1. Options for IncomeFebruary 2012

2. Background and Concept We have developed and continue to perfect a process togenerate monthly income using Options We are interested in helping others who want to learn what wehave learned to date We are inviting others to participate through 2 programs: Shadow Program View our trades at month end at no cost Mirror Program Receive same day Trades for your consideration as a trade Receive our daily Tracker Fee - $100 per month 3. Clair and Heidi Wheeler Investors for over 30 years Casual Option Traders for 5 years Active Option Traders for 2 years Serious Option Traders for 1 year Agents for Ascent Options for 3 months Founded by Don Shapray Option Pioneer Our Goal - Steady Retirement Income Stream 4. Lets Get StartedLearning 5. Four Types of Option TradesCallPut Trade we use toBUY N/A Create a Spread Trade we use toSELLN/Acreate Income 6. DefinitionsThe world of Options has a very colorful andextensive vocabulary The following are but a few examples Puts Today Calls SpreadsToday Condors Strangles Collars Butterflies 7. Stock Insurance There exists a method for people who own stocks to purchaseinsurance against a falling stock price. One tool is to purchase a Put Option or an insurance guarantee from another individual to purchase your stock at a certain price during a defined time period Today we are going to learn how togenerate income by being the individual providing this insuranceby Selling Puts 8. Key TermsSelling a Put Obligating yourself to purchase a stock at certain price (1) until a defined date (2) for which you are paid a fee (3)1. Strike Price2. Expiration Date3. PremiumCreating a Calendar Spread The simultaneous sale of a near termPut (insurance) and purchase of later date Put (re-insurance) A Diagonal Calendar Spread is when the re-insurance isat a lower Strike Price 9. Two Trades for Income Selling Cash Backed Puts higher risk/reward Providing a stock owner with insurance against a drop in their stock price Your XYZ stock is worth $100 today and I will guarantee to buy it fromyou at $80 if you ask me to for the next 3 months if you give me $3today Spreads lower risk/reward Sell the Put described above but purchase re-insurance I have an obligation to purchase XYZ at $80 for the next 3 monthsbut I would like to give you $1 if you will guarantee to purchaseXYZ from me at $75 over the next 3 months With a this Spread your risk is limited to $5 10. 5 Requirements for Success1. Understand mechanics of Options2. Identify profitable Option Trade3. Tracking Activity4. Executing Trades5. Providing the Balance Sheet to guarantee the ability to provide the Put/Insurance In this program you will be responsible for #4 and #5 11. UnderstandingandManagingRisk 12. Risk FACT - Options are frequently thought of as risky However FACT Options run the gamut of risk from low to high FACT Some options are so low risk they are IRA approved FACT Options can be used to reduce risk FACT All investing involves a level of risk 13. How is Risk Managed Starts with. Selling put/insurance on good stocks Being conservative when selecting the Strike Price Being adequately compensated (Premium) for the risk Keeping time frame shorter Once the Put is sold it requires.. Tracking Closing quickly if conditions worsen 14. What Happens on the Expiration Date One of 4 things will happen1. The option with Expire and you will keep the premium2. You can Close the position using a purchase to close trade eliminating your obligation This can be done at anytime prior to the Expiration Date Frequently this is done at a lose3. The put option will be Exercised and the stock will be put to you and you must purchase the stock at the Strike PriceNote Look for the bold terms on the Monthly Summary 15. Program Review Shadow ProgramReceives Month End ResultsCost - Free Mirror ProgramReceives same day notice of any trades we make for our accountReceives daily Tracking Sheet for our tradesCost - $100 per month 16. What is the Role of Ascent Options Accent will provide you a ideas for Spread Trades Trades are primarily on Monday Frequently there is a Bonus Trade offered during the week Accent will suggest when to open and close spreads Suggestions will be provided by e-mail Accent also is available for questions Accent also offers auto trade with several Brokers 17. What is Our Role We share with you our trades You chose how or if to duplicate our trades We do most of Ascent Option Trades We do additional Trades based on our research We share with you our Tracker (1) Typically provided daily We are available for information, questions and training(1) Note: we offer no guarantee on accuracy 18. Samples Trade E-mail Tracker Monthly Statement 19. Lets GetStarted 20. How to Get Started Select a Program Visit the Accent Option Web site Open an Option Account with your Broker Read a book Attend our next Training Session 21. Top 10 Frequent Questions1. What do I receive for the monthly fee The ability to view our trades plus Tracker and if you chose to duplicate the trades in your account2. Who performs the Trades All trades are performed by your brokers Accent Options also offers auto trade with several brokers3. Do you have access to my account/money No your account remains with your broker4. Can I close all my options at any time Yes you can close any or all options at any time through your broker5. How much cash do I need to get started This is determined by your Broker but typically as little as $2,000 22. Top 10 Frequent Questions6. Do I have to mirror all your trades No the decision to mirror none, some or all trades is 100% yours7. Can I leave the Program at any time Yes the Monthly program is month to month Not recommended if you have multi-month spreads No the Ascent Option Platinum Plus is an annual fee8. Can I close all my options at any time Yes you can close any or all options at any time through your broker9. Is the fee for Accent Options included in the $100 Yes10. Do you offer ongoing training and can I call you? Yes, we believe ongoing learning is key to success in any subject 23. Why dont more people do this.? It is a lot of work Identify good trades takes work and knowledge It is a treadmill Every month trades expire and need to be replaced to ensure continuous monthly income Tracking is tedious There are numerous moving parts to track dailyYou Get all this for $100 per Month! 24. Additional Key Terms Roll Forward to close one option and sell another future putwhere the cost to close and the premium received eliminatethe need to provide cash to close the position VIX A measure of market perception of risk. This is anindicator of option premiums. Analogy when it is snowing there will be more accidents and therefore rates for car insurance increase 25. Questions ?