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 premium that we receive up front by selling the call options, a portion of that is used to purchase our insurance policy, using none of our own money. Now that's when it starts to get sexy.
We rent out our stock at a specific price and for a specific time and we agree to sell our stock at the specific price because that is in the clause of the contract. Speculators are the people who rent our stock and they can only make money if the stock price goes up. Whereas a Sharelord will make money regardless if the stock market went up, down or sideways. Now you know why Sharelord is one of the "best investment ideas" of 2014.
One Of The Best Investment Ideas of 2014: Lets Prove It To You With An Example.
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.
A portion of the $1.20 income is used to buy an insurance policy. The insurance policy that we have purchased is at $18.00 and what the Sharelord pays for this policy is only $0.40. We are left with $0.80 profit from this transaction.
If the stock price closes above $21.00 by a specific time, then the owner of the call option will by our stock for $21.00. $0.80 is what we have made up front and a further $0.50 capital gain as we sold the stock at a higher price than what we purchased them for. Our overall profit is $1.30, which is a 6.3% return. The Sharelord usually makes this return within a month because that is how long we aim to stay in a trade.
A Sharelord can stay in an investment for longer and by staying in it for longer we just continue to rent and insure our shares for the following month collecting premium up front straight into our bank account.
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 premium that we receive up front by selling the call options, a portion of that is used to purchase our insurance policy, using none of our own money. Now that's when it starts to get sexy.
We rent out our stock at a specific price and for a specific time and we agree to sell our stock at the specific price because that is in the clause of the contract. Speculators are the people who rent our stock and they can only make money if the stock price goes up. Whereas a Sharelord will make money regardless if the stock market went up, down or sideways. Now you know why Sharelord is one of the "best investment ideas" of 2014.
One Of The Best Investment Ideas of 2014: Lets Prove It To You With An Example.
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.
A portion of the $1.20 income is used to buy an insurance policy. The insurance policy that we have purchased is at $18.00 and what the Sharelord pays for this policy is only $0.40. We are left with $0.80 profit from this transaction.
If the stock price closes above $21.00 by a specific time, then the owner of the call option will by our stock for $21.00. $0.80 is what we have made up front and a further $0.50 capital gain as we sold the stock at a higher price than what we purchased them for. Our overall profit is $1.30, which is a 6.3% return. The Sharelord usually makes this return within a month because that is how long we aim to stay in a trade.
A Sharelord can stay in an investment for longer and by staying in it for longer we just continue to rent and insure our shares for the following month collecting premium up front straight into our bank account.
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 finance 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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