live @ 7:00 pm central time - theotrade trading education ... · 8/29/2018 · •discover how...

Live @ 7:00 pm Central Time

How to Trade Volatility

and the VIXwith Don Kaufman

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Risk Disclosure

• We Are Not Financial Advisors or a Broker/Dealer: Neither TheoTrade® nor any of its officers, employees, representatives, agents, or independent contractors are, in such capacities, licensed financial advisors, registered investment advisers, or registered broker-dealers. TheoTrade ® does not provide investment or financial advice or make investment recommendations, nor is it in the business of transacting trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion, endorsement, or offer by TheoTrade ® of any particular security, transaction, or investment.• Securities Used as Examples: The security used in this example is used for illustrative purposes only. TheoTrade ® is not recommending that you buy or sell this security. Past performance shown in examples may not be indicative of future performance.• Return on Investment “ROI” Examples: The security used in this example is for illustrative purposes only. The calculation used to determine the return on investment “ROI” does not include the number of trades, commissions, or any other factors used to determine ROI. The ROI calculation measures the profitability of investment and, as such, there are alternate methods to calculate/express it. All information provided are for educational purposes only and does not imply, express, or guarantee future returns. Past performance shown in examples may not be indicative of future performance.• Investing Risk: Trading securities can involve high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon, or risk tolerance.• Options Trading Risk: Options trading is generally more complex than stock trading and may not be suitable for some investors. Granting options and some other options strategies can result in the loss of more than the original amount invested. Before trading options, a person should review the document Characteristics and Risks of Standardized Options, available from your broker or any exchange on which options are traded.• No part of this presentation may be copied, recorded, or rebroadcast in any form without the prior written consent of TheoTrade ®.• No Soliciting. No Recording. No Photography.

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Copyright DisclaimerAll rights reserved. This Material may not be reproduced or distributed, in

whole or in part, without prior written permission of TheoTrade, LLC. Any

other reproduction or distribution, in whatever form and by whatever media,

is expressly prohibited without the prior written consent of TheoTrade, LLC.

For further information, please contact:

TheoTrade, LLC

16427 N. Scottsdale Rd. # 410

Telephone: 1-800-256-8876

Email: [email protected]

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http://www.finra.org/investors/day-trading-margin-requirements-know-rules

mailto:[email protected]

Don Kaufman

➢ Co-Founder TheoTrade

➢ Industry-leading options strategist

➢ Derivatives Risk Manager

➢ 20 year trading career

➢ 18 years of thinkorswim® platform experience

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About TheoTrade• TheoTrade Specializes in education for options, futures, and

stocks.

• Founded by professional traders and trading educators each

with a minimum of 15 years experience, several with many

decades

• TheoTrade is here to help you mitigate the risks in the market,

while learning a skill set that can last a lifetime.

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Your TheoTrade Instructors

• Jeff Bierman – Analyst, Trader, & Former Chief Technician for TD Ameritrade

• Matt Williamson – market neutral/premium selling options strategist

• Corey Rosenbloom – Senior Strategist & Swing Trader

• Brandon Chapman CMT– Macro Economics, Technicals and Fundamentals

• Steve “Slim” Miller - 43 year veteran stock, options, futures trader

• Tony Rago - Nasdaq Futures and Intraday Strategist

What You Will Learn In This Presentation

• Learn about trading volatility and how to create volatility based trades

• Find Trades with a risk 1 to make 4 risk/reward and have NO upfront costs!

• See how a detailed understanding of volatility can provide advantages in all you

trading strategies

• Discover how trading VIX Options can help reduce you portfolio, IRA, or 401k risks

• Discover one strategy you need in today’s marketplace and why this is the trade is

being used by the largest trading firms

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Why Do YOU want to Trade Volatility?

•Do you intend to use volatility to reduce risk on a 401k, IRA,

or stocks portfolio?

•Are you trying to profit in the case of the Equity Markets

decline and volatility increasing?

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You NEED to Understand Volatility

•Whether you are trying to reduce exposure in the markets or

profit from the rise in volatility literally EVERYONE involved in

markets can and should have a finite understanding of

volatility!

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Trading Volatility Products

• Trading volatility products seems straightforward enough however, have you

viewed the VXX or UVXY over the past 3 years?

• Buying any volatility product outright is a recipe for disaster.

• Most volatility related products have lost over 90% of their respective values in the

last 3 years!

12© Copyright 2017 TheoTrade, LLC. All Rights Reserved

Inevitability of Volatility Products


What is Volatility?


A Little VIX Background…• The VIX started as a calculation of the implied volatility of the SPX options.

• Since its introduction in 1993, VIX has been considered by many to be the world's

premier barometer of investor sentiment and market volatility

• In 2006, options on the CBOE Volatility Index® (VIX) began trading on the Cboe

Options Exchange.

• The VIX Index is an implied volatility index that measures the market's expectation

of 30-day S&P 500 volatility implicit in the prices of near-term S&P 500 options.

© Copyright 2017 TheoTrade, LLC. All Rights Reserved 15

Markets DOWN? VIX up!

The Myths of Volatility


Charting the VIX

•Contrary to popular belief looking at a chart on the VIX will not

tell you WHEN or WHERE volatility will strike.

• In fact, those charting the VIX should know that the equation

used to determine the VIX has been subsequently changed

several times.

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The VIX Chart19

The VIX Changed the Calculation in 2014

•Yes I am aware that every major financial news media outlet

shows charts of the VIX comparing volatility for the last 20

years…

•Well someone should tell them the VIX most recent change in

calculation came in October 6th 2014.

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Out with the Old and In with the NEW!

• The new VIX calculation can differ from the old calculation as

much as plus or minus 10% per day!

•So much for charting the VIX or comparing it to the past!

***Old VIX can be charted with symbol VIXMO***

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Buying Calls Options On the VIX will Make Money?

• The second and probably most costly mistake made in the VIX

options —

traders BUY CALL OPTIONS assuming volatility will go up.

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No FREE LUNCH•Sadly, even when volatility goes UP, CALL OPTIONS may NOT

drastically increase in price.

•Wild volatility swings are already priced into the VIX options

and BUYING CALLS can be a blatant reminder there is NO free

lunch in the markets!

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BREXIT - VIX Trading Example

•Here is an example assuming you timed the purchase of CALL

Options perfectly before BREXIT.

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VIX Brexit Example

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VIX Spikes

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Perfect Timing, Poor Results

• The aforementioned example assume near PERFECT timing

on entering into a the purchase of a CALL Option on the VIX…

•And still makes a minimal percentage return!

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Right Place Wrong Strategy

•You had the timing right on the VIX but the WRONG strategy!

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Right Strategy for the VIX!

What if I could teach you a strategy whereby the OUT

of POCKET cost of the trade is ZERO

…and you can make big potential percentage profits?

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Here is what you need to learn…

•There are several effective strategies in trading the

VIX options both to REDUCE risk and as a means to

PROFIT in a market decline.

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TheoTrade VIX Volatility Spread

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Minimal Risk, Massive Reward!

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Characteristics of VIX Volatility Spread• The attributes of VIX Volatility Spread are undeniable!

• Risk 1 to make 4 with a 60% probability of not losing anything!

• The VIX Volatility Spread can work in down, neutral, and trending bullish markets.

• Pay NOTHING upfront for the VIX trade!

• You never have to buy a stock or worry about options assignment risks.

• You Risk is minimal!

• You need not use stop orders.

• This is an excellent tool for those seeking returns to build a smaller account.

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Building the VIX Volatility Spread

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• Do not let options intimidate you!

• However, this spread is akin to a massive chainsaw.

• Used correctly, can be extremely effective in creating

returns!

• Used incorrectly, you may cut off a few fingers.

• The VIX Volatility Spread is being done for a .00 !!

Fear NOT the VIX Volatility Spread• You may not know options OR have limited experience in placing options

trades.

• We can show you HOW and WHEN to place a VIX Volatility Spread in a

matter of a few hours.

• TheoTrade creates detailed recipes for every strategy, including the VIX

Volatility Spread.

• You would not bake a cake without a recipe, so why trade without one?

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Why Doesn’t Everyone Do This?• Here is what you NEED to KNOW!

✓How do I determine the trade setup?

✓ What expiration do I select?

✓ What strikes do I use?

✓ Position sizing?

✓ What is the correct probability for the trade?

✓ How do I execute the trade?

✓ When do I exit?

✓ What to do in a losing position?

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THEOTRADE RECIPES IN TRADING

Criteria… it’s what we at TheoTrade do!

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Trading is about Answering the What Ifs

• What if the markets rally?

• What if the markets tank?

• What do I do if in a losing position?

• What Strike Price Options do you sell and how many?

• What Strike Price Options do you buy?

• How much capital do you commit to these VIX Volatility Spreads?

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TheoTrade Answers Your Trading Questions

• What is the right probability for my trade?

• How many options contracts do I trade in for my account size?

• When do I close my VIX Volatility Spread?

• What if the markets sell off big?

• What is the correct return for the strategy?

• What if the markets rallies massively?

• Can I fix a losing trade?

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TheoTrade Has Your Answers

• TheoTrade has the answers to your trade related questions!

• We Build Recipes with definitive criteria and checklists for

each strategy and each unique variable you will encounter.

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How, When, Why, at What Price?

• This is just the beginning of the many variables you

will face while buying a VIX Volatility Spread!

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The Secret is in the Sauce• Now you may be thinking… hey I can read about these VIX Volatility Spreads

anywhere and can do this; well think again…

• The following strategy and corresponding criteria requires the utmost attention to

detail.

• We spent YEARS fine tuning this trades setup and criteria, when we approach the

section on criteria FOLLOW the STEPS to build a trade!

• Would you like the criteria to build a VIX Volatility Spread?

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Trading VIX Options Curriculum• How you can use VIX options to take risk 1 to make 4 trades so you always minimize your

risk and maximize your returns

• How you can be like the trading professionals and gauge overall market risk by looking deep into the volatility of the VIX options!

• The entry and exit criteria that is the key to consistent returns so you're never left guessing what options to trade

• How to use a "set it and forget it" strategy without having to continually monitor your positions. Perfect for traders who can't watch the markets all day!

• How you can trade VIX options with minimal risk and a high potential for reward

• How VIX trades can be traded in a retirement account so that you can protect your nest egg and maximize your returns in your golden years

• How you can substantially reduce your risk in your 401k, IRA, or long stock portfolio with this VIX options trading strategy so you can sleep at night

• How the trades can be done with a small account of any size looking for big returns on minimal risk

• What strikes and what expiration period to select to give you the highest probability of success in your VIX options trading

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Trading VIX Options Course

• Trade Instructor: Don Kaufman

• 3 hour course is available immediately with 24/7 access

• Class slide deck that includes entry and exit criteria checklist available immediately for download.

$197

*Class qualifies you for a reduced commissions rate*


You’ve been there done that…• Many of you tuning in have been through the gauntlet of paid classes, indicators,

secret squirrel black boxes and more…

• Only to find… just BUY this one last thing to make all the difference? But wait

there is more!

• We at TheoTRADE have had enough of the educational garbage and sales pitches

and we intend to put and end to it!


Disrupt Financial Education!• TheoTRADE is built by professional traders with a minimum of 15 years

experience, not professional salespeople.

• Educating you is our ONLY goal and we will demonstrate it.

• Today we shall forever change the way you view education…

Introducing TotalTheo® Unlimited Streaming

Monthly Membership!


TotalTheo Unlimited ONLY $99 per month

• The Trading VIX Options Course is INCLUDED in the TotalTheo® Unlimited Monthly

Streaming Membership

• ACCESS to OVER 70 Trading Classes! ALL available immediately On-Demand

• New Monthly Classes

• Live Trading Chat Room: Traders Provide Real Trade Ideas and Real-Time Market

Insights and Analysis– broadcasting live 6 hours per day.

• Indicators – 59 proprietary indicators and scans.

• Emailed Trade Ideas

• Daily Coaching Sessions with Timely Topics on Stocks, Options and Futures

• Instructors directly answer your trading questions via email!

TheoTrade.com/all


What Members are Saying:

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It’s As If We Are Giving You $100, Take The Money

Trading VIX Options Course

$197 one time fee

✓ Trading VIX Options Course

TotalTheo® Unlimited Streaming

$99 per month

✓ Trading VIX Options Course

✓ Over 70 classes

✓ New monthly classes

✓ Daily live trading and chat room

✓ Archived 24/7

✓ Emailed trade ideas

✓ Trading indicators and scans

✓ Daily coaching sessions


TheoTrade.com/all


live @ 7:00 pm central time - theotrade trading education ... · 8/29/2018 · •discover how...

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