Guess what I just did during the Live Webinar…BULLETPROOFING!
UPAEL | PNRA May 2009 60 CALL | Sell to Open | 2 | @ | $2.60 |
We previously sold an April call for $1.15 on PNRA that had just expired worthless and reduced our initial at risk amount. We opened PNRA with an initial risk of $3.87, but reduced that risk down to $2.72 per share when our April call expired worthless.
Today, using the PowerOptions Portfolio tools Mike Chupka showed us that we could collect $2.60 per contract by selling the May 60 call (UPAEL). This essentially BULLETPROOFS the position…we only have about $0.12 per share remaining at risk (or, $24 for the 200 share virtual Plain Vanilla Trade). Even if PNRA goes above $60.00 per share at May expiration, we still have time remaining on our Put option that will cover that remaining $0.12 at risk! BULLETPROOFED!
Look forward to other Plain Vanilla trades that may come out during our Thursday session, which will be held at 12 NOON Eastern Time.