TRADING COURSE – SESSION 3 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 Bearish Butterfly Update and Discussion Diagonal Call Spread Update and Discussion SPX Weekly Double Butterfly Analysis Bearish Butterfly Examples 3 © Copyright 2016. Options Trading IQ. All Rights reserved. 3

BEARISH BUTTERFLY Fairly tame so far. +$645 or 23.24% 4 © Copyright 2016. Options Trading IQ. All Rights reserved. 4

BEARISH BUTTERFLY 5

DIAGONAL CALL SPREAD Uneventful so far. +$90 or 0.90% 6 © Copyright 2016. Options Trading IQ. All Rights reserved. 6

DIAGONAL CALL SPREAD 7

SPX WEEKLY DOUBLE BUTTERFLY Not really working yet. -$82.50 or -21.15% 8 © Copyright 2016. Options Trading IQ. All Rights reserved. 8

SPX WEEKLY DOUBLE BUTTERFLY 9

COMBINED RUT POSITION 10

COMBINED RUT POSITION 11

BEARISH BUTTERFLY EXAMPLES 12

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BEARISH BUTTERFLY ON A DECLINE 23

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LOSING TRADE EXAMPLE Opening a new Bearish Butterfly. Reference Point is 1100 so first add point is 1140 or 1060. 47

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3 Days Later – Market Finally Reverses If I Held On, Profit = $6K If Market Continued Up, Could Have Lost Another 5-6K 56

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