New RPM in Plain Vanilla for China Life Insurance Co. Ltd. (LFC)

Here is our second Plain Vanilla virtual trade for today. Since AAPL is a relatively high price, I decided to take a slightly lower priced stock as well:

Bought shares of LFC $57.92
BTO Jan 10 65 Put +$11.70
Total Investment $69.62
Guaranteed Return -$65.00
Total amount AT RISK $4.62 or 6.6%
LFC China Life Insurance Co. Ltd. Buy to Open 200 @ $57.92
LFC MM LFC Jan 2010 65 PUT Buy to Open 2 @ $11.70

Now, why did I do 200 shares of LFC and only 100 shares of AAPL? Well, even though this is a virtual trade and I am not using real money on the Plain Vanilla trades, I still want to follow the rules for my method that are in The Blueprint. Each of these new position is only at risk for less than 1% of my total Portfolio value…

Okay, let’s see how Apple and China Life Insurance play out in our virtual Plain Vanilla Portfolio!

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