The world is in an interesting place. The balance of power is so top heavy right now it is hard to think about. This past week I discovered options trading. It is something that has been around for a long time so I am a little like Columbus discovering America here.
More what I found was a system heavily weighted towards the rich. The more money backing the trading the more lucrative deals available. It is crazy to think that if someone had enough money they could go and claim the right to buy a stock they want at a discount and someone else would give them money for it.
You could look at a company like Google, Apple, Johnson and Johnson, or Walmart that always goes up over time and say I’ll buy 100 shares of that stock if it hits a 10% discount today, and someone will give you money to do so. That is the crazy part.
It is not exactly free money, but it is close to it. If I were going to invest in any of those companies anyway, and had the money to cover 100 shares then I could sell someone else the right to sell those shares to me. Then if I end up with the shares I wanted anyway I could turn around and sell someone else the right to purchase my shares when it reaches a certain price.
It sounds like a crazy way to invest and that method would add a simple extra layer to it and I am sure there are plenty of arguments for it and against it. But if you think in probabilities it makes a lot of since. I want to buy something anyway and if it suddenly has a run away success or even a moderate success I am comfortable selling it for that price and I can get a little extra payment on both ends of the deal.
But in order to do something like this you need money in the first place. It is a little like finding a property that would cash flow more than its mortgage and trying to walk into the bank while self employed. They will laugh you out of there. People love to say you’ve got to spend money to make money, but I have found having money is the easier way to make money.
David Huzzard Writes 