6 STEP

GUIDE TO
INVESTING
Options ANIMAL
by
 DETERMINE DIRECTION
Fundamental, Technical
& Sentimental Analysis

1
MONITOR & ANALYZE
ADJUST IF TRADE
NEEDED 6 2 POSSIBILITIES
Over 20 trades to
choose from:
Bullish, Bearish, and
Stagnant trades

5 3 SELECT/
PLACE
TRADE STRUCTURE
STRATEGY
4
DETERMINE EXIT POINTS
Primary Exit, Secondary Exit
 The stock
market is still And although we absolutely

believed to be believe that to be true, it is

essential to discover proven
one of the best processes to ensure you are
ways to grow able to increase your nest egg

your safely, while avoiding common

mistakes in the stock market.
retirement
accounts. So, whether you are new to the
market altogether, or a long-
time investor, we’re excited to
show you ways to make more
money in the stock market and
to do it safely!

You will need anywhere from

$600,000 to $1,500,000 to
retire comfortably -or basically
10 to 12 times your current
income- depending on your
situation.
This can be a somewhat
depressing statistic, especially
when your retirement accounts
can be cut in half in the blink of
an eye with a stock market
crash!
 01

Determine
Direction
Time to do some research that
you can profit from
DETERMINE
DIRECTION
When determining direction, we
need to look at three main factors:

Having the right stocks to trade

Understanding a chart and its signals

Understanding market reports.

Some subscribe to highly expensive

stock picking services, newsletters,
trade recommendations, etc. just to
find the right stocks to trade. This can
ultimately be very costly for investors.

What if we were to tell you that there

was a FREE way you could learn how
to invest in the right stocks?

Bookmark these FREE sites

Again, that’s where we come in with
or download these apps:
our proven methods to find stocks.

You’ll be pleased to find out that you

finviz.com
can continue to trade these same
stocks over and over once you do
some quick and easy research, which
we will teach you. finance.yahoo.com

PAGE 2
DETERMINE
DIRECTION (CONT)
Some important fundamental homework
for stocks includes the following:

At least 1 million shares

exchanged on a daily basis
(This is to ensure you will
have buyers and sellers
there for you when you
need them (liquidity)

52-week range
It’s hard to know where a
stock can go if you don’t
know where they’ve been.

Long-term debt to equity Management performance

ratio
(compared to their
industry)
Healthy debt to equity
ratios compared to their
industry illustrate to
investors the true
performance of some of
these stocks compared to
their competitors.
(return on equity, return on
assets, and return on
investing capital)
Companies are run by
people. Ultimately, this is a
good way to get to know
the people who are running
these companies. The more
you know about their
statistics, the better entries
and exits you’ll have when
buying and selling stocks.

PAGE 2
DETERMINE
DIRECTION (CONT)
Some important fundamental homework for stocks
includes the following:
Percent Owned by Institutions
(At least 50%)
This is important so that you don’t
find yourself in a situation where a
few small individuals are moving
the price of a stock by selling a big
portion of it and your investment
drops because of 1 or 2 decisions.
You’re much better off when your
stocks are 50% or more owned by
large institutions so that 1 or 2
decisions don’t cause near the
panic with your stocks!
Growth trends
(compared to industry trends)
Knowledge of growth trends can
be very helpful especially with
regard to which quarters
companies tend to overperform or
underperform maybe based on
seasonal traits or other
supply/demand fluctuations.
P/E ratio
(current price of the stock
divided by the past 12
months of earnings)
This ratio is used to ensure
you are getting stocks at a fair
price. Sometimes the hype of
a new stock much outweighs
the facts.
In summary, when picking
the right stocks, the two
most important questions
are:
What is the investment
community’s opinion of
this company’s making
money going forward?
How much money is
the company making
today?
PAGE 2
PROVEN BUY &
SELL SIGNALS
Now, what is the chart saying? Good timing is
critical to investing decisions. One poorly timed
trade can make you lose all of the gains from your
several previous trades.

To improve your timing on entries and exits, we

recommend taking a look at a few of these tools:

TradeStation
Really good charting using
this platform. With a lot of
easy customizations at your
disposal, it is highly
recommended you take
advantage of them.

stockcharts.com
Another FREE site here.
And yet, many
customizations that once
again can help you spend
less time trading and more
time enjoying your free
time!

finance.yahoo.com
First off, it’s FREE!
Second of all, it keeps charting simple….which
is how it needs to be so you can spend less
time guessing direction and more time
enjoying your family and the things that
matter most in your life.

PAGE 2
WHAT TO LOOK
FOR
Here is an example of a few things we
look for on a chart:

Trend lines
Trend lines give you a
longer-term look at where
your stocks have been,
while also signaling short-
term trend changes, so you
know when to get in and
out of positions.

Support and resistance

These levels will help you
know when to get in and
out of positions also. They
can also signal just how far
a stock is likely to drop or
go up based on recent
history

5- and 20- Day Exponential

Moving Averages (EMAs)
When the 5-day crosses
above the 20-day, that is a
buy signal.
RSI (relative strength
index)
When the black line crosses
above the red line, that is a
buy signal
MACD
(moving average
convergence divergence)
When the black line crosses
above the red line, that is a
buy signal

PAGE 2
SENTIMENTAL
ANALYSIS
Here is an example of a few things we
look for on a chart:
The Volatility Index (VIX)
This is a gauge of how volatile
the market is expected to be
in the short term. It is also
called the “fear index” or “fear
gauge.”
Put/Call Ratio
This is a simple tool for learning
whether people are buying or
selling!
Typically, there are more calls
than puts. However, when a
bearish sentiment is present,
there may be more puts than
calls.
Current option activity
(volume)
This again gives you a sense of
where investors feel this stock
is headed in the short term.
Long-term investor sentiment
(total option activity or Open
Interest)
A long-term outlook is a must
when investing. The short-term
opportunities are always there, but
knowing where to stick your money
in longer-term situations is
absolutely crucial to get the best
return possible for your portfolio.
ECONOMIC REPORTS
Here is an example of a few things we
look for on a chart:
Jobs reports
This arguably is the most
important report. When
people have jobs, they spend
money. When they spend
money, companies are
typically doing well.
Manufacturing reports
These reports give you a
measure of how exports,
commodities, new orders, etc.
are performing and gives a
good indicator for how the
overall economy is faring
Inflation reports
These reports will give you a better
sense of the purchasing power of
the dollar, the supply, and demand
for goods and services, interest
rates and how they impact the
economy, etc. The short answer
here is having, at least, a general
idea of inflation reports can lead to
better foresight on where the
economy is headed soon.
Housing reports
If housing starts are higher than
expected, that is a good sign of an
improving economy. As people are
buying more and more new homes,
this typically leads to them buying
other goods and services to keep
up their homes... thus leading to a
growing economy.
PAGE 2
 02

Analyze Trade
Possibilities
Time to do some research that
you can profit from

Let’s say you’ve determined
you’re a conservative investor
with limited time during the
day to trade (maybe 30
minutes to an hour), and you
have a $200,000 portfolio.
You may decide on a collar
trade, whereas someone who
is aggressive, with plenty of
time, and maybe capital
restrictions, may choose a
bull put spread or call
calendar.
For example, if you wanted to be
conservative… you could buy 100
shares of a stock at $100 per share,
buy a put option at strike price 100
with 45-90 days of time value for,
say, $2.00 a share, and then sell a
call option at strike price 110 with
90-120 days of time value for $2.00
a share. This is a collar trade. This
leaves you with upside potential to
make $10 per share on the stock,
and it gives you the peace of mind
knowing you have a guarantee to
sell your stock at $100 per share
within the next 45-90 days.
So, if you did that trade, and, for
whatever reason, your stock
dropped to $50 in a few weeks… you
could turn around and sell your
stock at $100 a share! How cool is
that?
Now, don’t go out and try this
strategy just yet, because making a
mistake on the setup and
management of this trade can lead
to unfortunate losses.
Rather, go through the accredited
course we offer. Learn the ins and
outs of how to apply these types of
strategies to your benefit so you
can make a consistent income
SAFELY in up, down, or sideways
conditions!
 03

Structuring
the Trade
Now that you have found the right
stock, structure the right trade for you.
OPTION TRADING
Options open up many
possibilities for investors.
If you’ve done your homework in
Step 1 and you’ve determined
that the stock is headed up, you
could do the following trades

Buy Stock
We’ll teach how to protect
stock in our accredited
courses using options.

Buy Call
This is a more aggressive
trade that can lead to
enormous returns quickly.
Be careful, though; your
trade can also be worth
nothing quickly, too. Learn Bull Call
the backup plans we teach This, too, is a fairly
in our accredited courses to aggressive trade but it is
avoid costly mistakes. used when you think a
Sell Put stock is headed up.
This is an income method
several investors use. Used
Bull Put
by itself, it is called a “naked
Another bullish trade here.
put” and obligates you to
This happens to be one of
buy a stock at a fixed price.
our favorites because it is
Call Calendar an income trade and is
This is a fairly aggressive easily fixed if the stock goes
trade used in a stagnant to down.
slightly bullish trend.

PAGE 2
OPTION
TRADING (CONT.)
Options open up many possibilities for investors.
If you’ve done your homework in Step 1 and you’ve
determined that the stock is headed up, you could
do the following trades

Covered Call And Many More

This is a great income trade The key to step 2 is knowing
to use around stock your individual investing
ownership. It typically needs. Here are some
doesn’t offer more than 2- questions to help you
4% protection, so you’ll determine your specific
need to know how to needs:
protect it with put options. Are you risk-tolerant,
risk-averse, or
Collar Trade somewhere in between?
This happens to be one of Are you seeking
our favorite strategies also aggressive growth,
because we can target a 15- conservative growth, or
25% annual return on somewhere in between?
investment while taking How much time can you
anywhere from 0 to 5% risk dedicate to trading
on investment, typically. during the day?
Doesn’t that sound nice? What is the size of your
portfolio?

PAGE 2
 04

Determining
exit points
This is where OptionsANIMAL helps
bridge the gap
PLAN THE RIGHT EXIT FOR YOUR TRADE

As mentioned earlier, getting in and out of trades at the right time can be
challenging and can lead to a lot of losing trades. This is where OptionsANIMAL
helps bridge the gap.
What is your primary exit point? Let’s say you bought a call option as your trade
in step 3. Many option traders will seek either a 20 or 25% return, and once they
hit that return, they’ll get out!
How about your secondary exit point? What if you’re wrong and the stock drops?
Or, it could just be a random news event that caused the market to drop. Now,
what?

Here is an example of a secondary

exit point for buying a call option:

Sell a call

Buy a put

Sell a call and buy a put

Add a bear call spread

PAGE 2
 05

Placing the
Trade
You've already done your analysis at this point, and you've
determined the stock direction

You've looked at all the different trade possibilities

and you determined which one you want to
implement

You've determined your primary and secondary exit

points

NOW PLACE THE TRADE

PLACING THE TRADE

Placing a trade can be easy, but who

are you placing it with? What
brokerage has the best commissions
and platform? We recommend when
trading stocks and options to choose
a brokerage that specializes in options
because you’ll have better tools at
PAGE 2
your disposal.
 06

Monitor &
Adjust
Congratulations you’ve placed your
trade!
Now you will want to monitor your
trade for the need of being
adjusted with another strategy
based on changes in the market.
Though with proper usage of steps
1-4 your trade has a good chance of
success, adjustments are the key to
winning consistently. It should only
take you 30 minutes to an hour a
day to manage your portfolio using
this proven 6 step method.
In our full education course our
instructors teach classes on all of
these concepts including trade We’d like to invite you to join
adjustments, focusing on practical our community of educated
application homework and even traders and become equally
tests to ensure your understanding.
successful. Because you’ve
Our instructors place a trade once a downloaded this guide, we’re
week with real money and send offering you a discounted
their trades to our students so that membership option to help
our students can watch and learn
you get started and confident
from them. They are not trade
recommendations, but educational in the world of options
tools to help our students see this 6 trading
step method in action every day.

We know you’ll be excited to learn

more once you’ve completed our free
classes!
Thank you for your interest. Click below to take advantage
of our special offer
Sincerely,
The OptionsANIMAL Team
1-888-297-9165
International +1 801-331-7500