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Cherif Medawar CherifMedawar@yahoo.com

•  RE Investor •  Educator •  Founder of CMREI •  Syndicator •  Securities Trader

Disclaimers •  Cherif Medawar is a successful investor, trader and business

developer. He is the founder of CMREI an education, training and investment company. Cherif teaches business models as well as trading systems and syndication methods

•  Cherif Medawar is not an attorney or CPA and does not provide any trading, legal or tax advice.

•  Always consult a qualified attorney or a registered advisor for real estate, business, legal advice or stock and options trading

•  This presentation is made in an effort to clarify Cherif Medawar’s investment business models and style of trading. His results are unique and should not be considered the norm

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Trading The Securities Market

for Cash Flow and

Freedom

Stocks and Options

Definition Concept Business Model Application for success

Definitions Stock and Option (Leaps-SP-ITM-OTM-P-ED) Exchanges (Wall Street- CBOE etc,) Market Makers- Brokerage firm Margin- Margin call –Maintenance Requirement GFD- GTC- Market, Limit or Stop Order Fundamental- Technical and Practical Stocks: Buy Long or Sell Short (Ask-Bid) Options: Buy Calls or Buy Puts (Buy at Ask) Sell Calls or Sell Puts (Sell at Bid)

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Definitions An Option Contract = 100 Shares Combo strategies- Spreads Stock Put to you Getting called out vs. covered calls Stock BP (Buying Power) Day trade BP- Option BP Buy back and roll out Closing a position Letting a position Expire

Concept

Making money from publicly traded stocks and their derivatives by:

1)  Buying and Selling Stocks 2)  Buying and Selling Options Covered 3)  Buying and selling Options Naked 4)  Combination strategies Stocks and Options 5)  Combo strategies Calls only or Puts only 6)  Combo strategies Options Calls and Puts

Business Model

1)  Open a trading acct. with a discount brokerage firm ($25K) and access it on-line

2)  Get highest approval for Margin and Trading 3)  Select a few good companies (Businesses) 4)  Execute the best strategies based on timing 5)  Monitor, Correct and Profit by managing

your positions and your capital 6)  Minimize loss and Maximize profits

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Application for Success 1)  Review my half a day intro to stocks and

options trading on-line videos to know the definitions and how to place orders on line

2)  Select companies (based on fundamentals) 3)  Watch their charts (Technical analysis) to

understand the range of price fluctuation 4)  Stay updated on any news that may affect

your stock price direction (Practical) 5)  Place trades accordingly and manage your

positions and your money

Demonstration

Let’s go Online!

Strategies: 1)  Buy Stock long (intraday) 2)  Sell Stock short (intraday) 3)  Buy Calls (10C = 1000 Shares) 4)  Buy Puts 5)  Sell Calls Covered (You own the stock) 6)  Sell Calls Naked 7)  Sell Puts Naked 8)  Sell Puts Covered (You short the stock)

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Strategies: 9) Credit Spreads 10) Credit Spread Combo 11) Short Strangle (Mid-Range Price) 12) Short Strangle (Fluctuating Price Range) Manage Money (Entry Points and Margin) Protect, Maximize and Correct Positions Do not Panic or cash out too soon Do not trade often – Don’t be Greedy!

Short Strangle: #12 a) Selling Puts

1)  Stock price down (bottom of range) 2)  Sell Naked Puts (Maint. Req.) 3)  Lower strike price OTM 4)  One to Two weeks out (Exp. Date) 5)  Allocate a percentage of cash in account 6)  Use same amount if price goes lower 7)  If price goes higher Sell Naked Calls

using same number of contract as Puts

Short Strangle: #12 b) Selling Calls

1)  Stock price up (top of range) 2)  Sell Naked Calls (Maint. Req.) 3)  Higher Strike Price OTM 4)  One to Two weeks out (Exp. Date) 5)  Allocate a percentage of cash in account 6)  Use same amount if price goes higher 7)  If price goes lower Sell naked Puts using

same number of contracts as Calls

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Short Strangle: #12 Profit Goal

1)  Goal is to let both positions expire and keep all Option Contract premiums collected

2)  There are three possibilities: a)  Stock stays the same or within a small range

of price fluctuation (not hitting Strike Prices of Call or Puts sold)

b)   Stock goes higher c) Stock goes lower 3) You can close at anytime any profitable

position to keep the difference in Premiums

Monitor 1: #12 Stock stays same

Based on price on Friday of Expiration day:

1)  Stock does not get put to you (Puts) 2)  Stock does not get called out from you (Calls) 3)  Puts and Calls Option Contracts expire 4)  You keep all the premiums 5)  Do it again (same stock till it moves to a new

range)

Monitor 2: #12 Stock Goes Up Based on Friday Expiration day: a) Puts:

1)  Stock does not get put to you 2)  Put Option Contracts expire 3)  You keep the Put premiums 4)  Do it again when stock pulls back down Or 5) Do it again now but further out in time at

same strike price (4-5 weeks out)

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Correction 1: #12 Stock goes up Based on Friday Expiration day: b) Calls: You can get called out of the stock (must buy

at higher price and deliver at SP sold) 1)  Buy back and Roll Out: A) Buy Back all Call Option Contracts at

last minute (Friday before 4PM EST) B) Re-Sell a Naked Call same or higher

strike price 1 or 2 weeks out in time (ED) 2) Wait till next expiration to keep premiums

Correction 2: #12 Stock Goes Up Based on Friday Expiration day: b) Calls: Stock price moving up getting closer to SP

1)  Place a Stop Order to Buy (GFD) at pennies below Strike Price (SP) of Calls sold

2)  If Stock goes higher you are in a Covered Call position (Get called out and get cash)

3)  If Stock does not go higher, Call Contracts expire and you keep the Premiums

Correction1: #12 Stock goes down

Based on Friday Expiration day: a) Puts: Stock will be put to you if you do nothing-

(You will own the shares at SP sold minus premium collected)

1)  Buy back and Roll Out: A) Buy Back all Put Option Contracts at last

minute (Friday before 4PM EST) B) Re-Sell a Naked Put same or lower

strike price 1 or 2 weeks out in time (ED) 2) Wait till next expiration to keep premiums

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Correction 2: #12 Stock goes down

Based on Friday Expiration day: a) Puts: Stock will be put to you if you do nothing 1)  Let the Stock get Put to you- (Own shares) A) Sell Covered Calls next Strike Price up

(provided you make money if called out) B) Sell Naked Puts next Strike Price down 2) Wait till you get called out or get more

share averaging down minus 2 premiums collected and sell covered calls to get out

Conclusion 1)  Manage Positions and Capital (Timing) 2)  You are trading against Market Makers 3)  Do not spend too much time trading

(Less trades: Monitor, Correct & Profit) 4)  Correcting trades is 50% of the gains 5)  Get the cash flow sooner or later 6)  Trade with money/capital you can afford

to lose (No lifestyle impact) 7)  Do Not rely on the Trading Cash Flow

Cherif Medawar CherifMedawar@yahoo.com

SUCCESS Story!

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Cherif Medawar CherifMedawar@yahoo.com

•  RE Investor •  Educator •  Founder of CMREI •  Syndicator •  Securities Trader www.CMREI.com