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.
Normally when we buy our shares and rent them out, the premium that we receive up front, a portion of it is used to purchase an insurance policy. We have purchased an insurance policy utilizing none of their own money.
Our stock is rented out for a specific time and at a specific price as this is a contractual agreement between the Sharelord and the speculator. The speculator can only make money if the stock rises in price. A Sharelord makes money irrespective of where the stock price is today, tomorrow or next week. 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 share price finishes above $21.00 by a certain time, then the speculator will purchase the shares for $21.00. We have made up front, $0.80 and now will be making a further $0.50 capital gain as the shares were sold at a higher price than what we purchased them for. We end up making $1.30 profit, which is a 6.3% return. This return is made within a month because that is how long a Sharelord normally stays 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: 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.
Normally when we buy our shares and rent them out, the premium that we receive up front, a portion of it is used to purchase an insurance policy. We have purchased an insurance policy utilizing none of their own money.
Our stock is rented out for a specific time and at a specific price as this is a contractual agreement between the Sharelord and the speculator. The speculator can only make money if the stock rises in price. A Sharelord makes money irrespective of where the stock price is today, tomorrow or next week. 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 share price finishes above $21.00 by a certain time, then the speculator will purchase the shares for $21.00. We have made up front, $0.80 and now will be making a further $0.50 capital gain as the shares were sold at a higher price than what we purchased them for. We end up making $1.30 profit, which is a 6.3% return. This return is made within a month because that is how long a Sharelord normally stays 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.
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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.. This article, Sharelord Is One Of The Best Investment Ideas Of 2014 is available for free reprint.