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How To Create Infinite Possible

Returns with Minimal Risk


with Don Kaufman
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Risk Disclosure
• We Are Not Financial Advisors or a Broker/Dealer: Neither TheoTrade® nor any of its officers, employees,
representatives, agents, or independent contractors are, in such capacities, licensed financial advisors, registered
investment advisers, or registered broker-dealers. TheoTrade ® does not provide investment or financial advice or make
investment recommendations, nor is it in the business of transacting trades, nor does it direct client commodity
accounts or give commodity trading advice tailored to any particular client’s situation. Nothing contained in this
communication constitutes a solicitation, recommendation, promotion, endorsement, or offer by TheoTrade ® of any
particular security, transaction, or investment.
• Securities Used as Examples: The security used in this example is used for illustrative purposes only. TheoTrade ®
is not recommending that you buy or sell this security. Past performance shown in examples may not be indicative of
future performance.
• Return on Investment “ROI” Examples: The security used in this example is for illustrative purposes only. The
calculation used to determine the return on investment “ROI” does not include the number of trades, commissions, or
any other factors used to determine ROI. The ROI calculation measures the profitability of investment and, as such,
there are alternate methods to calculate/express it. All information provided are for educational purposes only and does
not imply, express, or guarantee future returns. Past performance shown in examples may not be indicative of future
performance.
• Investing Risk: Trading securities can involve high risk and the loss of any funds invested. Investment information
provided may not be appropriate for all investors and is provided without respect to individual investor financial
sophistication, financial situation, investing time horizon, or risk tolerance.
• Options Trading Risk: Options trading is generally more complex than stock trading and may not be suitable for
some investors. Granting options and some other options strategies can result in the loss of more than the original
amount invested. Before trading options, a person should review the document Characteristics and Risks of
Standardized Options, available from your broker or any exchange on which options are traded.
• No part of this presentation may be copied, recorded, or rebroadcast in any form without the prior written
consent of TheoTrade ®.
• No Soliciting. No Recording. No Photography.
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Copyright Disclaimer
All rights reserved. This Material may not be reproduced or distributed, in whole or
in part, without prior written permission of TheoTrade, LLC. Any other reproduction
or distribution, in whatever form and by whatever media, is expressly prohibited
without the prior written consent of TheoTrade, LLC. For further information, please
contact:

TheoTrade, LLC
16427 North Scottsdale Rd. # 410
Scottsale, Arizona 85254
Telephone: 1-800-256-8876
Email: support@theotrade.com
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 4

Don Kaufman
➢ Co-Founder TheoTrade

➢ Industry-leading options strategist

➢ Derivatives Risk Manager

➢ 21 year trading career

➢ 19 years of thinkorswim® platform experience


© Copyright 2019 TheoTrade, LLC. All Rights Reserved
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

About TheoTrade
• TheoTrade Specializes in education for options, futures, and stocks.

• Founded by professional traders and trading educators each with a


minimum of 15 years experience, several with many decades

• TheoTrade is here to help you mitigate the risks in the market, while
learning a skill set that can last a lifetime.
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Your TheoTrade Instructors


• Jeff Bierman – Analyst, Trader, & Former Chief Technician for TD Ameritrade

• Matt Williamson – market neutral/premium selling options strategist

• Corey Rosenbloom – Senior Strategist & Swing Trader

• Brandon Chapman CMT– Macro Economics, Technicals and Fundamentals

• Steve “Slim” Miller - 43 year veteran stock, options, futures trader

• Tony Rago - Nasdaq Futures and Intraday Strategist


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

The following presentation can be demanding to learn. This


course is not going to be some chart pattern or follow the
bouncing ball with green and red flashing lights. If you really
want to learn this business you need to be willing to put forth
some effort… trading is not instant coffee or instant tea,
trading is a skill set!
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 9

Low Risk Market?


Vol Limbo… How low can volatility go?
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The FED has your back!


• In recent months we have see the risk in markets abate!
• The Fed has your back once again…
• Central Bankers are supporting markets and all shall be well…

• Let us not think about the International Monetary Fund having just downgraded
world GDP.
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 11
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 12

Save me Central Banks!


And please do not worry about:
• Brexit
• Slowing global growth rates
• The 2020 elections
• Trade Wars
• Yield curve inversion
• Debt bubbles
• Corporate debt
• Stock buybacks
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 13

All these RISKS and VIX is in Decline!


© Copyright 2019 TheoTrade, LLC. All Rights Reserved 14

Not a BEAR!
• We are NOT attempting to position markets as BEARISH! Or create a bearish case!

• We are simply asserting markets appear to be continually undervaluing and under


appreciating future risks on both BULLISH and BEARISH SIDES of the market!
© Copyright 2019 TheoTrade, LLC. All Rights Reserved
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Volatility = Risk
• Options markets can be thought of as putting a price tag on risk.
• Pricing in markets is determined via market participants.
• Ultimately, options pricing comes down to supply and demand.

• High risk equates to HIGHER options pricing


• Lower risk equates to LOWER options pricing.

• What has risk (volatility) been lately in markets?


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

The Options Conundrum


• Options Markets over the past few years have done a POOR job of handicapping
(pricing) risk in the future.

• To be specific, option volatility has been incredibly low and yet we have sustained
some of the single greatest moves ever recorded in the history of markets.

• You want to gain edge in markets? well here it is…


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Positioning Your Portfolio for a BIG Move!

• Let’s get down and dirty; how do you position yourself most effectively for the
possibility of an extreme movements without exposing yourself to drastic risks?

• Let’s not get cute; this is serious and there are potentially billions up for grabs.
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

MY TRADES - Proof is in the Pudding


• First, allow me to display a number of key events surrounding the last few years
whereby, markets and volatility did NOT effectively price risk.

• Thereafter, I shall display the primary strategy I used to create these opportunities.
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

China Yuan Devaluation Aug 2015


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

China Yuan Devaluation Aug 2015


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Taper Tantrum of 2016


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Taper Tantrum of 2016


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Brexit Vote 2016


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Brexit Vote 2016


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Presidential Elections 2016


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Presidential Elections 2016


• Infinity Spread opening position

• Infinity Spread closing position

• Infinity Spread opening position

• Infinity Spread closing position


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Volocaust Jan-Feb 2018


© Copyright 2019 TheoTrade, LLC. All Rights Reserved 29

Infinity Spread opening position

Infinity Spread closing position


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Fed Fueled Selling in Late 2018


© Copyright 2019 TheoTrade, LLC. All Rights Reserved 31

Fed Fueled Selling in Late 2018


Infinity Spread opening position

Infinity Spread closing position


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

The Financial Crisis Trade


© Copyright 2019 TheoTrade, LLC. All Rights Reserved

The Future is bright and FULL of RISKS!


• We are NOT suggesting we can TIME these WILD moves in the markets!

• No one can see the future!

• We are however, suggesting having placed the correct options based strategies
would make ALL the DIFFERNCE!
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 34

You are two trades away from this…


© Copyright 2019 TheoTrade, LLC. All Rights Reserved
© Copyright 2019 TheoTrade, LLC. All Rights Reserved

Infinity Spread – Opportunities are NOW


• Bull Case • Bear Case
• Blow off top • China growth stalls
• Fed cutting rates • Hard Brexit
• China recovery • Slowing global growth rates
• ECB into Negative Rates • Trade Wars ignite
• Brexit voted and ruled out • Yield curve inversion returns with
• End to several trade wars vengeance
• Deflationary events/Debt bubbles
• Fed Raising rates
• Stock buybacks are ended
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 37

Characteristics of Infinity Spreads


• Increase in value when exposed to heavy volatility.
• Increase in value when markets sell-off or rally huge!
• Significant profit potential in a downside market move
• Significant profit potential in a upside market move
• Loses minimal capital if markets continue to drift or remain FLAT!.
• Need ONLY be placed a few times per year.
• This is the PERFECT spread to reduce risk of a stock portfolio long OR short!
• This is an excellent tool for those seeking large returns on a big market event.
© Copyright 2019 TheoTrade,
© Copyright 2019LLC. All Rights
TheoTrade, LLC.Reserved
All Rights Reserved 38

Building the Infinity Spread


• Do not let options intimidate you!
• The spread below is being done for a 1.38 debit.
• However, this spread is akin to a massive chainsaw.
• Used correctly, can be extremely effective in creating returns!
• Used incorrectly, you may cut off a few fingers.
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 39

This is what you need to know to


successfully Create Infinite Possible
Returns with Minimal Risk…

Infinity Spreads!
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 40

When and where do I place my ratio


trades?
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How often should I place these ratio


positions and do they need to be
continually monitored?
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 42

How do I setup the trades and what is


the correct market volatility to place
the trades within?
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 43

Do I need a large amount of capital in


my account to do this?
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 44

What underlying's, stocks, or indices


make the best candidates?
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 45

How do I know when to get in and


when to get out?
What are the percentage returns
supposed to be?
Can I do this in an IRA or Retirement
account?
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 46

How do I size my trades for my


account size?
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 47

What is the right amount of risk for ME?


© Copyright 2017 TheoTrade, LLC. All Rights Reserved 48

THEOTRADE RECIPES IN TRADING


Criteria… it’s what we at TheoTrade do!
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 49

Trading is about Answering the What Ifs


• What might be a good Infinity Spread candidate?

• What is the correct options expiration cycle to trade?

• How much capital do I commit to these positions?

• When should I execute the trade?

• What Strike Price Options do I buy?


© Copyright 2017 TheoTrade, LLC. All Rights Reserved 50

TheoTrade Has Your Answers

We Build Recipes with definitive criteria


and checklists for each strategy and each
unique variable you will encounter.
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 51

How, When, Why, at What Price?

This is just the beginning of the many variables you will face
while trading Infinity Spreads!
© Copyright 2017 TheoTrade, LLC. All Rights Reserved 52

The Secret is in the Sauce


• Now you may be thinking…hey I can read about this strategy anywhere and can do
this; well think again…

• The following strategy and corresponding criteria requires the utmost attention to
detail.

• We spent YEARS fine tuning this trade setup and criteria, when we approach the
section on criteria FOLLOW the STEPS to build a trade!

• Here is how YOU can Trade Infinity Spreads with a formula!


© Copyright 2017 TheoTrade, LLC. All Rights Reserved 53

Infinity Spread Workshop Curriculum


• Learn to construct Infinity Spreads
• Build your own Infinity Spread with detailed step by step entry and exit criteria.
• Learn to build Infinity Spreads and separate the components giving you the power to trade bullish,
bearish, or a neutral bias.
• Hedge your portfolio from pending market turmoil with these volatility sensitive strategies.
• When to open and when is the best time to close your Infinity Spreads
• Discover how to create trades based on movement in market volatility and NOT purely direction of
the market.
• The only thing we see is risk both bullish and bearish! Learn how to profit from the market chaos.

• Learn what implied volatility and skew are and how to harness the power of implied skew!
• Trades can be done in retirement accounts, with minimal options experience, and with smaller
accounts looking for large upside potential.
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 54

Infinity Spreads
• Trade Instructor: Don Kaufman
• 3 hour course is available immediately with 24/7 access
• Class slide deck that includes entry and exit criteria checklist
available immediately for download.
• Class can be downloaded and reviewed on theotrade mobile for
iOS and Android!

*Class qualifies you for a reduced commissions rate*


© Copyright 2019 TheoTrade, LLC. All Rights Reserved 55

Infinity Spreads
• Trade Instructor: Don Kaufman
• LIVE on Saturday, April 27th from 10am to 1pm EST
• Course slide deck that includes entry and exit criteria checklist available April 27th for
download.
• Course will be archived immediately with 24/7 access or downloaded and reviewed anytime
after April 27th on theotrade mobile for iOS and Android!

$297
*Class qualifies you for a reduced commissions rate*
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 56

You’ve been there done that…


• Many of you tuning in have been through the gauntlet of paid classes, indicators,
secret squirrel black boxes and more…

• Only to find… just BUY this one last thing to make all the difference? But wait
there is more!

• We at TheoTRADE have had enough of the educational garbage and sales pitches
and we intend to put and end to it!
© Copyright 2019 TheoTrade, LLC. All Rights Reserved 57

Disrupt Financial Education!


• TheoTRADE is built by professional traders with a minimum of 15 years
experience, not professional salespeople.

• Educating you is our ONLY goal and we will demonstrate it.

• Today we shall forever change the way you view education…

Introducing TotalTheo® Unlimited Streaming!


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ACCESS to OVER 82 Trading Classes!


• ALL available immediately On-Demand and on TheoTrade Mobile Application
• Infinity Spreads (a $297 Class taught LIVE April 27 th)
• The Next Big Short: Risk Twist Spread Class (a $300 Class)
• High Probability Trading with In/Out Spreads (a $150 Class)
• Guide to Selling High Probability Spreads (a $300 Class)
• Iron Up: Iron Condors for Income (a $150 Class)
• Sell Premium and Minimize York Risk (a $150 Class)
• Survive and Thrive in Extreme Volatility (a $150 Class)
• Day Trading Nasdaq Futures Class (a $100 Class)
• Covered Calls: Income Generation for Your Stocks (a $150 Class)
• Essential Skills for Consistency in Trading Class (a $200 Class)
• The Top 10 Skills for Growing a Small Account (a $100 Class)
• Pairs Trading: The Final Frontier Class (a $200 Class)
• And MANY MORE with NEW Classes added every month!

ACCESS to OVER $5,000+ in classes alone!


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Access to 59 proprietary indicators and scans


• Auto Expected Move
• SP500 Gravity Points
• TheoTrade RSI Laguerre
• QaunTicks – cumulative tick indicator
• NQ Levels
• Next Generation Squeeze Indicator
• Complex Position Tracker
• IV Rank vs IV Percentile
• TheoQuant Trade Setup
• Unusual Put Options Activity
• Sizzle Index Scan
• SPX Expected Move
• And many more!

ACCESS to $1,800+ in indicators and scans


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Coaching, Live Trades, and Emailed Trade ideas


• Live Trading Chat Room: broadcasting live 6 hours per day.
• Traders Provide Real Trade Ideas and Real-Time Market Insights and Analysis
• Emailed Trade Ideas (we will surely highlight and trade Infinity Spreads)
• 4 distinct trading portfolios
• Daily Coaching Sessions with Timely Topics on Stocks, Options and Futures
• Instructors directly answer your trading questions via email!

ACCESS to $2,000+ support, trades, and insight!


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$8,800 in Classes, Live Trading, Coaching Sessions, and Proprietary Tools

• Infinity Spreads – Live Class April 27th


• Over 82 classes
• New monthly classes
• Daily live trading and chat room TotalTheo Unlimited Streaming
• Archived 24/7
• Emailed trade ideas $297
• Trading indicators and scans
• Daily coaching sessions TheoTrade.com/tts
• Email Support
• TheoTrade Mobile
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What Members are Saying:


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