RadioActiveTrading Blog

Archive for October, 2009

Why TEN Income Methods? Part 2

Tuesday, October 27th, 2009

IN the last installment of this blog, I mentioned that it was important to have more than one “arrow in your quiver” when it comes to playing the current market conditions.

I then went on to lambaste the strategy of selling covered calls… NOT that it’s necessarily a bad practice overall. It’s just that covered call selling is a trading strategy that’s only appropriate for one specific kind of market: sideways and choppy. In a market that’s trending up or down, covered calls are a losing proposition.

Unfortunately, there are so many gurus and groups out there that are “one-trick ponies”… claiming that covered call selling is the best strategy for ANY market. This way of thinking is not only incorrect, it’s DANGEROUS… as anyone that held unprotected stocks through the crash last year can testify.

So what’s the answer? (more…)

Posted in RadioActive Profit Machines | 13 Comments »

Why TEN Income Methods Used in RadioActiveTrading?

Friday, October 23rd, 2009

WHY should a trader learn to do more than one options trading strategy? In today’s trading environment, it’s important to have more than just one arrow in your quiver.

The most familiar option play (other than speculatively buying a call or a put) is selling a covered call. There are a number of online trading workshops, sit-down seminars, books, videos and trading newsletters ALL geared to teaching this foundational trading strategy.

But when you really get right down to it, selling a covered call against stock that you own is a losing game except in a very specific market environment: sideways and somewhat volatile. (more…)

Posted in RadioActive Profit Machines | 6 Comments »

A BULLETPROOF Trade and Why it Pays to be Bulletproof

Wednesday, October 14th, 2009

In today’s issue, the single most important piece of your trading puzzle: RISK MANAGEMENT.

I’m going to take a moment to talk to you about a RadioActive Trading term, BULLETPROOFING - that is, taking a stock and option structure and converting it from low risk to NO risk… and why it’s important in this market to be familiar with how exactly to do that.

As you may know, I trade two accounts: Fission’ R3, which stands for Real Time, Real Money, RadioActive - and the Plain Vanilla portfolio. (more…)

Posted in PLAIN VANILLA | No Comments »

Questions Regarding the Blueprint and RadioActiveTrading Methodology

Friday, October 9th, 2009

Question: I have watched with interest all of your you tube stuff, read the sketch, done some independent research. I have been searching for a way to generate reasonable income for the day comes when I have to live on my retirement account. I have seen it all, read all the decent books (McMillan etc.) and tried various techniques using stocks and options with what I call my “learning account”. (more…)

Posted in RadioActive Profit Machines | 1 Comment »

Collar Searches on PowerOptions for the RadioActiveTrading Methodology

Friday, October 2nd, 2009

There are several default Collar searches that are set up in PowerOptions for different market conditions. There is no default Collar search for the RadioActive Strategy, as we never sell the call right away after we open the Initial Married Put / RPM trade. With this method, selling the call right away can result in significant losses, not on the downside but on the UPSIDE. If I sell a call below the put strike price because of the premium, I run the risk of getting assigned if the stock spikes resulting in a significant loss below my cost basis.

Before I go into further details, let me break down the default Collar searches on PowerOptions. To access these searches, simply click the Collar tab and select ‘Search’: (more…)

Posted in RadioActive Profit Machines | No Comments »

How a Karate Instructor learned to limit risk to 5%:

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. After reading The Blueprint, you'll understand what I mean by that.

After making and losing what seemed to me like a fortune many times over, I finally decided to step back and see what it was that made some people fail and others succeed. I found that there are certain skills that successful people have in common, even though their personality and approach to the market may be different. I also found that the approaches that emphasized longer terms of holding, trading with the long-term trend, and having money management rules did the best. One thing was lacking, however, and that was a true understanding of how to reduce one's risk by managing time. It is this principle that all RadioActive Trades are founded upon.

After looking at the potential of the married put, I hit on the idea of using other options strategies for income. The result of my study is a system that I outline in The Blueprint. The system allows the potential upward growth that goes with owning an explosive, winning stock. At the same time, it limits a loss in the position to whatever risk you are comfortable with. The beauty of the system is that if the bottom falls out of any investment, the most you can possibly lose is the risk amount you decided was acceptable when you entered the trade. Even if the company comes out with news of "accounting discrepancies", you can't possibly lose more. But you can gain! It's a matter of math. I call my method "The RadioActive Profit Machine" or RPM for short.

RPMs, or RadioActive Profit Machines, are built using components that are available to any investor with $2,500 or more to trade. In the case of working with real radioactive materials, one configuration can make a destructive device. Another arrangement of the same materials produces the cleanest burning, most efficient power source known to man.

The Blueprint actually walks you through each step of a RadioActive Trade. It will show in detail how to find stocks and options that meet the criteria for an RPM (RadioActive Profit Machine). After assembling an RPM, you'll want to know what the buy, sell, and income signals are. There are at least 10 different ways to take out profits, whether a stock moves up or down.

After learning my story and seeing my RadioActive Trading methodology, Ernie Zerenner, President of the Power Financial Group, Inc. publishers of PowerOptions®, started using it and decided to buy it for his PowerOptions subscribers, many of whom were trading covered calls and calendar call spreads with no protection against a downturn in the market (like most of 2008).

We pledge to give every investor the knowledge, services and tools that they need to be successful investors. Whether you prefer to use self-directed tools to find and manage your trades or you prefer to trade along with our picks and management we publish in Fission - Power Financial Group, Inc. has what you need to be successful and protect your invested assets (capital preservation). This site offers some free and some "pay-as-you-go" investor eduction, and the implementation products so you can quickly and easily start using this methodology to start trading.