Better Trades Instructor Bob Eldridge is a stock market entrepreneur.
Bob has been trading stocks and teaching stock market strategies for many years and during that time the market has seen its ups and downs. Bob teaches that money is made whether or not stocks in the stock market move up, or stocks in the stock market move down. The KEY is simply that the stocks move.
Bob can start giving you the financial advantage where new stock traders run for cover by teaching you just two or three of his methods!!
Bob began to dream about how he could replace income from his existing job by spending more time trading stocks. Bob continued to trade Wal-Mart stock over the next couple of months and his trades were successful, again and again. He discovered there were many ways to make money in the market, and more than he had ever imagined by attending a few classes.
One stock trading strategy Bob picked up is called covered calls. Covered calls is a simple strategy that allows you to buy stock, then turn around and sell the right to someone to buy it from you for a higher price than what you paid for. Another way to illustrate this strategy would be a Real Estate option, where a person pays the home owner a specified amount of money for the right to buy at a specific price within a specified timeframe. Once you sell the right to your stock, your buyer could possibly not purchase your stock even though they bought the rights. However, even though they may not buy the stock, you made money from the stock by selling the right.
With the covered call strategy in mind, Bob went out and purchased 1,000 shares of Copytele stock at $12 per share. After the broker confirmed the $12,000 purchase, Bob ordered the broker to sell the $12.50 calls for the next month. Someone paid Bob $1.50 per share for the right to sell his stock for $12.50. By receiving that phone call, Bob had just received $1,500 ($1.50 X 1,000 shares).
Not bad, right? Within minutes of buying the stock Bob had turned around and profited $1,500. In addition, Bob had bought the stock on margin and only had to put $6,000 into the transaction (instead of the full amount, $12,000) and borrow the rest of the balance from his broker. In other words, Bob had invested $6,000 and received $1,500. That’s a monthly return of 25%. The top mutual fund manager boast 25% for a yearly return, life was definitely improving for Bob.
Bob made a profit of $24,000 after the first full month of writing covered calls. Bob netted another $20,000 the second month. It was time for Bob to make a decision about quitting his government job. This wasn’t going to be easy for Bob, even though it may sound easy to you, but he was giving up a $70,000 salary with approximately $1,800 a month in retirement monies. Bob let go of his emotional ties and made the best financial move he ever made.
Bob’s results during the next year were impressive. He averaged over 20% a month and was now free to work at his own pace.
Bob isn’t just proficient in covered calls, he’s an expert. A popular stock market seminar company invited him to be a teacher and soon Bob became everyone’s favorite instructor. Students actually flock to Bob’s classes, possibly because Bob took great pains to simplify such a complex subject matter.
Stock market strategies aren’t easy, and real money can be lost if you’re not following directions. Bob’s generosity and clear explanations are exactly what students need. Bob is often seen teaching stock market principles after class and he also mentors students late into the night.
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