Chapter 658 Maximizing Benefits

Theoretically, the biggest loss when buying a short option is the premium for buying the option. However, there is no upper limit to the theoretical loss of selling a long option.

Of course, if you hold the underlying stock of the stock and make a sell call at the same time, this is a sell cover call, no matter how much the stock price rises, you have the stock to deal with the selling action when the option is exercised, but the income of the underlying stock is reduced.

Risks often come with benefits. The greater the risk, the greater the return, and the greater the return, the greater the risk. It's really hard to draw conclusions about how to choose.

Hu Yang and Yu Hongbo discussed in the office for almost two hours before coming up with a rough plan.

In two days, Yu Hongbo will take a team to Xiangjiang and hire a few suitable agents to complete all the transactions together.

As for the accounts are all ready-made, Walkers International Investment has opened securities and futures accounts in North America, and as long as the funds are in place, they can be operated.

During this time, Yamason's stock price has been fluctuating around $70. Hu Yang holds 62.4 million ordinary shares of Yamason, and another 40 million shares converted through convertible bonds, which have also been allowed to be listed and traded.

If you sell these stocks now, it is actually not cost-effective, even if you can judge that there will be a wave of decline in the next few months, but it is still a question of whether you can buy back the full amount by then.

Therefore, Hu Yang and Yu Hongbo discussed that this operation will use combination tools to maximize profits while ensuring that the shares held remain unchanged.

In the afternoon, Hu Yang called Xia Bing and asked her to mobilize some funds to go to Xiangjiang.

"Mr. Hu, at present, the RMB has begun to appreciate against the US dollar, and the exchange rate just rose above 8 a few days ago, reaching 7.92. According to our analysis, there is still room for appreciation in the next few months, so it is better to make a dollar loan in Xiangjiang. ”

Because in the account of Walker International, except for a part of the Hong Kong dollar in Xiangjiang, the rest of the funds are in the mainland, and they are all RMB deposits.

After a few months, if the exchange rate rises again, there will be an interest rate loss if it is converted into RMB. Of course, loans also have interest, and Xia Bing's judgment is that even if you need to pay interest, it is more cost-effective than the exchange difference.

"That's fine, you can find a way to raise no more than $5 billion, I'll use it soon. In the next two days, Lao Yu will go to Xiangjiang, and you must ensure that there is enough margin in our U.S. stock account. ”

Hu Yang and Xia Bing talked about their thoughts, and at the same time let Xia Bing be responsible for supervising the operation.

"No problem, I'll leave for Xiangjiang later. Within two days, I was able to raise the money I needed. ”

Huijia International Investment has not made such a big move for a long time, and Xia Bing seems very excited. Now that Hu Yang has set the direction and Yu Hongbo is in charge of the operation, she has to take on the responsibility of supervision and risk control.

After work, Populus returned home.

Eating, walking, playing with my son...... After the little guy went to sleep, he called Tian Sichun to his study.

"Chunchun, I may have to go to Xiangjiang often in a few days, and I may not be able to come back every day. I wanted to spend more time with you and your children, but that's not going to happen. ”

Hu Yang felt a little embarrassed, and as soon as he came back, he had to run out again. And his parents and sister have to come to see Xiao Yifei on the weekend, and it is estimated that he also does not have much time to spend with them.

"I'm used to your busyness. Ah Yang, if you are free, you can spend more time with your children, and if you are busy with work, you will be busy with yours, we can understand. ”

When Tian Sichun married Populus Hu, he was already mentally prepared. My own man is busy with his career outside, so of course he has to support him.

"Uh-huh, thank you for your understanding. ”

Hu Yang didn't know what to say for a while, Tian Sichun never made trouble because he was busy, and he rarely worried about things at home, and his life was still very warm.

"Hey, you're welcome, it's not early, hurry up and take a shower." ”

Tian Sichun smiled and glanced at Populus Hu, and went back to the bedroom by himself.

Hu Yang didn't delay much, and after making two phone calls, he left the study quickly.

Two days later.

Hu Yang took Wu Xinhui and others to Xiangjiang.

Yu Hongbo and his team have already arrived here in advance and are busy making some preliminary preparations.

"Boss, the funds you need are already in place, and the $5 billion is all in the margin account. ”

After Hu Yang passed the customs by car, he went directly to the office of Huijia International Investment in Xiangjiang.

Xia Bing was waiting for him, and reported to him on the fundraising situation as soon as they met.

"Very good! Mr. Xia, they have already started to work, and the supervision and risk control on your side must keep up. As for me, I look around when I have time, and I usually don't meddle in specific affairs. ”

Hu Yang set the tone, he was still in charge of the overall situation, and all the specific matters were handed over to Xia Bing, Yu Hongbo and others.

The hardest thing must be Yu Hongbo, the opening time in North America is late at night, and he often has to be busy until four o'clock in the morning.

Xia Bing's work here is relatively easy, with her subordinates watching at night, she doesn't have to go into battle herself.

"Yamason's stock price has risen very much in the past two days, and now it has exceeded $80. ”

Hu Yang still lives in a hotel in Xiangjiang, and he stays in Huijia International Investment's office in Central during the day.

With the assistance of Wu Xinhui and Mi Qi, the daily work is not affected.

He usually had lunch with Xia Bing and Yu Hongbo at noon, and listened to Yu Hongbo's work report.

"It seems that most investors in the market are not aware of the coming crisis. Lao Yu, according to what we discussed, buy the put warrant of Yamason at around $90. ”

Because Yu Hongbo does not plan to sell all of Yamason's shares at a high price, it is a good choice to sell some stocks and buy some put options.

This is equivalent to adding leverage, which can continue to magnify profits.

At this time, the U.S. stock index continued to rise, but there was also a clear weakness. When the Dow Jones Industrial Average hit 13,000 points, Yu Hongbo was ready to buy a bearish 3X-ETF.

That is, an ETF index fund with triple leverage to short the index, Hu Yang and Yu Hongbo chose to short the Dow Jones Industrial Average, and when the index fell by 1%, the ETF index rose by 3%.

"Boss, I bought 40 million put options on Yamason three months later at $5 each, with an exercise price of $75. ”

Yu Hongbo saw that the target had entered the expected space, and he operated it almost every day.

The first to complete was the purchase of put options, and he recently bought a total of 40 million Yamason put options with an exercise price of $75.

For U.S. stock options, each contract (one lot) is 100 shares. In other words, if Yu Hongbo really wants to exercise his rights when it expires, the corresponding will be 4 billion shares of Yamason's stock.

As for whether there are so many stocks, don't worry. Options are inherently financial derivatives and are in the nature of VAM.

"It's so easy to buy a lot of put options, and it seems that the market is still very optimistic about the future of the stock market. ”

The part of the put option bought by Yu Hongbo, not counting the handling fee, cost a total of $200 million. For those who are bullish on the market (and also those who sell put options), the $200 million is equivalent to picking up for nothing.

Hu Yang didn't say anything, and let Yu Hongbo continue to stare at the market.

In the past two days, Hu Yang did not go back to the hotel to sleep at night. At night, he set up a folding bed in the office, and often slept in the middle of the night.

That night, U.S. stocks continued to rise after the open. The Yamason is no exception, and the stock price has broken above $95 and is fluctuating around $96.

"Boss, the price of the put option we bought has dropped again, and now it's $3 a piece. ”

When Yu Hongbo bought the put option, Yamason's stock price was less than $90. And now that it has risen a lot, the price of the put option will naturally fall.

In other words, if you buy a put option and the target stock falls, the price of the put option will rise.

"Then buy some more. ”

Hu Yang thought about it and decided to buy some more, after all, it's cheaper, isn't it?

"Boss, the number on the market is not too much, and there are about 10 million more to buy. Do you want to buy it?"

Yu Hongbo also knows that now is the time to pick up bargains, but the holders of this kind of option are still hesitating, and the trading volume is not large for the time being.

"Flies and mosquitoes are all meat, buy!"

With a wave of Hu Yang's hand, Yu Hongbo bought another 10 million Yamason put options. These are the same as last time, and the strike price after three months is $75 per share.

Not counting the commission, another $30 million was invested.

At this point, it was already late at night. It's so hard to watch the U.S. market in Asia, and due to the time difference, day and night are often reversed.

Wu Xinhui took some staff members to make coffee for everyone and brought it over, so as not to make everyone sleepy.

"Huh, the Dow Jones is rushing to 14,000 points!"

After buying the put option, Yu Hongbo had nothing to do for the time being, and sat down to chat with Hu Yang. The rest of his team was still watching the market diligently, when someone suddenly exclaimed.

Yu Hongbo hurriedly stood up and ran over to see that the market had hit a new high.

"Old Yu, don't be stunned! Hurry up, buy a bearish ETF. ”

Populus bearish is the Dow Jones Industrial Average ETF, and it is a good choice to buy at this point.

Yu Hongbo was not verbose, and immediately commanded his subordinates to operate.

This time, I bought a bearish ETF with a share of $3 billion in one go, and the corresponding target was the Dow Jones Industrial Average.

After the transaction was completed, there was less than $2 billion left on the margin account. The remaining funds can no longer be moved, in case of increasing the margin, there will be no fluctuations and liquidation.

"Old Yu, I'll take care of the rest. I will return to the deep sea tomorrow, and you will stay in Xiangjiang forever. ”

The exercise date of a put option is three months, and the ETF you buy can be held for a long time, and you can sell it when you feel the time has come.

"Boss, in fact, the Yamason shares in our hands can also be sold first. It's really not good, it's better to sell half of it, so that the operation is the maximum benefit. ”

Yu Hongbo hesitated, but still put forward his own suggestion.

He knew what Hu Yang was worried about, and he was afraid that after the stock in his hand was sold, he might not be able to buy it back at a low price.

In fact, at a low level, you can also use call options to lock in the shares you want to buy.

Hu Yang thought about it, but still shook his head. You can't try to do everything perfectly, and it's nice to have a little regret.

Yu Hongbo sighed and stopped talking.

"Old Yu, let me give you an analogy. If we sell 40 million shares of Yamason at $90 and buy them back at $40, are you sure?"

Hu Yang also knew that what Yu Hongbo said was right, he just didn't want to take risks.

In his memory, Yamason's stock price only took off a few years after the subprime mortgage crisis. If you hold it for another ten or eight years, the stock price will not increase several times, but dozens of times.

But seeing Yu Hongbo's disappointed expression, Hu Yang couldn't help but be a little shaken.

"Boss, we don't have to sell them all, just sell 40 million shares. When the time comes, I will definitely be able to buy it back, and I dare not say that I will buy it at the lowest price, but it will not exceed 10% of the lowest price. ”

Yu Hongbo hurriedly assured that he would send a military order.

"Okay, you do it right away, and you sell 40 million shares. ”

Hu Yang gritted his teeth, but still felt that he should take care of Yu Hongbo's emotions.

Anyway, after selling the 40 million shares, he still has 62.4 million shares in his hands. He will not move this part of the stock, this is his bottom position.

"Okay!"

Yu Hongbo answered, and then ran over and gave orders to his subordinates.

At this time, the price is $97.68, and the market is still very active.

Hu Yang looked at his watch, and there were still two hours before the market closed. He didn't affect the operation of Yu Hongbo and the others, quietly returned to the office, and fell asleep as soon as he lay down.

"Mr. Hu, it's time to get up for lunch. ”

Sleeping in a daze, Hu Yang heard Wu Xinhui's voice.

He opened his eyes and glanced at his watch, and it was already past 11 noon.

These days, Populus euphratica often stays up late, and I finally couldn't bear it yesterday, so I slept until now.

"Well, I'll get up and wash up right away. ”

Hu Yang sent Wu Xinhui away, got up and washed up briefly, and then came to the restaurant.

Pushing the door and walking into the fixed private room, I saw Xia Bing, Yu Hongbo and others there.

"Boss, please be seated. ”

When Yu Hongbo saw Hu Yang, he quickly stood up and helped him pull out the chair.

"Old Yu, we don't have to be so polite between us. Your performance today is a bit abnormal, isn't it a good harvest in the night?"

Hu Yang sat down with a smile, knowing that Yu Hongbo must have completed the task excellently.

"Hehe, I really can't hide it from you, boss. During the night, the sale of 40 million shares of Yamason stock went smoothly, with an average trading price of $95 per share, and a total of $3.8 billion was withdrawn. ”

It is no wonder that Yu Hongbo was happy, and Hu Yang paid a total of almost $1 billion to buy Yamason's shares and convertible bonds.

$1 billion got 102.4 million shares of Yamason, and now only 40 million shares are sold, and $3.8 billion is returned.

This ROI is really impressive.

"Well, well done. ...... eating"

Hu Yang didn't feel anything, and then said a perfunctory sentence and began to eat with his head down.

Yu Hongbo and Xia Bing glanced at each other, not understanding what the boss was thinking, could it be that the stock of Yamason would really rise even more in the future?