Here is a new trade for the Plain Vanilla Virtual Portfolio! Using the patented Search tools on PowerOptions we came across SWN which looks promising…and familiar. I had actually traded SWN before and the trade was used as an example in the webinars and live seminars on the application of IM #6!
SWN | Southwestern Energy Co. | Buy to Open | 300 | @ | $46.34 |
TKQXK | SWN Dec 2009 55 PUT | Buy to Open | 3 | @ | $12.20 |
Bought shares of SWN | $46.34 | |
BTO Dec 09 55 Put | +$12.20 | |
Total Investment | $58.54 | |
Guaranteed Return | -$55.00 | |
Total amount AT RISK | $3.54 | or 6.0% |
Now, we are using SWN in the Plain Vanilla virtual portfolio to demonstrate the advantages of limiting risk BUT only using Income Method #1. If I were to put real money in this trade, I would use the Fission portfolio so I could have all 9 income methods at my disposal…remember, the Plain Vanilla trades are merely virtual trades.
All right folks, let’s see what SWN does for us virtually, this time around!