I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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Tuesday, 18 April 2017

Option trading As Passive Income is still Hot!!! (3)


Read? Option trading As Passive Income is still Hot!!! (2)


 (1) Why do folks buy term, travel and accident insurance and willing to pay premiums for protection and also no regret even after all these years of premium payment without any claim?

 Why? Why? Why?

 Protect against what?

 You know why? Right?


(2) Why insurance companies in good business to sell us term, travel and accident still profitable?

 Why? Why? Why?

Law Of Large Number!

So as retail; we can also act like insurance companies selling options to pocket these premiums without the Law of Large Number and still survive over long run?




Posted by Createwealth8888 at 09:07
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4 comments:

  1. Singapore Man of Leisure19 April 2017 at 09:29:00 GMT+8

    CW,

    Give you one real life example from last night.

    Those who sold calls on GBP since Brexit collected a series of nice premiums since GBP has been beating a down trend.

    Last night, out of the blue when UK PM announced snap election this coming June, the GBP rocketed up, up, and away!


    Those professionals who shorted GBP and bought the calls as hedge are now saying, "Heng ah! Got buy insurance! Damage not so big."


    Those "bei kambings" who thought they were collecting passive income by selling calls on GBP are now probably blown apart...


    No free lunch.

    If not how AIG got into trouble selling insurance (CDS) against bond defaults during Lehman 2008?

    Even institutions can get it wrong; don't say retail.




    ReplyDelete
    Replies
    1. Createwealth888819 April 2017 at 21:14:00 GMT+8

      Passive income or risky income?

      Delete
    2. Singapore Man of Leisure19 April 2017 at 21:47:00 GMT+8

      CW,

      Selling options and calling them "passive income" is TELLING A BIG LIE.

      We need to be active in the knowledge Actuary Science to manage the risks ;)


      Delete
    3. Createwealth888822 April 2017 at 08:18:00 GMT+8

      Telling a big lie to Bei Kamping is just White Lie. Not so evil as there faithfully followers willing to testify the Truth. ha ha. Actually it is Law of Large. Like striking ToTo Jacktop. Every few other draws there are people who strike but just not me.

      Come & learn the unique 4-Step L•R•O•S Cashflow Formula & Start Creating Monthly Passive Income At An Upcoming Event Happening On...

      He used a very unique 4-Step L•R•O•S Cashflow Formula that helps him to achieve high returns safely...

      Delete

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