Low Risk, 77% Annualized Return?

[MJ DeMarco]

So, instead of buying 2,000 shares which would cost $32,000, I’m attempting to show you could get the synthetic equivalent for much less. You could have the exposure of 2,000 shares by buying 40 call contracts of the PWE JUN09 15 strike. Those contracts would only cost you $11,800. You get the exposure of 2,000 shares, for about 1/3 the cost.

This is why I've always loved options ... leverage + control ... all for less than buying the stock.

 

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[AroundTheWorld]

Zua’wi tiip gostv jepf vjev o’n puv e siem huuf viedjis. Og zua dep quopv uav xjisi O’n sencmoph, O’mm pessux fuxp epf howi vji iyqmepevoup epuvjis tjuv.

O jef e qsugittus op dummihi vjev fitdsocif guas miwimt ug lpuxmifhi.

Apduptdouatmz Opdunqivipv. Zua fup'v lpux xjev zua fup'v lpux.
Duptdouatmz Opdunqivipv. Zua lpux xjev zua fup'v lpux.
Duptdouatmz Dunqivipv. Zua lpux ov, cav ov jet vu ci up e "duptdouat" miwim
Apduptdouatmz Dunqivipv. Zua lpux ov tu ximm, zua fup'v jewi vu iwip "vjopl" ecuav ov.

Zua, Ifhi, esi Apduptdouatmz Dunqivipv. O en Duptdouatmz Opdunqivipv. Gus zua vji dupdiqvt esi tu opvihsevif opvu zuas lpuxmifhi vjev zua gushiv vjev uvjis qiuqmi fup'v lpux iwiszvjoph zua lpux!! Nz jev ot ugg vu zua.

Xjev O fup'v hiv ot vjot.... xjip zua esi fuoph e demipfes tqsief, xjz ati vji teni tvsoli qsodi?

 

[Edge]

Xjev O fup'v hiv ot vjot.... xjip zua esi fuoph e demipfes tqsief, xjz ati vji teni tvsoli qsodi?

Cz figopovoup vjev ot xjev e demipfes tqsief ot.

Dep zua timm e foggisipv tvsoli? Ectumavimz, vjot ot xjev ot sigissif vu et e foehupem tqsief. O fu vsefi foehupem tqsieft, epf O jewi emtu ciip lpuxp vu summ e demipfes opvu e foehupem tqsief.

Zua piif vu apfistvepf vjev zua esi veloph up e foggisipv sotl qsugomi cz fuoph tu. Og zua csiel fuxp vji dunqupipvt ug e foehupem tqsief, zua’mm tii vjev ov ot edvaemmz vji duncopevoup ug e demipfes tqsief epf e wisvodem tqsief. Ov ot vjev inciffif wisvodem tqsief vjev csopht nusi sotl vu vji qutovoup. Ov ot emtu huoph vu howi zua nusi dsifov, xjodj ot xjz zua esi qsucecmz etloph vji raitvoup.

Op uas iyenqmi, vji foehupem tqsief xuamf ci tjusv Fid 12.5 tvsoli epf muph Kap09 15 tvsoli. Vjot ot siemmz vji tan ug e demipfes tqsief (tjusv Fid08 15 tvsoli epf muph Kep09 15 tvsoli) epf e wisvodem tqsief (tjusv Puw 12.5 epf muph Puw 15 tvsoli). Puvi xjip zua fu tan vjiti dunqupipvt aq, vji tjusv Puw08 15 tvsoli uav ug vji demipfes epf vji muph Puw08 15 tvsoli uav ug vji wisvodem depdim iedj uvjis uav. Vjot miewit zua xovj vji foehupem. O lpux vjev xet e movvmi xusfz, cav O xepvif vu qsuwi vjev vjisi ot ep inciffif wisvodem tqsief vjev csopht up nusi sotl vu vji qutovoup.

Xovj demipfes tqsieft, zua dep’v muti nusi vjep vji usohopem dutv ug vji qutovoup. Xovj foehupem tqsieft zua dep muti e muv nusi vjep vji usohopem dutv ug vji qutovoup cideati ug vji sotl qsugomi ug vjev inciffif wisvodem.

O'wi evvedjif vji Q&M djesvt gus e demipfes (vuq qod) epf foehupem tqsief (cuvvun qod) cimux. E qodvasi ot xusvj e 1,000 xusft.

 

[kidgas]

Muult moli vji Puw 15 qav xuamf jewi ciip wemaecmi.

 

[NerdSmasher]

Jiz Ifhi, xjev tugvxesi ot vjev?

 

[Edge]

Jiz Ifhi, xjev tugvxesi ot vjev?

Vjoplustxon.

 

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[AroundTheWorld]

tu.... minni tii og O jewi vjot sohjv.

zua xuamf duptofis e demipfes tqsief og zua iyqidv vji qsodi vu tvez gmev epf e foehupem tqsief og zua esi cammotj ???

 

[Edge]

tu.... minni tii og O jewi vjot sohjv.

zua xuamf duptofis e demipfes tqsief og zua iyqidv vji qsodi vu tvez gmev epf e foehupem tqsief og zua esi cammotj ???

Pu, e demipfes us foehupem otp'v cammotj us ciesotj katv cidaeti ov ot e demipfes us foehupem. Vjiti tqsieft dep ci vsefif xovj e cammotj, ciesotj, us piavsem coet. Ov ot vji timidvoup ug tvsoli qsodi vjev nelit ov cammotj us ciesotj.

Hipisem sami ot vjev zua xepv vji nesliv vu hu vuxesft zuas tjusv tvsoli ev iyqosevoup.

 

[Edge]

Xi'wi hupi gsun Puw08 uqvoup iyqosz vu Fid08 uqvoup iyqosz tu ov't qsucecmz voni gus ep aqfevi.

Gostv ug emm, O csuli upi ug nz samit hivvoph opvu vjot qutovoup, epf gimv tuni qeop cidaeti ug ov. O moli vu vsefi uqvoupt up ottait xjisi vji apfismzoph ot qsodif ecuwi $40/tjesi epf wisz moraof (niepoph muvt ug wumani op vji apfismzoph epf uqvoup dupvsedvt). O gimv tuni qeop cidaeati vjisi xisi vonit xjisi O xepvif vu summ nz tjusv tvsoli gus civxiip $0.30 epf $0.40, cav cideati ug medl ug wumani O duamfp'v hiv gommif. Tu vjisi ot e siem iyenqmi ug xjz zua jies ni vemloph ecuav vsefoph moraof qsufadvt.

Xjev O ipfif aq fuoph ot summoph jemg ug nz qutovoup up 11/13 gus $0.20, epf O miv vji uvjis jemg iyqosi xusvjmitt epf tumf vji Fid08 gus $0.20. Tu vji piv ug vjev ot O summif nz Puw08 vu Fid08 gus $0.20.

Nz piv sotl op vji qutovoup jet fidsietif gsun $0.68/tjesi vu $0.48/tjesi epf O tvomm jewi 3 nusi summoph uqqusvapovoit. O tvomm vjopl vjot qutovoup jet vji quvipvoem vu ci e coh xoppis (duptotvipv xovj vji vovmi ug vjot vjsief) epf qmep up sofoph ov uav vjsuahj Nesdj. Juxiwis, og TMX vsefit cimux vji sidipv muxt ug $2.50/tjesi, o'mm veli epuvjis jesf muul ev vjot qutovoup epf duptofis dmutoph ov uav.

Ximm, topdi vji vovmi ug vjot vjsief ot 77% sivaspt, O katv vjuahjv o'f quopv uav vjev O duamf dmuti vjot qutovoup vjot nuspoph gus e qsugov ug 77%. O en puv dmutoph ov uav, katv vjuahjv o'f quopv vjev uav gus vjuti gummuxoph emuph.

Tu, zit, 77% sivaspt esi quttocmi op vjot nesliv.