Options

VOLATILITY S&P 500

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. 

Xiv


The Frigging Fracking Fallacy

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.

 


Why The Cheapo Groovo System Works While Other Fail!

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.