A Simple Way to Understand Options Trading 1. What The Important Terms Are—Instead of feeling confused and frustrated with all the terminology, you’ll learn exactly what to focus on. 2. The Best Time To Place Option Trades—There is an ideal time to place option trades. You’ll learn how to identify these entry points. This will help you achieve explosive gains! 3. How To Increase Your Probability Of Success—Many option buyers suffer small loss after small loss. You’ll learn the two big mistakes most option buyers make and how to correct them. 4. The 5-Step Option Profit System—Your system determines your success. You’ll learn the exact 5-step system we’ve taught thousands of investors, so you can begin to leverage your money and possibly double your annual returns vs just buying stocks. https://vectorvest.com/jumpstart

4. Until you know how to use options
correctly, your portfolio will never
achieve its full potential.

5. My Promise:
You can use options the right way to make money
in both up and down markets to help
double your annual returns.

6. Brian D’Amico Jim Penna

11. •Filter out all the noise
•Know when is the best time to place option trades
•Correctly set-up your option trades
•5-Step option trading system

13. What’s the hardest part about
trading options?

14. Your SYSTEM determines your SUCCESS.

19. Calls
Puts
Sellers Buyers
(obligations) (rights)
(bullish trades)
(bearish trades)

20. AAPL trading at $130
How much would it cost
to buy 100 shares?

21. Scenario #1
AAPL drops to $125
How much are your 100 shares worth now?
Do you have to sell your shares?

22. Scenario #2
AAPL rises to $140
How much are your 100 shares worth now?
Do you have to sell your shares?

23. Buy Stocks Long Example
Stock Price
Initial Cost of 100 shares
@ $130/share
Cash if Sold Profit/Loss
$120
$125
$130
$135
$140

24. Buy Stocks Long Example
Stock Price
Initial Cost of 100 shares
@ $130/share
Cash if Sold Profit/Loss
$120 ($13,000)
$125 ($13,000)
$130 ($13,000)
$135 ($13,000)
$140 ($13,000)

25. Buy Stocks Long Example
Stock Price
Initial Cost of 100 shares
@ $130/share
Cash if Sold Profit/Loss
$120 ($13,000)
$125 ($13,000)
$130 ($13,000) $13,000 $0
$135 ($13,000)
$140 ($13,000)

26. Buy Stocks Long Example
Stock Price
Initial Cost of 100 shares
@ $130/share
Cash if Sold Profit/Loss
$120 ($13,000)
$125 ($13,000) $12,500 ($500)
$130 ($13,000) $13,000 $0
$135 ($13,000)
$140 ($13,000)

27. Buy Stocks Long Example
Stock Price
Initial Cost of 100 shares
@ $130/share
Cash if Sold Profit/Loss
$120 ($13,000) $12,000 ($1,000)
$125 ($13,000) $12,500 ($500)
$130 ($13,000) $13,000 $0
$135 ($13,000)
$140 ($13,000)

28. Buy Stocks Long Example
Stock Price
Initial Cost of 100 shares
@ $130/share
Cash if Sold Profit/Loss
$120 ($13,000) $12,000 ($1,000)
$125 ($13,000) $12,500 ($500)
$130 ($13,000) $13,000 $0
$135 ($13,000) $13,500 $500
$140 ($13,000)

29. Buy Stocks Long Example
Stock Price
Initial Cost of 100 shares
@ $130/share
Cash if Sold Profit/Loss
$120 ($13,000) $12,000 ($1,000)
$125 ($13,000) $12,500 ($500)
$130 ($13,000) $13,000 $0
$135 ($13,000) $13,500 $500
$140 ($13,000) $14,000 $1,000
What is maximum profit? What is maximum risk? $13,000
Unlimited

30. You are bullish on AAPL.
It is trading at $130.
You want to buy the RIGHT
to Buy AAPL at $130.

31. You buy one CALL option
on AAPL.
It gives you the RIGHT to
Buy AAPL at $130.

32. Your one CALL gives you the
RIGHT to BUY 100 shares of
AAPL at a certain price
($130) by a certain date
(expiration date).

33. Your one CALL costs
$3.65 per share or $365
for one contract.

34. Scenario #1
AAPL drops to $125
Will you want to exercise your RIGHT to BUY
AAPL at $130 if it is trading at $125?

35. Scenario #2
AAPL rises to $140
Will you want to exercise your RIGHT to BUY
AAPL at $130 if it is trading at $140?

36. Buying a Call Example
Stock Price
Initial Cost of 1 AAPL 130
Call option
Option Value Profit/Loss
$120
$125
$130
$135
$140

37. Buying a Call Example
Stock Price
Initial Cost of 1 AAPL 130
Call option
Option Value Profit/Loss
$120 ($365)
$125 ($365)
$130 ($365)
$135 ($365)
$140 ($365)

38. Buying a Call Example
Stock Price
Initial Cost of 1 AAPL 130
Call option
Option Value Profit/Loss
$120 ($365)
$125 ($365)
$130 ($365) $0 ($365)
$135 ($365)
$140 ($365)

39. Buying a Call Example
Stock Price
Initial Cost of 1 AAPL 130
Call option
Option Value Profit/Loss
$120 ($365)
$125 ($365) $0 ($365)
$130 ($365) $0 ($365)
$135 ($365)
$140 ($365)

40. Buying a Call Example
Stock Price
Initial Cost of 1 AAPL 130
Call option
Option Value Profit/Loss
$120 ($365) $0 ($365)
$125 ($365) $0 ($365)
$130 ($365) $0 ($365)
$135 ($365)
$140 ($365)

41. Buying a Call Example
Stock Price
Initial Cost of 1 AAPL 130
Call option
Option Value Profit/Loss
$120 ($365) $0 ($365)
$125 ($365) $0 ($365)
$130 ($365) $0 ($365)
$135 ($365) $500 $135
$140 ($365)

42. Buying a Call Example
Stock Price
Initial Cost of 1 AAPL 130
Call option
Option Value Profit/Loss
$120 ($365) $0 ($365)
$125 ($365) $0 ($365)
$130 ($365) $0 ($365)
$135 ($365) $500 $135
$140 ($365) $1,000 $635
What is maximum profit? What is maximum risk? $365
Unlimited

43. February 6th
AAPL traded at $129.73

44. March 1st
AAPL had risen to $139.79
A 7.7% increase

45. AAPL trade
Initial Cost
Feb 6th
Value
March 1st
Net Profit
March 1st % Gain

46. AAPL trade
Initial Cost
Feb 6th
Value
March 1st
Net Profit
March 1st % Gain
100 shares ($12,973) $13,979 $1,006 7.7%

47. AAPL trade
Initial Cost
Feb 6th
Value
March 1st
Net Profit
March 1st % Gain
100 shares ($12,973) $13,979 $1,006 7.7%
1 contract ($365) $1,080 $715 195%

48. AAPL trade
Initial Cost
Feb 6th
Value
March 1st
Net Profit
March 1st % Gain
100 shares ($12,973) $13,979 $1,006 7.7%
1 contract ($365) $1,080 $715 195%
3 contracts ($1,095) $3,240 $2,145 195%

49. AAPL trade
Initial Cost
Feb 6th
Value
March 1st
Net Profit
March 1st % Gain
100 shares ($12,973) $13,979 $1,006 7.7%
1 contract ($365) $1,080 $715 195%
3 contracts ($1,095) $3,240 $2,145 195%
10 contracts ($3,650) $10,800 $7,150 195%

50. If you had this working for you,
what would be the impact?

51. Strategic
Shift #1

55. Market
Going
Up
Stock
Going
Up
Bullish
Option
Trade
=
+
+

56. Explosive
Phase
The best time to buy a call is when the
market is exploding off a bottom.
Explosive
Phase

59. Instead of buying
a call here.
Buy a call when the signals tell you the
market is exploding off a bottom.

62. Does this give you a
competitive advantage?

63. Strategic
Shift #2

65. Stock Graph but strike really high
Cheap option
Price went up, but lost money
On March 1st
Buy 155 Call on HD
Only cost $47 per contract.

66. Stock Graph but strike really high
Cheap option
Price went up, but lost money
April 21st
Your Option
Expires Worthless

67. Many Small Losses Kill Your Portfolio

68. Put Probability On Your Side

69. CORE
PROBLEMS

70. It takes 135 days to lose
50% of the value.
And only 45 days to lose
the last 50%.
Option Time Decay
Days Until Expiration
P
r
i
c
e

71. Stock Graph but strike really high
Cheap option
Price went up, but lost money
Give yourself enough
time to be right.

72. Stock Graph but strike really high
Cheap option
Price went up, but lost money
Your strike price is too
far away.
Probability
Decreases
Call
Premium
Decreases
They are
“Cheaper”

73. Scenario #1:
• Trade Date: March 1st
• Expiration: April
• Strike: 155
Result:
Max Loss of $460

74. Scenario #2:
• Trade Date: March 1st
• Expiration: May
• Strike: 145
Result:
Gain of $8,150
158% ROI

75. Which of these was most valuable? Why?

76. Strategic
Shift #3

78. Trade Management
Trade Set-Up
Option Selection
Stock Finder
Market Direction

79. Trade Management
Trade Set-Up
Option Selection
Stock Finder
Market Direction

80. What did you just learn about
your option trading system?

83. Taken Loss after Loss…

85. Trade Management
Trade Set-Up
Option Selection
Stock Finder
Market Direction
Your SYSTEM determines your OPTIONS SUCCESS.

86. Strategic
Shift #1

87. Strategic
Shift #2

88. Strategic
Shift #3

91. IT’S TIME
TO MAKE
A CHOICE

92. Do It Alone

93. Trial & Error

96. “I recently “quasi” retired having left my company
after 24 years. I took this course to learn basic
strategies to reduce risk and gain better odds for
success and I loved it!
If you’re like me and you’ve never traded options
before, I would stress that you should NOT make a
move until you’ve completed this course.
Emotionally, I’d say that when I do enter my trades, I
do so with MUCH more confidence.
Psychologically, I feel the outcome of my trades will
be positive and I’ll be making money and that puts
me in a great psychological state as I know options
do NOT have to be a gamble like a roulette wheel as
I previously thought.”
Roger B.

97. Option
Foundation
Builder
Trade Set-Up
Calls
Trade Set-Up
Puts
Trade
Selection
Trade
Management
Trade
Execution
Focus on the Most
Important…
Profit System for Up
Markets…
Profit System for Down
Markets…
Pick the Best
Candidate…
Be Prepared.
Know What to Do. Ready. Set. Trade.
Building Block Matrix
Price/Value Calculator
Sweet Spot Identifier
Prepare for Blastoff
Successful Set-Ups
Know Your Rights
Prepare for Blastoff
Successful Set-Ups
Know Your Rights
Pattern Identifier
Stock Filter
Option Criteria
Set Objectives
Profit Targets
Exit Criteria
How to Enter Trades
How to Exit Trades
Trading Checklist
1 3 4 5 6
Module Module Module Module Module
2
Module

98. • Consistent Income
every week
• Get paid to own your
stocks
• Profit even when the
market stalls

99. “I wish I had taken this course 20 years ago.
It gives you the basics of puts and calls with
some simple rules and strategies that you
can understand and implement very easily.
The bonus session on covered calls alone
makes this course worth it. It spurred me to
look at stocks in my IRA and dump some of
the losers and place covered calls on
others.”
Doug H.

100. • Best tool to determine
market direction & find
stocks
• Dramatically reduce
the amount of time you
spend
*New accounts only

101. • Help you implement
what you learn.
• Look at what you are
doing and guide you.
• Can’t make it? Don’t
worry, submit questions
& watch the recording!

103. After the course is over, if you
show you’ve done the work, (come
to the classes or watched the
recordings, done the assignments)
and you’re still not satisfied, we’ll
gladly give you a refund.
www.vectorvest.com/jumpstart

104. “The Options JumpStarter was the perfect
course for the beginner. It taught me all the
basics that I was looking for. Great staff &
great course!
Financially, I am up 100K. Tenfold compared
to buying and holding stock in a very short
time. Leverage is wonderful.
I would recommend this course for
everyone that wants to live comfortably or
have the ability to retire. This course and
VectorVest are a blessing.”
David G.
www.vectorvest.com/jumpstart

105. How much is it costing you
not to do this?
www.vectorvest.com/jumpstart

106. www.vectorvest.com/jumpstart