Hey there Traders!
I want you to take a minute and look at the stock chart below:
- Stock moves up, so does “RPM” Married Put. Stock moves DOWN… Put protects to single digit risk!
If you look closely at the above chart, you’ll note that I didn’t make as much money as someone playing just the stock as it went up. Awwww. BUT..! As the stock went down, I didn’t lose nearly as much as someone playing the stock either.
Chew on this for a second: IN both cases I set up Married Put trades that risked at maximum, 6% of the total amount invested. Once I won, once I lost… so…
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Trading Record: 50% wins. Not exemplary.
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Timing: LOUSY. Wrong once… lucky once.
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Entry/Exit: Flawed. Don’t look at this kid as a ‘market prophet’..!
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Bank Account: Now this part I like. It’s UP because I sorted out losers QUICK
When the stock went up, it went up 17.3%, and when it went down, it tanked by 21.8%. Anyone playing the stock only took a bath between those two plays. But..! I made money. The reason is that the Married Put (or Protective Put as it is sometimes called) limited my possible losses down to single digit percent levels. Between the two plays, nearly a thousand bucks was netted 🙂
So while stock players got hurt getting in for a 17.3% gain and getting out at a 21.8% loss during the same times I played it… I had a net PROFIT. Nearly a thousand bucks.
I don’t know about you, but the prospect of being wrong more often than right and STILL making money excites me.
‘Cause I’m NOT always right.
Hey gang, my name is Kurt Frankenberg, the ‘Champion of Married Puts’.
- Kurt Frankenberg, the “Champion of Married Puts”
BTW, “Champion” is used in the context of “one that fights for another”… meaning the ‘champion’ of a cause.
In this business of options trading education, only passing acknowledgement is given to the one strategy that ACTUALLY PRACTICES the famous trader’s maxim: “Cut your losers short, let your winners run.”
Without egotism, let me state that NO ONE has written more passionately, more often, or discovered more ways to use a Married Put trade than this handsome fella above 😎 If you are looking to learn how to keep your risk down in the single digit range… and also be able to use Nested Spread Trades to take money OUT of your Married Put… without necessarily closing it…
Then you need to stay tuned to this channel.
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
YouTube:
http://www.youtube.com/watch?v=5yDIR4t0rjc&list=UUPvzT0P7mUh6IifL6NT3IEw&index=33
http://www.youtube.com/watch?v=m1Y3MnrS3Bs&list=UUPvzT0P7mUh6IifL6NT3IEw&index=1
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
Come check out the free webinar that we do every Tuesday and Thursday at www.radioactivetrading.com. Hope to see you there!
Happy Trading,
Kurt
I'm Kurt Frankenberg, and I have discovered how to truly put the odds on the side on the individual investor.
Hi Kurt,
I see you’re still around. I first caught wind of your strategy back a couple of years ago when I was still very wet behind the ears and basically could only spell “options.” I attended one of your webinars back then, I think it was in 2008 and didn’t really grasp the concept. Since then, I’ve taken some courses and read up some on options and know a little bit more now than I did back then…. only a little bit more. So I’m still learning.
Through my online research, I stumbled into you again on the Internet and am even more intrigued with the concept of your married put strategy. I can’t imagine anything that makes more sense to me if you’re goal is to take money FROM the market instead of donating it TO the market.
I’m very interested in getting my revenge on the market and would like to utilize your married put strategy. I am using tradeMONSTER as my broker. My question relates to stock selection and choosing the stocks that gives you the most premium (profit) per profitable trade. Do you use any kind of stock screening criteria / program to identify the stocks that would be the best candidates to trade?
I’m also wondering if you do anything with the new Weekly options.
If there is such a thing as a weekly trading boiler plate or template with what to do every Monday; every Tuesday; etc. I would love to get my hands on one that is used by successful traders. In other words, I want to get focused, locked in, and be able to duplicate a successful strategy over and over again…. Yes, I want boring and monotonous and routine deposits into my account. I’m not saying I don’t want to adjust or to tweak things because there is always room for improving anything. I kinda know what I’m looking for but I’m just not savvy enough or knowledgeable enough about the market yet to develop that kind of a routine. Hope all this makes sense. Any feedback you could offer would be very much appreciated.
Thanks a million.
Mark
Hiya, Mark! Somehow or other I did not see your post here; another reader’s (Edward’s) posting prompted me to come back here and get you an answer! Please excuse the delay.
I don’t use a ‘boiler plate’ philosophy for each day of the week, but I do have a decision making process for setting up RPMs (RadioActive Profit Machines) and further checklists for using… or NOT using… one or more of the ten Income Methods. The checklist is called CEGA (Conditions, Expectations, Goals, Actions) and detailed instructions are found in my book, The Blueprint. Beyond the CEGA model, a search and management platform is very helpful to screen candidates.
The customizable screen software I use for finding the best candidates to trade is PowerOptions. A free trial is available at http://www.poweropt.com/rat, no credit card required. After two weeks, if you decide to continue using PowerOptions they will prompt you to complete your month-to-month billing and then give you ANOTHER two weeks free. The best part about PowerOptions is that folks in their office also use the RadioActive Trading strategies; the Income Methods are programmed in to the portfolio tracking program. I often see notifications come up saying something like, “Your married put has gained 7% since you first purchased it. You may consider using Income Method #4 to Bulletproof your position, or Income Method #6 to take a credit.”
In case you are interested to see a before/after picture of what your position may look like, if you do decide to execute the Income Method trade, in a few mouse clicks you get to see them side by side in graphic form as well as with a detailed summary of the figures. I can’t say enough good things about the PowerOptions trading platform.
Finally, about developing your trading plan and a routine to follow: The Blueprint teaches how to start. Establishing trading rules that fit your lifestyle, temperament, and goals are a real key to confidence.
Thanks for posting these Q’s, Mark! Again I am sorry about the delay in answering them.
Happy Trading,
Kurt
My questions are exactly the same as Mark’s. But his questions were posed on 17 October, the same date that Kurt wrote his report, October 17, 2011 11:57 am . I wold really like to see a reply to Mark’s questions.
best regards, Edward
Hiya Edward! THANK you for posting your remarks here. I don’t know how Edward’s questions slipped through the cracks but they were good ones that deserved my attention. You brought the spotlight on them and I thank you for that.
Happy Trading,
Kurt
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