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…)

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…)

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…)

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…)

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…)