New ROST Trade in the Plain Vanilla Portfolio

Just picked up a new RPM for the Plain Vanilla paper trading Portfolio! During this afternoon’s webinar we saw a Ross Stores trade pop up on the patented SmartSearchXL tools on PowerOptions. Mike Chupka tweaked one or two settings in our default RadioActive Search, and we had a couple of opportunities for ROST, Ross Stores, and I felt good about this one:

ROSTRoss Stores Inc. Buy to Open400@$38.33
REQWTROST Nov 2009 42.5 PUT Buy to Open4@$6.60
Bought shares of ROST$38.33
BTO Nov 09 42.5 Put+$6.60
Total Investment$44.93
Guaranteed Return-$42.50
Total amount AT RISK$2.43or 5.4%

Since this RPM only risks $2.43 per share, I could pick up 400 shares with 4 NOV 42.5 Puts so my total risk on a $100,000 portfolio is less than 1%. Remember, the Plain Vanilla Portfolio is a paper trading portfolio where I am only using Income Method #1…I am not actually using my own money to enter this trade? Why? Because if I am opening a RPM for the Fission account I want to use ALL 9 INCOME METHODS discussed in The Blueprint to lower my risk, Bulletproof the position and potentially earn profit, never risking more than 5.4% on the entire position.

But hey, I wanna share for free with everyone how simply limiting your risk to single digits and only using Income Method #1 is still a good idea for volatile markets. Watch this one with me and look for future updates, and explore how you can get help designing with AI through leonardo.ai to present strategies in a more engaging way.

About admin