I'm feeling better now, my sis is recovering, my granny is at a happier place and some awesome things happened =)
On the topic of investing, what I'm going to reveal is not really wise for me, but I'm willing to do this, to show you guys an example of how I make money in the stock market. I hope this gives you all inspiration to trade, trade safely, trade wisely and ultimately to financial freedom.
I trade the US stock market, I use OPTIONS derivative to enhance my earnings from the money I put in. I would show you how I made $$ even tho I bought Mastercard (MA) in February 2014 at $78 and the price has yet to recover, I still made $14000!!!! Awesome right?
I did a fundamental analysis on Mastercard and I realised it's an awesome company. On Feb 2014, the price of Mastercard has fallen from a high of $85 to $72 and eventually pulled back to around $78. At $78 I calculated it was trading at a discount and technical indicators showing it may climb back up, well I was wrong... LOL. Dropped to around $70.. OUCH! Thats a paper loss of $24,000! Below are my trades and I will explain every step.
1) 28 Feb Price of Mastercard was $77.50
Sold 20 MA Mar 78 PUT OPTION to profit $2854.24 which was assigned
Bought 1000 MA stock for $78093.30
I have now total of 3000 MA stock for the price of $78 X 3000 = $ 234,000
2) 25 Mar Price of Mastercard was $77
Sold 30 MA Apr 78 CALL OPTION to profit $2991.36
3) 28 Mar Price of Mastercard PLUNGE to $72. I made a mistake by paying $908.57 to close of my options since it's worth nothing now. Lesson learnt.
4) 29 Mar - Price of Mastercard was $73
Sold 10 MA Mar 73.5 PUT OPTION to profit $1627.10
5) 9 May - Price of Mastercard was $74
Bought 10 Jul 74 CALL Option for $2850
6) 27 May - Price of Mastercard was $77
Closed my Jul 74 CALL Option for a Profit of $1387
7) 2 June - Price of Mastercard was $77
Sold 30 JunWk4 78 Call profit $2211.38
8) 27 June - Price of Mastercard was $73
Sold 10 MA Mar 73 PUT OPTION to profit $1277.11
9) 18 July - Price of Mastercard was $76
Sold 30 JulWk4 78 Call profit $1740
10) 28 July - Price of Mastercard was $76
Sold AugWk1 78 Call to profit $1140
Summary: Spent $234,000 to buy 3000 shares of Mastercard
Profit from Options = $2854.24 + $2991.36 - $908.57 + $1627.10 + $1387 + $2211.38 + $1277.11 + $1740 + $1140 = $14316.62
Not bad for a stock which I bought and remain below my purchase price right?
Those are my latest trades for Mastercard. As you can see, tho I bought 3000 lots of Mastercard, with options I still manage to earn $$14,000!!! even when the price of Mastercard didn't recover to $78 after I bought the stock! Option traders will understand what I did, for those who want to learn more, feel free to contact me. I do not EARN anything. It's my passion to share.
$14,000 in 6 months from $234,000. That's almost doing nothing and earning about $2.3K a month. Most retirees would have been able to have that amount of money. Sounds sustainable for retirement eh?