CREDIT SPREAD CLASS 2015

Class #1: Credit Spread Fundamentals & Essentials with Dan

0-1:49 Hello and Greeting
1:50- Class page review
4:40- Teaching: Overview of Credit Spreads (Introduction)
6:10- Looking ahead: Future Class dates and Speakers
10:35- Teaching: Overview of Credit Spreads
11:19- Teaching Overview: Define Credit Spreads
15:31- Teaching Overview: Philosophy of Credit Spreads
17:07- Teaching Overview: Greeks of Credit Spreads
27:50- Teaching Overview: Is Risk/Reward good with Credit Spreads?
33:17- Best to do credit spreads getting 1/3 of width of the strikes as a Credit?
35:- Which credit Spread is best when looking at Risk/Reward? 3 Criteria
35:50- Assignment problems with Credit Spreads favor OTM credit spreads?
40:36- Teaching Overview: Probabilities (Dan illustrates a High Probability Credit Spread System for Today’s Market)
49:30- Teaching Overview:Strike Selection of Credit Spreads
56:55- Teaching Overview: Most important thing in this Class? Have to limit losers
1:03- Teaching Overview: Best Duration for Credit Spreads
1:04:10- Teaching Overview: What vehicles to trade?
1:09:05- Q and A: Definition of High and Low VIX?
1:09:40- Q and A: Two tweaks for trading put credit spreads in today’s Market with price levels high in SPX and VIX low?
1:13:24- Q and A: When I would exit a losing Credit Spread?

Class #2: Credit Spreads vs. Iron Condors and Risk Management for Credit Spreads with Dan

1- Intro and Class Outline Today
3:20- Review of Class page and Annotation for each class
5:50- What I will cover in Today’s Class?
7:14- Speakers for the 2nd week
8:07- Better to do Credit Spreads or Iron Condors?
27:20- How to get the best execution on Credit Spreads?
31:36- When should I initiate my Credit Spread?
37- Credit Spreads or Iron Condors during Earnings?
43:46- Technicals and Contrarian Opinions in structuring Credit Spreads?
50:30- Key Risk Management for Credit Spreads: Profit and Loss Targets
1:01:13- How to diversify price risk with Credit Spreads and How to Scale Credit Spreads?
1:05- Looking at Potential live call credit spread in SPX today and discussed execution and what price to sell the credit spread for.
1:13- When and how I will cover remaining Bullet Points in the Overview Outline for today I didn’t cover?
1:14:50- Announcement of June Live Option Trading Seminar in Chicago June 25-26.

Class #3: Running a Credit Spread Trading Business, with Veteran trader Tim Pierson

Class#4: Credit Spread Adjustment Strategy, Simple or Complex? with Jay Bailey

Class #5: Credit Spread Adjustments with Dan

1- Intro
1:25- Good vehicles for Credit Spreads?
2:30- Strike Selection and spread width for Credit Spreads?
5- Minimum Credit I want for Credit Spreads?
5:38- Profit and Loss Targets for Credit Spreads?
7:09- Adjustment Philosophy? Do Adjustments change Max loss targets?
9:29- Most important things to know about credit spreads?
11:27- Adjustments: Case Study using NFLX as an example
18:13- 1st adjustment :for credit spreads: Roll up the Credit Spread
22:57- 2nd Adjustment for credit spreads: Roll up credit spread and increase size a bit to get close to original credit.
25:25- 3rd adjustment for Credit Spreads: Use debit spreads to slowly adjust the credit spread into an Butterfly.
30:05- 4th Adjustment for Credit Spreads: Using a debit spread to eventually morph the credit spread into an vertical
on the upside if the stock keeps increasing.
32:43- 5th Adjustment for Credit Spreads: Adjusting the credit
spread into an Iron Condor.
35:47- 6th Adjustment for Credit Spreads: Using Long Options to adjust
38:03- 7th Adjustment for Credit Spreads: Narrow the width of your credit Spread
39:17- 8th Adjustment for Credit Spreads: Reduce the credit Spreads
40:27- Final Comments and questions
48:31- End

Class #6: Different indicators to look at when entering your short Put positions, with Dan and Paul White

0- Dan and Paul White Jr, Veteran student in Sheridan Mentoring
4- Example of Live Short Put Calendar trade in SPX Paul has on. Paul will discuss the indicators he looks at.
1:02- End

Class #7: Put Credit Spreads and discussion on Insurance with Dan

1- Intro and Outline:
1) Example of Put Credit Spread and Adjustments
2) Ratio Butterfly- Didn’t get through today
3) Put Credit Spreads using Insurance
1:25- Discussed E-mail from Student regarding previous class with Paul White Jr. Dan walked through Put Credit Spread example to
discuss adjustments like Paul White Jr. would have done.
4:10- Walked through Put Credit Spread with Adjustments and Risk Management in SPX.
59- Talking about insurance with Iron Condors by how I structure the Iron Condor and also by adding long puts.
1:09:04- End

Class #8: Ratio Butterflies with Dan

0- Introduction and Outline:
1) Ratio Fly (Credit Spreads with Insurance)
2) My favorite adjustments for Credit Spreads?
3) Insurance for Credit Spreads at the beginning of the trade
4:09- SPX Ratio Butterfly with full Risk Management Plan and adjustments.
24:05- Dan’s favorite adjustments for Credit Spreads
56- Insurance for Credit Spreads at the beginning of a trade
1:01:43- End