SMB CAPITAL OPTIONS TRAINING PROGRAM

COURSE OVERVIEW

SESSION ONE

If you win you win, if you lose you still win”.

Joe Pesci on what he loves about options trading:

If the market goes up, you CAN make money. If the market goes down, you CAN make

money. If the market goes nowhere, you almost

definitely WILL make money. If you expect the market to go in one

direction, but the market goes in the opposite direction, you CAN still make money, depending on many factors.

Of course you CAN lose and all traders DO lose, but if you get good:

Month One: Intensive course to establish your understanding of successful trading and to teach the key options trading strategies.

Month Two: Simulated trading and mentoring process begins.

Months three through twelve: Live trading and bi-weekly mentoring sessions.

Month thirteen: Trader evaluation, consideration for options trading desk for qualified traders.

A program for options trading success

Week 1: SMB Fundamentals, Introduction to options pricing and spreads, training on options analysis software, online broker platform training.

Week 2: Market neutral income strategies: Condors, butterflies, calendars, double diagonals, Combination Strategies (management by the greeks).

Week 3: Directional and speculative strategies: Covered calls, cash-secured puts, earnings plays, expiration week plays, credit spreads.

Week 4: Individual student meetings to establish trade portfolio for paper trading.

Month One Intensive Course

Mentor and Student meet bi-weekly to

review progress of paper trades. All strategies reviewed to confirm student

understanding. Student encouraged to trade all strategies

covered in Month One Intensive.

Month Two: Simulated Trading

Student establishes $10,000 account with online broker

Mentor and trainee agree on strategies to be traded with live capital.

All trades not selected for live trading by trainee to be paper traded for further exposure during this period.

Careful records are kept of student quality and profitability of trades looking forward to determination of student’s eligibility to trade on the options desk

Mentor and trainee meet twice per month (electronically) for critical feedback and building of student playbook.

Months 3-12: Live Trading

Review trading records during mentoring process to determine whether quantitative and qualitative goals have been met.

If goals are met consideration will be given to inviting student onto SMB’s options trading desk.

Student may be able to set up separate, personally funded trading account to trade alongside SMB provided capital.

Students not initially selected for desk position may reapply after further mentoring.

Month 13: Student evaluation and consideration for SMB options desk

Weekly webex group meetings on: --- timely market issues --- guest speakers --- presentation of successful strategies by fellow students Student chat room open during trading day. Open attendance at mentoring sessions of

all community members-all sessions archived and attendance of at least one session daily is strongly recommended.

Ongoing Community Activities

We will give you all of the tools to be a consistently profitable options trader but…..

There will be difficult times where you will lose money and…..

This is hard work and you will need dedication and perserverance to succeed.

Your mindset must be that every month you will improve, learn from your mistakes, grow and become more profitable.

If you keep making one good trade, followed by one good trade, the profitability will come over time. Focus on the quality of the trade in the beginning and not the economic outcome. One good trade, then one good trade then one good trade………..And eventually consistent profitability will come.

You can succeed if you believe in yourself.