ON Aug 31, 2016 I asserted that it's possible to do a bear call spread without risk. That was in a blog post on blog.radioactivetrading.com. ON Sep 16 the SlideShare revealing the details was published. Now, more than a week before the spread expires, the net position is "Bulletproof", meaning that it's no longer possible to lose money, but we'd be happy if the stock goes up OR down. Check out these slides and see what you think.

1. On Sept 16,
I uploaded
How to do a
RISKLESS
“BEAR
CALL
SPREAD”

2. …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

3. There’s no capital risk to the
spread because we nested
it within a “Married Put”…
GILD stock 100 shares $75.70
November $77.50 put +$ 3.80
TOTAL INVESTMENT $79.50
Protected by Put: -$77.50
Total Amount AT RISK $ 2.00
(per share; risk of 100 shares is $200)

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

5. 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!

6. 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…

7. 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) ..!

8. The result is a BULLETPROOF
position, with infinite potential:

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

10. Best case is
more profit if
GILD goes
up…

11. OR more
profits if
GILD
decides to
go down!!

12. This is what
we call
“BULLETPROOF”

13. 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!

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

15. …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 riskless
spread trades “Stop Losing at Spread Trades Forever”!