TRADING COURSE – SESSION 8 www.optionstradingiq.com © Copyright 2016. Options Trading IQ. All Rights reserved.

DISCLAIMER Any information contained in this presentation is for educational purposes only. Neither IQ Financial Services, LLC or Gavin McMaster are licensed financial advisors, registered investment advisors, or registered broker dealers. Neither do they provide investment advice, financial advice or make investment recommendations and they are not in the business of transacting trades. Nothing in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer to buy or sell by IQ Financial Services, LLC or Gavin McMaster of any particular security, transaction or investment. Any trades and / or results covered in this presentation may or may not be live trades. All trades and trading results are believed to be accurately presented. However, since the trades may not have been executed in the market, the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Therefore there can be no guarantee of accuracy or completeness. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. The risk of loss in trading securities and options in particular can be substantial. Customers must consider all relevant risk factors, including their own personal financial circumstances, before making any financial transaction. Options involve risk and are not suitable for all investors. See the Options Disclosure Document: Characteristics and Risks of Standardized Options, available from www.optionstradingiq.com/risks © Copyright 2016. Options Trading IQ. All Rights reserved.

OUTLINE Position Update Trade Review Final Thoughts 3 © Copyright 2016. Options Trading IQ. All Rights reserved. 3

RUT Bearish Butterfly Really nice trade P&L anywhere from $650 to $1200 Didn’t need to scale in Low stress 4 © Copyright 2016. Options Trading IQ. All Rights reserved. 4

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July 19th - RUT Closes at 1200 8 © Copyright 2016. Options Trading IQ. All Rights reserved. 8

August 2nd - RUT Closes at 1202 9

August 4th - RUT Closes at 1213 © Copyright 2016. Options Trading IQ. All Rights reserved. 10

August 4th - RUT Closes at 1213 11

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RUT Bearish Butterfly – When to Use? When the markets have had an extended run up When indicators are overbought When you expect the market to head a little higher (2-3%) then pull back 13 © Copyright 2016. Options Trading IQ. All Rights reserved. 13

RUT Diagonal Call Spread Another nice trade Worked exactly as we hoped $200 profit. +2% capital at risk 14 © Copyright 2016. Options Trading IQ. All Rights reserved. 14

RUT Diagonal Call Spread 15

RUT Diagonal Call Spread 16

RUT Diagonal Call Spread 17 © Copyright 2016. Options Trading IQ. All Rights reserved. 17

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RUT Diagonal Call Spread 19 © Copyright 2016. Options Trading IQ. All Rights reserved. 19

RUT Diagonal Call Spread 20

RUT Diagonal Call Spread 21 © Copyright 2016. Options Trading IQ. All Rights reserved. 21

Weekly Diagonals – When To Use? After a Big Move Up, Where You Expect Maybe Another 1-2% Rise When Overbought Conditions Are Reached on a Daily and 30min Timeframe Try to Enter For a Credit or Small Debit 22 © Copyright 2016. Options Trading IQ. All Rights reserved. 22

SPX Weekly Double Butterfly Trade didn’t work Wasn’t a good entry point Full loss of $390 23 © Copyright 2016. Options Trading IQ. All Rights reserved. 23

SPX Weekly Double Butterfly 24 © Copyright 2016. Options Trading IQ. All Rights reserved. 24

SPX Weekly Double Butterfly © Copyright 2016. Options Trading IQ. All Rights reserved. 25

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Double Butterfly – When To Use? When You Expect a Big Move After a Period of Consolidation Every Week? 27 © Copyright 2016. Options Trading IQ. All Rights reserved. 27

RUT Iron Trapdoor Trade has worked well so far Profit around $620 Looking perfectly fine. Can leave it open 28 © Copyright 2016. Options Trading IQ. All Rights reserved. 28

RUT Iron Trapdoor 29

© Copyright 2016. Options Trading IQ. All Rights reserved. 30

RUT Iron Trapdoor 31 © Copyright 2016. Options Trading IQ. All Rights reserved. 31

August 2nd RUT Closes at 1202 32

August 4th RUT Closes at 1213 33

RUT Trapdoor – When To Use? Standard Monthly Trade Try to Enter When Implied Volatility Is High Enter With Around 3-4 Weeks to Expiry Don’t enter when extreme overbought or oversold 34 © Copyright 2016. Options Trading IQ. All Rights reserved. 34

RUT Monthly Condor Current profit of $710 Surprising trade? Didn’t seem like a good entry Flat markets have really helped this trade 35 © Copyright 2016. Options Trading IQ. All Rights reserved. 35

RUT Monthly Condor 36 © Copyright 2016. Options Trading IQ. All Rights reserved. 36

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August 2nd - RUT Closes at 1202 38 © Copyright 2016. Options Trading IQ. All Rights reserved. 38

August 2nd - RUT Closes at 1202 39

August 4th RUT Closes at 1213 40 © Copyright 2016. Options Trading IQ. All Rights reserved. 40

Iron Condor – When to Use? When Implied Volatility Is High When You Expect Sideways Movement Standard Monthly Trade? Remember the Adjustment Guidelines Don’t enter when extreme overbought or oversold 41 © Copyright 2016. Options Trading IQ. All Rights reserved. 41

RUT 80 Day Condor Slower moving trade Nice profit so far +$900 No adjustments needed yet Less change in Delta 42 © Copyright 2016. Options Trading IQ. All Rights reserved. 42

RUT 80 Day Condor 43 © Copyright 2016. Options Trading IQ. All Rights reserved. 43

RUT 80 Day Condor 44

August 2nd RUT Closes at 1202 © Copyright 2016. Options Trading IQ. All Rights reserved. 45

August 2nd RUT Closes at 1202 © Copyright 2016. Options Trading IQ. All Rights reserved. 46

August 4th RUT Closes at 1213 © Copyright 2016. Options Trading IQ. All Rights reserved. 47

August 4th RUT Closes at 1213 48

AMZN Diagonal Call Spread 49

AMZN Diagonal Call Spread 50

AMZN Diagonal Call Spread 51

August 4th AMZN +0.88% 52

FINAL THOUGHTS Keep An Eye On Risk Watch Correlations Trade Small Keep Learning, Keep Logging Trades 53 © Copyright 2016. Options Trading IQ. All Rights reserved. 53

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