A Visual Guide: How To Bulletproof Your Stock

Is it possible to have a "Bulletproof" stock? Yes, if you know these techniques and conditions allow 

PROBLEM: Fear of LOSSES in an Uncertain Market

Many investors think that Protective Puts would hurt their stock trading profits. 

But the Protective Put structure gives you:

  • the unlimited upside potential that goes with stock ownership,
  • while also giving you tight control over losses, say 4-6% of your total investment

With a Protective Put assembled according to the instructions in the mini-course below, you instantly go from risking 100% of your capital to risking just 4-6%.

Meanwhile, the high growth potential that goes with owning stock is still in place!

IN other words... heads you win. Tails, you can't lose much.

Think for a moment for what that kind of control would mean to your account:

We've done surveys for over ten years. 94% of experienced investors said that if they could keep the wins from the previous year, but "trade in" their actual losses for 4-6% losses instead... they would do it in a heartbeat! 

How about you?

If gave you a "second chance button" to go back in time for JUST your losses, that would convert your losses from whatever they were to 4-6%... would that be useful?

Check these risk/reward graphs and see if you might want to start using this technique:

A properly structured put option can reduce possible losses to 4-6%, with unlimited potential upside

You might think, "So... 4-6% possible losses, versus unlimited growth is amazing.
But..! Why don't I just use a trailing stop-loss order to keep my losses that low?"

Sounds great, but it isn't that simple. Fact is, a "stop-loss order" is just a market order that gets activated any time your stock trades lower than the "stop" price.

In  an overnight move, if your stock opens lower than the stop-loss order... that's the price you get out at. Ouch.

Even if a stop-loss takes you out of a trade during the day, it may be a much higher loss than you thought you signed up for. Experienced traders call this "slippage".

But a properly configured Protective Put guarantees your exit, all the way to expiration. It can only lose 4-6% at any time... most times even less than that.

Step Two: Generate Income to Pay For Your “Insurance Policy”

So, using long-term Protective Puts gives you long-term protection. 

Meanwhile, multiple near-term plays can generate income to pay for your put option. 

When your cost basis for the Protective Put gets whittled down to less than the put’s strike price… you are “Bulletproof”!

Capture near-term premium to offset the put's cost. When your put is paid for, you are Bulletproof 

"Bulletproofing" doesn't alway happen. Capturing enough premium is subject to market conditions. But it happens for our Students more often than you might expect.

"Wait," you're saying now. "Bulletproofing means risk is GONE, but my stock can still go up? How is it done again?"

You buy "stock insurance" in the form of a put option, to put the brakes on in case the market falls hard. During the time your stock is protected, you do "Income Methods".

There are twelve Income Methods. When the captured premium from these near-term plays balance what you've paid for your put option, you can no longer lose any capital. 

What's an example of a way to generate this income?

Well, the most popular way to generate near-term income is to sell a covered call

Doing a covered call with a married put can increase your risk instead of limiting it. Learn the techiques that leave your upside open instead.

But that can be dangerous! I don't recommend it. Selling a covered call the wrong way may actually increase your risk. You might lose if your stock goes up OR down!

The Blueprint Course is intended to teach you how to execute near-term plays without increasing your risk. 

There are twelve ways to generate income without selling a covered call, resulting in risk/reward graphs with extremely low risk, but high potential. Then you can enjoy:

  • near term income while sitting on your stock,
  • lesser and lesser ownership risk every time an Income Method is executed
  • the possibility of a "Bulletproof" position after the Protective Put has been paid for

After you address risk, using the Income Methods may result in a Bulletproof position.

Step Three: Manage Your RadioActive Profit Machine for Income

There are twelve Income Methods in “The Blueprint Course”.

Some do well in a rising market... some in a falling market... and others do well in a sideways market. 

The Income Methods are near-term adjustments in which you respond to changes in the market to capture premium… lower risk… and sometimes BOTH.

But after your stock is bulletproofed, then what?

Well, you could sit for a while and see what your stock is going to do. Nothing to lose, soooo....

...or if you want, you might continue to apply Income Methods to capture current, spendable dollars... again, without necessarily selling your stock.

Even when "Bulletproof", you may still capture premium with Income Methods during the put's term

So you've seen how options can be used to modify your stock's risk picture, enhance returns... and  even eliminate risk completely in some cases (Bulletproofing).

So what's next?

The Blueprint Course will walk you through how to put a fence around your stock so it can't lose more than 4-6% during the period it's insured...

...how to use as many as twelve "Income Methods" to reduce risk further, enhance returns, or BOTH... and how you may be able to Bulletproof your stock. 

RIght now we are caring for a small number of Students that purchased the course, so it isn't available right now. But don't despair:

The Blueprint Course will be available for purchase on Saturday, September 21, 2019 and classes begin with LIVE examples in the market on: Monday, September 23, 2019.

But while you're waiting, join the waitlist and get a free mini-course that shows:

  • the basic setup... how to configure your Protective Put to risk 4-6% or less, 
  • how to do Income Method #4 to reduce your risk even more, and 
  • Income Method #6 to take current income without limiting your stock's growth,

To get on the waitlist for the Blueprint Course and get your free mini-course, click this button or link. Then enter your first name and email address.

Your first free lesson will arrive instantly, teaching you:

  1. how to protect your stock (reduce risk to 4-6%) and 
  2. how to do two of the twelve Income Methods (not covered calls)
  3. the secret of Bulletproofing

Kurt Frankenberg, the

"Champion of Married Puts"
​lost his life savings in a covered call trade.

He vowed to learn how to keep assets under protection, 

...while using techniques that hedge fund traders use to generate income.

Kurt pioneered "Bulletproofing".

Kurt's book, The Blueprint has sold in 38 countries and counting.

Now, The Blueprint is available as a course. 

Look for the next release of the The Blueprint Course on September 21!

More about The Blueprint Course and RadioActive Trading


About the Author

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.