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…