This document provides information about two programs for generating monthly income through options trading: the Shadow Program and the Mirror Program. The Shadow Program allows viewing trades at month end for free, while the Mirror Program provides same-day trade notifications, a daily tracker, and costs $100 per month. The document discusses the background and goals of Clair and Heidi Wheeler, who have been investing for over 30 years and actively trading options for several years. It outlines four types of option trades and defines key terms. Finally, it reviews the programs, answers frequent questions, and provides additional resources for learning about options trading.

1. Options for Income
February 2012

2. Background and Concept
• We have developed and continue to perfect a process to
generate monthly income using Options
• We are interested in helping others who want to learn what we
have learned to date
• We are inviting others to participate through 2 programs:
 Shadow Program – View our trades at month end at no cost
 Mirror Program
 Receive same day Trades for your consideration as a trade
 Receive our daily Tracker
 Fee - $100 per month

3. Clair and Heidi Wheeler
• Investors for over 30 years
• Casual Option Traders for 5 years
• Active Option Traders for 2 years
• Serious Option Traders for 1 year
• Agents for Ascent Options for 3 months
– Founded by Don Shapray – Option Pioneer
• Our Goal - Steady Retirement Income Stream

4. Lets Get
Started
Learning

5. Four Types of Option Trades
Call Put
Trade we use to
BUY N/A
Create a Spread
Trade we use to
SELL N/A
create Income

6. Definitions
The world of Options has a very colorful and
extensive vocabulary
• The following are but a few examples…
– Puts Today
– Calls
– Spreads Today
– Condors
– Strangles
– Collars
– Butterflies

7. Stock Insurance
• There exists a method for people who own stocks to purchase
insurance against a falling stock price.
– One tool is to purchase a Put Option or an insurance guarantee from
another individual to purchase your stock at a certain price during a
defined time period
Today we are going to learn how to
generate income
by being the individual providing this insurance
by
Selling Puts

8. Key Terms
Selling a Put – Obligating yourself to purchase a stock at certain
price (1) until a defined date (2) for which you are paid a fee (3)
1. Strike Price
2. Expiration Date
3. Premium
Creating a Calendar Spread – The simultaneous sale of a near term
Put (insurance) and purchase of later date Put (re-insurance)
• A Diagonal Calendar Spread is when the re-insurance is
at a lower Strike Price

9. Two Trades for Income
• Selling Cash Backed Puts – higher risk/reward
– Providing a stock owner with insurance against a drop in their stock price
– “Your XYZ stock is worth $100 today and I will guarantee to buy it from
you at $80 if you ask me to for the next 3 months if you give me $3
today”
• Spreads – lower risk/reward
– Sell the Put described above but purchase re-insurance
– I have an obligation to purchase XYZ at $80 for the next 3 months
but I would like to give you $1 if you will guarantee to purchase
XYZ from me at $75 over the next 3 months
• With a this Spread your risk is limited to $5

10. 5 Requirements for Success
1. Understand mechanics of Options
2. Identify profitable Option Trade
3. Tracking Activity
4. Executing Trades
5. Providing the Balance Sheet to guarantee the ability
to provide the Put/Insurance
In this program you will be responsible for #4 and #5

11. Understanding
and
Managing
Risk

12. Risk
• FACT - Options are frequently thought of as risky
However
• FACT – Options run the gamut of risk from low to high
• FACT – Some options are so low risk they are IRA approved
• FACT – Options can be used to reduce risk
• FACT – All investing involves a level of risk

13. How is Risk Managed
• Starts with….
– Selling put/insurance on “good” stocks
– Being conservative when selecting the Strike Price
– Being adequately compensated (Premium) for the risk
– Keeping time frame shorter
• Once the Put is sold it requires…..
– Tracking
– Closing quickly if conditions worsen

14. What Happens on the Expiration Date
• One of 4 things will happen
1. The option with “Expire” and you will keep the premium
2. You can “Close” the position using a “purchase to close”
trade eliminating your obligation
• This can be done at anytime prior to the Expiration Date
• Frequently this is done at a lose
3. The put option will be “Exercised” and the stock will be
“put” to you and you must purchase the stock at the
Strike Price
Note – Look for the bold terms on the Monthly Summary

15. Program Review
• Shadow Program
Receives Month End Results
Cost - Free
• Mirror Program
Receives same day notice of any trades we make
for our account
Receives daily Tracking Sheet for our trades
Cost - $100 per month

16. What is the Role of Ascent Options
• Accent will provide you a ideas for Spread Trades
– Trades are primarily on Monday
– Frequently there is a Bonus Trade offered during the week
• Accent will suggest when to open and close spreads
– Suggestions will be provided by e-mail
• Accent also is available for questions
• Accent also offers “auto trade” with several Brokers

17. What is Our Role
• We share with you our trades
 You chose how or if to duplicate our trades
 We do most of Ascent Option Trades
 We do additional Trades based on our research
• We share with you our Tracker (1)
 Typically provided daily
• We are available for information, questions and training
(1) Note: we offer no guarantee on accuracy

18. Samples
• Trade E-mail
• Tracker
• Monthly Statement

19. Lets Get
Started

20. How to Get Started
• Select a Program
• Visit the Accent Option Web site
• Open an Option Account with your Broker
• Read a book
• Attend our next Training Session

21. Top 10 Frequent Questions
1. What do I receive for the monthly fee
– The ability to view our trades plus Tracker and if you chose to
duplicate the trades in your account
2. Who performs the Trades
 All trades are performed by your brokers
 Accent Options also offers “auto trade” with several brokers
3. Do you have access to my account/money
 No – your account remains with your broker
4. Can I close all my options at any time
 Yes – you can close any or all options at any time through your broker
5. How much cash do I need to get started
 This is determined by your Broker but typically as little as $2,000

22. Top 10 Frequent Questions
6. Do I have to mirror all your trades
 No – the decision to mirror none, some or all trades is 100% yours
7. Can I leave the Program at any time
 Yes – the Monthly program is month to month
 Not recommended if you have multi-month spreads
 No – the Ascent Option Platinum Plus is an annual fee
8. Can I close all my options at any time
 Yes – you can close any or all options at any time through your broker
9. Is the fee for Accent Options included in the $100
 Yes
10. Do you offer ongoing training and can I call you?
 Yes, we believe ongoing learning is key to success in any subject

24. Why don’t more people do this….?
• It is a lot of work
 Identify good trades takes work and knowledge
• It is a treadmill
 Every month trades expire and need to be replaced to
ensure continuous monthly income
 Tracking is tedious
 There are numerous moving parts to track daily
You Get all this for $100 per Month!

25. Additional Key Terms
• Roll Forward – to close one option and sell another future put
where the cost to close and the premium received eliminate
the need to provide cash to close the position
• VIX – A measure of market perception of risk. This is an
indicator of option premiums.
 Analogy – when it is snowing there will be more accidents and
therefore rates for car insurance increase

26. Questions ?