Technical Analysis and Trading with Greg Jensen 9-25-2014 | OptionsANIMAL
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Technical Analysis and Trading with Greg Jensen 9-25-2014



Presented by Greg Jensen

Video Transcription

Greg Jensen: Good morning everyone. Welcome to another webinar with Options Animal. Glad to be with you today. Before we get started today into our
discussion about technical analysis and how that plays a part in your trading, I want to do just a couple of things. First of all, for those of you that
have never taken a webinar before, which I’m sure many of you have, but for those of you who this is the first time, you can interact with me if you would
like to in the question bar. If you have questions while we are going, please feel free to type them. I may not be able to get to them until after the
presentation, but again, we’ll try to make this as interactive as possible.

The other thing I want to make sure is that you are hearing me okay. Inside of that question bar, just give me a little … maybe let me know where you are
from. That would maybe be one of the things you could do in there. Let me know where you are from. Guy from New York City, Rich from Atlanta, Chris from
San Diego, William from Houston, Jeff also from Houston, Victor from Puerto Rico, Jack. Okay, we won’t keep on going down. Got a couple guys from Europe.
France Chris, welcome; Belgium – Kurt. Anyway, I could spend the rest of the time going down the list of everyone who is here. Thank you for joining me.
Sounds like you are hearing me okay.

Also, as always, just a reminder that the content of this presentation is for educational illustrative purposes only. It should not be considered any type
of recommendation to buy or sell any security nor any options, derivatives, not should be considered any type of investment advice. Remember that the
options and equity markets do involve risk and you should have a firm understanding of the rights, risks and obligations associated with your trading
instruments before considering placing any type of trade.

Give you a really quick background as to who I am. I am Options Animal on Twitter if you want to follow. My name is Greg. I’ve been trading for a long time
now. I actually started when I was getting my degree back in the early ’90s. Been doing this going on close to 20 years now and it’s been a very
educational, profitable venture. The stock market has. The options market specifically. One of the things that I have learned over the years of trading
while I have been doing it, is that there is a pattern that you can recognize and that you can take advantage of in the markets. You know, a lot of people
see the stock market as the Wall Street casino is often times what it is lovingly referred to by Wall Street haters. Folks there is an enormous amount of
opportunity in the stock market. What you have to do is you have to know how to take advantage of it and how to put yourself in a position to survive the
emotional stages that come along with the market. Not just survive them, but thrive from them.

There are several different emotions in the market. Oftentimes you see the market in hope phase. We’re hoping for a better future. Then we get the hope
phase. We actually get in the market and we start to get into greed phase when the markets are running bullishly. Maybe when the market starts to hit a
top, we hit skepticism phase. Maybe when the market starts to roll over, fear starts to come in. Fear then often times turns into panic, which then turns
into discouragement where everyone starts dumping out of the market, which then turns back into hope. It is a cycle. When you watch TV for your information
about the market, everyone of these emotions are going to be thrown out there. Depending upon what cycle the market is in, CNBC, Bloomberg, Fox Business
and all of them that cover the markets will bring out every analyst they can find to pitch greed when that happens to be the phase that the market is in;
or pitch skepticism, or pitch fear, or pitch panic. Why do they do that? Because they are there to sell ad space. They are an entertainment company selling
commercials. So they have to keep you, the market participant, glued to the TV as much as they possibly can.

Their reasoning is because they have a job and the only way they keep their job is to keep selling commercials to the different brokerage firms and the
life insurance companies and whoever else it is that advertises on CNBC.

Now having said that, it is important for you then to be able to say okay, where are we then. Here’s a snap shot of today’s market, where are we in that
phase? I’m interested to see where you all feel we’re at. So go ahead and type an answer in there. Do you think we are in greed stage, do you think we are
in skepticism stage, do you think we are in fear stage, do you think we are in panic stage, do you think we are in hope stage? Where do you think we are at
in this cycle? I’m always interested to get everyone’s opinion.

I’ll just go down and read a hand full of them; greed, greed, skepticism, greed, skepticism, skepticism, greed, greed, greed with fear close. That’s maybe
a good assessment Guy. That’s kind of a skepticism phase. Greed, a couple of you already think we are in the fear stage, greed, skepticism. Totally
confused. Good answer Jody. That is a good … The artificial bravado stage. Saleem, also a good answer. I agree. I think most of you … I think we’re
somewhere in between greed and skepticism is where I think we’re at.

Obviously, you can see for the last year the markets have been very bullish. We’ve had a few little pull backs. You can maybe say that is skepticism right
there at the beginning of the year in January. We then bounced and rallied back higher. Then we pulled back in April and bounced and rallied back higher.
We pulled back in August and bounced and rallied back higher. It seems like right now, we’re right back at that support level. That longer term uptrend
that we’ve been able to identify in the markets. So when I’m looking at positions, I have to realize that we’ve had a very long run with greed and I may be
close to skepticism. I’m not in fear yet. I’m definitely not in panic yet because quite honestly, this support level could hold. We could just be at
another one of these pull back stages where the market is pulling back right now and getting ready for it’s next leg higher. Or, we could be getting ready
to finally break that.

I think what’s important here is a realization that this step you do with the overall markets, it’s very important. Yeah, you may not trade the S&P.
You might and if you are trading the S&P, obviously, you have to be able to identify the current trend of the overall market if this is actually the
underline that you are trading. But you may say well, I trade Disney and I trade McDonalds and I trade Nike, so I don’t worry about the overall market.
Well you should, because 80% of stocks follow the overall trend. Yeah, there are some that can buck the trend, but for the most part, most of the equities
out there are going to follow what the overall markets are doing. So it’s important for me to identify where the overall market is.

I would say right now, the overall market is somewhere between … we’ve been in greed and we are getting potentially close to skepticism. This 2000 level
for me on the S&P has been pretty important. The fact that we’ve really failed to substantially break through it … I thought maybe we were going to
last week with the push higher, but then we pulled right back again on Friday and finished right back around the 2000 level. Then on Monday we pulled back
to the 2000 level. This week we’ve been flailing around and today we’re actually moving to the downside again.

Now let me bring up the next concept. First of all I’ve got to be able to look at the overall market. The next concept is that I need to understand that
there is more than just having to trade the trend of the market or the trend of an individual stock. Before that, I have to have an understanding of
options. Some of you may be relatively new to options. Some of you may have trade options for years. I’m sure those of you that have traded options realize
many of these reasons why they are important. Whether that is for leverage, to take advantage of movements to the upside, whether that is for protection,
whether that is for cash flow purposes. For me, the most important, is for adjustments. I trade options not because of the leverage side, at least solely.
That’s what a lot of people do and that’s where I believe options get their bad name, because people trade them just for leverage. For those of you that
have traded them before know, leverage can be a good thing and a bad thing, depending on which side of it you are on.

For me, there is a multitude of reasons why you need to trade options. In fact, as you learn and grow in your understanding of options, you will realize
that options are the only tool that I have out there that is a protection for me. I can actually protect the underlying value of my stock that I can
generate cash flow off of my stock position that I own. Again, like I said, most importantly I can fix trades that go the wrong way and that’s what the
adjustment process is all about. So I can enter the market at any level of those stages. I don’t have to worry about trying to time it perfectly, about
watching the market every single day. There are some tools that allow me to help accomplish that. One of those is specifically technical analysis.

Now, technical analysis may be a review for some of you. For some of you, this may be relatively new. So for those of you, this is a little bit of review.
Bear with me for a little bit as I kind of set the stage. I’ll show you some of the key things I use in looking at technical analysis. Ultimately,
technical analysis is used to determine movement, or the potential movement, where an equity or index may trade in the future. There are a lot of different
tools that you are going to use, including up trends, down trends, trading ranges. As a trader, you do need to be able to draw trend lines, like we did
with that chart of the S&P. Those trend lines often hold for both support and resistance.

Now a lot of people say this is kooky science and that technical analysis should have no part of investing decisions. There is an excellent book written
out there that some of you may have read before. It’s called “A Random Walk Down Wall Street,” by Burton Malkiel. He has written a new version of it in the
past couple of years, I believe, called A New Walk or something like that, or an updated Walk to the Walk on Wall Street. I haven’t read his new one, but I
did read the original one that he wrote many, many years ago. Burton Malkiel’s belief in technical analysis is that it shouldn’t exist. But the only thing
that makes a difference in determining the direction of an equity are fundamentals.

Well that is true from a long term sense. However, in the short term, because there are so many individuals who look at technical analysis, when they are
doing their research on their equity, when they are considering the overall trend of the market, when they are considering the overall trend of the
industry where that equity resides, they make trading decisions based off of charts. Because of that, you could argue, becomes a self-fulfilling prophecy.
People look at a chart, they look at a support level being broken, and they say I should sell now because it’s breaking below a certain level. That
pressure of them turning around and selling in the market then causes the stock to accelerate to the downside. So although I, in theory, agree with the
fundamental argument out there that technical analysis shouldn’t exist, as a realist and as a trader, I have to recognize that it does. If I realize and
can look at some charts, it can actually give me a little bit of an edge.

Now another thing that is important as well is realizing that when these option prices move, particularly if they have some relatively volatile moves, it
can actually affect option prices significantly as well due to changes in implied volatility.

Okay, let’s keep going. We’ve got several different ways to look at a chart, or a days movement. First one, one of the things I like to look at is open
high/low close bars. Open high/low close simply means that each bar represents a defined period of time. It can be a day, it can be a minute, it can be a
week, it can be a month, depending on how long a term you want to look at. I typically look at day charts. The top of the bar represents the high for the
day, so open high. The low point, the bottom of the bar, represents the low trade of the day, or again, whatever the period is. The horizontal bar on the
right represents where it closed. So in this case, this equity opened here, when as high here, went as low as here, and then closed here, for a bullish
move on the day.

Now, typically, when the closing price is greater than the price of the previous bar, the bar is black. When it’s lower, it’s red.

Okay, now the next important step is to be able to look at all of these bars on a chart and to look at daily movement. You can see we have red bars and
black bars here. As the equity moves up and down, you have a trend. One of the things when I’m drawing a trend is I’m trying to identify the direction. Now
obviously this one is an up trend. The definition of an up trend is a series of higher highs and then also, higher lows. So as we are moving up, notice we
went up and then we pulled down, but the low point when the stock began to move to the up side again, notice this low point was higher than the low point
back here. Same thing here. This low point was higher than the low point here. When we pulled back again right here, this low point was higher than here.
Again, higher lows as well as higher highs. The high point in the short term trends, before you have the intraday oscillations, are higher highs. So,
again, this is also called a bullish trend.

Now the down trend, of course, is the exact opposite. Now we have a series of lower lows and lower highs, or a bearish trend. Now you can often times also
have a some stocks that will fall in trading ranges, where you have a defined level of resistance and a defined level of support. Now a lot of times,
people say stay away from this trade. I will say, this actually creates great opportunity in the options market. Not just to be able to potentially trade
the movements up and down inside of the range, but also to be able to create credit spreads on the outsides of this trading range based on levels of
support and resistance.

Okay, next concept. Well, okay, trading ranges are great, or trend lines are great to be able to define whether its a trading range or an up trend or a
down trend, but at some point, we have trends that break. The trend line that we may have had in place gets violated. Now the violation of a trend line,
the valid breaking of a trend line, indicates that that old trend is no longer valid, and that there will be a new trend starting. Now in this case, we
went straight from an up trend to a down trend and had very little sideways movement. That’s not always the case. It can be that sometimes you will have a
bullish trend that will then break the bullish uptrend, and go sideways for awhile and go into a trading range. That may be the new trend. But then may
break and go into a bullish trend. You may never have a true bearish trend inside of some equities. But it’s important to identify that when you have a
trend line broken, that you have a new trend and, thus, you should make a change in what your expectations of the equity is going to be. So if you have
been trading this bullishly and all of a sudden you get a break right here, well guess what, it’s time to take profits. Now it doesn’t necessarily mean
that it’s time to turn on the bearish trend yet. I may want to wait for just a little bit to validate that it is going to be a bearish trend, rather than a
break down and a sideways move. Regardless, it means it’s time to take action. Again, if I’ve been bullish and I have that break, it’s time to take
profits.

A couple other tools that you can use as well in regards to these trends are longer term averages. Now there are two different ways to look at averages.
There are simple moving averages and there are exponential moving averages. A simple moving average is really just that. It’s pretty simple to calculate.
It depends on how long you want to look at it and it’s the sum of the closing prices for a certain period of time, divided by that period of time. The most
common ones used are the 50, the 100 and the 200 day moving averages. Again, it takes the closing prices for the last 50 days and then divides it by 50,
and that’s going to give you a price. Now obviously, this blue line is MA. This is the moving average. Sometimes it says SMA, some charts will actually say
just MA. In this case, it just says MA. That means it’s the simple moving average for the 50 day period. Here’s the price point for today. So 3, 28 and 41
is the price point. There it is on the line right there. Then tomorrow, it will add on tomorrow’s closing price and kick off 50 days ago, whatever that is.
Somewhere over in here. So the price will change just slightly unless we have a line.

The red line, of course, is going to move a little bit slower because it’s a little bit more data and the green line is going to move even slower and it’s
because, again, has more data. Now the reason this is important to note these, again, it’s one of those self-fulfilling prophecies. It’s not just you and I
that look at the 50, 100 and 200. There are big institutional traders, big movements of money, that use these averages as their trigger points. Sometimes
they won’t quite wait for the 200. Sometimes they’ll do the 190 or the 195 so that they can move a little bit before the rest of crowd does. Regardless,
they make trading decisions and when those guys make trading decisions, it moves the market.

There are also exponential moving averages which give a little more weight to recent price action. I’ll show you some of those here in just a little bit.
Let me actually talk about oscillators for just a minute as well. Before I go into a couple of specific oscillators I use, you can see that one of them is
the MAC-D, I will say this about oscillators. There are some brilliant individuals out there who have created different mathematical tools to try to
determine direction of the market. They’ve got some fantastic ones out there. Whether it’s things like percent-R, whether it’s the MAC-D, whether it’s
people who look at things like Fibonacci or Bollinger Bands, there are a lot of different types of oscillators out there. I have found, in doing as much
research as I have about the different oscillators, that there is not one that is perfect. I believe if it was possible to predict a perfect one, then MIT
would have created it and they would have patented it and it would be a money machine. In fact there were a couple of guys that tried that, right? I don’t
know how many of you that read the book, When Genius Failed. It’s a story about, I want to say Roger Lowenstein, the author. But the book, When Genius
Failed, is about a bunch of mathematical geniuses, Harvard MBA’s, teachers at Harvard Business School, and NYU. Some of the best minds in the world. One of
them being Myron Schultz, one of the gentlemen that created the Black Schulz model. Again, these individuals who had these Nobel prizes teamed up with a
couple of really hotshot bond traders that had made a lot of money. They dominated the bond market. They had traded a mathematical model that was
invincible. Well, at least, they thought it was. It was for a little while until the market stayed irrational longer than they stayed solvent, to point
back to John Maynard Keynes, the first coin net phrase. Quite honestly, I know that many of you are probably looking for that magical, mathematical button,
or the red or green arrow that says go buy or go sell. I wish it existed, but it doesn’t. It doesn’t mean that you still can’t use some tools, some of
these oscillators, to give you an edge and to help you try to time your trades into these markets, but it’s not going to be perfect.

I’ll show you how to fix that here in just a little bit. Coming back to this discussion about oscillators, there are hundreds of them out there. Don’t try
to use them all. If you’ve got one that you are using that are different from these that I look at, great stick with it. But don’t bounce from one to
another, back and forth. Don’t do some trades based on one and some trades based on another, because you are going to end up making mistakes. Your brain
can only handle so much data.

The author of that book, again, I believe is Roger Lowenstein. The book title again is When Genius Failed. It’s the first time in history, at least at the
time, when the Federal Reserve had to step in and bail out a financial institution. It was back in 1998. It was the Russian ruble crisis that caused them
to crumble. But quite honestly, they had their fingers in everything. They were in WorldCom. They were in all kinds of different types of trades that their
model just broke all at the same time. In the long term they were right, but in the short term, it crushed them.

The one specifically that I look at, I look at the moving average convergence/divergence, or the MAC-D. What the MAC-D does, is it essentially measures
momentum. Now I’ve got two different lines here. The components inside the MAC-D. I’ve got the black line, which is essentially the difference between two
moving averages. I typically will use the defaults inside many of your brokerage firms or standard software, usually looking at the 12 and the 26 day
moving average. Again, this is the standard. If you want to change it around just a little bit, absolutely you can.

The next one is a trigger line, or the red line in this case. That is now a moving average, or specifically, an exponential moving average of that black
line. So in other words, it’s the moving average of the difference between two moving averages. I know, some of you are like what? Don’t worry about it.
The easiest way to read it is you just look for crosses. When I have these cross, it just sets up a signal. Now histogram is way to historically represent
the difference as well. Some people like the histogram when it crosses above or below zero as a potential trend indicator. I specifically look for crosses
when I’m interpreting the MAC-D. Depending on the direction of the cross, it either generates a bullish signal or a bearish signal. Again, signal line is
the red line, black line is the MAC-D line and when I see crosses … notice in this case, the MAC-D had been below the signal line, crossed above and this
was a bullish signal. This was also a bullish signal. Hang on, I’ll get to the bearish signals. I know I skipped one there. This was also a bullish signal.
So in this 6 month period here, there were 3 different buy signals. There were 4 different sell signals, or bearish signals. One at the very beginning of
this chart, one here, one here, and one here.

This is not a perfect indicator, but it is the first one I use. In fact, one of the things I like to use here, or to kind of give you an analogy, as to
what I use the MAC-D for, is the MAC-D is my bird dog indicator. Let me explain what a bird dog is for those of you that don’t hunt.

I grew up on a farm in Idaho. One of the things we would do for fun growing up is we would try to hung pheasant. I had mixed success hunt pheasant.
Pheasants are a beautiful bird by the way and very fun to hunt. South Dakota is a great place to go for that. You can have mixed success hunting with dogs
versus not dogs. It’s almost always better to hunt with a well-trained dog because, obviously, they can smell the bird where you can’t. From a dog’s
standpoint, he just smells birds. Let me tell you a little bit about hunting pheasants specifically and one of the reasons why I like it as a renewable
sport. Females are protected. You can’t shoot a female bird. Males, on the other hand, can mate with up to 20 to 25 females per season. Honestly, because
of that, there is a lot of fighting amongst males in a non-controlled environment. There’s a lot of times that birds will kill each other. You’ve heard of
the term cock-fighting. That’s again back here, talking about the birds that the males will fight one another over mating rights. So from a hunting
standpoint, you can’t shoot females because they want to protect the population and make sure it has the ability to keep going and you don’t have a
shortage of the species. But the males you can shoot. The differentiation is that the males are very colorful birds. They have bright green heads, they’ve
got red bands. They’re just pretty colored. Their feathers are very colored, whereas the female is a plain brown looking bird.

So back to the bird dog. The dog, when you are hunting, can only smell bird. It can’t smell male or female. So one of the first things you do when your dog
is on a bird, whether it’s a pointer or some type of dog that flushes the bird out, you have to be ready as the hunter when the bird flies up to make a
determination is it a hen or is it a rooster. If it’s a rooster and you see the bright colors, you pull the trigger. If it’s a hen, you don’t shoot.

The MAC-D is kind of like that in trading. It will scare up a lot of trades often times, but I don’t want to trade just on my bird dog. I want more
validation. I want to make sure it’s the rooster, not just a hen. So I look at another oscillator in combination with it. That is the relative strength
index, or the RSI. The way to read the RSI, again, it’s a tool that allows you to measure strength of an equities price action. Again, it’s typically
during a number of periods. I use the number 14. The key thing for me here are really 3 numbers. I look at the 30 level, the 50 level and the 70 level. The
range is 0 to 100. Very rarely do you see extremes, below 10 or above 90. In fact, very rarely do you see below 30 and above 70. That’s why those are 2 key
numbers for me.

Bullish signals are generated when the RSI crosses, again the same way like the MAC-D, either above or below. Again, it’s a cross of that 50 line that
generates the signal. So in this case, notice that this move here is a bullish cross over. It had been below, pushed up above 50, that then says go
bullish. Bearish is the exact opposite. That’s when I’ve been above and I cross below that generates a bearish signal. Like I said, the 2 other lines of
significance are the 30 and the 70. These, to me, are either oversold conditions or overbought conditions. I will say this, just because a stock is
overbought and the RSI is above 70 does not mean you should rush and go short that stock. I have seen stocks stay in overbought conditions for years. A
good example is Apple between about 2004 and about 2008, it was in an overbought condition almost continually. If you had shorted Apple at that time, you
would have lost a lot of money. Netflix is another recent example of a stock that is overbought all the time.

So although those are some indicators that I will look at, I’m not necessarily trading on those. Again, this is another bird dog indicator. When I see RSI
down by 30, or RSI up above 70, those are bird dogs. Those are potential trades that aren’t validated yet. I want to see more validation. Again, I’m
looking for crossovers at 50, which are the validations, and then I’m looking at some conditions, whether they are overbought or oversold.

Okay, the last one, like I said, when I combine those together with exponential moving averages, and if I get buy signals from my RSI, I get buy signals
from my MAC-D, and I get buy signals from my 5 and 20 exponential crossovers, those can be very strong bullish signals. As an example here. Some of you may
look at this chart and say, yeah there’s some nice little bottoming, we’ve got some support developing, I see this nice trend that is going on here, I got
a crossover here. If I had my MAC-D and RSI on here, you would see that it was validated, I’m going to go put on a bullish trade. Right after you do that,
this happens. Right? You feel like this just happened. Not all signals are going to work. That’s what I’m going to call one of the beauties of the market
because if signals did work, it would just be a mathematical casino where the house always won. In this case, the house definitely didn’t win.

What do I do then? That’s really where we specialize at Options Animal, is now what. We teach people not just how to build those trades. In fact, let me
tell you a little bit about who we are at Options Animal for those of you that don’t know. We are an accredited learning institution. We are essentially a
college. In fact, you can take our classes through an online college at Baker University as well, and through Hooter University. We are accredited and our
education is broken down into different components. Level 1 is due-diligence. That is, how to read a chart. One of the things I just talked to you about.
It is covered in much more depth and much more detail inside of Level 1. How to do fundamental analysis on a company, how to read a companies balance
sheet, how to make some decisions based on earnings growth and PEG ratios, and how that can help you make a determination as to where a stock might be
going. We’ll then teach you how to define options, how to read an options chart, how Greek’s come into play, what Greeks are important, which ones that are
maybe not so important, how to find mispriced options at times. So we dive into that and we teach you options. Level 3 then starts to talk about the
different spread trades. We start with credit spreads. Those are some of my favorite trades to do, whether it’s bull puts, iron condors, racial back
spreads, bear calls. Those are the types of trades that we will cover in Level 3, specifically credit spreads. We then talk about debit spreads in Level 4,
and hedge trades in Level 5.

This is where most of our competition is and our average competitor is going to charge you anywhere from $10,000 to $40,000 to teach you. Some of you may
have already paid that before to some of the different companies out there. This is equivalent to our apprentice program. For those of you who are
relatively new to the stock market and have never traded options before, this is typically the starting point where you want to start with.

We then take it to the next level and teach you not only trade application and how to actually take all the theory that you learned over here and how to
then apply it to your portfolio, how to build your trading plan as a trader. Most importantly, this is where we show you how to fix it. You know the trade
that you did the perfect set up on that then goes the wrong way, then what? Do you rely on a stop loss. That’s what most of our competition will tell you
to do. What we will teach you how to do instead is adjust. Then of course, get into some advanced stuff.

This is our Trader Pro program. This is what really separates us from all the other educations out there. We’ll teach you not just how to learn the trades
and make money when trades go the right way, but how to fix them when they go the wrong way.

Let me give you an example here. This is a flow chart from one of the spread trades that we teach in Level 3 called the bull put. Now the bull put is
essentially a short put, or a put that I have sold. Again, that is a synonymous term here. A put that I’ve sold at a higher strike price than the long put
that I’ve bought and it’s in the same expiration series. So I’ve bought a put and I’ve sold a put together and it creates a credit spread. Again, we learn
this in Level 3. Then what I go through is I monitor it. Then you decide what is the trend. Well if it is bullish, great. That is what I though it was
going to do. My primary exit then is to allow the options to expire worthless or close the trade early to capture partial profits. It can be either one of
those and I just follow what my primary exit is.

If it’s stagnant, well then I have to ask the question. Is the short put in the money? If it’s not in the money, because again that could happen if I
structured the bull put out of the money to begin with, and just got a stagnant trend because the stock went sideways for me, I may still be hitting my
primary exit with just a stagnant trend. If it’s gone in the money, this is where our competition usually says well just close the trade, limit your loss
and move on to the next trade. What we do instead, well that might be what you should do, but there may be some other options. It could be that I just need
to roll the options down and out and I’m still in the same trade because things haven’t changed. My expectation is still bullish, it’s still stagnant and
the short term just happened to have a little bit of a glitch. So I’ll just re-position. It may be that I need to reconsider what the trade is and I may
need to adjust it to a new trade, like a collar trade. If it’s bearish, again now I have two choices. Ultimately the question is, how bearish is it? If
it’s very bearish, I may adjust it to a racial spread by adding some additional long puts to it. Or it may be that I just want to take it to a collar
trade. Whatever your expectation is, you have to map it out and you have to be able to say what am I going to do if it’s bullish, what am I going to do if
it is stagnant, and what am I going to do if it’s bearish.

We will teach you this process with every single trade out there. Let me give you an example. Here’s a trade I did. Again, here’s my trend line. Every time
the S&P had come down and touched this 50 day moving average, it bounced. This time it broke. So to me that is a break of a trend line. Here’s my
technical analysis in action, right? This says that the trend is now changing. I got validation the next day. In fact, I got a volume spike saying that
there is going to be some momentum. So what did I do? I went and bought puts. I’m bearish. This is in June and I bought August 157 long puts. I spent $4.30
for them. Just slightly out of the money at the time. What happened? This is where I bought my puts by the way. I bought my puts on this day right here. In
3 days, those puts had lost 50% of their value because I bought them right at the bottom. Then the S&P just bounced back up. Most people are relying on
a stop loss whether they were quick enough to pull the trigger here at a 20% loss, or maybe they hung in and they are down 50% in 3 days. Regardless, most
people are pretty mad right here.

What I did, instead, is I had my plan to find. My adjustment was to convert the long put into a bull put. Ultimately the adjustment ended for me closing
the trade on July 11 for an actual 11% return on investment. It wasn’t the home run that I thought I was going to get down here. I was expecting a 25 to
50% return on the trade. But instead of licking my wounds and closing the trade for a loss right here, because I was patient and had my process to find, I
still ended up closing the trade for a profit. What that’s done for me, as an individual, I don’t close for losses very often. In fact, one of the ways we
teach this process inside of Options Animal education, is we teach people through us, as the instructors in the program, actually sharing our real live
trades. We do this on a weekly basis and we call these trades Animal Trades. Every week we share these on our website. Up to date, we have sent out 242 of
these trades. Of the 242, 13 of them are currently open. Nineteen of them have closed for loss, 145 of them closed at their primary exit point, and a total
of 210 of them were closed profitable. In other words, 65 of the 210 total ended up having to be adjustments.

What a lot of people’s trading record looks like is they will have 145 winners and 84 losers. It’s still 2 times out of 3, which is a pretty good result.
Right? As long as you’re winners are bigger than your losers. But what’s the problem often times? Often times, the losers are much bigger than the winners
and so although you win 2 times out of 3, that one loser wipes out the profits of the other two. As a trader you wind up not making any money. What this
process allows you to do, and allows our students to do and our coaches to do, is make money over the long term. The average duration per trade is 60 days;
59.8. Some of them are closed within a day and some were held on to for 6 months. The average is right under 2 months. The average return per trade,
including all the losses, is just under 16% per trade. Now I’ll let you guys do the annualized return in your head, but it’s pretty good.

The win/loss ratio on that, again, is just under 92% of the time we’re closing trades for winners. We’re having to adjust about 3 out of every 10 trades.
Now this way of trading is what we teach you, not just from the student’s perspective or the coaches teaching the students, but you will also learn about
being part of our trading community. We have a community across the world that is second to none. We have students all over the world from France to
Australia to South Africa to Brazil, every state in the country of the United States, Canada. We’re all over the world and we have a community of investors
that come together in a regular forum on line to interact with one another and talk about trading ideas. We are the best options school out there. We will
teach you how to be successful and part of that is being part of the community and learning this trading methodology.

If you have a question, which I’m sure you do, about who we are and how you can get started in our education, give us a phone call. Our number is
888-297-9165. Unfortunately for those of you overseas, that won’t work. Country code 1 to get to the United States, 801-331-7500. We will offer you some
incentive by calling today. If you call within the next 30 minutes, what you will be able to do is you will lock in a discount on your tuition, get a free
consultation with one of our reps to be able to determine specifically a package that will fit your educational needs and your trading needs. We’ll also
throw in a year of those weekly trades for free. But you need to call in to lock in that discount and get your name on that list. So give us a phone call
at 888-297-9165.

Thanks for spending the time with me today folks. It’s been a pleasure. Best of trading and I will look forward to seeing you in another Options Animal
webinar. Thanks everybody.

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Dana Podliska
Dana Podliska
03:41 18 Dec 18
Before joining OA, I had only traded equities and it was suggested to me to get into options. After watching tons of YouTube videos about how easy it was to make money using options, I felt that I was missing something. After some research into different option services I choose Option Animal and believe it was the correct choice for me. Through the teachers at OA and many hours of classes that they present, I feel like I am getting the knowledge and answers where all my other sources fell short. I am confident that after completing the courses I will have the knowledge necessary to trade successfully.
Dana Podliska
Dana Podliska
21:36 04 May 19
Mr. Bodin Hugger
Mr. Bodin Hugger
17:20 13 Jun 19
Excellent training from multiple experts. Member as of February 2019. I have completed up to level 3. Trading options since 2009-2011 when one could throw a dart and win!Excellent archives for training classes with Kathy, Joe , Eric, Charan , Jeff, and Horace. These are excellent educators because of the different styles each educator brings to their client. OA Trader work shops offer insight on how to think. The Wednesday and Friday updates also educate the client on how to think. These updates educate the client on how to separate the noisy events from those that are important. Entering into the options trading world with out OptionsANIMAL training is foolish.I am very pleased with the value of my decision to join OptionANIMAL. I wrote with review on my own accord and will stand by this review. Bodin Hugger, JRMetaire, LA 70006
Steven Hollosi
Steven Hollosi
17:44 26 Jun 20
I have been trading options for several years with some success just as a hobby, when I decided to trade options as a business and a source of a regular income, i searched for an educational platform to enhance my understanding and of the market dynamics when it comes to trading option I discovered Options Animals, called them, confirm that this was an educational focused platform that I could benefit from. The rest is history, I could not be happier with the results and support I received over time. They will teach you on how to enjoy the success rate of 90 plus percent of profitable trading with a thoughtful methodology and a plan of execution.I am sold for life. Keep up the great work everyone.Thank you,Steven Hollosi
Ivan Peytchev
Ivan Peytchev
21:44 04 May 19
Rick Kingbury
Rick Kingbury
00:43 24 May 19
This training is so thorough and with the archives I can go thru a particular section until it sinks in and then I get that "ahah" moment when I really understand it. Great training. Rick Kingsbury
Jeffrey Nee
Jeffrey Nee
14:29 30 Sep 18
Excellent teachers dealing with a complex subject to a room full full of varying skill levels. They succeeded.
Samuel Chimento
Samuel Chimento
13:10 14 Feb 19
Hello,I have been an Option Animal student for 5 months now and have completed levels 1 through 3. So far I have learned how to make directional trades as well as high probability credit spreads"Even though I have only completed the first 3 levels my current trades are ranging from 15% to 47% profit per contract. The winners are steadily rolling forward.I am looking forward to completing all the levels and learning debit spreads, hedged trades, straddles, strangles, collars and winged spreads.This education makes option trading crystal clear and easy because you will have confidence in what you are doing and finally enjoy making money on a daily basis.Most importantly, take your time and learn the material in detail, I think that is the secret to doing well!Enjoy your education.Sam
James Hutchins
James Hutchins
14:55 06 May 19
This is top notch education. They do not teach a “system” that works sometimes, but rather they teach you to really understand how to evaluate companies, structure trades based on your expectation, and most importantly how to adjust your trades in the event things go against you. One thing that I really appreciate is the caliber and dedication of their instructors. They do not constantly try to “upsell” you like other options education systems I have tried in the past. Options Animal provides both live and online education opportunities. It is not a “get rich quick” kind of a service. Options Animal is real education, and requires real study and practice to master. They give you the tools and training, and support, the rest is up to you. My wife and I are thankful to have found them!
Brett Johnson
Brett Johnson
21:39 12 Oct 18
am new to Options Animal since March of 2018 although I have traded options since 2011. While I am only half way through the curriculum, I find the content, instructors, and methodology invaluable. I very much appreciate the new view to trading that Options Animal provides, so much so I am considering migrating from a mix of stock investor and options trader to a pure options trader given the risk management and increased trade success taught at Options Animal.
John W
John W
20:53 28 Jun 19
Brice is very easy to work with and does what he says he will do. Thanks again Brice for the good service
Dr. Rina Shinn
Dr. Rina Shinn
17:58 01 Feb 20
This is the program that I wish I knew at the beginning before I poured in ridiculous amount of money in order to learn about options trading. Highly recommended.
Ken Carley
Ken Carley
10:59 06 May 19
Been a member for almost 9 years. Always learn something new when I attend their many free summits around the US. The instructors are great and very available to the students. Absolutely the best Options Education anywhere.
Robert Brown
Robert Brown
00:24 15 Nov 18
It is legit with certified courses and tax incentives.
Nag Malluru
Nag Malluru
16:16 09 May 19
I like the education that OA provides and it is really interesting to see all these strategies in real world. I am seeing the difference already and excited to be part of this.Community and Live tabs are amazing and helps us to stay connected with the schedule and other member thoughts etc.
Victoria L Roberts
Victoria L Roberts
22:35 02 Mar 20
They offer a systematic approach to options education. Each instructor has taken the courses. They are all intelligent, articulate and available to answer questions. No sales gimmicks just a commitment to the students. I highly recommend them.
Blaine Jones
Blaine Jones
01:36 25 Jun 19
Options Animal is one of the best, if not the best, educational experience I have ever had. If there were more than 5 stars I would rate them a 10.
Sharon
Sharon
18:57 04 Oct 18
They have wonderful teachers, I learn a lot from them. Even the tuition is expensive, but from what I have learned, it is worth and will benefit for the rest of my life.
Bill Madison
Bill Madison
16:42 07 Feb 20
The lessons are excellent, organized and easy to follow . Can take you from beginning student all the way through "PHD" level options trading. Several instructors to choose from (all good) and each has his/her own style to make learning FUN. The best part is : you become a profitable trader.
John Boulet
John Boulet
04:48 30 Sep 18
GREAT CONFERENCE !It became much clearer to me that options can be used to hedge risk AND be profitable at the same time.Would highly recommend Options Animal to anyone looking to improve their trading!
oliver fox
oliver fox
03:42 11 Nov 18
OPTIONSANIMAL,OPTIONSANIMAL,OPTIONSANIMAL!!!! the very BEST in options education.-------- the very BEST.
John Stuparich
John Stuparich
01:11 16 Jan 19
The Option Theory is adequate with but the concepts only really sink in when theory is further explained in some practical application examples or case studies using live and current stock prices .
Jerry Boatman
Jerry Boatman
03:10 21 Dec 19
Fantastic Training that you can do at your own pace.
Merlin Andrews
Merlin Andrews
16:27 05 Nov 17
By far the best educational source for options trading that I have found in my 4+ years of learning. An incredible amount of information, education, and support - worth every investment penny for anyone serious about learning options trading. The most helpful, passionate, and skilled instructors - all with different perspectives that make it easy to find your own path instead of getting told what your path should be.
Amànda Dorion
Amànda Dorion
23:28 16 Oct 18
Options Animal has been great. The instructors are fantastic and everyone is always very willing to be available and answer any questions. The way the material is set up also flows very well.
Jonathan Nelson
Jonathan Nelson
15:31 04 May 19
Very well put together. Informative. Pleasent community.
King Cone
King Cone
23:23 08 Nov 18
We have been with Option animal for 7 years plus. They have delivered on all levels. If you want to learn to trade options there is no better education. Make sure you finish all you levels before you start live trading if you don’t your education will cost you more as I learned the hard way . One other point make sure you try to attend as many conference that Option animal puts on you will not be disappointed .Your trading skills will get sharper and most of all you will meet a bunch of great traders
Stephen MacLean
Stephen MacLean
02:27 11 Jan 19
Gerry Young
Gerry Young
18:22 28 Jun 19
I've been an Options Animal member / student for a bit over a year now and am incredibly impressed with the organization, their depth of knowledge, their teaching methods and their support of their students. In fact, I just signed up for life time membership so that I can continue to make use of the resource for the rest of my trading career. Before becoming a student of O/A I had been studying options trading technique on my own, attending webinars buying books from Amazon & etc. for about three years and not doing very well at it. I was also trading equities as I had been for the past 17 years and my portfolios were increasing in value from my efforts but not by leaps and bounds. In fact I was just covering living expenses plus a little bit and looking for a way to become a more successful trader; hence my foray into options. Joining Options Animal was like stumbling out of the woods and into the sunshine. "Don't try to trade options until the end of the course when you will have learned how to do it." was their first piece of advice. ( Wish I'd had that tattooed on my wrist three years ago. It would have saved me a bundle.) Next piece of advice: "If you do experiment with trading options just count the results as increased tuition costs." (Yeah, I had to learn that the hard way.)Then they proceeded to a very detailed analysis of markets / equity trading with instructions on where to find the real information for fundamental analysis. This alone resulted in a measurable improvement in my efforts at equity trading. After that it was straight into options, "the Greeks" & etc.What makes the O/A teaching method a cut above anything else, in my opinion, is that there are four primary instructors all from different backgrounds who each teach all the lessons in the curriculum. All of their efforts are recorded in the O/A archives which gives the student the ability to gain exposure to the same material from four different perspectives. And because the instructors are continually presenting the material over time one can gain a better understanding from listening to the same person giving the same talk but in a slightly different way.Any points not clearly understood can be repeated instantly or reviewed in its entirety later. Students can also interact with the instructors in real time during the scheduled sessions or attend the weekly open forums to cover specifics and have additional questions answered. One is not locked into a rigid class schedule which is going to move forward whether the student understands the presented material or not.In addition there is a bulletin board / chat room organized by courses and lessons and related subjects where students and interact and learn techniques from each other and the participating instructors.Long story short: if you really want to improve your trading to the point where your success rate is above the ninety percentile point then Options Animal is what you've been looking for.
Steven Hollosi
Steven Hollosi
17:14 26 Jun 20
I have been trading options for several years with some success just as a hobby, when I decided to trade options as a business and a source of a regular income, i searched for an educational platform to enhance my understanding and of the market dynamics when it comes to trading option I discovered Options Animals, called them, confirm that this was an educational focused platform that I could benefit from. The rest is history, I could not be happier with the results and support I received over time. They will teach you on how to enjoy the success rate of 90 plus percent of profitable trading with a thoughtful methodology and a plan of execution.
I am sold for life. Keep up the great work everyone.
Thank you,
Steven Hollosi
Sergey Golub
Sergey Golub
21:22 19 Dec 19
If you a new or an experienced options trader this is very much desired service where you can learn a lot and get help when you need it most from live coaches at Options Animal.Keep up guys with great work!S. G.
Peter Schulz
Peter Schulz
16:07 05 Jun 20
This company is for real! The education is top-notch and can help you whether a beginner or a seasoned veteran looking for new approaches. If you are looking for the resources you need to add options trading to your investing, I can't imagine a better place to get it. The community is amazing and supportive, the instructors are great, and the site has endless archives to go through. Following along with experienced traders as they identify, make, and then adjust trades really drives the lessons home. I wish I had joined this 10 years ago.
Susan Taylor
Susan Taylor
15:53 27 Apr 20
Options Animal is a very honest company. They will work with you if you need help.
Joshua Foss
Joshua Foss
18:23 29 Sep 18
Motivated me to learn more
Karen Berliner
Karen Berliner
21:15 14 Nov 18
I first learned about Options Animal just about two years ago. I could immediately see what a comprehensive educational program it is and how I could become a successful trader. I finished the program in a year and am extremely pleased with the success I have had this year, far exceeding results obtained by the S&P 500, the Dow, and NASDAQ. Not only does Options Animal provide an excellent curriculum, it offers multiple ways for students to learn and each of the coaches is fantastic. They want their students to be successful. The changes that I have been able to make as a result of being a member of the Options Animal community have been important for me professionally and personally. I recommend it highly.
Joseph Woollen
Joseph Woollen
04:03 15 Nov 19
I have been pleasantly surprised with Options Animal. Having used other options training programs with limited success, going through the Options Animal courses has been like getting a graduate degree. Their courses are comprehensive yet understandable, and it’s particularly helpful to go into their video archives to take the same courses numerous times - each with a different instructor with a slightly different teaching approach. And it’s hard to beat theIr support and collateral materials. I highly recommend Options Animal. J. Michael Woollen
Curt Rosemann
Curt Rosemann
17:40 12 Oct 18
By far the best I have found for indepth training and insight as how Options really work. Logical class order. Highly knowledgeable instructors for each element whom can provide detailed answers to any questions.
s hart
s hart
21:26 04 May 19
The knowledge I've gained from being involved with Options Animal since 2013 has been extremely refreshing & tremendously helpful. I don't have to fret about what's going to happen with any trades I have going, because I already know what can happen in any type of market movement and thus, can prepare accordingly. If you have intentions of becoming a trader yourself, whether you're a rookie or have played with the stock market for years, this is the place you want to be to get you aimed in the right direction. The instructors are amazing - very knowledgeable & deeply caring. The membership community is wonderful. Getting with these people personally at the Summits is a great thing. You most-likely will end up with some wonderful friendships with fellow traders (and instructors) in the community. The things you can do with this education are limited only by you. Scott Hartman - OA Graduate
James Diehl
James Diehl
21:08 18 Jul 19
My wife and I have tried other on line trading academies and were not impressed with them at all. We became very frustrated to the point of almost giving up the idea of ever being able to learn how to trade options. We heard about Option Animal and decided to give it one more try and we are glad that we did. We were immediately impressed with the entire program. The lessons, both live and archived, are easy to follow and very well done making it simple for even the most novice trader to understand. The instructors are extremely knowledgeable and offer personalized attention when needed. We highly recommend Option Animal if you are serious about learning how to trade options.
Kevin Goodwin
Kevin Goodwin
21:41 07 Jan 19
Steve Rosenlund
Steve Rosenlund
22:16 04 Mar 20
Some classes are very technical, I can repeat them as needed. I would rather retake a class than see it dumbed down.
john kraus
john kraus
19:00 13 Nov 18
The experience and information have been outstanding thus far. I insist on thorough coverage when it comes to my interests and pursuits. OptionsAnimal are meeting and exceeding my expectations. The personel are very supportive as well. So far, i have interacted with Brice, Jordan and Warren. All of them were flawless in their professionalism and very personable as well. i never felt rushed in my inquiries and they efficiently offered complete and even comprehensive answers, making sure i understood what i was trying to learn. Thank you!! so far so good!John Kraus
Howie Agster
Howie Agster
19:14 21 May 19
Webinars have great examples of a superb strategy trading options. First in money management and trade adjustments limiting losses. My choice for learning from the best.
Thom Ianniccari
Thom Ianniccari
18:07 29 Oct 17
Great education and support to learn to earn. I have done a lot of investing education and this is one of the few systems that gets a gold star.
Douglas Weed
Douglas Weed
22:45 23 Oct 18
Zack quickly answered the question I had about choices for brokerages with respect to commissions.
Bruce Ash
Bruce Ash
21:22 01 Jan 19
OptionsAnimal has been a great experience. I have learned a lot about options. It is nice that you can learn at your own pace and get help as needed.
Sunil Tomar
Sunil Tomar
19:05 29 Sep 18
Stephen Sorrick
Stephen Sorrick
20:36 29 Sep 18
The presentations were all highly informative.
Linda Wood
Linda Wood
18:20 04 May 19
Brian Hores
Brian Hores
13:59 11 Jun 19
A well structured curriculum to master the intricacies of options trading. Archived sessions allow you to go at your own pace and review areas of weakness. Live classes with instructors are interactive with a chance to ask questions. The teachers are great with helping to clarify issues and help you succeed. Following he Options Animal 6-step process will lead to trading success. The tuition is worthwhile compared to paying the school of hard knocks. I haven't mastered everything but am a much more confident and profitable trader.
John Daggerhart
John Daggerhart
19:30 24 Nov 18
Very straight forward solid education. No get rich quick B.S. Learn, follow, prosper!
Merlin Andrews
Merlin Andrews
16:01 06 May 19
The best options trading education available that I have ever encountered by far, and one of the best values in any education. Great instructors, a very supportive community, and a tremendous amount of information and content. Not get-rich-quick, but life changing if you are willing to put in the work.As a graduate of the program, I continue to learn and grow from everything provided by OptionsAnimal and continue to improve.
oliver fox
oliver fox
18:43 06 May 19
I am simply amazed at the amount of knowledged displayed by the option animal instructors at the Chicago summit.after having listen , and asking questions ,my knowledge of the stock market,and option has increased to a level way beyond that of the average trader. I am so thankful for finding optionsanimal.
Edith Falls
Edith Falls
18:48 10 Dec 18
Kevin McDermott
Kevin McDermott
20:02 23 May 19
Even though I have been trading options for a couple of years, I was happily surprised by learning things I either did not know or did not understand as well as I should have.Excellent education program that is good for everybody from beginners to experienced options traders. Plenty of resources and actual people who can answer your questions or help you deal with any unexpected difficulties.Top notch organization doing top notch work. Check them out.
Jim Hores
Jim Hores
19:54 10 Jun 19
I found this to be an outstanding program - in-depth knowledge you cannot find anywhere else and the staff is always very supportive. I give it an A++.
Peter Schulz
Peter Schulz
16:08 05 Jun 20
This company is for real! The education is top-notch and can help you whether a beginner or a seasoned veteran looking for new approaches. If you are looking for the resources you need to add options trading to your investing, I can't imagine a better place to get it. The community is amazing and supportive, the instructors are great, and the site has endless archives to go through. Following along with experienced traders as they identify, make, and then adjust trades really drives the lessons home. I wish I had joined this 10 years ago.
Trask Messinger
Trask Messinger
12:57 05 May 19
thank you - very professional and informative Summit
DiVerge Fitness
DiVerge Fitness
17:35 22 Dec 18
Great service for learning the correct way to trade options.
Markus Bandomir
Markus Bandomir
14:53 18 Jan 18
Kathy Bowman
Kathy Bowman
18:13 15 Jul 19
BRUCE BAILEY
BRUCE BAILEY
18:16 01 Oct 18
This was my first Summit experience and I thought attending was very worthwhile. The programs and materials were helpful and the open session Q&A following the presentations was great. I left with six other OA members contact information to really get into the “community” feeling!
Jackson Simon
Jackson Simon
19:58 25 Oct 18
Wonderful experience so far with this superior source of education on options trading. I continue to enhance my skills and knowledge week to week with the help of their highly experienced coaches and easy to follow curriculum. Learn to protect your investments now to ensure a brighter future in retirement and to pass on to your posterity. Highly recommended!
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