The Sharelord strategy is a low risk, conservative strategy and that's why it's one of the best investment ideas of 2014. The investment is low risk because the we own the shares and what further reduces our risk is the purchase of an insurance policy. If you buy home insurance to cover your property then you would be crazy not to buy an insurance policy on the stock market.
Best Investment Ideas: We Do Not Pay Retail For Our Stock
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.
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.
One Of The Best Investment Ideas of 2014: Come And See For Yourself With An Example.
This investment is one of the best investment ideas of 2014 and this will become clear to you with an example. The stock is purchased for $20.50 and is rented out at $21.00. The speculator has paid for the call option, $1.20 that we sold to them. The call option purchaser has the right, but not the obligation to purchase our stock for $21.00 if the stock price stays above $21.00 by the end of the contract period.
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.
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.
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.
A Sharelord generates an income each and every month and that's because it one of the best investment ideas. We know exactly how much we are going to receive up front, the risk is also know. This strategy is recession proof, we are in control of our investment at all times and we can do this from anywhere around the world as long as we have a computer and Internet connection.
Discover one of the best investment ideas of 2014 by ordering your FREE getting start pack today.
Best Investment Ideas: We Do Not Pay Retail For Our Stock
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.
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.
One Of The Best Investment Ideas of 2014: Come And See For Yourself With An Example.
This investment is one of the best investment ideas of 2014 and this will become clear to you with an example. The stock is purchased for $20.50 and is rented out at $21.00. The speculator has paid for the call option, $1.20 that we sold to them. The call option purchaser has the right, but not the obligation to purchase our stock for $21.00 if the stock price stays above $21.00 by the end of the contract period.
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.
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.
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.
A Sharelord generates an income each and every month and that's because it one of the best investment ideas. We know exactly how much we are going to receive up front, the risk is also know. This strategy is recession proof, we are in control of our investment at all times and we can do this from anywhere around the world as long as we have a computer and Internet connection.
Discover one of the best investment ideas of 2014 by ordering your FREE getting start pack today.
About the Author:
Find some Good Investment Ideas and how they can change your financial future forever. Work With Danny Younes educates you on investments that will get you out of the rat race and and working on your passions.. This article, Best Investment Ideas Of 2014: Time To Put Money Back In Your Pocket is released under a creative commons attribution license.
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