Archive for July, 2009

IM#1 to the LFC position in Plain Vanilla

Thursday, July 30th, 2009

Just added an Income Method #1 to the LFC Plain Vanilla trade. This will reduce the risk of this paper traade somewhat but still leave some room for extra profits.

Remember, these trades are not recommendations or suggestions of what you should be trading, we just want to show the RadioActive principles in practice and how they can work in any market. I only use real money in my Fission Trades, where I apply all 9 Income Methods to my limited risk RPM’s.

Okay gang, let’s see how this trade pans out through August expiration.

New IM#1 for AAP RPM in Plain Vanilla

Tuesday, July 21st, 2009

By selling this call we have essentially bulletproofed the AAP virtual trading position. We still have about a total of $12 at risk on the position if AAP has a massive decline by August, or about $0.04 per share…but, if that was the case we would still have time value remaining in our long put option. What does that mean…Hey! We’re basically Bulletproof on the virtual AAP trade!

Keep an eye out on Thursday for other possible IM #1 trades in the Plain Vanilla virtual trading account!

Hidden Ways to BULLETPROOF Your Stock Position

Wednesday, July 8th, 2009

In this issue you’ll discover a hidden source of fuel for BULLETPROOFING your stock. Here’s a little-understood phenomenon in trading an ITM (In-The-Money) put option with a stock: as your stock goes up, the time value in your put may actually go UP. Very often I will hear an objection to buying a married put: “You CAN’T make any money with that idea because as the stock goes up, the value of your put goes down!” Well, kinda… (more…)

How many trades can I expect in FISSION?

Tuesday, July 7th, 2009

Depending on market conditions, we may be able to apply more Income Methods and enter more trades.  For example, in the middle of June, there were two trades made; one Income Method applied to a previous position and one new RPM was opened.  The week before that there were about 5 trades made, some that were Income Methods on existing positions and two new RPM’s were opened. (more…)

Using RadioActiveTrading Methods with Covered Combinations

Tuesday, July 7th, 2009

Q. I have read The Blueprint and want to try your strategy in the following manner:

  1. Buy stock XYZ today at 50.00
  2. Buy Dec 57.50 Put at ???
  3. Sell July 57.50 call at ???
  4. Sell July 42.50 put at ???

I like this position if the stock goes up or stays in my range. If it were to go down to 42.50 and threaten an assignment, I can buy the stock on assignment, buy back the Put, or roll the put down and/or out to temporarily avoid the assignment. What other options do I have that might be better choices and more profitable? Are there any? (more…)

Don’t time trades… Trade TIME!

Tuesday, July 7th, 2009

In this article we’ll explore one of the great keys to trading RadioActively: the phenomenon of options premiums swelling ATM (at-the-money).

This phenomenon, and particularly what you can DO with it, is consistently overlooked by folks that still believe in timing trades and using stop orders to time their trade exits. (more…)