I sold 2 puts in the most undervalued commodities in the world. If they get put to me at these prices, I will make a nice profit when they rebound or I may sell out of the money calls for more income.
This index measures the cost of option protection (insurance). It trades in the futures market (CBOE). That means it has a spot price (today) and a futures price (next month, and the next month, and so on)
To make it accessible to stock traders, several products (such as VXX) have been created. VXX is normally in contango. That means the price today is less than the future price. You lose money because when it rolls to the next month, you sell low and buy higher.
During market downturns, VXX goes into backwardation. You make money since you sell high and buy lower as it rolls to the next month.
BUT BACKWARDATION ONLY PERSISTS TEMPORARILY!
To make $$$, you must own XIV. This product is the inverse of volatility.
I'm not a geologist, but from the alternative articles I've read, natural gas will explode sometime between now and 2020.
The play for me is $BOIL and I'm boxing in the current price by selling out of the money calls and selling out of the money puts.
Skip to 37:30 for nat gas analysis.
Goldman Sachs Software
“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Mr. Facciponti said in the court, according to Bloomberg. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”
The spike in oil prices to their highest level this year was caused by a rogue broker who placed a massive bet in the Brent oil market, triggering almost $10m of losses for his company. PVM Oil Associates, the world’s largest over-the-counter oil brokerage, said on Thursday it had been the “victim of unauthorized trading”. The privately owned company said that as a result of the unauthorized trades it had been forced to close substantial volumes of futures contracts at a loss.
Since the CFTC limits the number of futures contracts that can be held in agricultural products in order to protect the market from manipulation, CFTC Chairman Gensler thinks the same standards should apply to energy markets. Result: driving down natural gas to unnatural levels.
In a nutshell, STATISTICS. 60% of new businesses fail within their first five years.
My system applies the same diversification techniques used by stock investors to employment. Why specialize and bet the farm on one career? Instead you should have multiple income streams!
With my system, you are using assets, avoiding liabilities. You perform tasks that you were doing for free but now get paid for (searching, clicking links, watching videos). You are not spending tens of thousands on a college education that will be useless, obsolete, or outsourced. You combine practical entrepreneurship, with a frugal lifestyle, with a proven investment strategy!
My favorite income stream is selling covered calls. Did you know that over 75% of options expire worthless? That means I keep my option premium and can repeat the process all over again.
Unlike network marketing systems, you will earn income even if no one joins underneath you. And unlike the touts and come-ons all over the Internet, I document all my income streams.
Time to remind blog readers that the global elite control everything and a true free market exists in concept only.