Imo, the entry into a position (with a married put) should be made only on a recognizable chart pattern that has a base of longer duration than the protective put. In other words, (to exaggerate it) you shouldn’t make a long term (5 to 6 months) trade based on a 15 minute chart pattern.

I’m a recent subscriber to PowerOpt.com and do not place a trade anymore without a married put. When I realized I could control the risk of every one of my trades, it was paradigm shifting for me. It was the final piece of my trading plan puzzle, so to speak.

I’d just like to say that I believe the answer to Emmette’s question is in part 2 of your slogan. IMO “time” is a critical component (if not the “Holy Grail”) of entering a trade. But not with respect to the put option. It has to do with the stock price itself.

Not to be coy, but If I gave you the answer I would be giving you something that, combined with what you sell, is just as valuable.

I hope I’ve piqued your curiosity. Would love to talk to you more about it.

Here’s what I mean: the two bywords, slogans, savvy sayings of RadioActive Trading:

1) Don’t pick stocks, pick STOPS!

and

2) Don’t time trades, trade TIME!

What these saying are meant to encapsulate are these precepts: 1) More importantly than conducting fundamental analysis, we want to LIMIT LOSS in the event that our stock doesn’t perform as expected and 2) During the life of the trade, we may make adjustments to the position AFTER it has manifested a direction. These adjustments lower risk, capture income, or both.

As to the actual signal that triggers the entry into a position: take your pick. I know that Mike and Ernie do RadioActive Trades, and I do too. Ernie likes to use Bollinger bands, last time we spoke anyway. Mike wants to see a stock go above its 50 day moving average. Me, I mainly look at the fundamentals (to the end of actually ignoring technical indicators) but I like to play the “cup and a handle” pattern sometimes…

Your personal entry triggers can be whatever you like. That isn’t the aim of what I teach in the webinars or even in my book, The Blueprint. What I do show is how to do the more important stuff, the parts that happen BEFORE and AFTER the entry: your homework on limiting risk and your adjustments to the position afterwards.

Since I’ve never found a 100% reliable entry, why would I teach one? Getting in is NOWHERE NEAR as important as getting out as a winner or at least relatively unscathed. That’s the focus of RT.

Hope this has been helpful, Emmette! Write anytime.

First I want to say that in reading and listening to your info it makes a lot of sense and has now got me interesting in protecting and preserving my capitol while at the same time making some consistent, even if small, profit each month.

I am currenting reading “PROTECTIVE OPTIONS STRATEGIES” by Zerenner and Chupka. A REALLY good book that is changing the way I am going to trade in the future.

However, my biggest dilema in the game is figuring out why I should enter a specific trade in the first place. I notice that it rarely if ever happens that whoever I am watching or listening to at the time makes that info part of their presentation. Knowing the mechanics of options is necessary but what determines why you enter your trades?

Thanks a lot for the info that you do share.

Emmette Lang