New Bulletproofing Trade in PLAIN VANILLA
Tuesday, April 21st, 2009Guess what I just did during the Live Webinar…BULLETPROOFING! (more…)
Archive for April, 2009
New Transaction Added in PLAIN VANILLA
Thursday, April 16th, 2009
| Bought shares of SY | $30.71 | |
| BTO Sep 09 35 Put | +$5.90 | |
| Total Investment | $36.61 | |
| Guaranteed Return | -$35.00 | |
| Total amount AT RISK | $1.61 | or 4.4% |
| SY | Sybase Inc. | Buy to Open | 400 | @ | $30.71 |
| SYUG | SY Sep 2009 35 PUT | Buy to Open | 4 | @ | $5.90 |
Happy Thursday, Plain Vanilla followers!
Just a few minutes ago we selected a new Plain Vanilla RPM during our free afternoon webinar. Thanks to the tools on PowerOptions, Mike Chupka was able to pull up a list of possible low risk RPM’s. In less than a second we found only a handful of positions that matched our requirements.
We first looked at Intuit…but, I was not too happy with the way that stock was trending. However, this Sybase position looks pretty good. With a low risk of only about 4% and an unlimited upside potential return.
This is not a recommendation…I just want to show everyone how important it is to focus on LIMITING RISK first, and then applying income methods to reduce the risk. I am not putting my own money on the line here, as we are only using income method #1 for the Plain Vanilla trades. In the Fission account, I do put up on my own money as I am applying all 9 Income Methods on the Fission positions.
Well, let’s see how Sybase rolls, and look for other announcements as we head into expiration…
Transaction Updated in PLAIN VANILLA
Thursday, April 9th, 2009| AAPEI | AAP May 2009 45 CALL | Sell to Open | 3 | @ | $1.15 |
During our Thursday webinar I was getting excited to potentially close the Panera Bread IM #1 for a LOW premium to really lower the maximum risk on the position…
But during the presentation she kept going up, so the closing cost was not what I wanted…and with only 9 days to April expiration, we might just wait to make an adjustment on the PNRA position later on next week.
BUT…thanks to the wonderful tools on PowerOptions, Mike Chupka was able to show me a good IM #1 opportunity on the AAP Plain Vanilla trade. With just a few clicks, he showed me that we could lower our risk on AAP today almost in half by selling the May 45 call. So here it is gang, a new IM #1 added to our virtual Plain Vanilla portfolio. Remember, since I am only using IM #1 I am not using real money on these trades, we are just showcasing how you can setup an initial RPM and how IM #1 can be applied against it. Hey, if I am putting my own money on the line I want to use all NINE Income Methods as I do in the Fission portfolio.
Hoppy, Hoppy Easter to all, and we’ll see about making further adjustments to our Plain Vanilla trades next week!!!
Transaction closed in PLAIN VANILLA
Tuesday, April 7th, 2009| EQDEK | SLGN May 2009 55 CALL | Buy to Close | 3 | @ | $0.90 |
Hey Gang!
Looks like we have made a virtual buck ($1.00) so far on our EQDEK call on Silgan Holdings. We originally entered this virtual trade for $1.90, and we can close it today for around $0.90 (the natural ask). This will reduce our initial maximum risk, but we still have unlimited upside potential on this virtual Plain Vanilla trade…
Follow me as I continue to paper trade this RPM as well as the other Plain Vanilla Trades!