You may have heard of “Stock Rental” or “Share Rental” recently and wondered what it really is.
Have you heard of buying houses and renting them out?
Stock rental is a similar concept, coined by Jamie McIntyre and is another name for call options, which is a familiar option market trade to experts. Jamie McIntyre uses the term “stock rental” to simplify the learning process for the average person by using easy-to-understand terms to prompt them to invest in the stock market.
Most people have the understanding that high profits are also part and parcel of high risk, although using stock renting as a strategy is not necessarily the case. Essentially, you buy shares (Jamie recommends or bases his theory on at least 1000 shares of a good blue chip company) when they are trading low and then sell the right to buy the shares (if they increase in value by a predetermined amount). , on a predetermined date) to a third party. You are paid a figure in advance for each share, which you can keep. For example, if you want to lease your 1,000 shares with the current call option of 40 cents each, the company “leasing” your shares will pay you $400 up front. This $400.00 is yours to keep, the only catch is that the lessee can sell it if the shares go up to the agreed price, then you have the right to buy your shares. So within a one month period you received $400.00 up front plus your capital gain on those shares, if they went up $1.00 then you made $1400.00 in that month. If they don’t reach the predetermined amount, you keep the shares and can rent them out again.
The other option is to sign a contract with a company that says it will buy 1000 shares if they fall to $10.00. The company pays you up front for each share you agree to buy based on the put option chart which, say, is 50 cents a share, then if the stock goes down to $10.00 you are obligated to buy it. So now you’ve been paid $500.00, you buy the shares and now you rent them out and based on the figures mentioned above, you’ve made $900.00 and you just bought these shares… Not bad! By saying that if the stock never falls to $10.00 in that month, then you have been paid $500.00 for something you will never buy.
This is the wealth building strategy that Jamie has been teaching for the past 10 years, enough to say that using these strategies he became a self-made millionaire within the first 5 years of implementation, but with his teachings, guidance and resources, people now have the potential to cut this time frame in half. Jamie will theorize that educational standards are outdated and need to be brought into the 21st century. We are all taught that we need to get a job and work hard, all our lives. But Jamie teaches that it’s not working harder that makes the difference between rich and poor, but working smarter by creating wealth.
