This is not financial advice. Do your own research. Invest what you can afford to lose.
Our Strategy: We operate an insurance business that sells put options to stock investors. We help investors limit their losses if their stock falls below a certain price. In return for our protection, investors pay us a premium/upfront fee. Read Letter 2 and Letter 3 to understand more of the mechanics.
Please note: We use 1 policy to represent our deals because we want everyone to be on the same page. In practice, we might sell or buy multiple policies at a time.
Our Patience Paid Off!
On March 25, we successfully closed our insurance policy on Intel $INTC ( ▼ 2.2% ) and made $30.36 on the deal.
Based on the $239.32 we had at risk, our return was 12.69%.
$30.36 ÷ $239.32 = 12.69%
The policy was in place for 23 days.
We consider this policy a success because it went according to our initial plan.
We closed it at 50% of the premium.
The double-digit return compensated us for the risks we took.
The 13% cushion between Intel’s stock price when we sold the policy and the price we guaranteed was sufficient.
We will not sell a new policy on Intel until they release their earnings report on April 23.
Business Update
Below is our profit & loss statement for the policies we have sold.
The loss on Super Micro Computer $SMCI ( ▼ 1.08% ) set us back $157.62. The loss was completely avoidable. Proverbs 27:12 warned us about Super Micro and we did not take heed. We now need at least 6 successful policies similar to Intel to break even. Going forward, we will only sell insurance on dominant companies with stable management.
Let’s continue building our own little insurance company. The goal is to make more than we pay out.
Stay strong, stay blessed, and God willing, we’ll see each other next week.
If you have any questions, email me at [email protected]
Remember to Pray
For New York City. We are in serious trouble.
For we do not wrestle against flesh and blood, but against the rulers, against the authorities, against the cosmic powers over this present darkness, against the spiritual forces of evil in the heavenly places. Ephesians 6:12 (ESV)
Did You Know?
Everyone knows God is real. In Romans 1:18-21, God says He revealed Himself to everyone He created. The only reason people say they don’t believe in God is because they don’t want God to be their king. When someone tells us they don’t believe in God because of X reason, we have to make a choice. Are we going to believe that person, or are we going to believe what God said?
For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who by their unrighteousness suppress the truth. For what can be known about God is plain to them, because God has shown it to them. For his invisible attributes, namely, his eternal power and divine nature, have been clearly perceived, ever since the creation of the world, in the things that have been made. So they are without excuse. For although they knew God, they did not honor him as God or give thanks to him, but they became futile in their thinking, and their foolish hearts were darkened. Romans 1:18-21 (ESV)
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