Before I get started, I want to send out a big thanks to Allan for pointing out the Radio Active Course for this review series!
If you’ve followed my expedition into the world of options trading for any length of time, you know I have a nemesis and its name is CLF.
*cue dramatic villain music*
CLF and I go all the way back to some of the earliest trades I made, however CLF has not made me happy. Take a quick glance at the chart below and you’ll see why…I got in at the green arrow or a cost basis of $19.80
My trades with CLF continue on still today with prices hovering in the $5-7 range. If I was smart, and especially since I was just beginning my trading foray, I would’ve bought a put along with CLF when I was assigned shares to reduce my downside risk.
But I didn’t and that’s why I’m still stuck trying to “fix” this trade.
In steps the Radio Active Trading System.
The tagline for the Radio Active Trading System, which can be found at (you guessed it) www.radioactivetrading.com, is
How to Limit Risk and Leave Your Upside Open with Married Puts
Huh…sounds like a good idea to me!
According to the info on his site, it all starts with the Married Put. What is a married put?
I turned to my friend Investopedia to find out.
An option strategy whereby an investor, holding a long position in stock, purchases a put on the same stock to protect against a depreciation in the stock’s price.
Got it…own a stock, buy a put. Pretty straight forward.
I quickly relinquished my email to Kurt Frankenberg, the founder of Radio Active Trading, in exchange for something called “The Sketch”.
The “Sketch”, again according to the Radio Active Trading site, will show me how to maximize wins and limit losses early (sounds good), provide clear examples and trade setups (ok), and is unlike any other strategy…hmmm, we’ll see about this.
We’ll get into the details of “The Sketch” in the next post. Until then, if you’ve traded using the Radio Active Trading system I’d really like to hear from you so we can share your thoughts.
If you’ve traded using Married Puts before, I’d also be interested to hear about your results. I’ve never employed this strategy, but the potential for limited losses intrigues me!
Until we next meet, happy trading!