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0,000 portfolio project: 15% return 0,000 portfolio project: 15% return

02-15-2011 , 01:40 PM
haha, NFLX will probably be up 200% in six weeks.

seriously tho, buy some options that expire in march
0,000 portfolio project: 15% return Quote
02-15-2011 , 01:59 PM
Quote:
Originally Posted by Shoe
Just put everything in CLDA and hope to ride the momentum.
Hopefully you did this yesterday, you would already be over half way there!
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02-15-2011 , 02:01 PM
are all teachers retarted?
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02-15-2011 , 02:17 PM
TA reports on Friday. Put your whole portfolio in it.
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02-15-2011 , 02:27 PM
teacher might be making some kind of a point with this
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02-15-2011 , 02:59 PM
Quote:
Originally Posted by RikaKazak
Take your head, smash the keyboard, whatever first 1/2/3/4/whatever letters you smash, buy that stock, but do it on margin.
this is about right, but do it with march options.
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02-15-2011 , 03:31 PM
long opentable imo
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02-15-2011 , 05:47 PM
ur best bet is to buy options and hope one of them spikes big and u hit a big pay day.

spend 40k on options and hope that in a week you can sell for 55k or more

i did this same thing for a finance class a few years ago. pretty sure i bought coffee options and they did pretty well.
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02-15-2011 , 07:12 PM
Put it all on CREE - thank me in 6 weeks.
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02-15-2011 , 11:28 PM
I would start by diversifying in a low-fee index mutual fund and see where this adventure can take you.
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02-16-2011 , 12:06 AM
Buy OTM Call or Put Options

Load Up on some high beta stocks especially if they are coming up on a binary type event (regulation approval, court ruling, earnings).
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02-16-2011 , 04:01 AM
don't get the hate for this experiment, as a person with a limited but not complete ignorance of trading and finance i am pretty sure you could ask this question given the following criteria to a bunch of extremely good traders and their responses and their reasoning for picking them would be enlightening:

hit 15% as often as possible.
busting has no effect on grade.
hitting 16% has no effect.
time frame is 6 weeks.

...

certainly feels like there is an unlimited amount to think about using this as a context.
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02-16-2011 , 08:32 AM
I think trying to lose $50,000 purely in equities would be a much more interesting assignment.
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02-16-2011 , 08:44 AM
You could always try to keep the money in a general savings account in a bank and try and force a period of super-inflation (have any friends in the banking system with questionable morals?)
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02-16-2011 , 08:53 AM
Quote:
Originally Posted by HC82
teacher might be making some kind of a point with this
It's possible he'll put up a distribution of the class results to "show" how chasing big returns is counterproductive or something like that.
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02-16-2011 , 10:43 AM
Quote:
Originally Posted by faarcyde
I would start by diversifying in a low-fee index mutual fund and see where this adventure can take you.
This made me lol in real life.
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02-16-2011 , 10:54 AM
Quote:
Originally Posted by HC82
teacher might be making some kind of a point with this
That this particular school has no academic standards?

He is giving out a lot of extra credit for something that has absolutely no value.
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02-16-2011 , 08:45 PM
I don't think there are any restrictions on what you can invest in. I think I'm going to try a high-BETA strategy and invest a portion in SAH, TCK, CBL, CLMS, and WYN. Basically only following this strategy because it's the only one I really understood from the suggestions. Like I said, I'm pretty novice.
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02-16-2011 , 10:10 PM
well if there are no restrictions on what you can invest in, eazy game

go to http://www.cboe.com and lookup SPY in the delayed quotes (shows up when you mouse over "quotes and data")

click on options

Click around untill you find the SPY call option with a strike price of $134 and expiration of date of Mar 19. Here's a screen cap



So here, you just buy $100K worth of these call options. If you had got that last price today, that's about 51,800 of these options. This isn't even technically leveraged either which should satisfy any requirements

Now, had you bought 51,800 options at this price, you just throw in a limit sell order for 30 cents higher than the current price (netting you 51800*0.3 = $15540) which would be $2.23

Then sit back and see if the daily high ever exceeds this number. There's a pretty high chance of this working (prob like 80%)
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02-16-2011 , 10:10 PM
Quote:
Originally Posted by TO1
I don't think there are any restrictions on what you can invest in. I think I'm going to try a high-BETA strategy and invest a portion in SAH, TCK, CBL, CLMS, and WYN. Basically only following this strategy because it's the only one I really understood from the suggestions. Like I said, I'm pretty novice.
If you go the stocks route just pick 1, you don't want to diversify (you want high variance)
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02-16-2011 , 10:30 PM
Thank you very much sir. Going to play around with that when i get the chance. I'll have to check with the Professor to make sure it's legal.
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02-18-2011 , 12:42 PM
why is everyone telling him to BUY options?

by selling uncovered puts, he can have a return distribution that is something like 95% chance of ending up +15% and 5% chance of losing close to 100%..

and in cash terms you instantly get +15%
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02-18-2011 , 01:19 PM
Quote:
Originally Posted by TO1
This is is an extra credit project for my Finance II class.
The rules are simple:
-$100,000 to invest (Trading simulator)
-The goal is a return of < 15%
-I have six weeks
-There are no penalties for not achieving this return, so the investments can be boom or bust

The moment the portfolio reaches 15%, I can stop right there. Suggestions?

Some background on me:
-7 year professional poker player
-Went back to school last year to study Finance (Interesting in Analyst and Trading positions)
-Very limited knowledge at this point
-Have been lurking this forum for a few months now (It has been an excellent resource so far)

premise is just silly!

6 weeks and no consequences for loosing!

bet 15% on a ball game!

look at it this way. what do you learn from playing poker for fun munney? you just learn the rules!
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02-18-2011 , 01:24 PM
Quote:
Originally Posted by TO1
Clearly this assignment is not optimal for my learning experience, so maybe we can get past that. I'd prefer to see more constructive responses. Much thanks for the few serious responses so far. For what it's worth, the extra credit is adding 3 grade levels to our lowest test score (what a nice professor, I know).

challenge the professor and tell him he is just a waste of time..........lol.

you will learn much more doing this. challenge the teachers -dont patronize academic sillyness
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02-18-2011 , 01:26 PM
Quote:
Originally Posted by THAKID
are all teachers retarted?
yes.

example.

wisconsin teachers- either they pay snall amount for benefitts and noone gets fired.................or pay nothing and a lot get firred!


go FIGGURE!
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