· call put premium buy right to buy right to sell pays sell obligated to sell obligated to buy...

The intent of this presentation is to help expand your financial education. Although the information included may be relevant to your particular situation, it’s not meant to be personalizedadvice. When it comes to investing, insurance, and financial planning, it’s important to speak to a professional and get advice that is tailored to your unique, individual situation. Allinvestments involve risk including possible loss of principal. Please see our Performance Discussion and Owner’s Manual; they are an important part of this discussion.

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• PRESENTATION SLIDES

Immediate download of today’s slides

• E-BOOK: ‘THE ULTIMATE GUIDE TO WRITING COVERED CALLS’

✓Detailed guidebook for anyone wanting to learn more about ✓Covered Calls

• COVERED CALL SCREENER

✓Access to Snider Advisors’ free Covered Call Screener

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SNIDER ADVISORS

Snider Advisors is a boutique, registered investment advisor, based in Dallas, TX. Helping our clients strive to be better investors has been

priority number one since we opened our doors in September of 2002.

[email protected]

888-6-SNIDER (888-676-4337)

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WWW.SNIDERADVISORS.COM/BONUSWWW.SNIDERADVISORS.COM/BONUS

A long-term strategy that uses a combination of stocks,

covered calls and cash-secured puts, and cash

management techniques.


CALL PUT PREMIUM

BUY Right to Buy Right to Sell Pays

SELL Obligated to Sell Obligated to Buy Earns

YOUR 2-MINUTE OPTION PRIMER

BUYERS have RIGHTS

SELLERS have OBLIGATIONS

An option is a contract (1 contract represents 100 shares) to buy or sell an underlying asset at a specified price (the strike

price) on or before a specified date (the expiration date).


TYPES OF CALLS

NAKED CALLSYou do not own the stock

COVERED CALLSYou do own the stock


You own/buy stock You sell a call

COVERED CALLS ARE TWO-PART STRATEGY


You will receive option premium, which you get to keep, regardless

of the expiration outcome.

You are obligated to sell shares at the strike price on or

before the expiration date. WHEN YOU SELL A

COVERED CALL


COVERED CALL EXAMPLE

DATE:

AUGUST 20, 2020

POSITION:

300 SHARES XYZ

COST BASIS:

$68.50 PER SHARE


XYZ @ 67.85

Sep 18 2020 - 29 Days

Oct 16 2020 – 57 days

Nov 20 2020 - 92 days

Jan 15 2021–167 Days

Sep 18 2020 – 29 Days

DATE:AUG 20, 2020

67.85


COST BASIS:$68.50 PER

SHARE

XYZ @ 67.85

67.85

Sep 18 2020 – 29 Days


$67.85

$70.00$72.50

$65.00$67.50

WWW.SNIDERADVISORS.COMWWW.SNIDERADVISORS.COM/BONUS

Trading Fee - $1.50

XYZ

08/20/2020 10:30 am ET

08/20/2020 10:30 am ET

Covered CallSELL TO OPEN 3 contract sofXYZ Sep 18 2020 70.00 CALL atthe Market, Good for the day.

1.80 1.901.85

1.80 1.901.85

POSITION:300 SHARES

68.04

-0.99 (211%)

67.75

67.85

2 x 4

835,111


1.80 1.90

SELL TO OPEN

1 OPTION CONTRACT = 100 SHARES

WHEN ARE YOU PAID FOR THE OPTIONS YOU SELL?

When you sell them.


You own 300 shares of XYZ at $68.50 a share

COVERED CALLS ARE TWO-PART STRATEGY



You earned option premium of $538.50*, which you get to keep,

regardless of the expiration outcome.*(300 shares x $1.80 premium - $1.50 trading fee)

You are obligated to sell 300 shares of XYZ for $70.00 on or

before September 18, 2020. 3 September

$70.00 XYZ Calls

XYZ CLOSES ABOVE $70.00 STRIKE PRICE

CALLS EXERCISED

CALLS EXPIRE

Option Premium: $1.80

Cap. Appreciation: $1.50

Potential Profit: $3.30

Total Profit

$3.30 x 300

- $1.50

$988.50

XYZ CLOSES BELOW $70.00 STRIKE PRICE

Option Premium: $1.50

Cap. Appreciation: $0.50

Potential Profit: $2.00

Total Profit

$1.80 x 300

- $1.50

$538.50


PO

SS

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RISKS AND BENEFITS

BENEFITS

• Cash Flow• Potential Boost to Return

RISKS

• Stock Risk• Limited Upside Potential


WWW.SNIDERADVISORS.COM

COVERED CALL CHART

Sell $25 call at $3.00 Covered Call

STOCK PRICE

LOS

S /

PR

OF

IT

BENEFITS AND RISKS

Buy stock at $22


CALL PUT PREMIUM




BUYERS have RIGHTS

SELLERS have OBLIGATIONS





You sell a put You set aside cashfor stock purchase

ANATOMY OF THE CASH-SECURED PUT


You will receive OPTION PREMIUM, which you get to keep, regardless of

the expiration outcome

You are obligated to BUYshares at the strike price on or

before the expiration date.

WHEN YOU SELL A PUT

OBJECTIVE SPECIFIC BUSINESS ANALYSIS PORTFOLIO DESIGN

Does it have the potential to generate income?

How will this stock fit into your portfolio?

Is this a stock you want to own?

STOCK SELECTION


XYZ @ 55.67Sep 18 2020 – 29 Days


Trading Fee - $0.50

XYZ

08/20/2020 10:30 am ET

08/20/2020 10:30apm ET

Covered CallSELL TO OPEN 1 contract ofXYZ Sep 18 2020 52.50 PUT atthe Market, Good for the day.

1.75 1.851.80

1.75 1.851.80

55.67

-0.99 (211%)

55.65

55.69

1 x 2

1,835,111


1 OPTION CONTRACT = 100 SHARES

1.75 1.85

SELL TO OPEN

You sold 1 SeptemberXYZ $52.50 Put

You set aside $5,250for stock purchase

ANATOMY OF THE CASH-SECURED PUT


You EARNED option premium of $174.50*, which you get to keep,

regardless of the expiration outcome.*(100 shares x $1.75 premium - $0.50 trading fee)

You are obligated to BUY 100 shares of XYZ for $52.50 on or

before September 18, 2020. 1 September

$52.50 XYZ Put


PUT EXPIRES

PUT EXERCISED


PO

SS

IBL

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OU

TC

OM

ESXYZ CLOSES ABOVE $52.50 STRIKE PRICE

XYZ CLOSES BELOW $52.50 STRIKE PRICE

• You earned $174.50 option premium

• You earned $174.50 option premium

• You are assigned 100 shares at $52.50/share

RISKS AND BENEFITS

BENEFITS

• Cash Flow• Potential Boost to Return

RISKS

• Stock Risk• Limited Upside Potential



CASH-SECURED PUTSTOCK

LOS

S /

PR

OF

IT

STOCK PRICE

CASH-SECURED PUT CHART

WWW.SNIDERADVISORS.COM/BONUSBENEFITS AND RISKS

A long-term strategy that uses a combination of stocks,

covered calls and cash-secured puts, and cash

management techniques.


CALL PUT PREMIUM







JAM @ 32.61Sep 18 2020 – 29 Days


Trading Fee - $1.00

JAM

08/20/2020 10:30 am ET

08/20/2020 10:30 am ET

Custom Strategy

32.61

-0.99 (211%)

32.58

32.61

1 x 2

1,835,111

BUY 100 shares of JAM at the Market. Good for the day.

SELL TO OPEN 1 contract ofJAM Sep 18 2020 30.00 PUT atthe Market, Good for the day.

SELL TO OPEN 1 contract ofJAM Sep 18 2020 35.00 CALL atthe Market, Good for the day.

32.6132.58


1.45 1.55

1.20 1.30

You EARNED option premium of $264.00*, which you get to keep,

regardless of the expiration outcome.

*(100 shares x $1.45 call premium - $0.50 trading fee)*(100 shares x $1.20 put premium - $0.50 trading fee)

You are obligated to SELL 100 shares of JAM for $35 and you are obligated to

BUY 100 shares of JAM for $30 on or before September 18, 2020.

1 September

$35 Call

1 September

$30 PutWWW.SNIDERADVISORS.COM/BONUS

JAM CLOSES ABOVE $35.00

• You sell 100 shares of JAM at $35/share

JAM CLOSES BELOW $30.00

• You buy additional 100 shares of JAM at $30/share

CALL EXERCISEDPUT EXPIRES

PUT EXERCISEDCALL EXPIRES

CALL EXPIRESPUT EXPIRES

JAM CLOSES BETWEEN $35.00 AND $30.00

• You own 100 shares of JAM at $32.61/share

• REPEAT PROCESS

• BUY ANOTHER 100 SHARES & SELL 2 COVERED CALLS

• SELL 2 COVERED CALLSMO

VIN

G F

OR

WA

RD


We hope you join us for upcoming

educational events

Snider Investment Method Deep Dive

Wednesday, August 26th

Register at SniderAdvisors.com/Events

U P C O M I N G W E B I N A R

We’re glad you joined us today.

We hope you enjoy these free resources

www.SniderAdvisors .com/Bonus

PRESENTATION SLIDES

Immediate download of today’s slides

• E-BOOK: ‘THE ULTIMATE GUIDE TO WRITING COVERED CALLS’

✓Detailed guidebook for anyone wanting to learn more about ✓Covered Calls

• COVERED CALL SCREENER

✓Access to Snider Advisors’ free Covered Call Screener


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