Recent RadioShack Numbers Justify Low-Risk Investing Approach

4/28 - "Part of my thesis for RadioShack is that declines are already priced in...Still, my cautious side has limited my willingness to accept exposure to the stock...I’ve said I’d accept a return in line with that of RadioShack debt – which reflects the company’s relative risk and allows for a modest premium based on the more favorable tax treatment of equity returns."

"After the article (which was positive on RadioShack) I bought the April puts for an effective price of $0.60 per share, and they expired worthless. I reloaded that position by writing May puts at the same $0.60, and time will tell if they are exercised against me. If they are, my effective price will be down to $13.80 so I have room for further downside before I’ll feel much pain."