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!
I'm Kurt Frankenberg, and I have discovered how to truly put the odds on the side on the individual investor. It uses a principle that has been in front of our eyes all along, but is rarely used or understood. Other systems advocate treating the stock market like a business. My system really does.
Recent Comments