Radioactive Trading is a trading system developed by Kurt Frankenberg. This method involves the simultaneous purchase of a deep in the money put option in combination with 100 shares of stock, which has the effect of limiting the potential downside of outright stock ownership.

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 Radioactive Profit Machine is an “old dog,” 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 buying a call option. This fact is widely appreciated among knowledgeable options traders, but with its students, Radioactive Trading refuses to acknowledge that owning a married put carries the same risks of buying a call option.

Radioactive Trading provides information about their married input strategy at no cost, but to discover their numerous “income methods” and other management techniques you will be required to purchase “The Blueprint,” which is offered for sale through their website. if you are expecting to learn methods of generating income within your account, you may find yourself somewhat disappointed with The Blueprint because the “income methods” are in actuality position adjustments be signed to lock in profits, but not necessarily generate additional cash. In fact, many of the income methods require the commitment of additional capital.

Despite its shortcomings, The Blueprint does have its strengths. The greatest benefit of the Blueprint is the strict attention paid to risk management. Regretfully, these beneficial lessons are undermined by the use of confusing and misleading information.

Those new to options will likely find that after studying these materials, they will need it to him to do the lessons learned so that they may later develop a more accurate understanding about options. A more prudent start would be to focus upon learning options fundamentals and developing a sound trading plan.

Finding a stock option trading forum will also provide a forum where questions can be posed and answers obtained. Seek out forums frequented by experienced options traders. It may surprise you to find that many of these trading professionals are very generous with their time and knowledge.