Chapter 64

Bold investment. I felt like I knew the future of the stock market. “Ellie, how much money did you make at the Fed last month?” “That’s $1.6 trillion.” “It’s about Korea’s GDP.” “Perhaps they will continue to release that amount throughout the year?” There was an unimaginably large amount of money circulating in the market. Although the size of the economy is growing every year, this money was not released to the market even during the 9/11 crisis or the financial crisis. ‘What will happen in the future?’ I’m not a finance expert, but I got a feeling. A unique feeling I have. He understood the hearts of people who wanted to make money better than anyone else. “Ellie, what do you think will happen if the coronavirus calms down?” “Really?” Ellie was looking at me, asking what absurd things she was talking about. The reason why the US and European stock markets plummeted is that they believe that the golden time to prevent the coronavirus has passed. Neither culturally nor socially could they stop the spread of the disease. Corona will continue to spread like now. But what if there is a vaccine and fewer people get seriously ill or die?” “When that time comes… … The market is expected to enter a strong uptrend. Even more drastically than it fell.” What anyone who isn’t a Wall Street financier can think of. It was judged that the stock market is highly likely to soar if basic common sense about the economy, people’s psychology, and information that only I know are combined. “Ellie, it seems like it’s time to buy stocks.” “Yes?” “I think we need to think about specific sports. I have to actively buy stocks.” Less than two months after selling all of my stock, I decided to switch to a long position. “Really?” “Yes. You need to build your portfolio to see which stocks are the best fit for you. And call options.” Derivatives. I was never going to touch this. The $10.5 billion I tasted last time in a put option was too sweet. I saw an article that various hedge funds made tens to hundreds of times with put options last month alone. Didn’t you say Don’t catch a falling knife in the stock market proverb? I was going to do exactly the opposite. “Aww.” Oh Myung-woo woke up early and played Ranked Game. “When you play the game, you have to be prepared to look into the abyss.” A game with 5 allies and 5 enemies. Enemies weren’t the only villains. When the game doesn’t go well, the lips of allies are always beyond imagination. In that abyss… … Oh Myung-woo was also together. ‘Isn’t there something more swearing?’ What are the comments that are fresh and bring the other person’s emotions to the limit? ‘I’m not bad. This game is what makes people like this.’ I reflected on the past when I laughed at the idea that games cause violence. Rolling makes people violent and has a lot of evil hearts. ‘Everyone dies.’ -It’s being slaughtered. – They are running wild. ―I can’t stop it. ―The ruler of the battlefield! ―The appearance of a legend! “Heh… … .” Oh Myung-woo wrote his history in the gold game. He sent the game result link to his friend via KakaoTalk to show off. ―Oh Myeong-woo: Look. This is my strength The text was confirmed after about an hour. -Kim Shin: Well done. Sorry for being busy. ―Myungwoo Oh: What are you busy doing? Did you wander the streets? -Kim Shin: No. I’m gathering investment information, and I’m going to invest in the US stock market. ―Oh Myeong-woo: Are you making some money? -Kim Shin: Maybe. ―Oh Myung-woo: Don’t worry and work. ―Kim Shin: Yes. My friend said that he earns money by investing hard, but Oh Myung-woo started playing the Ranked Game again. ‘Investment may or may not make money. But the game I play now is a definite reward for me.’ And after a while, the text came again. ―Kim Shin: Myungwoo. How will people’s interests or their main use change because of Corona? -Oh Myeong-woo: Huh? ―Oh Myeong-woo: You can’t understand? ―Kim Shin: Is there anything you want to buy or do after the coronavirus outbreak? ―Oh Myeong-woo: Since I can’t go around, I play more games. I change electronics and watch a lot of Netflix. ―Kim Shin: ㅇㅇ Thank you! It felt like holding a stone ax to compose a portfolio of investment items and fighting with professional knowledge. The propensity of corporate managers, the situation of factory facilities, product logistics, and even the latest advertisements. There are so many things to worry about, but I thought the opposite. ‘Let’s go simple. Things I want to buy and do after the coronavirus outbreak. We should prioritize those events.’ I told Eli about the contents of KakaoTalk with Oh Myung-woo. “Are you going to increase investment in unlisted companies?” “Untact?” “Companies that sell products that you don’t have to meet in person.” “Right. You can invest in that.” When I invested in coins, I read about people’s greed. Now, it was investing in companies whose stock prices would rise based on economic conditions. “After I finish my work, I will help you organize your stock portfolio.” “Really? Aren’t you supposed to pay a fee?” “I’ll do it for free.” Stocks of IT companies saw a huge trading volume as the New York Stock Exchange plummeted. Next is the call option. “The call options market has been booming since February. A lot of individual investors came out.” “I must have lost that much.” “I didn’t know the gut would be as bad as it is now.” When the New York stock market fell, individual investors who dreamed of a jackpot flocked in droves. They probably wouldn’t have put their soul into a call option, but most of them would have lost their money invested. “You know? A call option has an expiration date, and if it becomes useless on the expiration date, it becomes 0 won.” “I don’t know the details, but I know roughly.” A call option was the right to buy a stock. In the US, in addition to options on stock indices, call options on individual stocks were also traded. Let’s say you bought 1,000 call options to buy Amazon stock for $10. If the stock price on the expiration date of the option is $9, the right to buy it at $10 is useless, so it becomes 0 won. It is risky, but the return on success is high. Making money in a business is fun, but investing is thrilling. “Options investing can be very risky. The possibility of principal loss is too great, so I do not recommend it. The stock market is at its worst, so most of the investments are losing money.” Ellie looked me in the eye and said. I don’t know if she will see me as someone who dreams of making a fortune. But is that bad? Everyone dreams of making a fortune. It’s hard to become rich if you miss the opportunity to make a lot of money. It was calculated to some extent. It was intended to invest more than $12 billion in cash in unlisted companies centered on IT companies on the New York Stock Exchange. Since you are buying stocks, there is a possibility of loss, but long-term investments are possible because they are companies that will grow in the future. The prediction was correct, so there was room for a surge once the coronavirus situation calmed down. ‘Let the money work.’ The market was screaming in fear of a decline. Therefore, it is difficult to guess the expected rate of return when the stock reverses to an uptrend. Could it be that we can make at least billions of dollars? Even if the coronavirus calmed down, he was taking a conservative outlook. I don’t think I’ll get a 100% or 200% rate of return. As such, returns when the trend reverses could be much higher than expected. People’s greed always exceeds expectations. It doesn’t stop even when it’s appropriate. Even if you think you’ve climbed a lot, don’t stop. The word bubble comes out, and even when you think it won’t rise anymore, it continues to rise. Even prudent investors think they lose money if they stay still. ―Have you not eaten yet? LOL ―Blowing away the opportunity to reverse one’s life ―The kids will tell you in 20 years. Dad. Dad didn’t buy it back then. What did he do? ―The most stupid thing is to hold cash and stay still. -Stay still! Then you get nothing! Last chance to change your life. Thinking that this opportunity cannot be missed, we wait for those who invest with their souls. And finally, everyone joins the market. When sincere people who regarded reckless greed as a sin started investing,g and even raised their funds. Boom! The bubble dissipates like an illusion, and the market crashes. The starting point for all processes. Perhaps, they were making preemptive investments that captured the moment of change. Investment in the most difficult and unpredictable moment. It is not following the flow of the market caused by greed. It is to look at it from the deepest point of greed. All who want to make money come running. The market opens for us. ‘Now seems just like that time.’ The thought was long, but the time was short. I smiled at Ellie. “I’m going to buy a call option. And the amount will be rather large.” “Are you sure you’re going to pay another $200 million?” “No.” “So $100 million?” Even $100 million is an astronomical amount. Either make a lot of money, or become 0 won. Wall Street financiers prefer trading derivatives that reduce the risk of stock options investments. Even if you bet on a stock price going up, your prediction could be wrong. Therefore, in option trading, the opposite position is taken to diversify the risk. I intend to place all my bets solely on the rise of the stock market. “500 million dollars.” “yes? really?” “Yes. I’m going to burn all my $500 million in call options.” “… … .” He was crazy The derivatives market is growing, but isn’t it a huge whale if you invest $500 million? Pension funds with hundreds of billions of dollars in assets or Middle Eastern royalty whose fortunes are difficult to measure do not make such investments. But when you are confident enough, you have to invest. If you don’t invest, you may regret this moment in the future. “You. If it’s a joke, don’t do it. This is my job.” “I am not kidding. I’m betting $500 million on my faith.” A bet of $500 million. It was far beyond the amount Ellie could afford to help with. “It won’t be easy to invest $500 million in the market. We need to organize good stocks, volumes, and premiums.” “If you ask a financial institution on Wall Street to make a product, it might be possible.” “It should work. But do you want to go that far and invest $500 million? Even though there is a high probability of losing?” “Yes. I will try.” Is there such a thing as probability in investing? There has never been an investment with this level of basis and confidence in my life. Because the world is unknown, sudden accidents or changes can occur. However, considering such bad luck, you will not be able to make bold investments forever. “like. Then I will file a formal report to the company. I will ask the manager to make products not only for JP Morgan, but also for various Wall Street financial institutions.” “Yes. It’s what I want.” “It goes through the company, so you have to pay a minimum fee.” “It’s okay. Of course, I think it is a necessary fee.” The stock market crashed due to the coronavirus. There was a side of hesitation because it seemed to take advantage of people’s misfortune. In the opposite situation, you invest when everyone is gripped by fear and despair. I was most curious about what the outcome of the investment would be.