Chapter 168 [Good guy, Lao Jia tells a story to Tiansheng? (23/73)]
After receiving the instruction from Bo SS, Qiwei led his team to execute it. A huge amount of US$30 billion in offshore funds immediately bought call options on the US dollar index, which agreed to execute the US dollar index at a price of US$94.2 after December this year.
, and paid US$30 billion in royalties.
There are two ways to make a profit. If the U.S. dollar index rises in December, for example, it rises to 100 U.S. dollars, then Lu Ming executes his right to buy the index with a current price of 100 U.S. dollars at 94.2 U.S. dollars, and then sells it at a price of 100 U.S. dollars, minus
If the premium paid is, for example, $0.1, then the net profit from this transaction is $7.
Net profit of $5.7.
If the U.S. dollar index falls below the execution price in December, then of course the execution will be abandoned. At this time, only a fool will execute if the premium is only lost 0.1 US dollars. This is equivalent to buying from the market at a price of 94.2 US dollars, resulting in a direct net loss.
-$4.3.
Obviously, Lu Ming will definitely not make a profit by exercising the option, because it is impossible. With the option he is buying now, exercising the option at expiration means that he must first prepare 550 billion US dollars to buy it from the market for 94.2 US dollars.
.
The exercise amount is 550 billion U.S. dollars. For Lu Ming now, this amount can't be raised even if he sells his underpants.
Therefore, if you want to make a profit, you can only use the second method, which is to buy low and sell high with the premium. Direct trading of the premium is O**K.
In this way, Lu Ming can use 30 billion U.S. dollars in capital to make similar profits that he would need to use 550 billion U.S. dollars in capital.
Lu Ming knew that the U.S. dollar index's current upward trend had reached approximately $103 in December, and his plan was to close the position when the U.S. dollar index rose to over $100. The premium at that time would have risen sharply.
The profit this time is expected to be US$35 billion. In other words, Lu Ming’s target profit this time is to at least double.
Today's U.S. dollar index has hit a new low for five consecutive trading days. It doesn't matter that no one is subscribing. You must know that the daily turnover of the international foreign exchange market exceeds 1.5 trillion U.S. dollars. Five years later, it will exceed 6 trillion U.S. dollars.
Turnover.
The amount is really too big. The amount in the sky cannot be transferred by personal will. In the muddy waters of the foreign exchange market, even the United States itself does not dare to intervene directly. No country dares to intervene directly.
In international foreign exchange, you will only get yourself involved.
This is a real world-class casino, and for Lu Ming, it is simply a paradise for stealing money. The speed of making money is definitely faster than that of a money printing machine.
Similarly, there is no pressure to liquidate the execution rights in your hands in December, and they can even be snapped up by the market in less than an hour. At this time, the U.S. dollar interest rate hike has already taken effect, pushing the price of the U.S. Index up by 103 U.S. dollars.
This means that if you buy Lu Ming’s right to sell, you will definitely make money.
For example, an investor takes N options sold by Lu Ming and exercises them immediately after buying them. The required exercise capital is 94.2 million US dollars. After exercising the options, he immediately sells them in the market. At this time, the price of the U.S. index is 103 US dollars.
Investors can immediately net profits of more than $8 million.
Precisely because this is an arbitrage move with almost guaranteed profit and no loss, the premium will skyrocket, and everyone is willing to pay more premium to purchase this exercise qualification, and then risk-free arbitrage.
Lu Ming obviously earns the price difference from the increase in the royalties. In theory, the income is unlimited. As long as someone in the market is willing to pay a higher price to purchase the rights in his hand, the so-called higher bidder wins, and the price of royalties will naturally rise.
.
Naturally, those who lose money are the buyers and sellers of the same option. In this situation, the two parties are in a zero-sum game. When one party decides to exercise the option, the other party in the transaction has to buy the trading variety from the market at a high price, and then
Sold to the party exercising the option at a low price.
To put it bluntly, even though he knew Shabi, he still had to buy the U.S. Index at $103 from the market, and then sold it to the other party at a price of $94.2. This reflected a loss of -$8.8 on the book, and the party who exercised the option did not calculate the right to pay.
In the case of gold and other transaction fees, the floating profit will be +8.8 yuan directly. If you close it directly on the same day, you will get a net profit.
…
Just after Lu Ming ordered US$30 billion to buy call options on the U.S. index, in late August, the U.S. dollar index precisely stopped falling and rebounded.
By August 31, the U.S. Index had risen to the U.S. dollar.
Although it fell back again, it did not fall below the lowest price of 94 US dollars. This time, Lu Ming was as calm and steady as an old dog. As long as Wall Street is bent on rewarding and harvesting rabbits, the US dollar index will inevitably rise, and the US dollar will inevitably rise.
Announcement of interest rate hike.
In the second half of 2014, the price of the U.S. dollar index was in the early 80s, and by March 2015, it exceeded the 100-dollar mark, and this period happened to be the Big A super mad bull market stage.
In December last year, various speculative capitals around the world, led by Wall Street financial capital, were shorting the RMB. After two days of fierce confrontation in Japan, all international short sellers finally retreated after a disastrous defeat. Along with this, the U.S. dollar index quickly dropped from 100
The U.S. dollar continued to decline and has been weakening for half a year. The largest decline occurred on May 3 this year, reaching a new low for the U.S. dollar.
It can be seen that last year's fiasco was still a bit painful for various international hot money companies, and until today it has not yet reached the $100 mark again.
…
The time has come for September.
Lu Ming came to the office this afternoon. There was already a routine report from Tiansheng Venture Capital on his desk, which was about VC venture capital projects.
Since Tiansheng Capital spent money crazily in the primary market, it has already won the title of "The No. 1 Kaiye". Many netizens call him "Lu Zhengyi" because he is too "Kay".
The luxurious style reminds everyone of SoftBank and Sun Zhengyi.
Although Tiansheng Capital had a bad reputation in the early days due to the "Anty War", its actions in the primary market this year have directly transformed it into an "angel investment institution" in the eyes of entrepreneurs.
After its concept of not lacking money and not interfering in the operation and management of start-up companies has been achieved, it has become one of the most ideal investors for entrepreneurs. Start-up companies all hope to raise funds from Tiansheng Capital. Tiansheng Capital
The threshold for venture capital has been crossed. Every day, a large number of founders come to tell Lu Ming stories. It is no exaggeration to say that it is like waking up every day and someone telling you that there are thousands of investment opportunities...
Of course, there are money scammers, and most of them are scammers. There is a risk of failure in investment, and being scammed is also a kind of risk. However, Lu Ming doesn't care about Tiansheng Capital being scammed.
, as long as the risk is controlled within a reasonable range.
It is unrealistic to not be 100% fooled.
"Um?"
Lu Ming, who was looking at the content of the material report, suddenly glanced at one of the documents emphatically. His expression was confused for a while, and he subconsciously muttered to himself: "Good guy, Boss Jia, who is returning to China next week, actually came to my place.
Do you want money?"
By the way, at this moment, Boss Jia has not returned to China next week. Now he is the "proud son of heaven" in the science and technology circle and enjoys the treatment of "the protagonist's halo".
…
(Ps: Unknowingly, I have paid back a third of it. Take a break. I’m here today and will continue tomorrow.)
