Table of Contents

Chapter One:

Introduction: Making of a Married Put superhero:

MY Story and how I had to go broke before I was ready to learn

  • Shocking my friend at the coffee shop with a 'sure thing'
  • How to use The Blueprint: Exercises, Quizzes, Illustrations, Reflection Sections
  • The silliest thing I ever did that made me money
  • Goals, affirmations, and your personal trading plan
  • Pareto's Principle: Why 20% of any group of players end up with 80% of the advantages
  • Who really makes money in the markets
  • How to join them
  • Feedback
  • Join traders over ten years, thirty countries, and help us continue improving The Blueprint

Chapter Two:

Options Basics: Calls and Puts

  • Tools for leverage
  • The value of time
  • "Moneyness" and how it affects your trade
  • How to get into trouble
  • How NOT to
  • Options hedging stock
  • Options hedging other options
  • Debits, credits, calendars and collars
  • BULLETPROOFING: Arranging a position so that it can no longer lose but can continue to gain
  • Three basic principles: FIST, ATM Bell Curve, REDLine
  • The RadioActive Profit Machine
  • Exit strategies

Chapter Three:

The Trade Simulator Tool: Evaluate your present money management plan

  • How you can be wrong more often than right and still make money
  • Being right vs. trading right

Chapter Four:

RPM (Married Put) Setup: Length of time for play

  • Why RT works over the long haul

Chapter Five:

Introduction to the C.E.G.A. Model for decision-making

Income Method #1: Selling a Covered Call to create a Collar

  • What strike price to sell
  • What month to sell
  • How much premium to expect
  • Other guidelines
  • A DEADLY "Newbie" mistake
  • Ways to manage IM#1
  • The catastrophe Report

Chapter Six:

Income Method #2: C.E.G.A. Model

  • What Income Method#2 is
  • How not to do an Income Method #2 trade
  • When to consider other adjustments instead
  • Using Income Method #2 to adjust other Income Methods (preview), Catastrophe Report

Chapter Seven:

Income Method #3: C.E.G.A. Model

  • The 'Bulletproof Vest'
  • How I discovered Income Method #3 Manipulating the put for income without any short calls limiting growth
  • Spike in time value, even as all the puts are coming down
  • When NOT to do Income Method #3
  • Catastrophe Report

Chapter Eight:

Income Method #4: C.E.G.A. Model

  • The 'ATM Machine'
  • Another risk-less spread trade
  • Another application of the ATM Bell Curve
  • Catastrophe Report
  • Bonus! Using margin to "two-step" your money
  • Hold a bullish stock position without any cash in it

Chapter Nine:

Income Method #5: C.E.G.A. Model

  • Lecture at MIT
  • The 'Money Net
  • Riskless call spread done properly
  • 'Double-dipping' a good stock's rise
  • Catastrophe Report
  • Management options

Chapter Ten:

Income Method #6: C.E.G.A. Model

  • 'Gimme My Money NOW"
  • Riskless Spread Trade
  • Leaving the unlimited upside potential of Married Put in place
  • Managing with Income Method #2
  • Advanced management techniques
  • Don't Time Trades, Trade TIME
  • Catastrophe Report and further management ideas

Chapter Eleven:

Income Methods #7 and #8: C.E.G.A. Models

  • The Bulletproof Time Spread
  • The RadioActive Condor
  • Trading RadioActively in a sideways market
  • Catastrophe Reports

Chapter Twelve:

Income Method #9: C.E.G.A. Model

  • "RPM Reboot" RadioActive Trading in a declining market
  • How Ernie MADE money on a declining stock

Chapter Thirteen:

Income Method #10 (Dividends)

Income Method #11 (Broken Wing Butterfly)

  • Using Dividend-Yielding stocks for income
  • Beware the "ex" date
  • How a Georgia anesthesiologist bulletproofs his Dividend yielding stocks
  • Search parameters for Dividend yielding stocks
  • Always open to new possibilities
  • Elements of Income Method #11
  • When to use Income Method #11
  • Case Studies of IM #11
  • Management techniques

Chapter Fourteen:

Bulletproofing: The Grail of RT

  • Lowering cost basis of the stock and put to below the strike price OF the put
  • Can win more, but can't lose anything
  • Infinite leverage
  • Synthetic positions

Chapter Fifteen:

  • Combining Income Methods
  • Income Methods that go together
  • Income Methods that should NOT be combined
  • Using one Income Method to 'manage' another one
  • SWN example
  • PCLN example

Chapter Sixteen:

  • Exiting the RadioActive Profit Machine: Ain't over til the fat lady sings
  • Time-frame, Stops, Target Gain
  • Do you swing?
  • What's your position
  • Your C.E.G.A. Model applied to exiting

Chapter Seventeen:

  • The RadioActive Trading Support System: [email protected]
  • Fusion
  • PowerOptions
  • Seminars
  • Local groups

Chapter Eighteen:

  • Life of an RPM (HPQ Example)Conclusions about RT from a veteran trader
  • Actual Examples of Income Method Application
  • Bulletproofing a trade
  • Result - A 12% profit in a declining market

Chapter Nineteen:

  • How I find stocks to trade RadioActively
  • Stock Insurance Tool on Fusion or PowerOptions
  • Search parameters
  • Married Put search
  • Search by Symbol
  • Collar Search
  • Position Analysis tool
  • Trade Simulator Tool
  • Before/After tool
  • Back-testing, Historical Analysis

Appendices 1-8 

  1. Questions and Answers
  2. Chart Reading
  3. Income Method Decision Table
  4. Bulletproofing Existing Positions
  5. Trade Documentation
  6. Reference: RT Principles in a Nutshell
  7. General Reflections about the RadioActive Trading Journey
  8. Other Products of the Power Financial Group