How can I RENT MY STOCKs?
I own a big portfolio, someone mentioned I can rent these out to option markets
can you provide more info?
Answers:
Your friend is chitchat roughly writing option. Easiest exlanation is an example. If you own 100 shares of company XYZ and it is currently selling at $45 per share. If this is a hulking plenty company and nation are interested in buying option on it, what you do is write an substitute for someone else to buy 100 shares of XYZ at $50 per share contained by December.
What this channel is, someone will buy this right from you. If, when December rolls around, the company is selling at voice $55 per share, this being will buy your 100 shares rotten you for $50 per share. You essentially lost $500 because you have to put up for sale your shares at $50 when they be worth $55 but when the being bought this selection stale you they have to compensate probably $300. Also remember that when you wrote the picking the stock be at $45 per share so the portion of the runup from 45 to 50 you hold so you really made $800. Also, suppose the stock have stayed at 45 when December rolled around. The human being who bought the route have the odds to buy the stock at $50 but since the bazaar with the sole purpose charged $45 they would not exercise the chance. They'd be out the $300 they give you when you wrote the choice - essentially you basically made $300 for doing nil.
I hope that help a bit but you'd better read up on Writing option. Specifically I'd do a G00GLE explore on "Covered nickname writing". Anyhow, though, you friend is conversation almost writing option. This will obtain you some income over time but I individually hold not found the technique extremely adjectives - perchance you'll hold more nouns at it.
talk to your broker more or less "securities lending"
I know institutions resembling mutual funds do it, so why not an individual investor?
Despite the substitute information, I estimate they be mentioning securities lend.
Large portfolios lend securities to relatives who want to flog them short. Short seller borrow your shares and put on the market them and plan on re-buying them after that and returning them to you. The borrowing will wage your broker a levy (actually, it's interest on the effectiveness of the securities).
Your broker is already doing this and pocketing the money. Most broker agreements allow them to do this.
If you own a sizeable ample portfolio, and we're conversation tens of millions here, later you can constraint to split the proceeds beside your broker.
Yes, securities lend happen at most brokerage houses, but you inevitability an extremely massive portfolio (millions of shares) to in truth share within interest or lend them privately, i.e., some funds also do stock loan.
Whats the best on splash trading site for a hot investor?
When I tried to register for Transact online?
Techincal Analysis in Equty Research?
Long TERM investment, anybody predisposed to give support to?
How do I find a stock that get bought out by another company a few years ago?
can you provide more info?
Answers:
Your friend is chitchat roughly writing option. Easiest exlanation is an example. If you own 100 shares of company XYZ and it is currently selling at $45 per share. If this is a hulking plenty company and nation are interested in buying option on it, what you do is write an substitute for someone else to buy 100 shares of XYZ at $50 per share contained by December.
What this channel is, someone will buy this right from you. If, when December rolls around, the company is selling at voice $55 per share, this being will buy your 100 shares rotten you for $50 per share. You essentially lost $500 because you have to put up for sale your shares at $50 when they be worth $55 but when the being bought this selection stale you they have to compensate probably $300. Also remember that when you wrote the picking the stock be at $45 per share so the portion of the runup from 45 to 50 you hold so you really made $800. Also, suppose the stock have stayed at 45 when December rolled around. The human being who bought the route have the odds to buy the stock at $50 but since the bazaar with the sole purpose charged $45 they would not exercise the chance. They'd be out the $300 they give you when you wrote the choice - essentially you basically made $300 for doing nil.
I hope that help a bit but you'd better read up on Writing option. Specifically I'd do a G00GLE explore on "Covered nickname writing". Anyhow, though, you friend is conversation almost writing option. This will obtain you some income over time but I individually hold not found the technique extremely adjectives - perchance you'll hold more nouns at it.
talk to your broker more or less "securities lending"
I know institutions resembling mutual funds do it, so why not an individual investor?
Despite the substitute information, I estimate they be mentioning securities lend.
Large portfolios lend securities to relatives who want to flog them short. Short seller borrow your shares and put on the market them and plan on re-buying them after that and returning them to you. The borrowing will wage your broker a levy (actually, it's interest on the effectiveness of the securities).
Your broker is already doing this and pocketing the money. Most broker agreements allow them to do this.
If you own a sizeable ample portfolio, and we're conversation tens of millions here, later you can constraint to split the proceeds beside your broker.
Yes, securities lend happen at most brokerage houses, but you inevitability an extremely massive portfolio (millions of shares) to in truth share within interest or lend them privately, i.e., some funds also do stock loan.