In this issue, the surprising reason why folks that have been hurt by ‘covered call gurus’ and other charlatans aren’t getting what they’re searching for…

I got “Google slapped”.

For those of you that don’t follow internet marketing, a “Google Slap” is when GOOG suddenly makes a change in the way it treats a site that pays it for advertising. The result is high, HIGH amounts charged to the advertiser. Or they simply quit running your ads altogether.

That’s the case with me right now.

Don’t get me wrong… I think that Google has a right to decide for whom they will advertise (or NOT) and what they will charge. That’s one of the beauties of a free market and I stand behind it.

HOWEVER..!  It seems that instead of the watchwords caveat emptor (BUYER beware) we are practicing ‘caveat Google’. 😉

For “Google” to truly “decide” whether or not RadioActive Trading deserves a place in the search listings… then Google must know whether or not what we say is true. So should you.

Here’s the deal: RadioActive Trading is temporarily off-reservation in the Google world (though they have managed to accept tens of thousands of dollars from us in the past) because of a policy of theirs meant to protect the public.

“I lost seventeen pounds in ten minutes… without dieting or exercise… and I feel GREAT!”

“This revolutionary carburetor lets my car run on WATER!”

“My married put position is Bulletproof, meaning that it can gain more, but CAN’T LOSE!”

Hey, guess what? Outlandish or not, ONE of the claims above could be true 😉

Hey Google! I know you are trying to protect the public from being duped. So are we. I wrote The Blueprint in 2002 with the express intent of helping people that had been sucked into the idea of 3-6% monthly returns using covered calls.

(Now, I suppose like unicorns and leprechauns… a covered call seller that makes 3-6% per month, every month in any market, without losses COULD exist. But I have yet to see one.)

What I HAVE seen here in the US of A… and in at least thirty countries around the world… is folks that have been able to ‘Bulletproof’ their stock. By buying a put option and using the Income Methods to reduce net cost basis… countless traders have been able to create a situation in which they can win, but can’t lose.

We do it all the time.

But “Bulletproof” and “can’t lose” are terms and phrases that Google seems, at least for now, not to be able to swallow. But what about our readers? Could they possibly be intelligent enough to decide for themselves whether that claim is true?

I must warn you, august reader… if you proceed beyond this paragraph and read how I helped a client to Bulletproof his stock… you are NO LONGER under the wisdom, guidance and protection of Google.

So, I had a fella with shares of MCD that he had at a cost basis of $22.15. At the time, (early 2010)  MCD was trading at over $65 a share.

My client had a problem: he WANTED to do income-producing strategies like covered call selling… but did NOT want to cap his upside potential.

Further… he wanted to continue to collect dividends, but DIDN’T want to see MCD fall below $50 a share. He was nervous that if he sold MCD it would continue up without him, but was also nervous that if he continued to hold MCD it would lose value and cost him money that way.

Oh… and did I mention that he liked the idea of insurance, but didn’t like the idea of paying for it?

Wow. Tall order. Let’s see about selling a covered call for income:

Covered Call caps upside and doesn’t pay much

Married Put: Pay for Insurance Policy

Naw, that caps the upside.

Let’s buy a put:

Aww, that’s right. You pay for insurance with that one. Pay over and over and you end up with no net profit.

Collar Only Works in Tight Price Range

Hey, I got it! Let’s buy a put and finance the purchase with a long call!

Nope. Now instead of one, there are TWO directions in which I could lose.

Ready for the RadioActive Trading Solution? Thought so. Check this out: We bought a far-out in time put option, and actually PAID for the put by selling a near term Bear Call Spread.

RadioActive Compound Position: Unlimited Upside, Current Income, Bulletproof

Insured Stock, Unlimited Upside, Zero Net Cost For Options

This particular set of Conditions, Expectations, and Goals on the part of the RadioActive Education client called for a put option plus Income Method #6: A nested, early expiration bear call spread.

Don’t look now, but I think the RadioActive Trading solution provided everything we had in mind:

Receive dividends? We’re long on stock.

Need protection? We bought a put option.

Was the put insurance affordable? Shucks, the Jan 2011 put was PAID FOR by selling the June 2010 Bear Call Spread.

In case you hadn’t thought about this… with protection clear out to Jan 2011, our client could use Income Method #6: a near-term, nested Bear Call Spread SEVERAL times before expiry. Then he might get insurance again!

But Kurt… what about being BULLETPROOF… having no more risk but still having that unlimited upside you were talking about?

Well, take another look at the graph. It looks suspiciously like long stock… only WITHOUT a break even line. That’s because there isn’t one. You can’t possibly take less out of this position than it cost to put together. Meanwhile, the stock can continue up and bring the owner greater gains!

If the Bear Call Spread goes against the user, we’re looking at a GAIN in the stock that more than offsets the buyback cost. Then the long call takes over as MCD continues skyward.

In other words, the stock retains unlimited upside potential, while paying our client a dividend AND premiums for consecutive bear call spreads. If the stock absolutely tanks, he gets to exercise the put a stay a winner. If he never exercises the put, that’s fine because it has no net cost basis.

BEST part: if MCD wants to keep going up, he doesn’t have to feel like a chump for selling early.

Wow, sounds Bulletproof. Almost like you CAN’T LOSE, no matter which way the market goes. How d’ya like THEM apples, Google? 😎

We-e-ell… I DO want to keep Google as an advertising venue, so that more folks can learn how to really reach their goals… while staying out of trouble in case the market goes sour. But Google isn’t the only way to get the message out.

In fact, I’m willing to bet that after reading THIS message, YOU’LL want to have a second set of eyes on it. If you’re thinking of sending this on… please do! And don’t forget to leave your comments below.

Other Income Method and Bulletproofing Resources

Hey, didja dig this post? 😉 Make sure and share the love by commenting, liking, sharing it with a friend. And if you’re hot on these ideas of ‘nested spread trades’, ‘Income Methods’, and ‘Bulletproofing’… here’s is a short list of other free educational resources sponsored by RadioActive Trading:

Double Dippin’… Taking Even More Premium Than Covered Calls
Catching Premium Better Than Covered Calls: The “Money Net”, Part Deux
This Simple Trick Made My Stock BULLETPROOF
Coaching Client Steve S., Makin’ Star-BUCKS…
What on Earth Is a Nested Spread Trade?
Options Trading Wisdom From The Art of War


For Free Options Trading Educational Webinars Every Tuesday and Thursday, Register HERE

For a free two-week subscription (no CC needed) to the PowerOptions “Search and Destroy” Platform for finding, managing, and BULETPROOFING these kinds of trades, Register 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.