"Riskless" Spread Trade Followup, 9/21

Post on 17-Feb-2017

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Transcript of "Riskless" Spread Trade Followup, 9/21

On Sept 16, I uploaded

How to do a RISKLESS “BEAR CALL

SPREAD”

…a spread opened 8/31 that expires 9/30, with NO risk…

SELL TO OPEN $77.50: $2.10 BUY TO OPEN $80.00: -$1.10 TOTAL CREDIT: +$1.00

There’s no capital risk to the spread because we nested it within a “Married Put”…

GILD stock 100 shares $75.70November $77.50 put +$ 3.80TOTAL INVESTMENT $79.50Protected by Put: -$77.50Total Amount AT RISK $ 2.00(per share; risk of 100 shares is $200)

In the 9/16 SlideShare we explained that COMBINING these trades… removed risk from both sides!

The $100 income received for doing a Bear Call Spread… takes the risk of the Married Put down from $200 to $100. Meanwhile, There’s capital NO risk from the spread!

Okay, now you’re all caught up. Yesterday (9/20)GILD was trading around $81.50. I sent an email to subscribers about THIS move…

The GILD shares were from earlier. The next three lines were entered on 8/31/16:

This second put option was added yesterday (9/20/16) ..!

The result is a BULLETPROOF position, with infinite potential:

Worst case is $119 profit if GILD is at trading at $80 on 9/30...

Best case is more profit if GILD goes up…

OR more profits if GILD decides to go down!!

This is what we call

“BULLETPROOF”

Watch along with me and see how it goes…This SlideShare was uploaded on Sept 21, 2016 two weeks in advance of the Sept 30, 2016 expiry of the Bear Call Spread.

Whether the goes down, up, or sideways, the Bear Call Spread itself poses no capital risk.

Watch for the followup SlideShare to see how this real example is managed!

To learn more about Riskless Spread Trading (and Bulletproofing!)…

…check out these articles on the RadioActive Trading Blog!

Yes, you can Click these Links!• Can You REALLY Do a RISKLESS Spread Trade?• WHAT on Earth is a Nested Spread Trade?• The Strange Secret of Riskless Spread Trading• The RISKLESS Spread Trade that Pays You TWICE

OR! Get this two hour video on SEVEN different risklessspread trades “Stop Losing at Spread Trades Forever”!