Lifestyle Trading with stock options

04/08/2023

FINANCIAL STOCK OPTIONSLau May CheeC PA(Au s ) C A(M ) C MI I A

TL Global Harvest

Solutions

04/08/2023 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/MFOwns Stocks/MF

04/08/2023

US Wealth Creation

Top 7%

Balance 93%

-10% 0% 10% 20% 30%

Average Increase in Wealth


You shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6

04/08/2023

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

Top 7%

Balance 93%

-10% 0% 10% 20% 30%




4 Benefits of using Options

High Profits

&

Low Stress

Returns on Investment


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



2) Less Risks • On gapping losses

• Limited to the premium paid

High Profits

&

Low Stress



3) High ROI• Use time-tested strategies for consistent

Income

High Profits

&

Low Stress



4) More Strategic Alternatives• Various options combinations create powerful

strategies

High Profits

&

Low Stress


04/08/2023

Financial Hedging – OptionsYou shall eat the wealth of the nations, and in their glory you shall boast – Isaiah 61:6

Buy

Sell

Call Put

Limited Risk & Unlimited Profit

Unlimited Risk & limited Profit

04/08/2023

Major US Indices• Dow Jones

Industrial Average (DJIA)

• S&P 500

• Nasdaq Composite


US Stock Markets

04/08/2023



• S&P 500


• US has the most successful Global Companies

• It has the Highest Volume / Liquidity for both stocks and options


US Stock Markets

04/08/2023



• S&P 500


• The most online Research material and news coverage

• High Market Cap to reduce market manipulation


US Stock Markets

04/08/2023



• S&P 500


• Key mover of global markets

• Good Securities Commission Control on Transparency

• Tax-free for non-US residents


US Stock Markets


Global Stock MarketsRank 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 12,693Europe

2 NASDAQ OMX Group United States/ New York City 4,582 8,914Europe

3 Tokyo Stock Exchange Japan Tokyo 3,478 2,8664 London Stock Exchange United Kingdom London 3,396 1,8905 Hong Kong Stock Exchange Hong Kong Hong Kong 2,831 9136 Shanghai Stock Exchange China Shanghai 2,547 2,1767 TMX Group Canada Toronto 2,058 1,1218 Deutsche Börse Germany Frankfurt 1,486 1,1019 Australian Securities Exchange Australia Sydney 1,386 800

10 Bombay Stock Exchange India Mumbai 1,263 9311 National Stock Exchange of India India Mumbai 1,234 44212 SIX Swiss Exchange Switzerland Zurich 1,233 50213 BM&F Bovespa Brazil São Paulo 1,227 75114 Korea Exchange South Korea Seoul 1,179 1,29715 Shenzhen Stock Exchange China Shenzhen 1,150 2,00716 BME Spanish Exchanges Spain Madrid 995 73117 JSE Limited South Africa Johannesburg 903 28718 Moscow Exchange Russia Moscow 825 30019 Singapore Exchange Singapore Singapore 765 21520 Taiwan Stock Exchange Taiwan Taipei 735 572

Bursa Malaysia MalaysiaKuala

Lumpur 189 9

US$19 TRILLION (US Stocks)

Global Stock Markets


Why US Stock Markets?Ticker Company (DJIA) SectorAA Alcoa, Inc. Basic MaterialsAXP American Express Company FinancialBA Boeing Co. Industrial GoodsBAC Bank of America Corporation FinancialCAT Caterpillar Inc. Industrial GoodsCSCO Cisco Systems, Inc. TechnologyCVX Chevron Corporation Basic Materials

DDE. I. du Pont de Nemours and Company Basic Materials

DIS Walt Disney Co. ServicesGE General Electric Company Industrial GoodsHD The Home Depot, Inc. ServicesHPQ Hewlett-Packard Company Technology

IBMInternational Business Machines Corp. Technology

INTC Intel Corporation TechnologyJNJ Johnson & Johnson HealthcareJPM JPMorgan Chase & Co. FinancialKO The Coca-Cola Company Consumer GoodsMCD McDonald's Corp. ServicesMMM 3M Co. ConglomeratesMRK Merck & Co. Inc. HealthcareMSFT Microsoft Corporation TechnologyPFE Pfizer Inc. HealthcarePG Procter & Gamble Co. Consumer GoodsT AT&T, Inc. TechnologyTRV The Travelers Companies, Inc. FinancialUNH Unitedhealth Group, Inc. HealthcareUTX United Technologies Corp. Industrial GoodsVZ Verizon Communications Inc. TechnologyWMT Wal-Mart Stores Inc. ServicesXOM Exxon Mobil Corporation Basic Materials

Ticker Company (S&P 500) SectorADM Archer Daniels Midland Company Consumer GoodsAVP Avon Products Inc. Consumer GoodsAVY Avery Dennison Corporation Consumer GoodsBEAM Beam, Inc. Consumer GoodsBF-B Brown-Forman Corporation Consumer GoodsBLL Ball Corporation Consumer GoodsBMS Bemis Company, Inc. Consumer GoodsBWA BorgWarner Inc. Consumer GoodsCAG ConAgra Foods, Inc. Consumer GoodsCCE Coca-Cola Enterprises Inc. Consumer GoodsCL Colgate-Palmolive Co. Consumer GoodsCLX The Clorox Company Consumer GoodsCOH Coach, Inc. Consumer GoodsCPB Campbell Soup Co. Consumer GoodsDF Dean Foods Company Consumer GoodsDLPH Delphi Automotive PLC Consumer GoodsDPS Dr Pepper Snapple Group, Inc. Consumer Goods

ECL Ecolab Inc. Consumer GoodsEL Estee Lauder Companies Inc. Consumer GoodsF Ford Motor Co. Consumer GoodsGIS General Mills, Inc. Consumer Goods

HARHarman International Industries Inc. Consumer Goods

HNZ H. J. Heinz Company Consumer GoodsHOG Harley-Davidson, Inc. Consumer GoodsHRL Hormel Foods Corp. Consumer GoodsHSY Hershey Co. Consumer GoodsIP International Paper Co. Consumer GoodsJCI Johnson Controls Inc. Consumer GoodsK Kellogg Company Consumer GoodsKMB Kimberly-Clark Corporation Consumer Goods


Options Derivative

04/08/2023

Financial Hedging – OptionsWhere 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)


04/08/2023

Financial Hedging – OptionsYou 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)


$13.34 x 100

= US$1,345


($22.85-19.30) x 100

= US$355

Stock price +$10

OPTIONS LEVERAGE

Buy AAPL Stocks

$335.26 x 100

= US$ 33,536 (MYR 110,645)


$13.34 x 100

= US$1,345


($22.85-19.30) x 100

= US$355

Stock price +$10ROI: +3% +74.3% +41%


Bull Market

S t o c k v s O p ti o n s

Bear Market04/08/2023


S t o c k v s O p ti o n s

Crab Market

SidewaysROI 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%

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)

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

Even if 50% success rate

p.month, ROI is 10% p.month

Advantages of Options

1) Low Capital

2) Less Risks

3) High ROI

4) More Strategic Alternatives

High Profits

&

Low Stress

Conclusion

04/08/2023 37

Strategy

Smart

Safe

Simple

04/08/2023 38

Strategy

Smart

Safe

Simple

04/08/2023 39

Smart • Maximise ROI & Leverage

Safe • Protect against Risks

Simple • Clear Steps to Enter and Exit

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


Workshop Highlights

• Different Market Conditions: Learn how to take Advantage of Uptrends and Downtrends.


Workshop Highlights

• Learn how to spot Potential Reversals and take Advantage of Volatility


Workshop Highlights

• Use time-tested strategies and earn Profit consistently every week


Workshop Highlights

• Gain hands-on practical ways to time your Entries and Exits for every trade – Professionally!


Workshop Highlights

04/08/2023 46

Workshop

Smart • 4 weeks commencing Nov 2013• Personalised hands-on coaching

Safe • Fundamental analysis• Technical analysis• Live market charts

Simple • Practise - Paper trading on live market charts

• Live trading & user-friendly platform

3,888 per pax.

04/08/2023 47

Workshop

Smart • 4 weeks commencing Nov 2013• Personalised hands-on coaching

Safe • Fundamental analysis• Technical analysis• Live market charts

Simple • Practise - Paper trading on live market charts

• Live trading & user-friendly platform

Savings 10% per group of 6

04/08/2023 48

Workshop

• Traders ClubSupport

Bonus!

Share and join like-minded traders in

our chatrooms

04/08/2023 49

Workshop

• Traders ClubSupport

Bonus!

Share and join like-minded traders in our

private chatrooms

[email protected]

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TL Global Harvest

Solutions

Lifestyle Trading with stock options

Economy & Finance

Transcript of Lifestyle Trading with stock options