Bulletproof from the Beginning

I want to share with you an experience I had yesterday. Actually, I have one version or another of this same experience ALL the time: I bump into someone that owns stock, or can get stock, at a lower price than it’s trading today. We strike conversation, I ask if they would like to see a way that they could have “stock insurance” so that the value of their stock would never go down… AND get PAID to have it.

They always say, “Wow! I never knew you could do that.” I know. A lot of people don’t know that you can absolutely protect your stock from loss and get paid to do it. But it’s true. And I run into people all the time that are in a position to do exactly that: buy an insurance policy so that their stock never, EVER loses ground… and have the cost of that insurance handled, even get paid to do it. I love telling people I meet about this fact.

So, here’s the latest incarnation of that conversation. yesterday I was on the air with my radio program, “It’s YOUR Money“. The regular producer, M.T. was not available but right before the broadcast he introduced me to the man that was going to run the program for me.

It was a great show. Afterwards, the stand-in told me that he had been given shares in a publicly traded, optionable company as a company incentive. It wasn’t a huge amount, mind you… but enough that if he bought a few more shares and a put option, he would have a BULLETPROOF investment.

For those of you tuning in late to the RadioActive Trading convo, “Bulletproof” is the term I use when the net cost basis of your stock and a put option protecting that stock… is lower than the strike price of the put.

Of course, from this platform, you can do as many as TEN different “Income Methods”… ways of extracting cash from the position without necessarily selling stock… and still have a riskless proposition.

Back to the producer. I opened up my PowerOptions account (www.poweropt.com/rat for a free trial) and showed him the graph of a bulletproof position: 100% upside potential, 0% risk.

When I got to the part where he could BE bulletproof, TAKE income, AND… and this is a big and… he could also STILL have an unlimited upside potential for growth, he had a great question for me.

“Shoot”, I said.

“Why doesn’t everyone do this?”

I told him I was trying to change that.

If you are one of many people that are sitting on a stock that’s UP from where you got it… and don’t want to sell too soon… but also don’t want to feel like a chump if the market tanks again and you give back all your gains… OH! AND you would like to take a little bit of cash flow from your investment, right now, without selling…


…check out the continued conversation here.


Happy Trading,



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.