome of the contemplated stock or option transactions. Supportingdocumentation for any claims, comparisons, recommendations, statistics, or other technical datawill be supplied upon request.
Under no circumstances should one consider that the use of the entrance and exitcriteria contained herein will guarantee the profitability of a trade. Many of thestrategies must be done in a margin account. They involve multiple transactions in bothopening and closing positions. Commissions can have a significant impact on profit orloss. The examples used in examples in this manual or during any presentation are notto be construed as a recommendation to purchase or sell any security or group of securities.
The examples in this booklet do not include tax consequences, commissions, or other transactioncosts, nor do they include the impact of applicable margin requirements. These items can be verysignificant and should be taken into account by all investors. Stock and option investing, likeother forms of investing, involves tax considerations, transaction costs and margin requirementsthat can significantly affect the profit or loss results of buying and writing options. These factorsare not the focus of the workshop and this workbook, but should be understood and taken intoaccount by everyone considering transactions in stocks and options. Notwithstanding theimportance of tax considerations, transaction costs, margin requirements, and interest cost, forthe sake of simplicity, the examples in this booklet do not take these matters into account.Nevertheless, it should be remembered that their impact might significantly reduce theopportunity for profit and the rate of return obtainable from particular option trading strategies;indeed, their effect may in some instances turn an apparent profit into a loss.The tax consequences of a stock or option transaction depend, in part, on the tax status of theinvestor and also may differ depending upon the type of underlying interest involved, since thetax rules are not the same for each type of underlying interest and, upon such factors as whetheran option is exercised or is the subject of a closing transaction or is allowed to expire or whetheran option that is written is covered or uncovered.
Because of the importance of taxconsiderations, it is strongly recommended that you consult with your tax advisor as tohow taxes may affect the outcome of contemplated stock or options transactions.
This book is designed to provide accurate information related to the subject matter covered. It isunderstood that the publisher is not engaged in rendering legal, financial, tax, or otherprofessional services. If such assistance is required, the services of a competent professionalshould be sought.