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thought I share come of the web pages I use regularly. Maybe others can do the same. Options and volatility Option Strategy finder, all sorts of combos listed/explained http://www.theoptionsguide.com/option-trading-strategies.aspx Option Strategies and their greeks explained, interactive analysis http://www.888optionsnet.com/investigator_2/wi_strategyExplorer.asp?disclaimerread=true number of tools and data around (historical) IV http://www.ivolatility.com/home.j historical IV data http://www.optionistics.com/ probability calculator (I actually use that to quickly look up HV for a name) http://www.ivolatility.com/custom/pbc/ VIX Term Structure and historical VIX data http://vixcentral.com/ Options Screener (most active, higest Ivol and other) http://www.marketwatch.com/optionscenter/screener?screen=1&displaynum=100 VIX and more (blog, very educational if you want to learn more about VIX and VIX related ETN's (VXX etc) home page http://vixandmore.blogspot.co.uk 'best of' articles http://vixandmore.blogspot.co.uk/search/label/educational http://vixandmore.blogspot.co.uk/search/label/hall%20of%20fame http://vixandmore.blogspot.co.uk/2010/12/top-posts-of-2010.html earnings data and dates earnings data (earnings dates and historical moves) http://www.optionslam.com/ earnings calendars http://www.morningstar.com/earnings/earnings-calendar.aspx Market commentary and economic calendars Market commentary and free "Flash headline" alerts and paid for (directional) trading trading alerts (trend following) - I use the former http://www.stateofthemarkets.com/ economic data calendar (U.S.) http://www.marketwatch.com/economy-politics/calendars/economic economic data calendar (U.S. and international) http://global.econoday.com/byweek.asp?cust=global-premium FED Meeting calendars, statements, and minutes (2007-2013) http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm charts and stock screeners Stock screener with ability to filter for loads of different fundamentals and other criteria http://www.finviz.com/screener.ashx stock charts pages http://stockcharts.com/ http://ycharts.com - can chart economic data (like jobless claims) and things like total return prices (incl. divs) for stocks and indices Tools/ Excel Addins Hoadley options Addin/tools, great Excel AddIn (windows only) with option pricer, Strategy evaluator and much more (good set of free tool, good value 'professional version') http://www.hoadley.net/options/options.htm Excel AddIn (I think also Windows only) to import all sorts of data (live and historical) from Yahoo Finance (free, you need to join Yahoo group though) http://finance.groups.yahoo.com/group/smf_addin/

MANAGED ACCOUNTS Steady Options frequently receives questions from our members for assistance trading the strategies offered and discussed on the forums. The reasons a member might want such assistance can be many – from simply not having the time to fully trade the strategy to simply wanting to watch actual trades occur in real time for a while. Other people simply struggle to obtain the same fills that are listed on the site. One of the more under-utilized options available to Steady Options’ members is access to managed accounts, which provide this exact service. We have learned that many members do not fully understand what a managed account is, how it works, how one is opened, the fees involved, and generally how they operate. Hopefully, the following FAQ answers these questions. 1. What is a managed account? / How do managed accounts work? A managed account is a specialized investment advisory account that uses one particular strategy. It is an account you own, maintained through a custodian (such as TD Ameritrade Institutional or Interactive Brokers), that is managed by an investment advisor. A typical Lorintine Capital client who utilizes a managed account typically has the following: (i) a retirement account, (ii) a traditional investment account, and (iii) a managed account (that trades the Anchor Strategy or Steady PutWrite or ETF BuyWrite). The account belongs to the client (unlike with a hedge fund, which owns the account) and the client gets a monthly or quarterly statement from both the broker and Lorintine Capital. Managed accounts utilize “block trading,” which ensures all clients are equally treated. Let’s say there are 10 clients, each needs one contract on a trade. Instead of entering 10 different trades, one in each client account, only one trade is entered for all 10 contracts. The resulting sales price and commissions are then equally divided among all clients. That way all clients using a managed account get the same fill prices – which may not occur on 10 separate orders. 2. Why would I use a managed account? The simplest answer is ease. Lorintine Capital is a licensed investment advisory firm. Lorintine runs some of the strategies discussed in these forums in managed accounts. It takes the burden of trading off of you by having the Firm make the trades and removes some of the potential margin of error. If you’re a “DIY” individual, who wants to have complete control over your account, you may still prefer to maintain your subscription and trade yourself. 3. Who owns the managed account? / Do I have access to the managed account? One of the most important parts of a managed account is that you own it. This means you can log into the broker (e.g. TD Ameritrade Institutional or Interactive Brokers) and view your account at any time. You also have the ability to remove Lorintine Capital as the advisor on the account at your sole discretion at any time. While we don’t recommend this, as you may have open positions that need to be managed, it is your account, and you maintain control of the account. The account will be in your name with statements sent to your address. 4. Who trades the managed accounts? The account is traded by Lorintine Capital, a registered investment advisory firm. The strategies traded are traded by the same individuals that run the coordinating forums: Anchor and Leveraged Anchor – Christopher Welsh SteadyOptions strategy is not offered as part of managed accounts due to potential liquidity issues. 5. Do I receive statements on the managed account? Yes, you will receive a monthly statement from TD Ameritrade Institutional or a quarterly statement from Interactive Brokers. You'll also have online account access to view the details about your account at anytime. 6. How can I close the managed account? Your managed account can be closed at any time for any reason. We recommend that you close the account after discussing the matter with us, so we can ensure appropriate liquidation strategies minimize potential transaction costs. However, you can always close the account by directly contacting the broker. 7. How much do managed accounts cost? Managed account fees vary by the strategy. Anchor, Leveraged Anchor – 1.75% of total assets under management, taken monthly (1/12th of 1.75% each month). Fee discounts may be negotiated on an individual basis for larger accounts or those that open other advisory accounts with Lorintine Capital. There are other fees that will be incurred on the account that go to the broker. Such fees including trading costs and commissions. Neither Lorintine Capital nor Steady Options receive any of such fees, soft dollars, or other “kickbacks” on the fees charged by the broker. 8. Do I get a discount at Steady Options if I have a managed account? / Do I have to maintain a subscription to Steady Options if I have a managed account? In order to have a managed account, you must also maintain an account/membership with Steady Options. While Steady Options has a working relationship with Lorintine Capital, they are two separate businesses. Steady Options is not a registered investment advisor. However, depending on your account size, discounts may be available. If you place $100,000 or more into a managed account, you will be entitled to a 50% discount on Anchor Trades, monthly subscription fees. If you place $200,000 or more into a managed account, you will be entitled to complimentary access to Anchor Trades. 9. How do I open a managed account? / What paper-work do I have to fill out? Opening an account is simple. Contact Lorintine Capital at info@lorintinecapital.com or contact Christopher Welsh @cwelsh The paper work comes in two forms: A. An investment advisory agreement with Lorintine Capital. This is a contract between you and the Registered Investment Advisor. It gives Lorintine Capital permission to trade your account in the designated strategy, charge and collect fees, and provides the legal terms of the relationship; and B. Accounting opening documents with the broker (TD Ameritrade Institutional or Interactive Brokers for Lorintine Capital managed accounts). They typically consist of a disclosure statement, account application, options and margin forms, and banking information. 10. What is the minimum size for a managed account? Anchor Trades/Leveraged Anchor $50,000 11. I am not an accredited investor or qualified client, can I still use a managed account? Yes. 12. I am not located in the United States, can I still use a managed account? Possibly. If you are located in any European Union country, rules and regulations that went into effect at the beginning of 2019 essentially prohibit you from opening an investment advisory account individually in the United States. If you are in Canada, regulatory rules prohibit such investment. Other countries vary depending on their location. However, this does not mean such investment is impossible. Rather you must: A. Open a US based entity, typically a C-Corp; B. Obtain a US tax identification number, called an EIN; C. Maintain a registered agent in the United States; and D. Have the company file an annual tax return with the IRS. You may not have to file an individual tax return but discuss this with your tax professional. We realize most investors will not want to go through these hurdles. Also, it may not be financially prudent unless you have a larger account or have other accounts managed by Lorintine Capital, due to the expense of opening the entity and paying a US accountant to file your corporate taxes. 13. If I have questions about my managed account or opening one, who do I contact? If you have any other questions regarding a managed account, please email Lorintine Capital at info@lorintinecapital.com.

Well, after being inundated today on posts and PMs, here is some basics on covered calls using DITM LEAPS. First, why would we use a LEAP for a covered call using DITM LEAPS, as opposed to just buying the stock outright? Simple -- higher returns using the leverage of options. For this example, we'll use AAPL, using last Thursday's prices. AAPL cost $663. You could sell the weekly call (making it a covered call), at the following strikes/prices: 660 $10.50 665 $7.80 670 $5.60 675 $3.95 At this point you want to allow some room for upside, so you pick the 670 strike. What are the possible outcomes? 1. AAPL stays the same, you earn $5.60 on the covered call, or 0.84% (yes less than 1%, but remember it is weekly); 2. AAPL goes up, but stays under 670, lets say to 669. At this point you keep the $5.60 in premium, and your stock has appreciated (a good thing). If you were to exit, you would have a gain of $11.60 ($6 in capital gain, $5.60 in premium), or 1.749%; 3. AAPL goes up, above 670. Well this is the same result as number two, except your stock would get called away at 670. So it doesn't matter how much it goes up in price, it still would get called away at 670. So your maximum gain is $12.60 (let's not consider rolling yet); 4. AAPL goes down. Well you again keep the premium, but lose value in the underlying stock. Why CAN (not necessarily, but why can) using LEAPS be better? Well you can do the same strategy for "cheaper" (the cost being higher risk in terms of losses -- as discussed further below). For starters, to sell a call on AAPPL requires you to own at least 100 shares, at a cost of $66,300.00. Let's instead look at the Apr 2013 600 option. That can be purchased for $101.00. I typically would go further DITM, to get my delta closer to 1, but for this example, we'll stay at 600 to keep the math simple. For the price of $10,100.00 you can own the equivalent position as outlaying $66,300.00. But you can get the same amount of premium selling the weekly option short. In other words, I still get $5.60 for selling the weekly 670. So my return is now 5.54% per week instead of under one percent. Over the course of an entire year, this is the difference in turning $10,000.00 into $165,000.00 and turning that same $10,000.00 into $15,549.00. (compound interest is fun). (side note -- that won't happen -- don't expect it -- it won't). Still that difference gives you the flexibility needed to make the trade worthwhile. So what are the outcomes of selling against a LEAP, as opposed to just the stock? If the price stays the same, or rises, the outcome is just as good, if not better, than owning the stock. 1. AAPL stays the same -- keep the premium, return 5.54%, theta is basically zero, so gain; 2. AAPL increases, but to under 670 -- again the same result, keep the premium, and keep the gain in the April call. However, the gain in the april call well be more than just owning the stock on a percentage basis. Let's say the price goes up to the same 669. You keep the $5.60 in premium and the call option has increased in value by $6.00, so now $107.00. So you've gained the same $11.60 on $101 instead of on $663 -- a much better situation. 3. AAPL increases above 670 -- well your gains are capped at $12 (rolling will be discussed later) At this point, this seems like the perfect trade. Unfortunately it is not -- dealing with losses is also leveraged up. If the price of AAPL falls 50 points when you own AAPL, you're looking at a 7.5% loss ((663-50)/663)), whereas you're looking at a FIFTY PERCENT loss on owning the LEAP ($101 - $50 = $51). So, before ever entering this type of trade, realize the potential losses are MUCH larger than in just owning the stock itself. The returns are also much larger -- that's the power of options. Part 2 of this column will discuss how to handle the trade when it starts moving against you. A preliminary suggestion though -- always known when you are going to get out and at what levels and stick to those loss points. If you say I can take a 25% loss on this trade, get out at that point, don't hold "hoping" for the price to rebound).