You are here:

General Stock Investment Strategies/hello,question about investing...

Advertisement


Question
how i can increase stock price 10 % ? example: apple stock price : 10$ , volume: 30m  (15m buy,15 sell ) i bought 1.5m stocks , stock price increase 10% . is that right strategy to increase stock price 10 % ?


thanks.

Answer
Appl has way too many total shares to raise it with a 1.5 mil share buy in my opinion. But if your goal is to make a instant profit of 500000 then simply buy 30000 shares of appl and sell the jan 2018 experation 125 strike call against the stock position. That call sells for 1700 a contract and a 30000 share stock position will require 300 contracts to be sold to cover this position. This means you  will be paid 1700 times 300 contracts ie 510000 in cash in 1 day. Then you leave the position alone. If appl goes up above 125 a share you will be paid 125 a share if they exercise your position. But you also get to keep the 1700 .so your actual return will be 125 plus 17 or 142 a share. If the stock stays below 125 your options will expire worthles in jan 2018 and your stock is still yours but again you get to keep that 1700 per 100 shares that you were paid on each covered contract. I hope this helps you

Ok its a few months later and apple has dropped in price. This is good news to you. You can now buy those option i told u to sell for 1700 back then and the contracts will cost u 940 ea ie a profit of 760 per contract or 76k per 100 contracts . ie on ur 300 contracts a gross profit of 228k and u still own ur stock. Good luck

General Stock Investment Strategies

All Answers


Answers by Expert:


Ask Experts

Volunteer


tbaarr

Expertise

I answer only public questions so all can benefit . there is a donation button.but its not necessary for you to donate to ask me a question. if you want to donate. it will go to my daughters education fund and I thank you. I do NOT endorse any of the website ads that will bring you to my answers. I have started a blog called ..AS Tbaarr Sees It.. tThats the only site where I might benefit from any ads,see below for the address. I dont care about ratings as i am not here to make you buy a service from me... If you want my opinion just ask me... I was a askme.com expert who was consistantly in the top ten.... I have found my screename,on google,being used without my permission to promote scottrade and other garbage... Ask me here first before you try any service that is claiming my screename or using it as a link.... PLEASE let me know at my webpage or blog.... http://www.geocities.com/tbaarr/night_vision.html.. .. http://www.tbaarr.blogspot.com/ ....So i can go after them Thank you MY BROKER OF CHOICE IS CHARLES SCHWAB

Experience

I retired in 1996 at the old age of 39 by using city based utilities and leap call options. on stocks like ibm and wal mart because you can control these stocks for 2 years for ten cents on the dollar.
As of 1998 I got married and went to work driving Big Rig in 2004 so I could provide my 2 daughters,who are 4 and 8 as of 2007, with QUALITY AFFORDABLE health insurance. THIS job still allows me to trade but will cause you a slightly longer wait for any answer.. I apologize for This but my families welfare comes first..
I am a investor only so i am not here to force anything on you and choose this site because it was free The subjects listed below cover the main reasons i feel justified to call myself an expert the stocks I trade and why my options strategy my use of credit cards how to achieve multiple card accounts some ways to get your first credit card,that i know work how to make approx 120 a year by simply paying your bills with a credit card any questions outside of these topics i will attempt to answer or just say sorry i cant help you

Education/Credentials
school of hard knocks. I am an out sourced electrical engineer with a Calculus background. This is what I used to create my stock trending formula and my trading technique. I was taught the basics by other traders so I now return the favor.

©2016 About.com. All rights reserved.