SMB TRAINING OPTIONS TRAINING PROGRAM Presents:

1. SMB TRAINING OPTIONS TRAINING PROGRAM Presents:

2. Disclaimer • 1.       SMB TRAINING is NOT a Broker Dealer.  SMB TRAINING engages in trader education and training.  SMB TRAINING offers a number of products and services, both electronically (over the internet through Smbtraining.com) and in person.  Through Smbtraining.com, SMB TRAINING offers the “Virtual Trading Floor”, a community through which independent traders (subscribers), as well as T3 Trading Group, LLC traders, observe a virtual trading floor environment (as described below) for educational purposes.  SMB TRAINING also offers web-based, interactive training courses on demand. • 2.       The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs. • 3.       This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. • 4.       SMB Training and SMB Capital Management, LLC are separate but affiliated companies. • 5.       T3 Trading Group, LLC is a Registered SEC Broker-Dealer and Member of the CBOE Stock Exchange (CBSX www.CBOE.com). All trading conducted by contributors on Virtual Trading Floor is done through T3 Trading Group, LLC.6. Any information contained in this presentation is for educational purposes ONLY. Neither Locke In Your Success, LLC, John Locke nor it’s subsidiaries nor any of their respective officers, employees, representatives, agents or independent contractors are, in such capacities, licensed financial advisors, registered investment advisors or registered broker dealers. Neither do they provide investment nor financial advice nor make investment recommendations, nor are they in the business of transacting trades. Nothing in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer (buy or sell) by Locke In Your Success, LLC, or others described above, of any particular security, transaction or investment. • 7. The risk of loss in trading securities, options, futures and forex can be substantial. Customers must consider all relevant risk factors, including their own personal financial situation, before trading. Options involve risk and are not suitable for all investors. See the Options Disclosure Document: Characteristics and Risks of Standardized Options. Trading foreign exchange on margin carries a high level of risk, as well as its own unique risk factors. Please read the following risk disclosure before considering the trading of this product: Forex Risk Disclosure. Futures and forex accounts are not protected by the Securities Investor Protection Corporation (SIPC). • 8. No relevant positions.

3. Hypothetical Trades Disclaimer • Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commisions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.

4. The ROCK Trading SystemPart 4 - M3 Entry and February 2012 Expiration Example • Brought to you bySMB Training A World Leader in Options Education Created and taught by John Locke Locke in Your Success, LLC. “Know what you want, make it happen!”

5. John Locke • President of Locke In Your Success, LLC • Options Trader • Success Coach • Options Trading Mentor

6. February 2012 ExpirationRisk Management and Profit Targets • Planned Capital - $50,000 • Profit Target - $10,000 • Max Loss - $10,000 • Profit Target may be adjusted up or down as trade progresses • Max Loss may be adjusted down but will not be increased

7. January 18 – 30 DTERUT at 777Entry Test

8. Delta is suggesting a high IV entry

9. Modified ROCK or M3 Entry?

10. Looks like an M3 Entry

11. M3 Entry

12. M3 Analyze Graph

13. January 25(7 days) – 23 DTERUT at 794, up 17 points

14. Existing Position

15. Buy 10 – 750/760 Call Verticals

16. New Position

17. February 1(7days) – 16 DTERUT at 806, up 12 points

18. Current Position

19. Sell M3 Position

20. Do an entry test to be sure we can enter a normal ROCK position

21. Switch to Normal ROCK EntryBuy 10 790 put butterflies Buy 7 830 call butterflies

22. Delta at 810 is -178Looks Good!

23. New Position

24. February 3 (2 days) – 14 DTERUT at 828, up 22 points

25. This is why we are having trouble!

26. Current Position

27. ROCK Configuration Upside GuidelinesScaling In • When Delta exceeds-250 • Add call butterflies at 40 points over the butterflies with the lowest short strikes until Delta comes down to around -175 or until there are 10 butterflies at that strike • Once 10 there are 10 butterflies at 40 points over the lowest short strikes, start adding in call butterflies at 60 points over the butterflies with the lowest short strikes until Delta comes down to around -175 or there are 10 butterflies at that strike • When there are 10 butterflies on each of all 3 strikes, the trade is now fully scaled in

28. Add 3 - 830 butterfliesAdd 8 - 850 butterfliesBring trade Delta down under -200

29. New Position

30. February 8 (5 days later) – 9 DTEWe get an increase in negative Delta from both a continued up move and the passage of time

31. Current Position

32. Add in last 2 850 butterflies We are now fully scaled in to ROCK positioning

33. New Position

34. February 10 (2 days) – 7 DTERUT drops to 814, 17 points

35. Current Position

36. Downside Adjustments in Rock Configuration (when greater than 2/3 entered) • When the position is fully entered and maximum positive Delta will be increased to + 250 intraday and +150 end of day • When maximum Delta has been exceeded • Remove upper butterflies until positive Delta is about 100 • Once all upper butterflies are removed, follow 2/3 downside rules

37. Like the Bearish Butterfly, we scale down the position when whipsawed to the downside after fully scaled in

38. New Position

39. February 14 (4 days later) – 3 DTERUT price is up, yet we have a positive Delta issue due to time passage

40. Current Position

41. Continuing to reduce size

42. New Position

43. February 15 (next day) – 2 DTEBoth time passage and a $4 price drop contribute to a Delta increase

44. Current Position

45. Continue to sell off upper butterflies

46. New Position

47. February 16 – This is it!RUT at 823, up 11 points

48. Current Position

49. Lets buy back our risk and expire the trade

50. Position into expiration