Friday, October 10, 2008

2008-10-10 How to invest

In this two weeks, the stock market plunged 30%. This is a good time to learn how to invest on the worst case.
Suppose we have total $30000, after it is divided by 20 days, each day you have $1500.
1. Each day, buy ATM put or call in the end of the day.

2. Next day, if it is more than 30% up, sell it get profit and the next day buy $3000. if lower. buy another $1300 ATM in the end of the day.

3. if the market is plunging so much like this two weeks( Dow one day drop 7% or 8%). wait until the OE week do it.

4. In one month, suppose bu 3 three days long put insurance.

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