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:

ROST Ross Stores Inc. Buy to Open 400 @ $38.33
REQWT ROST Nov 2009 42.5 PUT Buy to Open 4 @ $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 $2.43 or 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!

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