When you go to the grocery store, do you feel as if everything is so much more expensive? Does your food bill seem to go up and up and up every single month? If so, you aren’t wrong! You also aren’t alone. I have seen my grocery bill increase 20% year on year.
Have you ever seen those long and lavish mission statements on a plaque of the corporate wall? Or, inscribed on a company’s stationery? Other popular places are on the back of business cards, on websites, brochures, and Company Annual Report. Yet, it’s the person who is “belly to belly” with the customer that is that company. It’s not the corporate crafted mission statement that defines that company’s image. It is the stock clerk, the teller, the barista, the ticket taker and the sales representative who has direct contact with their clients. Even in the non-profit world, many will become involved for the cause, yet the majority become involved because of a person – either someone they know, someone affected or a special someone who asked for their help.
Credit Report- When you are late making payments, the credit card company reports it to the three major credit reporting agencies. Your credit will be affected for many years to come if that happens. That means your credit rating has now turned your finances to ruins. It takes about seven years for these dark spots on your credit report to be removed from the credit report. That is a long time to fight against it.
As for the stock, if you guessed right and went short before the announcement, you made $2,000 on the trade, or a 20% return. If you guessed wrong however, you lost just -$2,000 or -20%. With the strangle or straddle, even if you expected it to go one way and it went the other, it doesn’t matter — you still would have profited. If you put two strangles on, your profit would have been $1,700. And the investment to do so still would have been a fraction of the amount of money you would have had to put up to get the stock. Of course, this strategy is not without its risks. You can lose all of your investment, which means the $650 in this case. But that’s probably at least what you would have been willing to risk to get into the stock.
Many people spend energy trying to be more efficient without first doing what’s important: setting goals. It’s like being lost on your way to a new city. Driving faster doesn’t help if you are going in the wrong direction. Figure out what direction to go in and head that way.
Investigate other sources of relevant information too, such as: * press or trade magazines (collect articles or press releases in your preparation file) * other web sources (e.g Wikipedia, market analysts) * company annnual report and shareholders’ information * your network – do you know anyone who works there? or has been for an interview there? do you know any suppliers to the company?
You can learn more about different types of option strategies by downloading our free options booklet: 3 Smart Ways to Make Money with Options (Two of Which You Probably Never Heard About).
Ask them!!! – If you don’t ask you won’t get. Although you may find this alien, so many people will give you some great information you never thought they would divulge.