my life reset

Chapter 658 Profit maximization
Chapter 658 Profit Maximization
Theoretically speaking, if you buy short options, the biggest loss is the premium for buying options.However, there is no upper limit to the theoretical loss when selling bullish options.

Of course, if you hold the underlying shares of the stock and make a sell call action at the same time, this is a sell cover call. No matter how much the stock price rises, you have stocks that can respond to the sell action that occurs when the option is exercised. Share returns are reduced.

Risks often come with benefits.The greater the risk, the greater the return, and the greater the return, the greater the risk.It is not easy to draw conclusions on how to choose.

Hu Yang and Yu Hongbo discussed in the office for almost two hours before they came to a rough plan.

In two days, Yu Hongbo will take a team to Xiangjiang, hire a few suitable brokers, and complete all the transactions together.

As for the accounts are all ready-made, Huijia International Investment has opened securities and futures accounts in North America, as long as the funds are in place, they can start operations.

During this time, Amazon's share price has been fluctuating around $70.Populus Hu Yang holds 6240 million ordinary shares of Amazon, and another 4000 million shares converted through convertible bonds, which have also been allowed to be listed and traded.

If you sell these stocks now, it is actually not cost-effective. Even if you can judge that there will be a wave of decline in the next few months, it is still a question of whether you can buy them back in full.

Therefore, Hu Yang and Yu Hongbo discussed that this operation will use a combination of tools to maximize the benefits while keeping the shares held unchanged.

In the afternoon, Hu Yang called Xia Bing and asked her to mobilize some funds to go to Xiangjiang.

"Mr. Hu, the RMB has started to appreciate against the U.S. dollar. The exchange rate has just risen above 8 to 7.92 a few days ago. According to our analysis, there is still room for appreciation in the next few months. It is better to make a U.S. dollar loan in Xiangjiang."

Because in Huijia International's account, except for a part of Hong Kong dollars in Hong Kong, the rest of the funds are in the mainland, and they are all RMB deposits.

A few months later, if the exchange rate rises again, there will be an interest rate loss when it is converted into RMB.Of course, the loan also has interest. Xia Bing's judgment is that even if interest is required, it is more cost-effective than the exchange difference.

"That's fine, you find a way to raise no more than 50 billion US dollars of funds, and I will use them soon. Lao Yu will go to Xiangjiang in these two days, and you must ensure that we have sufficient margin in our US stock account."

Hu Yang and Xia Bing talked about their thinking, and at the same time asked Xia Bing to supervise the operation.

"No problem, I will leave for Xiangjiang later. Within two days, I will definitely be able to raise the required funds."

Huijia International Investment has not made such a big move for a long time, Xia Bing looked very excited.Now that Hu Yang has set the direction and Yu Hongbo is in charge of the operation, she has to assume the responsibility of supervision and risk control.

After get off work, Hu Yang returned home.

Eat, take a walk, play with his son... After the little guy fell asleep, he called Tian Sichun to his study.

"Chunchun, I may have to go to Xiangjiang often in a few days, and I may not be able to come back every day. I originally wanted to spend more time with you and the child, but it's nothing to worry about."

Hu Yang felt a little embarrassed, and had to run out again as soon as he came back.Besides, my parents and sister will come to see Xiao Yifei on weekends, so I guess I don't have much time to accompany them either.

"I'm already used to your busyness. A Yang, spend more time with your children when you are free. If you are busy with work, you will be busy with your own work. We understand."

When Tian Sichun married Populus euphratica, he was already mentally prepared.My man is busy with his career outside, so of course he needs to support him.

"Hmm, thank you for your understanding."

Hu Yang didn't know what to say for a while, Tian Sichun never caused trouble because he was busy, and he seldom worried about family affairs, and his life was still very warm.

"Hey, are you being polite? It's getting late, hurry up and take a shower."

Tian Sichun smiled and gave Populus euphratica a blank look, and went back to the bedroom by himself.

Hu Yang didn't delay too much, after making two phone calls, he quickly left the study.

Two days later.

Hu Yang brought Wu Xinhui and others to Xiangjiang.

Yu Hongbo and his team have arrived here ahead of schedule and are busy doing some preparatory work.

"Boss, the funds you need are already in place, and all 50 billion US dollars are in the margin account."

After Hu Yang passed the customs by car, he went directly to the office of Huijia International Investment in Xiangjiang.

Xia Bing was waiting for him, and reported to him the situation of raising funds as soon as they met.

"Very good! Mr. Xia, Lao Yu and the others have already started working, and your supervision and risk control must keep up. As for me, I'll look around when I have time, and usually don't intervene in specific affairs."

Hu Yang set the tone, he was still in charge of the overall situation, and all the specific matters were handed over to Xia Bing, Yu Hongbo and others.

The hardest one must be Yu Hongbo. The opening time of the North American side is late at night, and he often has to be busy until after four o'clock in the morning.

Xia Bing's work here is relatively easy, with her subordinates watching at night, she doesn't have to go into battle by herself.

"The stock price of Amazon has risen sharply in the past two days, and it has now exceeded $80."

Hu Yang still lives in the hotel in Xiangjiang, and he stays in the office of Huijia International Investment in Central during working hours.

With the assistance of Wu Xinhui and Mi Qi, the daily work is not affected.

He usually had lunch with Xia Bing and Yu Hongbo at noon, and listened to Yu Hongbo's work report.

"It seems that most investors in the market are not aware of the coming crisis. Lao Yu, according to our agreement, buy the put warrants of Amazon at around $90."

Because Yu Hongbo does not intend to sell all of Amazon's shares at a high level, it is a relatively good choice to sell part of the stock and then buy part of the put options.

This is tantamount to adding leverage, which can continue to magnify profits.

At this time, the U.S. stock index continued to soar, but there was also obvious weakness.When the Dow Jones Industrial Average hit 13000 points, Yu Hongbo was ready to buy the bearish 3X-ETF.

That is to short the ETF index fund with three times the leverage of the index. Hu Yang and Yu Hongbo chose to short the Dow Jones Industrial Average. When the index falls by 1%, the ETF index rises by 3%.

"Boss, I bought 5 million put options on Amazon three months later at a price of $4000 each, with an exercise price of $75."

Yu Hongbo watched the target enter the expected space, and he operated it almost every day.

He took the lead in buying put options. Recently, he bought a total of 4000 million Yamason put options with an exercise price of $75.

For US stock options, each contract (one lot) is 100 shares.That is to say, if Yu Hongbo really wants to exercise the option when it expires, it will correspond to 40 billion shares of Yamason.

As for whether there are so many stocks, don't worry about it.Options are originally financial derivatives and are of the nature of gambling.

"It is so easy to buy a large number of put options. It seems that the market is still optimistic about the future of the stock market."

Yu Hongbo bought this part of the put option, excluding the handling fee, which cost a total of 2 million US dollars.For those who are optimistic about the market (and those who sell put options), the $[-] million is tantamount to nothing.

Hu Yang didn't say much, and let Yu Hongbo continue to stare at the market.

In the past two days, Hu Yang did not go back to the hotel to sleep at night.In the evening, he set up a folding bed in the office, and often went to bed in the middle of the night.

That night, U.S. stocks continued to rise after the opening bell.Amazon is no exception, the stock price has broken through 95 US dollars, fluctuating around 96 US dollars.

"Boss, the price of the put option we bought has dropped again, and it is now $3 a piece."

When Yu Hongbo bought the put option, the share price of Amazon was less than $90.But now that it has risen a lot, the price of put options will naturally fall accordingly.

In other words, if the target stock falls immediately after buying a put option, the price of the put option will also rise.

"Then buy some more."

Hu Yang thought about it, and decided to buy some more, after all, it's cheaper, isn't it?
"Boss, the quantity on the market is not too much, and about 1000 million more copies can be bought. Do you want to buy it?"

Yu Hongbo also knows that now is the time to pick up bargains, but the holders of this option are still hesitating, and the trading volume is not large for the time being.

"Flies and mosquitoes are meat, buy them!"

With a wave of Hu Yang's hand, Yu Hongbo bought another 1000 million put options on Yamazun.These are the same as last time, and the strike price three months later is $75 a share.

Not counting fees, another $3000 million was invested.

At this time, it was already late at night.Watching the American market in Asia is so hard. Due to the time difference, the day and night are often reversed.

Wu Xinhui brought some staff and made coffee for everyone so that everyone would not get sleepy.

"Huh? The Dow Jones hit 14000!"

After buying the put option, Yu Hongbo had nothing to do for the time being, and sat down to chat with Hu Yang.The rest of his team was still watching the market conscientiously, when someone suddenly exclaimed.

Yu Hongbo quickly stood up and ran over to see that the market had hit a new high.

"Old Yu, don't stand still! Hurry up and buy short ETFs."

Hu Yang is bearish on the Dow Jones Industrial Average ETF. Buying at this point is a good choice.

Yu Hongbo didn't talk too much, and immediately directed his subordinates to operate.

This time, I bought a bearish ETF worth US$30 billion in one breath, and the corresponding target was the Dow Jones Industrial Average.

After the transaction was completed, less than $20 billion remained in the margin account.The remaining funds can no longer be moved. In case the margin needs to be increased, the position will not be liquidated if there is a fluctuation.

"Old Yu, I will leave the rest to you. I will return to the deep sea tomorrow, so you can stay in Xiangjiang."

The exercise date of the put option is three months, and the purchased ETF can be held for a long time. When the time comes, it can be sold.

"Boss, in fact, we can also sell the Amazon stock in our hands first. If it is not possible, it is better to sell half of it. This operation is the most profitable."

Yu Hongbo hesitated for a moment, but still made his own suggestion.

He knew what Hu Yang was worried about. He was afraid that after selling the stocks in his hand, he might not be able to buy them back at a low price.

In fact, you can also use call options to lock in the shares you want to buy at low positions.

Hu Yang thought for a while, but still shook his head.You can't try to do everything perfectly, and it's actually good to leave a little regret.

Yu Hongbo sighed and stopped talking.

"Old Yu, let me give you an example. If we sell 90 million shares of Amazon at $4000 and buy them back at $40, are you sure?"

Hu Yang also knew that what Yu Hongbo said was right, he just didn't want to take any risks.

In his memory, the share price of Amazon will not usher in a real take-off moment until a few years after experiencing the subprime mortgage crisis.Holding it for another ten or eight years, the stock price will not increase several times, but will increase dozens of times.

But seeing Yu Hongbo's disappointed expression, Hu Yang couldn't help being shaken.

"Boss, we don't need to sell all of them, just sell 4000 million shares. I will definitely be able to buy them back at that time. I dare not say that I bought the lowest price, but it will not exceed 10% of the lowest price."

Yu Hongbo hastened to make a promise, and all he had to do was issue a military order.

"That's fine, you can operate immediately and sell 4000 million shares."

As soon as Hu Yang gritted his teeth, he still felt that he should take care of Yu Hongbo's emotions.

Anyway, after selling the 4000 million shares, he still has 6240 million shares left.He will not move this part of the stock, which is his bottom position.

"okay!"

Yu Hongbo responded, then ran over and gave orders to his subordinates.

The price at this time is $97.68, and the market is still very active.

Hu Yang looked at his watch, there were still two hours before the market closed.He also did not interfere with the operation of Yu Hongbo and others, quietly returned to the office, and fell asleep as soon as he lay down.

"Mr. Hu, it's time to get up and have lunch."

Drowsily asleep, Hu Yang heard Wu Xinhui's voice.

He opened his eyes and glanced at his watch, it was already past 11 noon.

These days, Populus euphratica often stays up late, and finally couldn't take it anymore yesterday, and has slept until now.

"Well, I'll get up and take a shower right away."

Hu Yang sent Wu Xinhui away, got up and washed up briefly, and then came to the restaurant.

Pushing open the door and walking into the fixed private room, Xia Bing, Yu Hongbo and others were all there.

"Boss, please sit down."

When Yu Hongbo saw Hu Yang, he quickly stood up and helped him pull out the chair.

"Old Yu, there's no need to be so polite between us. Your performance today is a bit abnormal. Didn't you get a good harvest at night?"

Hu Yang sat down with a smile, knowing that Yu Hongbo must have completed the task excellently.

"Hey, I really can't hide it from you, the boss. At night, the sale of 4000 million shares of Amazon's stock went smoothly. The average transaction price was 95 US dollars per share, and a total of 38 billion US dollars was withdrawn."

No wonder Yu Hongbo was happy. At the beginning, Hu Yang bought the shares and convertible bonds of Amazon, paying a total of almost 10 billion US dollars.

I got 10 million shares of Amazon for US$1.024 billion, and now I only sold 4000 million shares, and I got back US$38 billion.

This return on investment is really impressive.

"Well, well done. Eat."

On the contrary, Hu Yang didn't feel anything, and after a perfunctory sentence, he began to eat with his head down.

Yu Hongbo and Xia Bing looked at each other, not understanding what the boss was thinking. Could it be that the stock of Amazon will really have a bigger increase in the future?

(End of this chapter)