What Do You Get with A Fission Subscription @ RadioActiveTrading.com

These guys (Fission’ Subscribers) get to look over Kurt Frankenberg’s and Ernie Zerenner’s shoulder as they make live trades in actual six-figure accounts. The trades we make AREN’T recommendations, mind you… they ARE an ongoing demonstration of the RadioActive Trading style of risk management along with ten techniques for adjusting risk while taking out money… that we call “Income Methods”.

The heart of RadioActive Trading is a unique configuration of stock and an “insurance policy” that we call an RPM. The RadioActive Profit Machine is a unique limited risk idea we give away in a free white paper called The Sketch. You can get The Sketch by clicking here, but first take a look at one of my most recent RPMs:

Bought 300 shares CREE at a per share price of $51.73
Bought to open 3 June 2010 $60 put options at +$11.60
Total per share invested $63.33
Strike price of put guaranteeing the stock -$60.00
Total Amount per share AT RISK $ 3.33

Now, that’s 5.3% of the total capital in this trade being AT RISK. No matter what happens to CREE, I can’t possibly lose more than 5.3% of my investment, but there is no limit to how high CREE can go.

Now, I know that SOME folks will look at this setup and think that I’ll only make a penny if CREE goes to $63.34 a share… but that plain isn’t true. In fact, if I close the CREE RPM right now (12/5/2010) my profit will be $540, but CREE hasn’t even gotten to $57 a share yet. But I digress…

The really important piece that I don’t want you to miss about RadioActive Trading is this: the ten different adjustments that can be made to an RPM to lock in a credit. I call them the “Income Methods” and show them to anyone that cares to look over my shoulder in the Fission’ subscription.

The FIRST of ten different unique Income Methods is pretty well known already, so I show it off for free. Selling a covered call is well known for generating income.

To my Fission’ Subscribers I just sent out two updates on the CREE RPM:


Just picked up some pretty little premium by selling to open the Jan 2010 $60 calls for .80 cents.

The earnings announcement happens AFTER expiration so I’m looking for a dip to close or to combine with Income Method #3 in the near term. My Expectation for this CREE RPM is to close quickly with a nice profit.

Happy Trading,


That was followed by a second email. I DID see a dip and closed these calls, locking in a short term credit:


I was going to hold these three short calls until I could buy them back at .45 cents. OOPS! That opportunity came and went this morning. I just closed ’em for a nickel more (.50 cents), locking in $90 income after selling them yesterday at .80 cents.

Thus CREE is restored to unlimited upside potential status, but with a little less risk.

Happy Trading!


Whereas my AT RISK amount in this RPM(RadioActive Profit Machine) HAD been 5.3%, NOW it is down to 4.8% because the Income generated from Income Method#1: Selling a Covered Call brought it down.

Now for the shocker: CREE has gone up a tiny bit. You would think that the put option has lost the same amount of value… but it doesn’t. In fact, because of a very specific combination of phenomena that I call the ATM Bell Curve and the REDLine… the net gain of this position is over $500…

…even though the stock is nowhere near reaching a higher price than the above $63.33 cost: the net price of the stock plus put.

Does it interest you to know that you can take income from a position that has unlimited profit potential, but limited risk? Would you like to know more about how to employ not one, but TEN Income Methods to sap as much as possible from the movement of the markets? Come to one of our twice-weekly FREE trading webinars. Feel free to ask any live questions you like.

About Kurt Frankenberg

Kurt Frankenberg is an author and speaker about entrepreneurship, martial arts, and trading the stock and options markets. One of several "Biznesses" he founded as a teen, The Freedom School of Martial Arts, has been in continuous operation since 1986. Kurt lives in Colorado Springs with his wife Sabrina, German Shepherd Jovi, and his ninja cat Tabi.