Trader Question: I am intrigued with your approach and am considering buying the Blueprint. However, I am only permitted to trade protective puts and covered calls, and am doing so with dividend paying stocks. I also cannot use margin. Thus, I am concerned that the additional methods (other than covered calls and dividend paying stocks) in your Blueprint will not be available to me.
Kurt’s Answer: I understand your concern but almost all of these adjustments are allowed to folks that are cleared for covered calls trading within their IRA. I never advocate the use of margin.
I recently sent an update to Fission‘ subscribers detailing my experiences with Schwab and Scottrade, VERY conservative brokers.
In it, I showed how you are able to do ALL Income Methods except 5, 7, and 8…meaning that 1,2,3,4,6,9 and 10 are still available.
I even have certain workarounds for Income Method 5.
Pick up The Blueprint! I’m sure that you’ll be glad that you did, ESPECIALLY if you are using protective puts already. The Blueprint is the distillation of my own experiences plus my correspondence with thousands of Subscribers over the last seven years. We’ve learned a thing or two about how to conservatively place, manage, and fine-tune these positions in that time 😉
I'm Kurt Frankenberg, and I have discovered how to truly put the odds on the side on the individual investor.
Kurt
After reading your response above, I decided to order the Blueprint, and am very glad I did. I’m also trying out the Fission product for a month. So far, I continue to be intrigued. I’m a conservative investor, am retired and am trading in my IRA, so a methodolgy that starts by locking in my maximum loss is right up my alley. Thanks for responding to my first inquiry and encouraging me to try this out.
You’re welcome! Thanks for getting The Blueprint. It’s kind of a long book, but I’m told the short chapters and brisk style make for a quick read.
You get support with your purchase. If you have any questions or need clarifications, write me at kurt@radioactivetrading.com, or address any general question to support@radioactivetrading.com. Also, consider getting the free two week subcription to PowerOptions at http://www.poweropt.com/rat. They have a married put search and management platform that’s geared to the specific needs of RT’ers.
Happy Trading!
Kurt
Hi Kurt,
I’m very interested in BluePrint but since I’m trading in IRA they are not allowing me to sell covered calls while I’m holding puts at the same time. I’m cleared for Level 1 trading.
Any help?
thanks,
Aleks
I have a multi-step procedure for dealing with this problem once and for all:
1) Ask to speak with someone that has a pulse.
2) Point out that married puts predefine risk, as do collars, whereas covered calls do NOT… and they’re lettin’ you do that already.
3) See if the manager/broker/owner has their head lodged within their hindquarters… they MAY just grant you a higher clearance or at least allow the trade if you are working with a broker in the office.
4) If the above procedure doesn’t work, CHANGE BROKERS. It’s ridiculous to allow you to do risky strategies like buying long, unhedged options without reference to the capital that you have on hand… or allow you to do covered calls without protection… and say that it’s in your best interest. Geez.
Oh, and YEAH. They really really really should let you do this in your IRA. Try this out and if you can’t get anyone with a lick of sense on the phone, then I can suggest a number of brokers that will let you roll your IRA over.
Happy Trading!
Oh, and YEAH. They really really realy should let you do this in your IRA. Try this out and if you can’t get anyone with a lick of sense on the phone, then I can suggest a number of brokers that will let you roll your IRA over.
Happy Trading!;
Kurt,
Thanks for the reply. I did call them and one of the agents said it’s their policy for retirement accounts and nothing can be done 🙁 So, I’ll take a look at some other brokers.
P.S. what would be your recommendation as far as length of the protective puts? Meaning how far in advance you consider it? Is there any predefined period of time or it depends on specific stock situation?
Thanks
Alex: We look for initial married put trades that are 190 to 900 days out. Most end up being about 4 to 6 months away when we begin. From there, we may adjust timing based on what the individual stock does and how long we want to be in the trade. All of the adjustments are taught in great detail in our book, The Blueprint. Find it on the RadioActiveTrading.com site under products…it will change how you invest and look at investing forever!