＜ To be rich with 1 trillion won 03 ＞
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Monday, April 15, 2019, 10:00 p.m.
After moving to the hotel suite where Yohan and others are staying, Hyeon-joon conducted a situation check from 3 hours ago, and the process has already been completed.
Park Jung-min, Kim Do-hoon, and Nam Min-woo had individual training from 3 hours ago. I also helped them become familiar with option stocks through a few mock investments.
In the end, how well you understand the order and proceed with various purchases promptly, that will be the beginning.
Next, it was also very important to intensively sell at the right time.
These things will eventually go a long way in increasing your returns.
“I kept saying! When the stock market starts, never doze off. And you have to keep moving while watching the trend of Jang Joong-ho. You know what I mean?”
“yes!”
“And especially today, the strategies are different, so each one has to be more careful. Buy options! And sell! Buy on physical stocks! Or short selling investment! We are going to proceed with futures investment, so everyone should be alert!”
“yes! Teacher!”
“Pay special attention to the order sign I give you. If you miss a click, you need to tell them right away so they can fix it right away. Even if there is a little loss, the more important thing is the overall direction.”
“yes!”
Meanwhile, Hyun-joon has already prepared short-selling investments in some US stocks. Usually, when buying and selling US stocks through a Korean securities company, it is not easy to invest in short selling itself.
However, since Hyun-joon uses a local US trading site instead of going through a Korean securities company, short selling of US stocks is now possible.
In fact, in the United States, the rate of individual short selling is quite high.
It was true that it was different in many ways from the Korean market, which was very poor at short selling.
Anyway, after Hyun-jun was fully prepared, he carefully looked at some notable events for the last time.
Hyeonjun’s selection criteria for these stocks, as always, was to select stocks with very high stock price fluctuations in the last 5 trading days and stocks with a high possibility of a sharp drop or surge in the future.
However, when it finally came to the moment of choosing an item to trade today, Hyun-jun pondered for a while, but soon made up his mind and chose one item.
[Rumble Technology]!
It was this sport.
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Currently, [Rumble Technology] is an American company with excellent capabilities in the field of materials, such as semiconductor materials and various home appliance parts, in addition to producing various electronic parts related to electric vehicles.
As the number of global competitors increased, [Rumble Technology]’s development vision was gradually fading.
In other words, corporate sales and operating profit were getting worse and worse.
As a result, the stock price has been on a downward trend day by day.
Because of such a downturn, there was no sign of an upward reversal.
Even so, there is a high possibility that the share price of these stocks will soar very fiercely if sudden favorable news breaks out.
In particular, the possibility of this is increasing thanks to the large share price decline that was reflected in advance.
Of course, stock prices may suddenly hit a peak one day.
But that’s always what investors want.
It was true that the stock price failed to do so and only showed a continuous downward trend, and then it was true that it could never be ignored if it eventually went down the path of endless downfall.
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ruler! Then let’s get started.
Finally, before the market started, Hyun-jun opened his ‘ghost eyes’ by looking at the closing price of [Rumble Technology] on the previous trading day.
At this time, it seemed that he was gradually entering the dark side of the ghost, but at the moment, the size of Hyun-jun’s pupil suddenly changed.
For an instant, the black pupils seemed to slightly increase in size.
At that moment, Hyeonjun’s eyes grew more intense.
and after a while
Hyunjoon slowly closed his eyes.
And I got to see it clearly!
the future share price.
Hyeon-jun read future stock prices again.
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Well, it’s hard to go against the trend either.
Currently, [Rumble Technology] closed at $173.34 on the previous trading day.
On the other hand, the future stock price Hyun-joon sees right now is $150.63!
In other words, the stock price fell further.
The story that the stock price of [Rumble Technology] is still on a downward trend today.
Then, is it a ‘put’ after all?
Hyeonjun’s eyes immediately began to twinkle.
In fact, if stock prices continue to trend downward in this way, there is little that ordinary investors can do in the Korean stock market.
I have no choice but to wait for a rebound after the stock price bottoms out.
However, in the United States, a financially advanced country, there is not only one way to invest that individuals can do.
Hyunjoon immediately exclaimed.
“Today’s focused item is [Rumble Technology]! Access the item immediately, and get ready by opening the order book!”
“yes!”
As soon as Hyun-joon gave instructions, they entered the order book for each event. They started looking at things like this and that.
Although the stock market has not started yet, it is always necessary to prepare in advance.
“What do you think? Can you get a feel for it? Our investment direction is also put! Remember! It’s ‘foot’!”
Then everyone nodded.
Anyone can see that this stock is trending downward.
“Of course, I think the stock price will go down further. So our target stock price, uhm, let’s set it at $150! Then, Yohan, you are going to buy the put option as much as possible! Can you do well?”
“yes! Teacher.”
“Park Jung-min, prepare for short selling from now on. Focus on the market price and sell all of them within 5 minutes. You can see the quantity I received. Sell it out unconditionally! And when the target price is reached, short covering (buying again when the stock price goes down further) matches the volume number.”
“yes!”
On the other hand, Hyunjun has secured roughly the amount of short selling for each item through overseas trading sites in advance, but he intends to focus only on [Rumble Technology] in this investment.
“Jungmin-ah! can you do well?”
“yes!”
Although Park Jung-min has an introverted personality and doesn’t speak much, fortunately, his answering voice was very powerful.
So, Hyeon-Jun ordered Kim Do-Hun next.
“Dohun, did you hear what I explained earlier? Selling a call option is the same as buying a put option. You have to place a call option selling order as much as possible from the beginning of the market, and later, when it approaches $150, you must immediately close the position by buying a call option. Remember!”
“yes!”
“If the liquidation of the position is delayed, unexpected damage may increase. You know what’s going on?”
“yes!”
Hyun-joon made Kim Do-hoon do a more difficult job because he graduated from Korea University of Science. Although he dropped out of computer science, he had a much better understanding than the other guys, so he was entrusted with the short option position.
Looking at it, in fact, the majority of individuals who invest in options choose a long position.
In other words, buying a call option or buying a put option, in this way, is generally a long position.
This is because, even if real stock prices plunge or soar in the opposite direction and cause huge losses, these long positions end when the price of the option premium they bought blows up. On the other hand, short positions can incur astronomical losses later.
So, generally, institutional investors, unlike individual investors, use short position strategies from time to time.
In fact, they frequently market out-of-the-money options.
This is because these out-of-the-money options have a fairly high risk of investment, and in many cases actually become pieces of paperwork, so institutional investors can sell such options and continue to earn a certain amount of profit.
Of course, these out-of-the-money options may occasionally show a surprising upward reversal.
Nevertheless, compared to general individual investors, it was also true that institutional investors could respond more skillfully as they used various hedging strategies.
“In addition, if you have any problems, tell me right away. Never let the problem go! got it? If such a problem arises, we can work together as one.”
“yes! I will keep that in mind!”
After hearing Dohun’s answer, Hyeonjun looked at Minwoo Nam, who was on his last turn.
Following investment in put option purchase, call option sale, and short sale, Hyun-joon plans to entrust the investment in individual stock futures to Nam Min-woo.
“Minwoo, since you are also in a short position, go with a futures selling strategy and secure as much stock as possible in the beginning. Leverage is full! As mentioned earlier, the target price is $150! okay? And when it gets close to $150, the position goes into liquidation! OK?”
“yes!”
Yellow-haired Nam Min-woo looked at Hyeon-joon through round glasses and replied vigorously.
Hyeonjun nodded, and soon after, told the entire team of cautions again.
“Everyone, focus, focus again! Later, after summing up the investment details for each stock, we will pay each person 0.25% of the total proceeds as an insen, so let’s work harder. You will soon find out that 0.25% is by no means a small amount. got it?”
“yes! Teacher!”
After completing the final inspection, Hyun-joon checked the current time.
It was 10:25:57 at night.
The US stock market opening time is finally approaching.
In particular, since the trading time for individual stock options in the US is the same as the intraday stock trading time, Hyun-joon calmly waited a little longer.
Finally, at 10:30 p.m., the first trade finally began.
At this time, the four team members quickly clicked the mouse and started placing orders quickly.
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And time passed quickly after that.
It was 11:25:39 at night.
At the beginning of the market, [Rumble Technology] soared with a slight upward momentum, perhaps because of the buying sentiment against the continued decline in the stock price.
However, due to the pouring short selling at this time, the stock price could not last less than 20 minutes.
Once again, the price reversed and the stock price began to slide.
And as 11:30 p.m. approached, the stock price was falling to $163.28.
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“John, what is the current purchase status?”
“Yes, I printed it out!”
“Jungmin-ah, are you okay?”
“yes!”
“Dohun! You have to focus. You’re in a short position, so if you make a mistake, the damage will be great!”
“yes!”
Hyeon-joon cautioned them once more, then took the list of buys or sells printed out by each of them, and looked them over.
It’s not a bad trend so far.
However, as the share price continued to decline from last week, the put option premium purchase price was set at a fairly high level.
As a result, the purchase amount itself increased considerably. However, as the stock price fell, the yield rose little by little.
well, it’ll be fine
In fact, this was the first time trading futures options through a team of four, so Hyun-jun was a bit worried.
Nevertheless, I thought positively and continued to monitor the overall flow.
In particular, Hyun-joon has been quite pleased with the existence of his teammates so far.
Although they are still young, aren’t they semi-professional or professional gamers who have gone through countless game battles?
The agility was very good. Strategy comprehension is also quite high.
In other words, they were friends who even played a fairly complicated game, so when we set a target price, they all move on their own from then on.
If Hyun-joon had tried to do it alone, it was impossible to secure supplies.
Hyun-jun waited for a bigger change calmly, expecting a bigger profit.
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“Sorry, but I have a question.”
A stock price that has been in a lull for a while.
At this time, John raised his hand and asked.
“What? Got a problem?”
“No, not that.”
At the same time, Yohann asked Hyeonjun if it was not risky to only invest in put options in this way no matter how much the stock price fell.
In fact, if Hyun-joon was in a position where he did not know the future stock price, of course he would have no choice but to use a hedging strategy.
But in reality, Hyun-joon doesn’t have to do that at all.
However, in normal cases, buying a put option together with buying a call option can be a much better way to invest in these options.
It’s just because if you invest in one direction, if you get hit by a bomb from one side, your investment can become ‘0’ in an instant.
It will take a very long time to recover it later.
So, rather, if you invest in both directions, even if one side loses money, the other side can make a profit and maintain an appropriate investment flow.
Similarly, if there are stocks with opposite tendencies, buying the two stocks side by side can be a great way to do it.
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And again time passed.
It was around 3:45 in the morning.
In the midst of a long bear market, the stock price was getting close to $150.63.
At this time, Hyeon-joon shouted for a while to raise the concentration of the team members and alerted them to their attention.
After that, I started to look more carefully at the stock price trend.
Then, at this time, Hyeon-jun discovered strange flows one by one.
Small streams that devour items by hitting them once in a while.
Um, what the hell is this?
Simple backlash buying psychology?
For a while, Hyeon-joon continued to think about it, but soon he began to focus again.
The share price, which had been wandering in the downtrend, was finally hitting $150.63.
So, at that moment, Hyeon-jun hurriedly activated the ‘Ghost Eye’.
and after a while
Hyeonjun suddenly had a surprised expression on his face.
