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Smb training options training program presents

SMB TRAINING

OPTIONS TRAINING PROGRAM

Presents:


Disclaimer

Disclaimer

  • 1.       SMB TRAINING is NOT a Broker Dealer.  SMB TRAINING engages in trader education and training.  SMB TRAINING offers a number of products and services, both electronically (over the internet through Smbtraining.com) and in person.  Through Smbtraining.com, SMB TRAINING offers the “Virtual Trading Floor”, a community through which independent traders (subscribers), as well as T3 Trading Group, LLC traders, observe a virtual trading floor environment (as described below) for educational purposes.  SMB TRAINING also offers web-based, interactive training courses on demand.

  • 2.       The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

  • 3.       This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.

  • 4.       SMB Training and SMB Capital Management, LLC are separate but affiliated companies.

  • 5.       T3 Trading Group, LLC is a Registered SEC Broker-Dealer and Member of the CBOE Stock Exchange (CBSX www.CBOE.com). All trading conducted by contributors on Virtual Trading Floor is done through T3 Trading Group, LLC.6. Any information contained in this presentation is for educational purposes ONLY. Neither Locke In Your Success, LLC, John Locke nor it’s subsidiaries nor any of their respective officers, employees, representatives, agents or independent contractors are, in such capacities, licensed financial advisors, registered investment advisors or registered broker dealers. Neither do they provide investment nor financial advice nor make investment recommendations, nor are they in the business of transacting trades. Nothing in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer (buy or sell) by Locke In Your Success, LLC, or others described above, of any particular security, transaction or investment.

  • 7.The risk of loss in trading securities, options, futures and forex can be substantial. Customers must consider all relevant risk factors, including their own personal financial situation, before trading. Options involve risk and are not suitable for all investors. See the Options Disclosure Document: Characteristics and Risks of Standardized Options. Trading foreign exchange on margin carries a high level of risk, as well as its own unique risk factors. Please read the following risk disclosure before considering the trading of this product: Forex Risk Disclosure. Futures and forex accounts are not protected by the Securities Investor Protection Corporation (SIPC).

  • 8. No relevant positions.


Hypothetical trades disclaimer

Hypothetical Trades Disclaimer

  • Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commisions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.


The rock trading system part 4 m3 entry and february 2012 expiration example

The ROCK Trading SystemPart 4 - M3 Entry and February 2012 Expiration Example

  • Brought to you bySMB Training

    A World Leader in Options Education

    Created and taught by John Locke

    Locke in Your Success, LLC.

    “Know what you want, make it happen!”


John locke

John Locke

  • President of Locke In Your Success, LLC

  • Options Trader

  • Success Coach

  • Options Trading Mentor


February 2012 expiration risk management and profit targets

February 2012 ExpirationRisk Management and Profit Targets

  • Planned Capital - $50,000

  • Profit Target - $10,000

  • Max Loss - $10,000

  • Profit Target may be adjusted up or down as trade progresses

  • Max Loss may be adjusted down but will not be increased


January 18 30 dte rut at 777 entry test

January 18 – 30 DTERUT at 777Entry Test


Delta is suggesting a high iv entry

Delta is suggesting a high IV entry


Modified rock or m3 entry

Modified ROCK or M3 Entry?


Looks like an m3 entry

Looks like an M3 Entry


M3 entry

M3 Entry


M3 analyze graph

M3 Analyze Graph


January 25 7 days 23 dte rut at 794 up 17 points

January 25(7 days) – 23 DTERUT at 794, up 17 points


Existing position

Existing Position


Buy 10 750 760 call verticals

Buy 10 – 750/760 Call Verticals


New position

New Position


February 1 7days 16 dte rut at 806 up 12 points

February 1(7days) – 16 DTERUT at 806, up 12 points


Current position

Current Position


Sell m3 position

Sell M3 Position


Do an entry test to be sure we can enter a normal rock position

Do an entry test to be sure we can enter a normal ROCK position


Switch to normal rock entry buy 10 790 put butterflies buy 7 830 call butterflies

Switch to Normal ROCK EntryBuy 10 790 put butterflies Buy 7 830 call butterflies


Delta at 810 is 178 looks good

Delta at 810 is -178Looks Good!


New position1

New Position


February 3 2 days 14 dte rut at 828 up 22 points

February 3 (2 days) – 14 DTERUT at 828, up 22 points


This is why we are having trouble

This is why we are having trouble!


Current position1

Current Position


Rock configuration upside guidelines scaling in

ROCK Configuration Upside GuidelinesScaling In

  • When Delta exceeds-250

  • Add call butterflies at 40 points over the butterflies with the lowest short strikes until Delta comes down to around -175 or until there are 10 butterflies at that strike

  • Once 10 there are 10 butterflies at 40 points over the lowest short strikes, start adding in call butterflies at 60 points over the butterflies with the lowest short strikes until Delta comes down to around -175 or there are 10 butterflies at that strike

  • When there are 10 butterflies on each of all 3 strikes, the trade is now fully scaled in


Add 3 830 butterflies add 8 850 butterflies bring trade delta down under 200

Add 3 - 830 butterfliesAdd 8 - 850 butterfliesBring trade Delta down under -200


New position2

New Position


Smb training options training program presents

February 8 (5 days later) – 9 DTEWe get an increase in negative Delta from both a continued up move and the passage of time


Current position2

Current Position


Add in last 2 850 butterflies we are now fully scaled in to rock positioning

Add in last 2 850 butterflies We are now fully scaled in to ROCK positioning


New position3

New Position


February 10 2 days 7 dte rut drops to 814 17 points

February 10 (2 days) – 7 DTERUT drops to 814, 17 points


Current position3

Current Position


Downside adjustments in rock configuration when greater than 2 3 entered

Downside Adjustments in Rock Configuration (when greater than 2/3 entered)

  • When the position is fully entered and maximum positive Delta will be increased to + 250 intraday and +150 end of day

  • When maximum Delta has been exceeded

    • Remove upper butterflies until positive Delta is about 100

    • Once all upper butterflies are removed, follow 2/3 downside rules


Smb training options training program presents

Like the Bearish Butterfly, we scale down the position when whipsawed to the downside after fully scaled in


New position4

New Position


Smb training options training program presents

February 14 (4 days later) – 3 DTERUT price is up, yet we have a positive Delta issue due to time passage


Current position4

Current Position


Continuing to reduce size

Continuing to reduce size


New position5

New Position


February 15 next day 2 dte both time passage and a 4 price drop contribute to a delta increase

February 15 (next day) – 2 DTEBoth time passage and a $4 price drop contribute to a Delta increase


Current position5

Current Position


Continue to sell off upper butterflies

Continue to sell off upper butterflies


New position6

New Position


February 16 this is it rut at 823 up 11 points

February 16 – This is it!RUT at 823, up 11 points


Current position6

Current Position


Lets buy back our risk and expire the trade

Lets buy back our risk and expire the trade


Position into expiration

Position into expiration


Summary

Summary

  • In this section we covered:

    • February 2012 Expiration Trade

      • M3 Entry

      • Transition from M3 to Normal ROCK

      • Scaling into full ROCK

      • Whipsaw, scaling down from full ROCK

      • Removing risk for expiration


In part 5

In Part 5……

  • Go though March 2010 Expiration Sample Trade


Locke in your success llc

Locke In Your Success, LLC

  • John Locke

  • www.lockeinyoursuccess.com

  • [email protected]

  • Facebook: Locke in Your Success

  • Twitter: locke4success

  • 603-738-1795


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