Monthly Archives: March 2009

New IM#1 for the SLGN RPM in PLAIN VANILLA

EQDEK SLGN May 2009 55 CALL Sell to Open 3 @ $1.90 During this afternoon’s webinar, Mike Chupka and I looked at our Plain Vanilla trades using the PowerOptions Portfolio tools. Initially, we saw that …Read More

New Income Method #1 in PLAIN VANILLA today

Okay, so here’s an adjustment to the “Plain Vanilla” PNRA RPM. “Plain Vanilla” means that for these trades I’m only showing Income Method #1: Selling a Covered Call.

How many trades will you make in FISSION?

There is no guarantee for a number of FISSION trades per month…just like you wouldn’t put on new trades every month in your own account if you don’t feel the market conditions apply, or if …Read More

How much cash should I allocate when I trade?

Remember the principle…FIST, Forced Ideal Sized Trade. A good rule of thumb is to limit your risk in an RPM (radioactive profit machine) to single digit risk, like 3% to 8% is great. AND…that percentage …Read More

Can’t I just buy the stock again if my call is assigned while I still own the put

This is a feasible solution…But, the risk profile of the trade would change significantly if you repurchased the stock at a much different price than where you were called out. If the stock was assigned …Read More

Why not use a Bull Call Debit Spread instead of a Bear Call Credit Spread

By itself, a Bull Call Debit spread would work better on a bullish stock over a Bear Call Credit spread.  But, in the context of an RPM the Bear Call Credit spread behaves much differently …Read More

All Investors Have a Serious Problem!

What’s the problem? Well, here’s the deal… Recently I had the experience of having a stock go down 11.1% while I was holding it. That was over the course of 51 days holding time. Thing …Read More

Long Calls vs. Married Puts

Question: What is the advantage of buying stock with an in the money married put over just buying the call of the same strike price to start the trade? Answer: The most powerful benefit is …Read More