--- In [email protected], bob_brigante <[EMAIL PROTECTED]> wrote: > > --- In [email protected], "shempmcgurk" <shempmcgurk@> > wrote: > > > > I watched "Real Time" with Bill Maher this week and Benjamin > > Netanyahu was his first guest. > > > > Remember that back in 1980 or thereabouts Israeli warplanes flew > > into Iraq and bombed the hell out of their nuclear reactor program > > (I specifically remember it because at the precise time they were > > doing the bombing, the jet I was on was returning from my India > > course and was somewhere between Bahrain and Frankfurt...I could > > have literally been overhead when the bombing occured). > > > > Well, on Maher's show, Netanyahu was asked about the recent > > Lebanese/Israeli conflict and what he said was very, very > > interesting. He said something to the effect: we in Israel have no > > problem with Lebanon; we have no problem with Hezbollah. Who we > > have a probleme with is Iran. > > > > What odds do you want to give me that more sooner than later Israel > > will go it alone and, if they need to, unilaterally fly into Iran > > and bomb what they suspect are nuclear facilities. > > > > If they do that, what do you think will happen to the price of > > oil...$80 a barrel? $100? $150? $200? > > > > Well, if you do and want to make a calculated risk in making alot > of > > money, here's what you do: > > > > Buy $10,000 worth of December crude call options. You can buy a > > December call with a strike price of $105 for 2 cents a barrel (say > > 3 cents including commission). > > > > That means that for every 3 cent move above $105.00 a barrel, you > > would double your money. > > > > So if oil went up to $106.00 a barrel (just a dollar above your > > strike price of $105.00) and you sold your options, then your > > $10,000 would be worth 33 times more (because 3 cents divides into > a > > dollar 33 times) and your $10,000 would be worth $330,000. > > > > If oil went up to $140.00 a barrel then your $10,000 would turn > into > > $10,000,000 (because 3 cents divides into $35.00 -- the difference > > between your $105.00 strike price and $140.00 -- at least a > thousand > > times). > > > > Of course, the option has a life of only 67 days from today. But, > > hey, who's to say what can happen? > > > > What if some nutty Osama type committed some horrible ultra > violence > > and it also affected oil prices? > > > > Well, it's a big risk but a helluva better bet than Las Vegas! > > > > Anyone have a spare $10,000 sitting around they want to gamble with? > > > > ******************** > > Shemp, you used to be a broker for the commodity futures firm > International Trading Group, whose main office in Fairfield, Iowa > ripped off hundreds of millions from investors by spinning bullshit > fairy tales, until the Feds shut them down, so maybe you should throw > in a few caveats to your emptors: > > http://geocities.com/bbrigante/updates.html#ITG >
Point well taken. The 10 weeks I spent there were hell...not because there was anything wrong with the concept of commodities or commodity option trading but because they charged a 40% commission. I learned the trade (and studied and got my license) during that 10 week period, so I was new to it. But I soon learned that if I did an option trade with someone for, say, $50,000, then the commission would be $20,000 (40% of $50,000) whereas they could get the same trade for about $500 somewhere else. So it was a very hard thing to do when cold calling people when, in the back of your mind, you knew that you were asking them for something that they could get 95% cheaper somewhere else. It was a great weight off my shoulders when I left after 10 weeks. Ironically, of the two sales I made while there (for platinum options), the clients made 400% on their investments in about 3 months... But Bob's point is well taken and the caveat I should give is that I do NOT intend by what I wrote to either encourage or give investment advice. I no longer hold a license in this area and one should get proper advice from a licensed professional. My point of the post was to show that in these days of $80-a-barrel oil and terrorism that one could make a whole lot of money with little effort and that options is a hell of alot more sensible than going to Las Vegas or playing the lottery. To subscribe, send a message to: [EMAIL PROTECTED] Or go to: http://groups.yahoo.com/group/FairfieldLife/ and click 'Join This Group!' Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/FairfieldLife/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/FairfieldLife/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
