"Riskless" Spread Trade Followup, 9/21

15
On Sept 16, I uploaded How to do a RISKLESS BEAR CALL SPREAD

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

Page 1: "Riskless" Spread Trade Followup, 9/21

On Sept 16, I uploaded

How to do a RISKLESS “BEAR CALL

SPREAD”

Page 2: "Riskless" Spread Trade Followup, 9/21

…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

Page 3: "Riskless" Spread Trade Followup, 9/21

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)

Page 4: "Riskless" Spread Trade Followup, 9/21

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

Page 5: "Riskless" Spread Trade Followup, 9/21

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!

Page 6: "Riskless" Spread Trade Followup, 9/21

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…

Page 7: "Riskless" Spread Trade Followup, 9/21

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) ..!

Page 8: "Riskless" Spread Trade Followup, 9/21

The result is a BULLETPROOF position, with infinite potential:

Page 9: "Riskless" Spread Trade Followup, 9/21

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

Page 10: "Riskless" Spread Trade Followup, 9/21

Best case is more profit if GILD goes up…

Page 11: "Riskless" Spread Trade Followup, 9/21

OR more profits if GILD decides to go down!!

Page 12: "Riskless" Spread Trade Followup, 9/21

This is what we call

“BULLETPROOF”

Page 13: "Riskless" Spread Trade Followup, 9/21

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!

Page 14: "Riskless" Spread Trade Followup, 9/21

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

Page 15: "Riskless" Spread Trade Followup, 9/21

…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”!