RadioActiveTrading Blog

In this post, comments and wisdom I got from an experienced options trader about married puts, risk management, and trading in general.

Hi gang! I recently got off the phone with a local (MY state) options trading enthusiast. All over the Denver and Colorado Springs areas there are groups that offer support to users of VectorVest, OptionVue, and other firms dedicated to teaching the public about trading options, then selling them the tools to do it. (I personally prefer a cheaper and better alternative at http://www.poweropt.com/RAT/ )

Anyway, some of these local groups look for guest speakers at their events. When a friend of a friend suggested that I talk with a local, veteran options trader… Dennis… I left a message on his phone a couple of weeks ago, then forgot about it. Read the rest of this entry »

Ah, just reveling in the morning after the FORT - Foundations Of RadioActive Trading Seminar. Here’s a question that came up, and that merits a good answer:

“Aren’t protective puts EXPENSIVE?”

Well… yes and no. I mean, they do cost money. The question should be phrased more like this: “Are protective puts WORTH what they COST?”

Better question, I think. Because guess what - the benefits FAR outweigh the costs. Plus, the put option may actually become a source of income… Read the rest of this entry »

That’s right… I’ll say it. Married puts are better than covered calls, as short- OR long-term trading strategy.

I WOULD say that no one else does… but a lot of folks have jumped on the bandwagon recently and are beginning to teach the benefits of married puts. Welcome to the club

SO! Ready to count ‘em off? Here goes: Read the rest of this entry »

Trader Question: I am intrigued with your approach and am considering buying the Blueprint. However, I am only permitted to trade protective puts and covered calls, and am doing so with dividend paying stocks. I also cannot use margin. Thus, I am concerned that the additional methods (other than covered calls and dividend paying stocks) in your Blueprint will not be available to me. Read the rest of this entry »

So I just finished watching a “chick flick” with my lovely wife… sigh. GOTTA do that sometimes …but I actually got something out of it beside brownie points! I actually got a recap on three of the most important decisions a trader MUST make. Intrigued? Here we go… The show was called Julie and Julia. It’s a true story about a modern woman that makes a decision to follow Julia Childs’ 524 recipes and do it in a year. Every day, she posts to a blog about her experiences, her successes, her challenges, and her failures. Read the rest of this entry »

With regard to the stocks I trade in Fission… I normally try to get stocks that represent more than one industry… though lately many of the stocks have been pretty tech-heavy. Very soon we’ll be announcing a new LIVE Web Seminar on how to trade RadioActively that will explore diversification in greater detail, but let me go over a few of my diversification rules: Read the rest of this entry »

These guys (Fission’ Subscribers) get to look over Kurt Frankenberg’s and Ernie Zerenner’s shoulder as they make live trades in actual six-figure accounts. The trades we make AREN’T recommendations, mind you… they ARE an ongoing demonstration of the RadioActive Trading style of risk management along with ten techniques for adjusting risk while taking out money… that we call “Income Methods”. Read the rest of this entry »

Critics Question: On March 21st, Google was at $397. I bought 1000 of the JAN 2010 350 Calls for $73. Today it’s worth over $240,000…The same $73,000 would have bought me 200 shares of Google and the 420 strike put option was a ton of money. But today the put is worthless and would it not just take away alot of profits??

RadioActiveTrading Staff Answer: Although Married Puts and Long Calls seem to have the same risk/reward profile, Long Call positions can be over traded and take on too much risk. Yes, the GOOG position worked out, but we never know the future. Here is a different example of how the Married Put would have been a better trade compared to a Long Call position: Read the rest of this entry »

You have to decide for yourself if putting the time and effort into a married put trading strategy is “worth your time”. But you’re not alone! Investors have contacted us with similar concerns and questions. They want to know if trading any strategy themselves is going to be better than just buying into an index ETF and/or better return than their “advisor” can do for them. Read the rest of this entry »

Today, you get to look over my shoulder and read my mail… and see one of the BIGGEST reasons why the covered call selling crowd is DEFECTING… we’re talking about a mass exodus… and learning how to trade a much safer, much better options trading strategy.

Cari Houston (C.H.), a covered call seller, called me up and asked me to give her proof that she should trade married puts instead of covered calls. She also wanted me to critique of her two covered call trades and show her how she might have done better. Read the rest of this entry »