In this presentation, Kurt Frankenberg discusses the advantages of the RadioActive Trading techniques over a simple stop-order, the risks of leverage in your trading and two of his TEN income methods that he applies against his protected positions.
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by: Michael Chupka, PowerOptions (www.poweropt.com) Director Of Education
‘Twas the day of Expiration, and all through the market,
A Cautious optimism kept closed the wallets.
Recent Index highs hung over as a dare;
Gold and silver had run up without a care.
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In this RadioActive Trading webinar, Kurt Frankenberg discusses the simple rule that all investors have heard, but rarely implement in their personal accounts. “Cut your losers short…and let your winners run.”
As simple as this sounds, it is much harder to put it into actual practice. Many stock options investors will establish ‘hedged’ positions that in fact do the exact opposite…cut your winners short with the potential to let your losers run. That is a recipe for investing disaster.
As we approach December expiration, the last standard options expiration date of 2010 (excluding Weekly series expiration and the December Q4 Quarterly expiration), PowerOptions’ staff has received several phone calls and emails from customers regarding rolling or adjusting their positions.
This is fairly common heading into any expiration, but a few things in particular stood out for me this cycle when talking with customers: There are circumstances where it might be best to wait to fully roll a position to a new month or to a new strike price. This concept is not new, but it is something that may at times be overlooked as an investor hastily seeks to generate new income or ‘hedge’ the existing position.