Section 1.

that translated to $87.50. For the July 615 put we collect 2-7/8, which is
$287.50. You just made $375 minus commission, if the OEX stays in this
range until expiration. Warning! If it doesn't, your potential loss is
unlimited! That's why we reinvest part of our $375. What we'll do is buy
a call that is one strike price further out than the 680 call we sold. That
would be the July 685 call, which let's say was priced at 3/8, or $37.50.
The put we want to buy is the July 610, which is one strike price further
out than the 615 we sold. That will cost us 2-1/8, or $212.50. Together,
we made $375, but spent $250. That nets us $125 in profits. Our risk is
restricted to our invested $375 and our expected winning odds are
87.5%.
Now, that's a conservative way of making good money. You're only
problem is your broker's commission. A discount brokerage will charge
you about $40 for this strategy. Her it is again, the house edge. You risk
your money, they risk no money. They always come out ahead…
That's why we looked at Roulette as an investment vehicle. Here, the
house is risking its own money playing against you -- unlike your broker
who is risking nothing.
In fact, we found a way to play Roulette as an investment that is even
better than the option strategy I just showed you. Think about that for a
minute. That means that nowadays, you could even be making money
right out of the comfort of your own home by playing online, instead of
going to a casino. In fact, I play every night when I come home from
work for about 30-45 minutes. I found an online casino that I can trust.
So now, you can learn:
Raymond Lai, http://www.101roulettewinningtips.com
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