Lifestyle Trading with stock options
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Lifestyle Trading with stock options

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Increase your investment returns by 1500% using Options trading.

Increase your investment returns by 1500% using Options trading.

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Lifestyle Trading with stock options Lifestyle Trading with stock options Presentation Transcript

  • FINANCIAL STOCK OPTIONS Lau May Chee CPA(Aus) CA(M) CMIIA 10/12/2013 TL Global Harvest Solutions
  • 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 Agenda • Wealth Creation • US Stock Markets • Financial Hedging for Consistent income – Options Financial Hedging (Stock Options)
  • • 6 out of 10 households with a net worth of $500,000 or more directly owned stocks and mutual funds in 2011, • compared with just 13% for everybody else. • Census Bureau data April 23, 2013 US Wealth Creation
  • • Since [2009 recession] affluent families have benefited handsomely from recovering stock prices and surging gains in bonds. • 6 out of 10 households with a net worth of $500,000 or more directly owned stocks and mutual funds in 2011, • compared with just 13% for everybody else. • Census Bureau data April 23, 2013 US Wealth Creation Above $500k Below $500k 60% 13% Owns Stocks/MF Above $500k Below $500k
  • US Wealth Creation 10/12/2013 -20% 0% 20% 40% Top 7% Balance 93% Average Increase in Wealth Top 7% Balance 93% You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6
  • US Wealth Creation • The richest 7% of American families saw their average wealth soar 28% (2009-2011), • while the remaining 93% of households lost 4% of their net worth…as their fortunes were tied up in their homes. Census Bureau data April 23, 2013 10/12/2013 -20% 0% 20% 40% Top 7% Balance 93% Average Increase in Wealth Top 7% Balance 93% You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6
  • 4 Benefits of using Options High Profits & Low Stress Returns on Investment
  • 4 Benefits of using Options 1) Low Capital • Options have great leveraging power. As such, investors can obtain an option position that will mimic a stock position almost identically, but at a huge cost savings. High Profits & Low Stress Returns on Investment
  • 4 Benefits of using Options 2) Less Risks • On gapping losses • Limited to the premium paid High Profits & Low Stress Returns on Investment
  • 4 Benefits of using Options 3) High ROI • Use time-tested strategies for consistent Income High Profits & Low Stress Returns on Investment
  • 4 Benefits of using Options 4) More Strategic Alternatives • Various options combinations create powerful strategies High Profits & Low Stress Returns on Investment
  • Financial Hedging – Options 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 Buy Sell Call Put
  • Major US Indices • Dow Jones Industrial Average (DJIA) • S&P 500 • Nasdaq Composite 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 US Stock Markets
  • Major US Indices • Dow Jones Industrial Average (DJIA) • S&P 500 • Nasdaq Composite • US has the most successful Global Companies • It has the Highest Volume / Liquidity for both stocks and options 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 US Stock Markets
  • Major US Indices • Dow Jones Industrial Average (DJIA) • S&P 500 • Nasdaq Composite • The most online Research material and news coverage • High Market Cap to reduce market manipulation 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 US Stock Markets
  • Major US Indices • Dow Jones Industrial Average (DJIA) • S&P 500 • Nasdaq Composite • Key mover of global markets • Good Securities Commission Control on Transparency • Tax-free for non-US residents 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 US Stock Markets
  • Global Stock Markets 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 Rank Stock Exchange Economy Headquarters Market Capitalization (USD Billions) Year-to-date Trade Value (USD Billions) 1 NYSE Euronext United States/ New York City 14,085 12,693 Europe 2 NASDAQ OMX Group United States/ New York City 4,582 8,914 Europe 3 Tokyo Stock Exchange Japan Tokyo 3,478 2,866 4 London Stock Exchange United Kingdom London 3,396 1,890 5 Hong Kong Stock Exchange Hong Kong Hong Kong 2,831 913 6 Shanghai Stock Exchange China Shanghai 2,547 2,176 7 TMX Group Canada Toronto 2,058 1,121 8 Deutsche Börse Germany Frankfurt 1,486 1,101 9 Australian Securities Exchange Australia Sydney 1,386 800 10 Bombay Stock Exchange India Mumbai 1,263 93 11 National Stock Exchange of India India Mumbai 1,234 442 12 SIX Swiss Exchange Switzerland Zurich 1,233 502 13 BM&F Bovespa Brazil São Paulo 1,227 751 14 Korea Exchange South Korea Seoul 1,179 1,297 15 Shenzhen Stock Exchange China Shenzhen 1,150 2,007 16 BME Spanish Exchanges Spain Madrid 995 731 17 JSE Limited South Africa Johannesburg 903 287 18 Moscow Exchange Russia Moscow 825 300 19 Singapore Exchange Singapore Singapore 765 215 20 Taiwan Stock Exchange Taiwan Taipei 735 572 Bursa Malaysia Malaysia Kuala Lumpur 189 9 Global Stock Markets
  • Why US Stock Markets? 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 Ticker Company (DJIA) Sector AA Alcoa, Inc. Basic Materials AXP American Express Company Financial BA Boeing Co. Industrial Goods BAC Bank of America Corporation Financial CAT Caterpillar Inc. Industrial Goods CSCO Cisco Systems, Inc. Technology CVX Chevron Corporation Basic Materials DD E. I. du Pont de Nemours and Company Basic Materials DIS Walt Disney Co. Services GE General Electric Company Industrial Goods HD The Home Depot, Inc. Services HPQ Hewlett-Packard Company Technology IBM International Business Machines Corp. Technology INTC Intel Corporation Technology JNJ Johnson & Johnson Healthcare JPM JPMorgan Chase & Co. Financial KO The Coca-Cola Company Consumer Goods MCD McDonald's Corp. Services MMM 3M Co. Conglomerates MRK Merck & Co. Inc. Healthcare MSFT Microsoft Corporation Technology PFE Pfizer Inc. Healthcare PG Procter & Gamble Co. Consumer Goods T AT&T, Inc. Technology TRV The Travelers Companies, Inc. Financial UNH Unitedhealth Group, Inc. Healthcare UTX United Technologies Corp. Industrial Goods VZ Verizon Communications Inc. Technology WMT Wal-Mart Stores Inc. Services XOM Exxon Mobil Corporation Basic Materials Ticker Company (S&P 500) Sector ADM Archer Daniels Midland Company Consumer Goods AVP Avon Products Inc. Consumer Goods AVY Avery Dennison Corporation Consumer Goods BEAM Beam, Inc. Consumer Goods BF-B Brown-Forman Corporation Consumer Goods BLL Ball Corporation Consumer Goods BMS Bemis Company, Inc. Consumer Goods BWA BorgWarner Inc. Consumer Goods CAG ConAgra Foods, Inc. Consumer Goods CCE Coca-Cola Enterprises Inc. Consumer Goods CL Colgate-Palmolive Co. Consumer Goods CLX The Clorox Company Consumer Goods COH Coach, Inc. Consumer Goods CPB Campbell Soup Co. Consumer Goods DF Dean Foods Company Consumer Goods DLPH Delphi Automotive PLC Consumer Goods DPS Dr Pepper Snapple Group, Inc. Consumer Goods ECL Ecolab Inc. Consumer Goods EL Estee Lauder Companies Inc. Consumer Goods F Ford Motor Co. Consumer Goods GIS General Mills, Inc. Consumer Goods HAR Harman International Industries Inc. Consumer Goods HNZ H. J. Heinz Company Consumer Goods HOG Harley-Davidson, Inc. Consumer Goods HRL Hormel Foods Corp. Consumer Goods HSY Hershey Co. Consumer Goods IP International Paper Co. Consumer Goods JCI Johnson Controls Inc. Consumer Goods K Kellogg Company Consumer Goods KMB Kimberly-Clark Corporation Consumer Goods
  • Options Derivative 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6
  • Financial Hedging – Options Where Options are Traded • Like Stocks, Options is publicly traded in market places called “Exchanges”. In the US, stock options are traded in 5 main Stock Options Exchanges, namely: 1) American Stock Exchange (AMEX) 2) Chicago Board of Options Exchange (CBOE) 3) International Securities Exchange (ISE) 4) Pacific Exchange (PCX) 5) Philadelphia Stock Exchange (PHLX) 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6
  • Financial Hedging – Options 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6
  • OPTIONS LEVERAGE Buy AAPL Stocks $335.26 x 100 = US$ 33,536 (MYR 110,645) Buy AAPL $335 Call Options (2mo) $13.34 x 100 = US$1,345 Buy AAPL Call Options Spread $320/325 ($22.85-19.30) x 100 = US$355
  • OPTIONS LEVERAGE Buy AAPL Stocks $335.26 x 100 = US$ 33,536 (MYR 110,645) Buy AAPL $335 Call Options (2mo) $13.34 x 100 = US$1,345 Buy AAPL Call Options Spread $320/325 ($22.85-19.30) x 100 = US$355
  • OPTIONS LEVERAGE Buy AAPL Stocks $335.26 x 100 = US$ 33,536 (MYR 110,645) Buy AAPL $335 Call Options (2mo) $13.34 x 100 = US$1,345 Buy AAPL Call Options Spread $320/325 ($22.85-19.30) x 100 = US$355 ROI: +3% +74.3% +41%
  • Bull Market 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 S t o c k v s O p t i o n s
  • Bull Market 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 S t o c k v s O p t i o n s
  • Bull Market 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 S t o c k v s O p t i o n s
  • Bull Market 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 S t o c k v s O p t i o n s
  • Bear Market 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 S t o c k v s O p t i o n s
  • Bear Market 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 S t o c k v s O p t i o n s
  • Bear Market 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 S t o c k v s O p t i o n s
  • Crab Market Sideways ROI 20-30%
  • Experienced traders control risk; inexperienced traders chase gains" ~Alan Farley
  • Financial Hedging – Options • Capital USD100,000 Risk Tolerance = 5% (US$5,000) Total Risk = 10% ($10,000) Stop Loss = 2% ($2,000) Trade Profit Balance 1) $5,000 41% $7,050 2) $5,000 41% $7,050 3) $5,000 -2% -$2,000 4) $5,000 -2% -$2,000 Total $10,100 10.1k/100k ROI p.month 10.1% 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 Projection for illustration only. Trading and investment of stocks and options involves substantial risk and there is always the potential for loss. Your investment results may vary. Risk Management
  • Financial Hedging – Options • Capital USD100,000 Risk Tolerance = 5% (US$5,000) Total Risk = 10% ($10,000) Stop Loss = 2% ($2,000) 10/12/2013 You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6 Projection for illustration only. Trading and investment of stocks and options involves substantial risk and there is always the potential for loss. Your investment results may vary. Risk Management
  • Advantages of Options 1) Low Capital 2) Less Risks 3) High ROI 4) More Strategic Alternatives High Profits & Low Stress Conclusion
  • Strategy Smart Safe Simple 10/12/2013 37
  • Strategy Smart Safe Simple 10/12/2013 38
  • • Maximise ROI & LeverageSmart • Protect against RisksSafe • Clear Steps to Enter and ExitSimple 10/12/2013 39 Workshop
  • • Understand the lucrative potential of U.S. stock markets. • Smart Safe & Simple Steps to make 70% - 100% ROI Workshop Highlights
  • • Learn how to select Profitable Stocks • Smart Safe & Simple Steps to make 70% - 100% ROI Workshop Highlights
  • • Different Market Conditions: Learn how to take Advantage of Uptrends and Downtrends. • Smart Safe & Simple Steps to make 70% - 100% ROI Workshop Highlights
  • • Learn how to spot Potential Reversals and take Advantage of Volatility • Smart Safe & Simple Steps to make 70% - 100% ROI Workshop Highlights
  • • Use time-tested strategies and earn Profit consistently every week • Smart Safe & Simple Steps to make 70% - 100% ROI Workshop Highlights
  • • Gain hands-on practical ways to time your Entries and Exits for every trade – Professionally! • Smart Safe & Simple Steps to make 70% - 100% ROI Workshop Highlights
  • Workshop • 4 weeks commencing Nov 2013 • Personalised hands-on coachingSmart • Fundamental analysis • Technical analysis • Live market charts Safe • Practise - Paper trading on live market charts • Live trading & user-friendly platform Simple 10/12/2013 46
  • Workshop • 4 weeks commencing Nov 2013 • Personalised hands-on coachingSmart • Fundamental analysis • Technical analysis • Live market charts Safe • Practise - Paper trading on live market charts • Live trading & user-friendly platform Simple 10/12/2013 47
  • Workshop • Traders Club Support 10/12/2013 48 Share and join like- minded traders in our chatrooms
  • Workshop • Traders Club Support 10/12/2013 49 Share and join like- minded traders in our private chatrooms
  • Investglobal.tlcg@ymail.com REGISTRATION & QUERIES: TL Global Harvest Solutions