Maite pri WHY SHOULD YOU TRADE OPTIONS Trading secrets they don't want you to know! OptionPundit.co!Share ABOUT THE AUTHOR Born-and-raised as a child with nothing more than passion, hope and a dream, |, Manoj Kumar, am proud to have cteated a socially conscious Options Trading company that has reached over million views from all around the world. Until | found my first job, | never had money. For as long as I can remember, I've been insatiably curious about ascent of money and how lack or excess of it affects happiness. I wanted to know, why do some people struggle in making money while others find a way to thrive, often despite the most challenging circumstances? Ct OptionPundit ‘The Proven Formula for Consistent IncomeInat curiosity about money and markets led me to start ptionPunait in 2006. Share am not going to impress you with my Engineering , MBA degrees from top universities, my agistrations as CTA, neither | am going to impress you with my 12 Years of multinational corporate experiences in 4 continents or the Books | have authored, nor I am going to boast bout 800+ post & articles on Options & Futures many of which have been published on joogle Finance, Chicago Sun Time, Palm Beach Post, Reuters, etc. Through OptionPundit.com, for the past 13 years I've been helping options traders all around the world to generate consistent returns from the financial markets, build profitable trading systems, develop powerful volatility strategies and mentor traders from all walks of life. I trade with real-money and train people with unparalleled commitment and passion... many addressing me as World's #1 Most Trusted Options Coach As a popular seminar trainer and international speaker, | have also been invited to speak on various popular investment summits worldwide. Blessed with wonderful clients, Team OP continues to raise the bar to support our clients, communities and charities. DEDICATED To your SUCCESS! Profit Strategist . Trading Coach . Author . Entrepreneur DisclaimerTrading and Options both involve risks and are not suitable for all. Prior to buying or Share selling an option, you must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, by calling 1-888- OPTIONS (USA), or at wwwtheocc.com. OptionPundit® is NOT a Registered Investment Advisor and is not liable for any profit/loss occurred due to investment decision made on the basis of this presentation, The information in this presentation is provided solely for general information, possible education and entertainment purposes. No statement should be construed as a recommendation to buy or sell a security or to provide investment advice. For detailed legal notices and disclaimer, please visit https://www.optionpundit.com/pages/terms. Past performance is not indicative of future results, CHAPTER 1Share INTRODUCTION Why should you learn to trade Options Page 5 Introduction Why should you trade Options Options are probably the greatest wealth building tool ever invented, especially for retail investors. However, Options trading is infamous for all the wrong reasons. The Internet as well as newspapers is filled with attractive, influencing marketing sales-letters that promise to make you rich very quickly. Let's be fair, if those sales-etters were promoting to OPERATEIT-LIKE-A- BUSINESS, how many would really be attracted? Let's face it, making huge money in shortest possible time hits well to our internal desires.Share With this key book, let me introduce you to key reasons why you should learn to trade options EVEN IF YOU ARE NOT A TRADER. Protection, Hedge, Safety, Insurance ae ye'T try lo buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.” Warren Buffett Page 7 What ra > What if you could guard your business against price fluctuations? What if you could have protected your wealth during severe market losses 2000, 2008? What if you could hedge your retirement savings invested into your company stocks? The primary reason you should consider learning to trade options is the same as insurance ut it is an skill that's coverage. Learning how to hedge is not only required for traders, equally good for BUSINESS OWNERS and COMPANY EMPLOYEE as wellIf you are a BUSINESS OWNER in a sector where options are easily available, you could share €49e your business against price fluctuations of factors that affect your business activities. hese days options are available on almost all asset classes such as Crude Oil, Gold, Metals, tocks, Grains (e.g. Soybean, Wheat, etc.), Currencies (e.g. Yen, British Pound, Aussie Dollar, curo, ete) Page 8 Knowing key factors that can affect your business and then hedging against those can be a really valuable skill. Airlines do this most of the time, Coffee producers/Starbucks continue to hedge and similarly Copper and Gold Mine owners hedge their output prices. Even if you don't have listed options, you could envision some and then find some sort of over the counter legal ways to hedge it. Options market is growing day by day and now covers a wide range of products. John (not his real name but a real story) was a long term employee of a fortune 50 company. He was about to retire in 2008. | saw tears in this big man’s eyes when he saw massive drop in his long term portfolio and he needed to cash-in those holdings soon after his retirement. He was counting his post retirement wealth mostly on his company stocks. As a company EMPLOYEE, our fortunes are usually tied to the company we work for (in form of company’s stock ownership). Due to conflict of interest, one might not be able to trade stocks/options on that company but you could benchmark your company stocks against relevant sector or overall market that can help you in protecting your long term wealth. AS INDIVIDUAL INVESTOR, part of your wealth might be in the form of long term stocks holdings. Knowing how to protect your stock portfolio will save it for from disappearing during severe market meltdown. No one can pick market TOPS and BOTTOMs else there won't be any market. During past 14 years, we have seen huge rallies and severe market losses many times. What if you could have protected your wealth when markets sold off deeply?Let us know if you need help or have questions Share *° Support@OptionPundit.com Page 9 CHAPTER 2 STOCK PORTFOLIO Build Your Stock Portfolio At Your PricesPage Stock Portfolio Build Your Stock Portfolio At Your Prices a Apple Inc. What if you could buy Apple shares at $475 or $450 (vs. current market price $543)? What if you even get paid if ‘ock is not given to you at $450 in next 50 days? Equity options investors (or physical metal, grains where delivery is applicable) can build their stock portfolio at the prices which is much lower than current market price. Using few easy-to-learn skills, even an individual investor can build his long term stock portfolio at lower than current market prices following a systemic approach It is simple mathematics that anyone with simple addition/subtraction skills can do it. It is like buying a house (but with a huge difference).Let's assume, you want to buy a house but at your price. The house-owner is not willing to sell you right now at your price. HOWEVER, the house-owner tells you that he would pay you certain amount if he decides not to sell the house to you in next, say for example, 90 days! Similarly, if you are not given the shares of the company YOU chose, at the price YOU decided during the time frame YOU chose, YOU WILL BE PAID and you can do it again, and then again. You choose the company, you choose the Price! Let us know if you need help or have questions Support@OptionPundit.com Page 12Share G CHAPTER 3 EN ERAT ct INCOM T Generate Consistent Income on Your Stock Holdings Page 13 Generate Income Generate Consistent Income on Your Stock HoldingsWhat if you could generate additional regular income on your stocks? Imagine buying a house, then renting it monthly to collect income. That is an excellent way of monthly cash flow that riches of world do it. However, there is an advantage of being an Option Trader. In case of a house, you may not find a tenant. But in case of stocks, there are ample “tenants’. Most buy-and-hold investors keep stocks in their portfolio expecting huge runs in the long run. But when markets are going nowhere, your stocks earn NOTHING except the dividends. Page 14ot In fact, these strategies outperform pure buy-and-hold strategy in 3 out of 4 scenarios 1. When your stock is going no-where 2. When stock is selling-off 3. When the stock is moving up moderately. The only time, these simple techniques under-perform is when there is a sudden, huge rally Page 15 What if you could generate monthly cash flow whether markets go up, down or no—where?Options is probably the only asset class that is so versatile to offer opportunities for various Share cenarios like no other. fost other investment vehicle are focused on “CAPITAL APPRECIATION” (Buy low/ Sell High r vice versa) while options can be utilized for regular monthly “CASH FLOW" (as well as for capital appreciation). Options are based on mathematics and pricing is determined by a formula. It is a time decaying asset. There are only two types CALL and PUT, one benefits from upside move in the stock while other benefits from the downside move. You can create almost infinite possibilities with options You can structure NON-DIRECTIONAL (ie. it can make money whether underlying goes up or down) strategies that are LIMITED RISK in nature while still offering GREAT REWARDS. Though there are tremendous possibilities, based on our decade+ experience, we can tell you that it is only 4-5 strategies that make up for almost 80% of the gains. Page 16 There is NO NEED to search for the best stock. There is NO NEED to scan the universe for quality stocks, 2 8 =& DBThere is NO NEED to analyze company’s Balance sheet, Cash flow, Profit & Loss statements s those market neutral strategies are aimed to benefit from options’ and underlying tock's characteristics Share Uhile this is easy to learn and understand, doing this requires practice and experience. After reading this, you may ask if Options Trading is so easy, why everyone isn’t doing it and why majority of Options Trader's fail (some say > 90% of Options Traders fail) This brings me to the final point - Leverage, Multiply, Supercharge Page 17 CHAPTER 4 OPTIONS BENEFIT Leverage, Multiply, SuperchargePage 18 Options Benefit Leverage, Multiply, Supercharge you could convert $5K info $1million? Inappropriate usage of leverage is where most traders fail. Theoretically, and in some case practically, a small sum of money can convert into huge sums. It is this possibility that attracts novice traders to enter into options trading, Since most are familiar with BUY and SELL (and HOLD), they start trading options along the same principles without really understanding how options work. This attracts the untrained side of traders and investors. They think by investing small sums, they can hugely profit from the direction i.e. up or down.Let us know if you need help or have questions Support@OptionPundil.com Page 19 Profit $0 50 60 0 Stock -$150 Price An example most often sighted is To buy 1,000 Shares of Apple Inc. (TickerAAPL) you need $543,000 (assuming $543 current market price). If Apple goes to $600 in 3 month, your stock gains are $57,000 thus gaining +10.5%. What if you purchased 10 AAPL APR'14 call options (months, 550 strike) for $29,500 and if it goes to $600, your gains will be $20,500 thus gaining +69.5%!! That's almost 6 times more money using Options vs stocks. How cool is that? And it is just the beginning. You could increase these returns even many more folds using various other types of options (e.g. shorter time frame) This logic and the potential risk/reward are easy to understand and satisfy our internal desires to make money in the shortest time.ut it is not easy to predict stock’s direction. This is where specialized skills in predicting the tock moves come into play and hence search of a holy grail to predict stock's move. Page 20 "Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized hy this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases." Warren Buffett - Letters to shareholders,Page 21 Since amount to be invested tends to be fraction vs buying shares, majority of option traders also tend to overtrade resulting into poor outcome. So when do one use options to leverage? If you have a PROVEN system to predict underlying stock direction, if you have specialized skill set to understand what is going drive a particular underlying stock or commodity’s prices, if you can envision any potential merger & acquisitions and many more. Bottomline: If you have a specialized skill set to forecast underlying asset's price move, you should learn how to trade options well so you could benefit from your specialized skill to multiple your returns, Page 22CHAPTER 5 WHATS NE In Search of a Holy Grail Page 23 What's Next?In Search of a Holy Grail share Where Do You Go From Here? Congratulations for making it this far. You have now been exposed to some of the most powerful and effective reasons available for succeeding in Options Trading business. While options are one of the greatest wealth building tools available to common investors, many still fail as they don't do it properly. No matter how compelling these reasons are, just being exposed to them is not enough. You must also do something with them. In order for you to get the most value out of this knowledge, you might want to consider developing a step-by-step action plan. Just like any other regular business, TRADING is a BUSINESS too and in order to maximize benefits from it, one needs to have right mind-set before diving in. Before you start, let me answer most commonly asked questions. DOES IT WORK? IS IT EASY? CAN IDO IT? Page 24 If you are a business owner, or a trader, sooner or later options skills are going to be useful However, it is dependent upon SKILLs, SYSTEM and SUPPORT you have before you begin your real journey. Find a good mentor who can shorten your learning curve and save you fortune by transferring his skills to you. Don’t choose someone randomly. Ask for student referrals and speak to them. This will provide you with Truth, Authenticity and Proof before you make acommitment. Invest time wisely. hough your coach or mentor will provide you with tools, systems to help you get started, you ‘ill have to develop your own system. A system is something that will continue to produce esults which are duplicable and transferable. It is the system that will enable you to do more Jith less time If you are looking for a quick start, you may want to start reading about Options at www.OptionPundit.com. OptionPundit.com is dedicated to options trading and contains over 800 posts and articles. There is also a huge collection of powerful tools, all absolutely FREE at no cost to you. Alternately you can approach me at Support@OptionPundit.com anytime and I would love, absolutely adore to personally answer any questions you might have. Now you have the reasons...and SUPPORT Scan the QR code or a0 to wan OntionPundit com to find out more Page 25 By reaching this page, it shows that you are committed to finding an alternative way to generate income. It could be because you wanted to travel, or buy the latest gadgets, cars and bigger house or it could even be because you needed the money to look after your family. Regardless of the reason, we hope you continue to work on improving your knowledge and use Options to help you to achieve what you want, CONNECT WITH US! ||Facebook Page Instagram Account BeO Follow Us Now YouTube Channel NUN LE Sera Subscribe Now! Telegram Channel Subscribe Now! Page 26