So why do I consider Sharelord to be one of the best investment ideas of 2014, well it's because of it low risk nature. What makes it low risk? Well it's the fact that we own the shares and we also purchase an insurance policy over our shares. We are always insured. The insurance policy on the stock market works exactly as an insurance policy that you would have on your own home. I:0:T
Best Investment Ideas: How We Buy Stock At Wholesale
A Sharelord is also purchasing the shares at a wholesale rate. How do we do that? By renting out our shares, in other words selling call options over our shares. When we sell call options, we get paid up front, day one and by subtracting what is paid by renting our shares, from the purchase price of the shares, you can agree that the Sharelord buys their shares at wholesale.
The up front premium that is received for renting our shares, a portion of that is utilized to buy an insurance policy. The best thing is, we do not use any of our own money to purchase it.
By the renting out our shares, we agree to sell our shares at a certain price and at a specific time to the person who is renting them from us. This person is known as the speculator because they are betting for the market to go up and that's the only way they can make money. As opposed to the Sharelord who gets paid up front and makes money regardless of market direction or performance. Now you know why Sharelord is one of the "best investment ideas" of 2014.
An Example Of Why Sharelord Is One Of The Best Investment Ideas of 2014
This stock market strategy is one of the best investment ideas of 2014 and this will become clear to you with an example. We purchase our stock for $20.50 and we sell a call option at $21.00. The speculator has purchased our call option and has paid us $1.20 and that goes straight into our account. The buyer of the call option has the right, but not the obligation to purchase our stock for $21.00 if the stock price remains above $21.00.
Then we will use a portion of the $1.20 to purchase an insurance policy to cover our downside risk. Let's say we buy an $18.00 insurance policy for $0.40. This will leave us with $0.80 up front profit.
By the stock finishing above $21.00 by the end of the contract period, the speculator will purchase our stock for $21.00. W have profited up front $0.80 and we call double dip by making a further $0.50 capital gain. Why, because we sold our stock at a higher price than what we purchased them. Profit overall is $1.30, a 6.3% return for the month because that is how long the contract period goes for.
The Sharelord may stay in the trade for longer, if they do that means the stock price did not finish above their rental price so all the "Sharelord" needs to do is rent their shares out again and purchase another insurance policy and they repeat the process no matter how long they own the shares.
We are continually generating an income from our stock and every month earning it up front from day one and that's why "Sharelord" is one of the best investment ideas. Sharelord is recession proof, we have total control over our investment and we can invest in this strategy from anywhere around the globe and that's why it's one of the best investment ideas of 2014.
Discover one of the best investment ideas of 2014 by ordering your FREE getting start pack today.
Best Investment Ideas: How We Buy Stock At Wholesale
A Sharelord is also purchasing the shares at a wholesale rate. How do we do that? By renting out our shares, in other words selling call options over our shares. When we sell call options, we get paid up front, day one and by subtracting what is paid by renting our shares, from the purchase price of the shares, you can agree that the Sharelord buys their shares at wholesale.
The up front premium that is received for renting our shares, a portion of that is utilized to buy an insurance policy. The best thing is, we do not use any of our own money to purchase it.
By the renting out our shares, we agree to sell our shares at a certain price and at a specific time to the person who is renting them from us. This person is known as the speculator because they are betting for the market to go up and that's the only way they can make money. As opposed to the Sharelord who gets paid up front and makes money regardless of market direction or performance. Now you know why Sharelord is one of the "best investment ideas" of 2014.
An Example Of Why Sharelord Is One Of The Best Investment Ideas of 2014
This stock market strategy is one of the best investment ideas of 2014 and this will become clear to you with an example. We purchase our stock for $20.50 and we sell a call option at $21.00. The speculator has purchased our call option and has paid us $1.20 and that goes straight into our account. The buyer of the call option has the right, but not the obligation to purchase our stock for $21.00 if the stock price remains above $21.00.
Then we will use a portion of the $1.20 to purchase an insurance policy to cover our downside risk. Let's say we buy an $18.00 insurance policy for $0.40. This will leave us with $0.80 up front profit.
By the stock finishing above $21.00 by the end of the contract period, the speculator will purchase our stock for $21.00. W have profited up front $0.80 and we call double dip by making a further $0.50 capital gain. Why, because we sold our stock at a higher price than what we purchased them. Profit overall is $1.30, a 6.3% return for the month because that is how long the contract period goes for.
The Sharelord may stay in the trade for longer, if they do that means the stock price did not finish above their rental price so all the "Sharelord" needs to do is rent their shares out again and purchase another insurance policy and they repeat the process no matter how long they own the shares.
We are continually generating an income from our stock and every month earning it up front from day one and that's why "Sharelord" is one of the best investment ideas. Sharelord is recession proof, we have total control over our investment and we can invest in this strategy from anywhere around the globe and that's why it's one of the best investment ideas of 2014.
Discover one of the best investment ideas of 2014 by ordering your FREE getting start pack today.
About the Author:
Discover some Good Investment Ideas and how they can change your financial future forever. Work With Danny Younes specialises in investments that will get you out of the rat race and and working on your passions.
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