Yong-Long Lai

As promised, I will be using my cash buffer to do the premium cycle to generate extra cash.

Today i opened a ZFX position. Firstly, I don’t have any shares, so the only thing I can do is sell somebody the right to sell me the shares at an agreed price. The share price was trading at around $16.5 at the time, so I decided to sell 1000 options to the market. This will give the market the right but not the obligation to sell me 1,000 ZFX shares for $16.50 between now and 24th May 2007. Nothing in life is free, so they had to pay me $0.545 per option.

This is how you buy shares at wholesale prices! Its crazy, somebody is paying me money to do what I want to do.

Sell 1 put contract, X = $16.50, and receive $545 (there’s brokerage of about $100, but who cares! you are still making money)

Yes, the brokerage is painful, however I am looking at using optionsXpress to do this in the future and the brokerage should be a fraction of that)

Nik Halik’s Share Lord will teach you all this exciting stuff.