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Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person
must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your
broker or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois
60606 or at www.theocc.com. The information in this presentation is provided for general education
and information purposes only. No statement within this presentation should be construed as a
recommendation to buy or sell a security or to provide investment advice. Supporting documentation
for any claims, comparisons, statistics or other technical data in this presentation is available by
contacting Sheridan Options Mentoring. Any strategies discussed, including examples using actual
securities and price data, are strictly for illustrative and educational purposes only and are not to be
construed as an endorsement, recommendation or solicitation to buy or sell securities. In order to
simplify the computations, commissions, fees, margin interest and taxes have not been included in the
examples used in this presentation. These costs will impact the outcome of all stock and options
transactions and must be considered prior to entering into any transactions. Investors should consult
their tax advisor as to how taxes affect the outcome of contemplated options transactions. Past
performance is not indicative of future results. Multiple-leg strategies involve multiple commission
charges. Brokerage firms may require customers to post higher margins than the minimum margins
specified in this presentation. Parameters relating to past performance of strategies discussed are not
capable of being duplicated. The views of third party speakers and their materials are their own and do
not necessarily represent the views of Cboe Exchange, Inc. or its affiliates (collectively, “Cboe”). Cboe is
not affiliated with Sheridan Options Mentoring. This presentation should not be construed as an
endorsement or an indication by Cboe of the value of any non-Cboe product or service described in this
presentation. Cboe® and Cboe Options Exchange® are registered trademarks of Cboe. All other
trademarks and service marks are the property of their respective owners.

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Date 12-26
Deltas 20 162 1/2
Gamma -2.71
Theta 4.70 S 1 Jan 26 162 ½ P 1.20
Vega -14.43 Delta 20 IV 21
Price to buy AAPL = $161.30
About 5% lower than current
price

170.62

31 Day Duration
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• Plus: Easy to do and understand
• Plus: Philosophy and Plan is clear for long term
investor
• Plus: Phenomenal strategy last 3-4 Years with up
market
• Plus: Good Source of Income
• Minus: Capital Requirement astronomical
• Minus: Yield is low relative to risk in an retirement
account
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Clearly over 200 Day Moving Average and in Uptrend
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 2635
Date 12-26-2017
Price 2680.88 S 1 Jan 16 2635 P 6.50
VIX 10.25 Delta 20 IV 8.88
Delta 20 About 46 Points OTM
Theta 35
Vega -184

2680.88

21 Day Duration
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• Plus: Massive diversification among 500 Stocks.
Don’t have to worry about picking individual stocks

• Minus: Higher Cost, but cost of both is very high

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Date 12-26 2635
SPX 2680.85
S 1 Jan 16 2635 P 6.75
Deltas 5.70
B 1 Jan 16 2615 P 5.00
Gamma -.13
Credit 1.75
Theta 2.96
Risk 1825 Yield 9.5%
Vega -35.33
46 Points OTM

2680.85

Delta Short Put = 20 Duration = About 3 weeks 21 Days

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 2635
Date 12-26
SPX 2680 S 1 Jan 16 2635 P 6.75
VIX 10.25 B 1 Jan 16 2575 P 3.05
Deltas 12 3.70 Credit
Gamma -.29 Risk 5630 Yield 6.5%
Theta 8.85 46 Points OTM
Vega -85

2680

Duration about 3 weeks 21 Days Delta Short Put = 20

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SPX 2680 2590
Date 12-26
VIX 10.25 S 1 Jan 16 2590 P
Deltas 3.23 B 1 Jan 16 2560 P
Gamma -.08 1.00 Credit
Theta 3.97 Risk 2900 Yield 3.4%
Vega -29 90 Points OTM

2680

Short Put = 10 Deltas Duration = About 3 weeks 21 Days

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Date 12-26 2720
SPX 2680.80
VIX 10.25 S 1 Jan 16 2720 C
Deltas -11 B 1 Jan 16 2740 C
Gamma -.29 2.85 Credit
Theta 13 Risk 1715 Yield 16%
Vega -83 About 39 Points OTM

2680.80

Duration = About 3 weeks 21 Days Short Put = 20

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• Which Vehicle to Trade?
• Which Strike to Sell?
• Which Strike to Buy?
• Width of Credit Spread?
• Calls or Puts?
• Ideal Duration?
• Do I need High Implied Volatility?

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• Entry and Exit Execution?

• Risk Management and Adjustments?

• Use of Charts?

• How often put these on?

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