I am instructing the Executor of my Estate to make sure that the following words are included on my permanent marker:
"He finally found the way to consistently and decisively beat the stock market."
A much more accurate term would be DISCOVERY of grandeur. Because if my Eureka Moment wasn't a truly grand discovery, I don't know what is. It's one of the greatest niche investment discoveries of all time - it is all of the marbles - the keys to the kingdom. I can routinely earn 30% type of returns even while others are losing. Moreover, it is much SAFER than buying and holding stock as I have tremendous downside leeway.
This type of thing has only been available for four years; prior to the crash, the options exchanges simply didn't ioffer deep out-of-the-money puts as there was no seeming need for them. Who would be interested in paying a 2% premium for something like the 5-strike JCP puts expiring in Jan. 2015? Who would want them? If the stock had some terrible news and plunged from the current $18.73 to $10, you could just sell the shares for that price - who would want protection all the way below five bucks?
That's why there was put trading for a quarter century but very ddp-out-of-the-moneys weren't even offered until 2009. The only reason why these options are offered now is because there are so few new authorizations to sell NAKED puts and those wanting to sell fully cash-covered puts have only one way of reducing the onerous margin requirements that exist - and that is by BUYING the deep-out-of-the-moneys at the same time that they are selling the closer-to-the-moneys.
Briokerage firms were so badly mauled by unsuitability lawsuits during the 2008/2009 crash that they don't want naked put business at all. And so they rarely grant new authorizations. For those already having the authorization, it still does them little good as the brokerages can and do jack up the minimum margin requirements. Ameritrade is the ONLY brokerage in the land to abide by floor levels suggested by the SEC and the options exchanges.
But even at Ameritrade, I'm told that virtually nobody besides me sells deep-out-of-the-moneys.
It really should have been the word December next to the number 2000 with the day being 18. But since I walked away from that accident without a scratch, i had been wondering for many years about the further accomplishments that I was obviously destined to have. And now I think I know what the Man Upstairs had in mind. I was Chosen to make the incredible investment discovery that I did and to tell the nation about it.
More likely words: "Shoot by clients & poisoned by sister-in-law after ruining them." Not that you'll have any money left for a marker anyway. You'll be lucky to be thrown in a pauper's grave. More likely eaten by street dogs, if your stench doesn't gag them.
I wonder if my clients who are routinely earning 30% a year and up really care if on occassion I split infinitives? The truth of the matter is that of all the brilliant minds on Wall Street, it is ME who made the niche investment discovery of the ages. I guess you'll just have to live with that. I certainly know that I have no problem with it.