Copyright © by Profits Run, Inc.

[Pages:36]DISCLAIMER: Stock, forex, futures, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the information in this special report will generate profits or ensure freedom from losses. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a market. The impact of seasonal and geopolitical events is already factored into market prices. Under certain conditions you may find it impossible to liquidate a position. This can occur, for example, when a market becomes illiquid. The placement of contingent orders by you, such as "stop-loss" or "stop-limit" orders will not necessarily limit or prevent losses because market conditions may make it impossible to execute such orders. In no event should the content of this correspondence be construed as an express or implied promise or guarantee that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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Options Income Engine: Background, Overview, and Trading Examples

Hi everybody, this is Bill Poulos and I want to welcome you to the Options Income Engine. Now the Options Income Engine course is based on my over 40 years of trading in the markets. During that time, as you can imagine, I have made every mistake you could possibly make, and I have learned a great deal in the process. My goal here is to help you avoid making those same mistakes, dramatically shortening your learning curve, and allow you to have the possibility of becoming a successful trader right out of the chute.

And if I have learned anything in the 40 years is that it does not take 40 years to become a successful trader. Now this is one of the best, most synergistic approaches to safely capturing the leverage that options trading has to offer. As you will soon see, if we are smart about the way we use the leverage, we put the odds dramatically in our favor. Unfortunately so many options traders today abuse the leverage, and that is when the options become highly risky with the traders suffering the consequences.



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Options Income Engine: Background, Overview, and Trading Examples

By the time we are done, you will see firsthand, by safely capturing the leverage that options have to offer, it is actually less risky trading options than it is trading stocks. Now that is really good news, because in today's financial world, the old buying old strategy is highly risky. Now yes, the markets have gone up significantly since early 2009, after they fell more than 50 percent, regaining previous highs. But the truth is most people are still under water from where they were prior to the 08-09 crash.

Those same people today have no exit strategy, should the market crash again. And it really is not should the market crash, it will. The question is when. We do not know the answer to that, but it will, and when it does, you do not want to be in it. And with the Options Income Engine approach, you will not. Now we are going to be using conservative tactics trading options, only in the markets at the right time.

This avoids, and even can take advantage of devastating bare markets. Because there is nothing like owning put options in a falling market, where profits accumulate very rapidly. Now there is work involved here, but Options Income Engine trailer software does the analysis work for you. But it is important for you to understand the logic baked into the software, so when the software issues an alert, you understand why. Okay, are you ready to begin? Let us get started.



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Options Income Engine: Background, Overview, and Trading Examples

Objectives. Understand the background and the rationale behind the Options Income Engine. Learn what you can realistically expect swing trading the markets with a powerful, directional options strategy. That is what we are going to be using here. Get a broad overview of the Options Income Engine key elements and get a feel for what it is like to trade with the software by reviewing some typical trades.



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Options Income Engine: Background, Overview, and Trading Examples

Options and IRAs. While directionally trading options with the Options Income Engine is ideal for IRAs, because buying options is actually less risky than owning stock, if you know what you are doing. And you will know exactly what you are doing after completing this course. In addition, you have the ability to buy put options in a bear market, rather than suffer dramatic losses, or at best being safely in cash.

But in order for all of this to manifest, you must always apply sound risk management principles. Again I am going to be hammering this, this is where options traders get into trouble. They abuse the leverage that options have to offer, and they turn them into very risky instruments. But by applying these sound risk management principles that we are going to teach you, that turns the whole thing on its head, and gives you a tremendous edge over those traders that do otherwise.



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Options Income Engine: Background, Overview, and Trading Examples

Background. Okay, let us review some background to set the context for the Options Income Engine approach to trading the markets. It is based on the culmination of years of experience. My experience, and those of the options markets themselves. It was not always easy to trade options. Only in the last decade or two have the options markets matured significantly to make a very low cost, easy thing to do for almost anybody.

After all, I began trading options before personal computers were available. And while you could still make money back in those days, it was far more difficult than it is now. Let us talk about false keys. Traders want to win on every trade, especially newbies. As soon as they see a losing trade, they run for the hills. Or they stick with that losing trade, do not apply sound risk management principles, and let a small loser turn into a big loser.

This is a well-traveled path, and it is a path that you do not want to travel on and we are going to show you how to avoid it. But the best method on the planet cannot win every



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Options Income Engine: Background, Overview, and Trading Examples

time. If that is what you are looking for, then go buy a CD at your local bank and they

will be happy to pay you a quarter percent interest for one year. I mean even that one is

not guaranteed, because the bank could go under, and the government may even

disappoint you with the FDIC insurance, depending on your account size.

Do not expect to win on every trade, however do not expect to do great damage to your account on any trade, and do not expect to be uncomfortable making trades when you do it the way we do. What you should expect is, over a series of trades, to be a net winner with relatively minor drawdowns on your equity curve. Now that is all very possible, it is not guaranteed, nothing is guaranteed when it comes to trading, but that has been the case as long as there have been mature options markets like we have now.

Human psychology, we are going to talk more about that in a later module, but this is all about fear and greed. You have probably heard this before, but it is absolutely true. Fear and greed are very powerful emotions, they get in the way of your ability to place and manage your trades in a disciplined fashion. And as soon as you are driving by fear and greed, like most traders are, and give up that discipline, you will also automatically give up your trading edge.

It is very, very important to overcome that tendency. The best way I know how to do it is to have a very specific set of rules that gives you the confidence to stay disciplined. That is what you have with Options Income Engine. Successful traders, they all have one thing in common, even though they use different approaches to trading. They all have an edge, meaning they all have a way to put the odds in their favor. They all use sound risk management principles, meaning they do not overtrade, or do not put position sizes on that are not warranted by their account size. And are all disciplined. So it would behoove you to do the same thing.

Now what we are going to be doing with Options Income Engine is swing trading, capturing minor trends that occur over and over again. Now these trends will last from



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