Kurt Frankenberg has developed a trading methodology that he calls Radioactive Trading. The system relies upon the simultaneous purchase of stock and a deep-in-the-money-put-option, which limits the potential loss on any given position to just a few percentage points.

The simultaneous purchase of stock and a put option, is known within option trading circles as a “married put.” This particular strategy has been commonly used by investors and traders to safeguard stock positions for decades. The purpose of a put option guarantees that the investor will be able to sell their stock at a specific strike price. Because the stock prices guaranteed, the primary risk to position exists in the cost of the put option. Now Radioactive Trading has adopted it and is marketing it as something new and revolutionary.

To disguise the fact that the married put is not revolutionary, Kurt Frankenberg has labeled the position as a Radio Active Profit Machine, which sounds much snazzier. Nonetheless, it is simply a married put.

Furthermore, Kurt Frankenberg has difficulty recognizing the basic fact commonly recognized by professional options traders. The married put position is equivalent to owning a call option. While this can be mathematically proven as true, Radioactive Trading refuses to have knowledge that their methodology carries the same risks as owning an out of the money call option.

You can learn about the married put at the Radioactive Trading website, but to discover their several “income methods” and other techniques, you will be required to purchase their manual called “The Blueprint.” The income methods revealed in this publication do not necessarily produce actual income, but are in actuality simply position adjustments designed to lock in profits when a trade developed favorably. It may be surprising to learn that some of these income methods actually require further capital investment.

Despite its shortcomings, The Blueprint does have its strengths. The management of risk is truly the strong suit of this trading manual. Regretfully, these beneficial lessons are undermined by the use of confusing and misleading information.

The Radioactive Trading student risks developing a false understanding of how options work in the markets. Most people will likely be better served to learn the fundamentals first, so as to develop a sound foundation for their options trading and overall investing.

Finding a stock option trading forum will also provide a forum where questions can be posed and answers obtained. The better discussion groups will contain frequent posts from experienced options traders. Many of those option trading professionals will gladly share their insights with you.

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