Trade Hackers Playbook

Table of Contents
NavigationTrading LIVE!......................................................................................................... 4
Copyright & Legal Disclosures............................................................................................... 5
Welcome to NavigationTrading!........................................................................................... 7
The NavigationTrading Methodology................................................................................. 9
NavigationALERTS...................................................................................................................13
Trading Options For Income: Options Basics (Free Course) ....................................14
Neutral Strategies – High Implied Volatility...................................................................15
Iron Condor........................................................................................................................................ 16
Butterfly Spread................................................................................................................................ 19
Short Strangle.................................................................................................................................... 22
Short Straddle.................................................................................................................................... 26
Neutral Strategies – Low Implied Volatility....................................................................29
Calendar Spread............................................................................................................................... 30
Bullish Strategies – High Implied Volatility....................................................................33
Covered Call (Covered Stock)...................................................................................................... 35
“Poor Man’s” Covered Call............................................................................................................ 36
Short Put Vertical............................................................................................................................. 37
Short Naked Put................................................................................................................................ 38
Bullish Strategies – Low Implied Volatility.....................................................................39
Long Stock........................................................................................................................................... 40
Long Call.............................................................................................................................................. 41
Long Call Vertical.............................................................................................................................. 42
2
Bearish Strategies – High Implied Volatility...................................................................43
Covered Put (Short Covered Stock).......................................................................................... 44
“Poor Man’s” Covered Put............................................................................................................. 45
Short Call Vertical............................................................................................................................ 46
Short Naked Call............................................................................................................................... 47
Bearish Strategies – Low Implied Volatility....................................................................48
Short Stock.......................................................................................................................................... 49
Long Put............................................................................................................................................... 50
Long Put Vertical.............................................................................................................................. 51
Position Sizing..........................................................................................................................52
True Diversification................................................................................................................52
Options Terminology..............................................................................................................55
3
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4
Copyright & Legal Disclosures
NavigationTrading is the copyright and trademark holder of all branded properties for
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Examples presented on Company’s website including video tutorials, indicators, strategies,

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mation (or third party); the use of such information is entirely at the risk of the user.
The risk of loss in trading securities, options, stocks, futures and forex can be substan-
tial. Securities involve risk and are not suitable for all investors. Consider all relevant
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any individual or trading system published by the Company are not indicative of future
returns. It should not be assumed that the methods, techniques, or indicators present-
ed in these products and services will be profitable or that they will not result in losses
- trading and/or investing in the stock, options, and futures market is risky due to the
leverage involved and may not be suitable for all investors.
Back-testing provides a hypothetical calculation of how a security or portfolio of secu-

rities, subject to a trading strategy, would have performed over a historical time period.
You should not assume that back-testing of a trading strategy will provide any indica-
tion of how your portfolio of securities, or a new portfolio of securities, might perform
over time. Be sure to review your investment risk tolerance periodically to make sure
they are still consistent with your goals.
5
YOU EXPRESSLY UNDERSTAND AND AGREE THAT THE COMPANY SHALL NOT BE LI-
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6
Welcome to NavigationTrading!
You are now part of a growing group of “do it yourself” traders who are trying to
change the way investors think about building wealth. But, because we don’t believe
in using financial advisors, stock tips, or traditional financial media, we have to do
things differently…we have to do things smarter. We do that through an art and a
science we call Trade Hacking.
Definition:
Trade – The action of buying and selling
Hacking – An efficient method of modifying a task in a

skillful and clever way
At NavigationTrading, our methodology is based on statistics and probabilities, not
hype or emotion. Our core strategies have been used by Market Makers, Hedge Funds
and Floor traders for many years. We use actual math behind our strategies. (Don’t
worry, you don’t need to be an advanced mathematician to be a successful trader. If
you made it through math class in 4th grade, you will do just fine J)
It’s impossible to win on every trade,

but what if you could leverage the prob-
abilities, so that you could win more
than you lose? Rather than basing your
trades on emotion, hype, and worthless
predictions…you simply check a couple
of data points, and execute the trade.
If the probabilities are IN YOUR FAVOR,

you place a trade and then close your
laptop for the day.
If the probabilities are NOT IN YOUR FAVOR, you don’t place a trade and you close
your laptop for the day.
7
What if by doing just that, day-in and day-out, you could beat the market…and not by
1%, but potentially by 10%, 30%, 50%, or much more!
How would that feel? Pretty good right?
This book should serve as your daily guide to becoming The Ultimate Trade Hacker.
Let’s get started!
The NavigationTrading Team
8
THE NAVIGATION TRADING
METHODOLOGY
Successful trading starts with placing High Probability trades.
There are 3 simple rules to finding High Probability trades:
Rule #1 - Liquidity
Choose a symbol with liquid options (lots of volume, and tight bid/ask spreads). We
have done the heavy lifting for you! Download The Ultimate Strategy Watch List below.
The Ultimate Strategy Watch List
Get our list of the most liquid and profitable

symbols to trade for each strategy
Click below to get the watch list now!
Get Instant Access!
9
Rule #2 – Implied Volatility (IV)
From The Ultimate Strategy Watch List, determine
if the symbol has High IV, or Low IV.
Implied Volatility (IV) is our “Edge” for taking consis-

tent profits out of the market. Since we know that IV is
overstated compared to actual volatility approximate-
ly 85% of the time, we want to be net sellers of options
when IV is high. We can still make money trading our
methodology when IV is low, but our profits and win-
ning percentage increase dramatically when we wait
for opportunities of High Implied Volatility (Later in
this guide, we will teach you a strategy to profit in periods of low IV as well).
Think about a professional hitter in the Major Leagues. He may get on base by swinging at
a pitch that’s out of the strike zone. But, the best hitters in baseball, wait for THEIR pitch,
take a good swing, and get on base consistently.
We are not homerun hitters! We want to consistently hit singles and doubles. Sometimes
we may go through a “slump”, but we can’t get discouraged. As long as we stay mechanical
with our trading, the probabilities will play out in our favor over time.
The NavigationTrading IV Indicator

Click below to get the indicator now!
Get Instant Access
10
“ We created a custom indicator to help you determine
„
the level of Implied Volatility, for each symbol you
trade, in a matter of seconds.
Implied Volatility Percentile (IV%) - Measures the percentage of days that a symbol’s
IV was lower than it’s current level over the previous 252 trading days. (Yellow Line)
Implied Volatility Rank (IVR) - Implied Volatility average, compared to it’s yearly high
and low. (Green Line)
Now, don’t let the jargon confuse you. While the underlying calculations may be com-
plex, we have simplified it with the NavigationTrading IV Indicator.
So, how do we determine if IV is high?
We created a custom indicator to help you determine the level of Implied Volatility, for
each symbol you trade, in a matter of seconds.
The NavigationTrading IV Indicator consists of two plotted lines (See chart below):
Here’s how it works:
1) We draw a “line in the sand” at the 50% level
2) If EITHER the Green or Yellow line are above 50, we consider that High IV.
3) If BOTH lines are below 50, we consider that Low IV.
That’s it! Pretty simple, right?
11
The NavigationTrading IV Indicator
Click below to get the indicator now!
Get Instant Access
Now that we have determined if our symbol of choice has High IV or Low IV, the re-
mainder of this guide is all about Rule #3 – Choosing the correct strategy!
12
NavigationALERTS
Receive LIVE Trade Alerts via
Email and Text Message
Special 2 Week Trial For New Members!
Get Full Access To NavigationALERTS For Just $7
Get Instant Access

✓✓ Trade Alerts delivered by text and email
✓✓ 5-10 Trade Alerts per week
✓✓ Specific trade entries
✓✓ Specific trade exits
✓✓ Exact trade adjustments
✓✓ “Look over the shoulder” of a 16 year trading veteran
✓✓ Weekly Video Updates to review all trades
✓✓ Access to view our current portfolio
✓✓ Unlimited email support
13
Trading Options For Income:
Options Basics
Learn to create a consistent monthly income
trading options
GET IT NOW FOR FREE! (COURSE VALUE $495)
Get Instant Access

Here’s what’s included with the course:
✓✓ The NavigationTrading Implied Volatility Indicator - Load it directly to your trad-

ing platform! - This is the only indicator you need to make profitable trades
✓✓ The NavigationTrading Ultimate Strategy Watch List - The most profitable sym-
bols to trade...AND which ones to avoid!
✓✓ Learn our top 5 core trading strategies for consistent monthly income
✓✓ Learn to make money trading 15 minutes per day. You DO NOT have to be glued
to your computer screen all day
✓✓ Learn how to make money on trades if the market goes UP, DOWN or SIDEWAYS
✓✓ How to set up your trading platform, so you can trade like a PRO
✓✓ Students of our course can get a reduced commission rate at a top rated op-
tions broker
✓✓ 2 hours of professionally edited videos in, 20 easy to follow lessons
✓✓ Unlimited email support from the instructor and his trading team
14
NEUTRAL Strategies
HIGH Implied Volatility
The following strategies can be used when you think the
price of the underlying symbol will STAY IN A RANGE
AND
Implied Volatility Percentile (IV%) is OVER 50
Ü

Price Direction
Ü
Ü
Implied Volatility
IRON CONDOR
Market Implied Optimal Profit Downside Upside Probability
Assumption Volatility Timeframe Target Risk Risk of Profit (POP)
Neutral High 30-60 DTE 30-50% of Defined Defined 60%+

max profit
Trade Setup
Sell One OTM Call; 20 Delta

Buy One Further OTM Call (See Iron Condor Watch List for “Wing Width”)
Sell One OTM Put; 20 Delta

Buy One Further OTM Put (See Iron Condor Watch List for “Wing Width”)
+
Profit/Loss
Long Put Strike Long Call Strike
Short Put Strike Short Call Strike

-
Time Decay (Theta) POSITIVELY impacts this position
This strategy is eligible to trade in an IRA
16
How I Make 15% Per Month
Trading Options
trading Iron Condors
Click To Learn More!

✓✓ The NavigationTrading Implied Volatility Indicator - Load it directly to your trad-

ing platform! - This is the only indicator you need to make profitable trades
✓✓ The NavigationTrading Ultimate Strategy Watch List - The most profitable sym-
bols to trade...AND which ones to avoid!
✓✓ The Iron Condor Cheat Sheet – A printable 7 step guide to placing your trades
✓✓ How to place high probability Iron Condors, that win over 85% of the time
to your computer screen all day
✓✓ How to open and close winning trades. And, most importantly, how to fix a trade
that goes bad
✓✓ A little know trick to learn your Probability of Profit, before you even enter the trade
✓✓ Students of the course can get a reduced commission rate at a top rated options
broker
✓✓ 3.5 hours of professionally edited videos in, 29 easy to follow lessons
17
IRON CONDOR WATCH LIST
Index/ETFs Futures Stocks
(Width of Wings) (Width of Wings) (Width of Wings)
SPY (3 points) /ES – S&P 500 (15 points) AAPL (3 points)
SPX (30 points) /ZB – 30 year bond (2 points) NFLX (5 points)
QQQ (3 points) /CL – Crude Oil (1 point) GOOG (10 points)
NDX (30 points) /GC – Gold (10 points) TSLA (10 points)
IWM (3 points) /NG – Nat Gas (.1 points) FB (5 points)
RUT (30 points) /6E – Euro (.01 points) COST (5 points)
DIA (3 points) /ZS – Soybeans (10 points) AMZN (10 points)
TLT (3 points) /ZC – Corn (5 points) GS (5 points)
FXE (3 points) /ZW – Wheat (10 points) IBM (5 points)
GLD (3 points) HD (5 points)
IRON CONDOR OPTIMAL EXITS

Percent of Max Profit Days In The Trade
10% 4
20% 7
30% 12
40% 17
50% 22
60% 27
70% 31
80% 35
90% 40
100% Expiration
18
BUTTERFLY SPREAD
Neutral High 30-60 DTE 15-25% of Defined Defined 35-50%

debit paid
Trade Setup
Buy One ITM Call (Width of Long Call should exceed expected move)
Sell 2 ATM Calls
Buy One OTM Call (Width of Long Call should exceed expected move)
You can use either ALL Calls, or ALL Puts
+
Profit/Loss
Long Strike Long Strike
Short Strike
-
19
Trading Butterfly Spreads For Income
trading Butterfly Spreads
Click below to learn more
Learn More
✓✓ The NavigationTrading Implied Volatility Indicator - Load it directly to your

trading platform! - This is the only indicator you need to make profitable trades
✓✓ The NavigationTrading Ultimate Strategy Watch List - The most profitable
symbols to trade...AND which ones to avoid!
✓✓ How to place high probability Butterfly Spreads, that win over 75% of the time
✓✓ Learn to make money trading 15 minutes per day. You DO NOT have to be
glued to your computer screen all day
✓✓ How to open and close winning trades. And, most importantly, how to fix a
trade that goes bad
✓✓ A little know trick to learn your Probability of Profit, before you even enter the
trade
✓✓ Lots of real life examples…using my own money
✓✓ Students of the course can get a reduced commission rate at a top rated
options broker
20
BUTTERFLY WATCH LIST
Index/ETFs Futures Stocks
SPY /ES – S&P 500 AAPL
SPX /ZB – 30 year bond NFLX
QQQ /CL – Crude Oil GOOG
NDX /GC – Gold TSLA
IWM /NG – Natural Gas FB
RUT /6E – Euro Currency COST
DIA /ZS – Soybeans AMZN
TLT /ZC – Corn GS
FXE /ZW – Wheat IBM
GLD HD
21
SHORT STRANGLE
Neutral High 30-60 DTE 30-50% of Undefined Undefined 70%+

max profit
Trade Setup
Sell One OTM Call; 15-20 Delta
Sell One OTM Put; 15-20 Delta

+
Profit/Loss
Short Put Strike Short Call Strike

-
This strategy must be traded in a margin account
22
How To Maximize Your Profits
Trading Options
trading Short Strangles
Learn More

✓✓ How to place high probability Strangles, that win over 90% of the time
✓✓ Learn how to make money on trades if the market goes UP, DOWN or SIDE-
WAYS
trade that goes bad
✓✓ Students of the course can get a reduced commission rate at a top rated op-
tions broker
✓✓ 2 hours of professionally edited videos in, 28 easy to follow lessons
23
STRANGLE OPTIMAL EXIT POINT
10% 3
20% 6
30% 10
40% 15
50% 19
60% 24
70% 28
80% 32
90% 35
100% Expiration
STRANGLE WATCH LIST

ETFs
SPY – S&P 500 EWW – Mexico
SPX – S&P 500 FXI – China Large Cap
QQQ – Nasdaq EEM – Emerging Markets
NDX – Nasdaq EFA – EAFE ETF
IWM – Russell 2000 EWZ - Brazil
RUT – Russell 2000 XLE – Energy ETF
DIA – Dow XLU – Utilities ETF
TLT – 20+ year bond XLF – Financials ETF
FXE – Euro Currency XOP – Oil & Gas ETF
GLD – Gold GDXJ – Junior Gold Miners
XRT – Retail ETF XBI – Biotech ETF
IYR – Real Estate ETF XLI – Industrial ETF
24
STRANGLE WATCH LIST
Futures
/ES – S&P 500
/ZB – 30 year bonds
/CL – Crude Oil
/GC – Gold
/NG – Natural Gas
/6E – Euro Currency
/ZS – Soybeans
/ZC – Corn
/ZW – Wheat
STRANGLE WATCH LIST

Stocks
AAPL – Apple HD – Home Depot
NFLX – Netflix MSFT - Microsoft
GOOG – Alphabet ORCL - Oracle
TSLA – Tesla HPQ - HP
FB – Facebook PCLN – Priceline
COST – Costco TSLA - Tesla
AMZN – Amazon TWTR - Twitter
GS – Goldman Sachs UAL – United Continental
IBM WFM – Whole Foods
SBUX - Starbucks X – US Steel
BA - Boeing XOM - Exxon Mobil
BABA - Alibaba YHOO - Yahoo
BIDU - BAIDU DIS - Disney
C - Citigroup GG – Gold Corp
CAT - Caterpillar GM – General Motors
EBAY RIG - Transocean
FCX – Freeport-McMoRan GG - Goldcorp
25
SHORT STRADDLE
Neutral High 30-60 DTE 25% of Undefined Undefined Approximately

max profit 55%
Trade Setup
Sell One ATM Call
Sell One ATM Put

+
Profit/Loss
Short Call Strike

Short Put Strike
-
26
STRADDLE WATCH LIST
ETFs
GLD – Gold GDXJ – Junior Gold Miners
XRT – Retail ETF XBI – Biotech ETF
STRADDLE WATCH LIST

Futures
/ES – S&P 500
/ZB – 30 year bonds
/CL – Crude Oil
/GC – Gold
/NG – Natural Gas
/6E – Euro Currency
/ZS – Soybeans
/ZC – Corn
/ZW – Wheat
27
STRADDLE WATCH LIST
Stocks
SHORT STRADDLE OPTIMAL EXITS

10% 10
20% 16
30% 23
40% 30
50% 35
60% 41
70% Expiration
28
NEUTRAL Strategies
LOW Implied Volatility
price of the underlying symbol will STAY IN A RANGE
AND
Implied Volatility Percentile (IV%) is UNDER 50
Ü

Price Direction
Ü
Ü
Implied Volatility
CALENDAR SPREAD
Neutral Low See Trade 15-25% of Defined Defined 35-50%

Setup below debit paid
Trade Setup
Sell One ATM Put; 30-45 DTE
Buy One ATM Put; 58-80 DTE

(You can use either ALL Puts or ALL Calls)
+
Profit/Loss
Short Strike
Long Strike
-
30
Trading Calendar Spreads
For Income
trading Calendar Spreads
Learn More

✓✓ How to place high probability Calendar Spreads, that win over 75% of the time
trade that goes bad
✓✓ Students of the course can get a reduced commission rate at a top rated op-
tions broker
31
CALENDAR SPREAD WATCH LIST
ETFs
GLD – Gold IYR – Real Estate ETF
GDX – Gold Miners XRT – Retail ETF
GDXJ – Junior Gold Miners XBI – Biotech ETF
XBI – Biotech ETF XLV – Health Care ETF
CALENDAR SPREAD WATCH LIST

Stocks
32
BULLISH Strategies
price of the underlying symbol will go UP
AND

Ü

Price Direction Ü
Ü
Implied Volatility
Winning Options Strategies For
Any Market
Your Edge For Directional Trading
Click To Learn More!

✓✓ The NavigationTrading Implied Volatility Indicator – Load it directly onto your

trading platform!
to your computer screen
✓✓ How to place High Probability Trades, that win in Bull or Bear markets
✓✓ Core strategies to maximize profits, and minimize losses
✓✓ A little known trick to learn your Probability of Profit, before you even enter
the trade...
✓✓ Lots of real life trade examples…step by step...using REAL MONEY
✓✓ Students of our course can get a reduced commission rate at a top rated options
broker
✓✓ 1.5 hours of professionally edited videos, in 20 easy to follow sections
✓✓ Don’t forget to check out the BONUS Section at the end of the course to learn
about NavigationALERTS
✓✓ 30 Day Money Back “No Questions Asked” Guarantee
34
COVERED CALL (COVERED STOCK)
Bullish High 30-60 DTE 25-50% of Stock could None 55%+

Max Profit go to zero
Trade Setup
Buy 100 Shares of Stock; Sell One 30 Delta Call

+
Profit/Loss
Strike Price
-
35
“POOR MAN’S” COVERED CALL
Bullish High See Trade 25-50% of Defined None 55%+

Setup below Max Profit
Trade Setup
Buy One ITM Call; 80-90 Delta; 80+ DTE
Sell One OTM Call; 30 Delta; 30-60 DTE

Break Even
+
Profit/Loss
Long Strike
Short Strike
-
Time Decay (Theta) can be POSITIVE when price is

higher than break-even point
Time Decay (Theta) can be NEGATIVE when price is
lower than break-even point
36
SHORT PUT VERTICAL
Bullish High 30-60 DTE 25-50% of Defined None 65%+

Max Profit
Trade Setup
Sell One OTM Put (30-45 Delta); Buy One Further OTM Put (10-25 Delta)
+
Break-even
Profit/Loss
Long Strike
Short Strike
-

37
SHORT NAKED PUT
Bullish High 30-60 DTE 25-50% of Stock could None 70%+

Max Profit go to zero
Trade Setup
Sell One OTM Put; 30 Delta

+
Profit/Loss
Strike Price
-
Time Decay (Theta) positively impacts this position
38
BULLISH Strategies
price of the underlying symbol will go UP
AND

Ü
Price Direction
Ü

Ü
Implied Volatility
LONG STOCK
Bullish High or N/A 25-50% of Stock could None 50%

Low Debit Paid go to zero
Trade Setup
Buy 100 Shares of Stock

+
Profit/Loss
-
Time Decay (Theta) does not impact this position
40
LONG CALL
Bullish Low 30-60 DTE 25-50% of Defined None Under 50%

Max Profit
Trade Setup
Buy One ITM Call; 80-90 Delta

+
Profit/Loss
Long Strike
-
Time Decay (Theta) NEGATIVELY impacts this position
41
LONG CALL VERTICAL
Bullish Low 30-60 DTE 25-50% of Defined None Approximately

Max Profit 50%
Trade Setup
Buy One ITM Call (55-85 Delta); Sell One OTM Call (15-45 Delta)
(Select strikes with similar distance from current stock price)
Break-even
+
Profit/Loss
Long Strike
Short Strike
-

42
BEARISH Strategies
price of the underlying symbol will go DOWN
AND

Ü
Ü
Price Direction

Ü
Implied Volatility
COVERED PUT (SHORT COVERED STOCK)
Bearish High 30-60 DTE 25-50% of None Undefined 55%+

debit paid
Trade Setup
Sell (Short) 100 Shares of Stock

Sell One 30 Delta Put
+
Profit/Loss
Strike Price
-
44
“POOR MAN’S” COVERED PUT
Bearish High See Trade 25-50% of None Defined 55%+

Setup below max profit
Trade Setup
Buy One ITM Put; 80-90 Delta; 80+ DTE

Sell One OTM Put; 30 Delta; 30-60 DTE
Break Even
+
Profit/Loss
Long Strike
Short Strike
-

45
SHORT CALL VERTICAL
Bearish High 30-60 DTE 25-50% of None Defined 65%+

debit paid
Trade Setup
Sell One OTM Call (30-40 Delta)

Buy One Further OTM Call (10-20 Delta)
Break Even
+
Profit/Loss
Long Strike
Short Strike
-

46
SHORT NAKED CALL
Bearish High 30-60 DTE 25-50% of None Undefined 70%+

debit paid
Trade Setup
Sell One OTM Call; 30 Delta

+
Profit/Loss
Strike Price
-
47
BEARISH Strategies
price of the underlying symbol will go DOWN
AND

Ü
Ü
Price Direction

Ü
Implied Volatility
SHORT STOCK
Bearish N/A N/A 25-50% of None Undefined 50%

debit paid
Trade Setup
Sell (Short) 100 Shares of Stock

+
Profit/Loss
-
Time Decay (Theta) does not impact this position
49
LONG PUT
Bearish Low 30-60 DTE 25-50% of None Amount of Under 50%

debit paid debit paid
Trade Setup
Buy One ITM Put; 80-90 Delta

+
Profit/Loss
Long Strike
Break-Even
-
Time Decay (Theta) negatively impacts this position
50
LONG PUT VERTICAL
Bearish Low 30-60 DTE 25-50% None Amount of Approximately

debit paid 50%
Trade Setup
Buy One ITM Put; Sell One OTM Put

+
Profit/Loss
Long Strike
Short Strike
Break-even
-

lower than the break-even point
higher than the break-even point
51
POSITION SIZING
The size of our trades relative to the amount of capital in our trading account is crit-
ical to success as a trader. I cannot emphasize this enough. The difference between a
successful trader, and a losing trader can be defined by the size of the trade relative to
your account value. If you trade too large for your account, it is just a matter of time
that you will suffer a significant loss that cripples your account.
Every day when the market opens, it presents new trading opportunities. As a newer
trader, you may initially suffer from a common trader condition called FOMOOT – Fear
Of Missing Out On Trades. If the condition isn’t cared for, it could be detrimental to
your trading career! J
Trading is all about math, and letting the probabilities play out in your favor. If you trade
too big, and suffer a major loss in your account, the probabilities will never play out.
Here are some rules to follow so you can live to trade another day:
¾¾ 5% Rule – Don’t allocate more than 5% of your trading capital to any one position.
Preferably much less. We typically use less than 1% of capital per trade.
¾¾ 50% Rule – Don’t allocate more than 50% of your total account value to ALL trades.
Remember, options use leverage. We can earn a significant return with less capital
at risk. We typically use much less than 50% of our capital, so that when IV spikes to
high levels, we have the capital available to take advantage of the opportunity.
TRUE DIVERSIFICATION
Many “Investment Experts” say that portfolio diversification can reduce risk. While
this is true, their interpretation of diversification is much different than ours. They
conclude that having a variety of LONG stocks, bonds and cash as being diversified.
How does that type of “diversification” hold up in periods of a market meltdown like
we saw in 2008? If you were invested in a 401k or any type of mutual fund portfolio
at the time, you most likely saw losses of 20% in a very conservative portfolio, all the
way up to 60%+ losses in a more stock heavy allocation.
52
The problem with this traditional diversification methodology is that when panic
enters the market place, all of those so called “diversified assets” become extremely
correlated. So, you basically have a diversified allocation when markets are moving
up - when you need it the least. But, when the market moves down quickly, the assets
become extremely correlated, and less diversified - when you need it the most.
Let’s take a look at the 5 ways to create TRUE DIVERSIFICATION that actually reduces
risk in all market environments:
1) Diversify Your Symbols – Allocate your trades among multiple different stocks,
ETFs, Futures and Indices. Many stocks and indexes move together.
2) Diversify Your Asset Classes – Utilize uncorrelated assets such as stocks,

bonds, gold, oil, natural gas, currencies, grains etc.
3) Diversify Your Strategy – Use a mix of the different strategies we teach.
•• Bullish Strategies
•• Bearish Strategies
•• Delta Neutral Strategies
•• High IV Strategies
•• Low IV Strategies
•• Undefined Risk Strategies
•• Defined Risk Strategies
4) Diversify Your Time - Allocate your trades over a period of time. If you plan to
place 10 trades, instead of placing them all in one day, spread them out over sev-
eral days or weeks. So, as the markets move, you can be positioned over differ-
ent prices and market environments.
5) Diversify Your Entry Price – Allocate your trades across different prices. If you
plan to enter a trade with 20 contracts. Consider first entering with 5. Wait for
price to move a bit, then enter another 5. Continue entering trades until you
have on the total intended position size.
53
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54
OPTIONS TERMINOLOGY
Option – A contract that gives the holder the right to buy or sell the underlying symbol
at a specified price for a specific period of time.
Call Option – An option contract that gives the holder the right to buy the underlying
symbol at a specified price for a specific period of time.
Put Option – An option contract that gives the holder the right to sell the underlying
symbol at a specified price for a specific period of time.
Long – Buying a stock or option. You may buy to open OR close a position.
Short – Selling a stock or option. You may Sell to open OR close a position.
Strike Price – Specific price that a symbol can be purchased (Call) or sold (Put) by the
option holder upon exercise of the option contract.
At-The-Money (ATM) – An option is considered ATM when the stock price is equal to
(or near) the strike price.
In-The-Money (ITM) – An option is considered ITM when the stock price is above the
strike price (Call Option), or below the strike price (Put Option).
Out-of-The-Money (OTM) – An options is considered OTM when the stock price is be-
low the strike price (Call Option), or above the strike price (Put Option).
Theta – One of the four primary Option Greeks. A theoretical value that refers to the
decay of an option as time passes.
Days To Expiration (DTE) – Number of days until an option contract expires.
Optimal Time Frame – The desired number of Days to Expiration that we like to enter
trades. Typically 30-60 DTE.
Implied Volatility (IV) – The estimated volatility (movement) of a symbol’s price.
55
Implied Volatility Percentile (IV%) – Percentage of days that a symbol’s Implied
Volatility was lower than it’s current level over the previous 252 trading days.
Implied Volatility Rank (IVR) – Implied Volatility average, compared to it’s yearly
high and low.
Delta – One of the four primary Option Greeks. A theoretical value that refers to the
probability of an option expiring In-The-Money (ITM). At NavigationTrading, we also
use Delta as a measure of our overall portfolio direction compared to the S&P 500.
Probability of Profit (POP) – The percentage of time that a strategy will earn a profit
at expiration.
Return on Capital (ROC) – Displayed as a percentage. Your total profit, divided by the
amount of money used to place a trade.
Premium – The value of the option. When you sell options, the option Premium is the
amount collected.
Wing Width – Refers to the distance between your short strike and long strike when
trading a spread strategy.
Margin – In options trading “Margin” can refer to an amount of trading capital avail-
able to place a trade. Also, certain option strategies require you to trade in a “mar-
gin” account.
Profit Target – A predetermined point that a trader will exit a profitable trade.
Market Assumption – Your assumption of how the market will move in the near future.
The market can move UP, DOWN or SIDEWAYS (stay in a range).
56

Trade Hackers Playbook

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What are some of the different option trading strategies discussed in the document?

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What are some of the important option terminology defined in the document?

What are some of the important option terminology defined in the document?

Table of Contents

We broadcast LIVE from our Facebook Page and YouTube Channel

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Here’s what we cover on our LIVE broadcast:

•• “Trade Of The Week” – Watch us place live trades

Examples presented on Company’s website including video tutorials, indicators, strategies,

Back-testing provides a hypothetical calculation of how a security or portfolio of secu-

Hacking – An efficient method of modifying a task in a

It’s impossible to win on every trade,

If the probabilities are IN YOUR FAVOR,

How would that feel? Pretty good right?

Let’s get started!

The NavigationTrading Team

There are 3 simple rules to finding High Probability trades:

The Ultimate Strategy Watch List

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Implied Volatility (IV) is our “Edge” for taking consis-

The NavigationTrading IV Indicator

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So, how do we determine if IV is high?

Here’s how it works:

1) We draw a “line in the sand” at the 50% level

3) If BOTH lines are below 50, we consider that Low IV.

That’s it! Pretty simple, right?

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✓✓ Trade Alerts delivered by text and email

✓✓ 5-10 Trade Alerts per week

✓✓ Specific trade entries

✓✓ Specific trade exits

✓✓ Exact trade adjustments

✓✓ “Look over the shoulder” of a 16 year trading veteran

✓✓ Weekly Video Updates to review all trades

✓✓ Access to view our current portfolio

✓✓ Unlimited email support

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✓✓ The NavigationTrading Implied Volatility Indicator - Load it directly to your trad-

✓✓ 2 hours of professionally edited videos in, 20 easy to follow lessons

Implied Volatility Percentile (IV%) is OVER 50

Neutral High 30-60 DTE 30-50% of Defined Defined 60%+

Sell One OTM Call; 20 Delta

Sell One OTM Put; 20 Delta

Long Put Strike Long Call Strike

Short Put Strike Short Call Strike

Time Decay (Theta) POSITIVELY impacts this position

This strategy is eligible to trade in an IRA

Click To Learn More!

✓✓ The NavigationTrading Implied Volatility Indicator - Load it directly to your trad-

IRON CONDOR OPTIMAL EXITS

Neutral High 30-60 DTE 15-25% of Defined Defined 35-50%

Long Strike Long Strike