Passive Income Strategies for your Financial Freedom

The Credit Spreads Options Strategywww.slideshare.net/ppis/

DisclaimerThis is a presentation prepared for Education purposes only.Neither Prosperis Passive Income Strategies (PPIS) nor any of its personnel are registered broker-dealers or investment advisors. We may mention that we consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because we consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that we are telling you to trade these exact strategies or securities. Keep in mind that we are not providing you with any specific recommendations or personalized advice about your own trading activities. The information we are providing is not tailored to any particular individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security, or a suggestion that it is suitable for any specific person. Keep in mind that all trading ALWAYS involves a risk of loss, even if we are discussing strategies that are intended to limit risk.

Also PPIS personnel are not subject to trading restrictions. Myself and any others at PPIS could have a position in a security or initiate a position in a security at any time.

PurposeTo help people and businesses achieve financial freedom.

VisionTo have a community in which individuals possess the resources and knowledge on how to earn passive income by leveraging their owns resources and that of successful organizations.

Core ValuesDelivering Value - Being generous with our knowledge.Transparency Communicating risks and limitations.Passion - About winning for you.Empowerment - Control your finances through education.Excellence - In everything we do.Integrity - Never compromising on the truth.Leverage - Gain advantages from the resources we possess.

Stock Market BasicsA share is a part ownership of a company.A stock is a collection of shares.A stock index is the average of a group of stocks.An investor or trader can be:BullishBearishor Neutral.

What are Options?An option is a contract that to buy or sell a certain amount of stock.

allows you

For this program, we will trade options on a stock index called the S&P 500 which has the symbol SPX.RIGHT or OBLIGATION

Why do Options exist? Why should we trade them?Leverage.

1 option contract controls 100 shares.

Bullish Stock TraderApple Inc. (AAPL) costs $100.00/share100 shares would cost = $10,000.Apple Inc. share goes to $105.00/shareStock Trader makes $500 or 5% profit.Bullish Options TraderApple Inc. (AAPL) costs $100.00/share1 contract costs $5.00, so trader pays $500.Apple Inc. share goes to $105.00/shareThe Option contract goes to $6.80.Options Trader makes $180 or 36% profit.

Types of Options contractsCALL

PUT

What we can do with Options contractsBUY

SELLWhen you buy, you have a RIGHT.

When you sell you have an OBLIGATION.

More Differences Between Shares and OptionsThe Options Contract is only valid until a specified date.This is the expiration date. While the share has a price, the options contract has a premium:

+How are Options Priced?

TIME VALUE

INTRINSIC VALUEAn options premium has two components:

The Guarantee with Options Time will Decay

SELLBUYBACK$$$

Equity Options

Strategy AStrategy BStrategy CStrategy DStrategy EStrategy FStrategy GStrategy HStrategy I

IRON CONDOR

NON-DIRECTIONAL TRADESRANGE-BOUNDINDEX-LINKED25-DAY TRADE

TIME DECAY IS GUARANTEED

$0

SPX (S&P 500)UPPER-RANGE: > 2270

215022702030LOWER-RANGE: < 2030

95%

But how much would I make? 8% Return Every 25 days, 95% of the time5% of the time the trade will need adjustmentUS $Cannot be done in a registered account(TFSA or RRSP)Margin Account from a Brokerage(Minimum required = $5,000)Practice for Free Paper Trading with Brokerage

Number crunchingHow many 25-day periods in a year? 365 / 25 = 14$5,000 would make 8% x $5,000 = $400 each 25-day periodThe index will jump outside the range = 2 times/yr resulting in $0.Therefore, 14 2 =12 times, you will make $400, converting:$5,000$9,800

In 1 year!

Costs1) Transaction fees depend on the brokerFor example,TDs Think or Swim (ToS) is $25 per 25 day trade of $5K.

2)Subscription fee to recommendation site:www.covalcondor.com= $69/ month. Two-week trial is free.

WWW..COMSPX Recommendation Every Day based on Daily Activity and Back-tested Research.Subscribe to Daily Email with the Trade Risk # of the trade you placed.

Check your Trade on the dial on the site:

Course offered on November 22, 2016$200BONUSESBring another person for half-priceCombine with November 8, 2016 for $25010% off full price by registering TODAY$100 (2016 FRIENDS AND FAMILY RATE)$125

To The Third Group

NO TIME

NO INCLINATION TO LEARN

NO MONEY

NO _________________

Backup Slides

How much does the SPX Change on a Daily Basis?

SELL BUYCALLPUTTHE RIGHT TO: THE RIGHT TO:

THE OBLIGATION TO:THE OBLIGATION TO:

Buy Stock Sell Stock

Sell StockBuy Stock