New Transaction Added in PLAIN VANILLA

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…

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