I've been a money manager for over 30 years

@ipsstrategiccapital

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#1 Ranked Financial Advisor in Denver – IPS Strategic Capital

8 videos

Why it worked

The video effectively demonstrates a complex financial strategy (options trading) in a visually engaging way using a spreadsheet and clear explanations. The presenter's expertise and the promise of leveraged upside with limited downside are compelling for viewers interested in investing.

Summary

A money manager explains how he uses options to provide leverage on the upside and limited downside for his clients. He uses a specific example with Tesla stock to illustrate how this strategy can yield significant gains while minimizing risk.

Structure

1Introduction as a money manager
2Explaining the strategy of using options
3Illustrating with a Tesla stock example
4

Original caption

The Magic of Options #options #optiontrading #TSLA #FYP #notviral

More from @ipsstrategiccapital

Product placement

The video features a spreadsheet titled 'Structured Note Builder' which displays financial data and projections related to stock options trading. The presenter uses a stylus to point out specific figures and charts on the screen, explaining how a particular investment strategy works.

On-screen text

Structured Note Builder (SBB Enabled) Underlying Info BBG Ticker BBG Monitor Underlying Price Option Data Pull Params Maturity Date Strike Range OTR BBG First Date Debt Info Option Amount Run Money $ (3) Coupon Rate Purchase Price % to Maturity # of Coupon Remaining Outlays Per Bond Total $ Outlays Total $ at Maturity Chart Output Params Max % Gain Max % Loss Option Spread Data Entry Leg # P/C Strike Cont. Price Delta Mny Leg 1 Put 360 -1 $ 82.20 0.000 2.2% Leg 2 Put 360 -1 $ 82.20 0.378 2.2% Leg 3 Call 390 -3 $ 91.03 1.946 2.2% Leg 4 Call 490 -5 $ 55.90 -1.582 39.1% Defined Outcome PnL Structure % PnL Und % PnL Zero Line Position Sizer Used Qty $ Ntl/Contract Total $ Ntl % Ntl Exposure -1 ($36,000) ($36,000) -57.1% -3 ($36,000) ($108,000) -171.4% -1 ($49,000) ($49,000) -71.4% Option Spend vs. Cash from Debt Total $ Outlay $2,317.60 $60,595.90 $62,913.50 $63,000.00 $3,704.10 $1,586.60 2.20% $ Ntl Outlay Over/Under Spend Cash from Debt % Carry Cost Mny Exact Value nearest Strif Exact Mny -50% 247 250 -29.1% -25% 264 275 -22.0% -15% 282 300 -16.9% -10% 300 325 -14.9% -5% 317 325 -7.8% 0% 335 350 -0.7% 5% 352 375 6.4% 10% 375 400 13.5% 15% 388 400 15.5% 20% 405 425 20.6% 25% 423 450 27.7% 30% 458 450 27.7% Und Return Structure Return Relative Perf Participation -40% -21.4% 18.6% 59% -35% -18.6% 16.4% 53% -30% -15.8% 14.2% 51% -25% -13.0% 12.0% 46% -20% -10.2% 9.8% 39% -15% -7.4% 7.6% 34% -10% -4.6% 5.4% 26% -5% -1.8% 3.2% 19% 0% 1.0% 1.0% 10% 5% 7.0% 2.0% 15% 10% 15.4% 5.4% 21% 15% 23.7% 8.7% 28% 20% 32.1% 12.1% 36% 25% 40.5% 15.5% 42% 30% 48.9% 18.9% 51% 35% 57.3% 22.3% 59% 40% 64.1% 24.1% 64%

Transcript

I've been a money manager for over 30 years and I haven't bought a stock in over 10 years. I can always get better edge by buying the option optionality. Let me show you a good example. Client call me today wanted to buy Tesla about 300 shares. So essentially stocks at 352. He wanted to put 300 shares. I was able to invest 63,000 at 1.3 years, but give him if we look over here, I can give him leverage on the upside, essentially I can give him 171% of the upside, but only 50% of the downside. So if Tesla is down or up 30, I'm up 48, but if Tesla is down 30, I'm only down 15 and that's the magic of optionality. Why doesn't everybody do it?