MTL - The Son of Finance of the Great Age-Chapter 27 options

  Chapter 27 Options

   "Mr. Zhong, according to the current momentum, the yen will continue to rise..."

   Andrew was in a hurry, and quickly dissuaded him. In his view, the yen futures will definitely rise strongly during this period, and the money in Zhongshi's account will grow at an incredible rate.

  Although he can get at least tens of thousands of dollars in commissions for this transaction, who would think that money is too little!

   "Quickly figure out how much option premiums it would take to build a billion dollar options position! Do as I say, immediately!"

  Zhong Shi was not moved at all, and said in an indifferent tone. He was really annoyed at the broker's self-assertion, and even in his heart, he was already considering whether to change a brokerage company.

  In later generations, it is not uncommon for brokerage companies to embezzle money in customer accounts privately. In the early days of the Huaxia securities market, a securities company established in Shenzhen and Hong Kong embezzled as much as 8 billion yuan in client reserves, causing huge losses. However, the government vowed to the debt collectors that the company would not go bankrupt and that the government would be responsible for all the debts, but in turn declared the securities company bankrupt, leaving many people with nothing to lose.

  Although this futures company is funded by the United States, its management and professional standards are much stronger than those in China, but who can guarantee that this kind of moral hazard will not occur?

  Seeing that Zhong Shi's expression was wrong, Andrew immediately shut up and called his colleagues in the United States.

   "Zhong Shi, what the **** is going on?"

  Zhong Yi finally caught an opportunity, he had been sitting for most of the night, and he understood something in his heart. It's just that he couldn't believe it, how did this cousin's net worth skyrocket to such an astronomical figure in just a few days?

   "It's nothing, I just made a small amount of money in the futures market. Hey...the money in hand is still too little..."

   Zhong Shi said lightly. The people in the room who understood his words rolled their eyes, and they all despised Zhong Shi in their hearts: "With a net worth of 40 million, you still think it's too little money? Who the **** is this!"

Liao Chengde rolled his eyes even more violently. He had known Zhong Shi the longest and knew his details best. With a white porcelain bowl from Ding Kiln, he extorted a million Hong Kong dollars from Liao Chengde, and then made a fortune on "Cheung Kong Enterprises". A large sum of money, and then skyrocketed to tens of millions of dollars, almost catching up with the wealth he had accumulated in half his life.

   What Zhong Shi said was too little money is indeed true. For such a once-in-a-lifetime opportunity, one must never miss it. He invested all his net worth now, and he only earned a small amount of money, most of which were earned by those predators with funds worth hundreds of millions.

The reason why he wants to withdraw from the futures market is that he is afraid of the yen's short counterattack. After all, the Japanese conglomerates are still very powerful these days; Extremely limited.

   After all, once the news of the depreciation of the US dollar is announced, I believe there will be no more funds blindly entering the short side. In this case, it is better to switch to the options market early.

Option, also known as option right, is a kind of derivative produced on the basis of futures. It refers to the right that can be bought and sold in a certain period of time in the future. It is owned by the buyer after paying a certain amount of money (option fee) to the seller in the future. The right to buy or sell a certain amount of a specific subject matter to the seller at a predetermined price within a certain period of time, but there is no obligation to buy or sell.

For example, the one billion dollar Japanese yen option mentioned by Zhongshi, the two parties can purchase the one billion dollar Japanese yen right from the seller at an agreed price in the future (two years). When an agreement is reached, Zhongshi needs to pay a certain amount of option premium to the seller and choose to deliver or give up before the deadline.

  Options are divided into American options and European options. American options refer to options that can be exercised at any time within the time limit, while European options refer to options that can be exercised on a specific date. Due to the difference in the time limit, the corresponding option premiums are also different.

"Sir, I found out. Currently, there are mainly yen futures issued by RB Sumitomo Bank, RB Sakura Bank, and Chase Bank on the Chicago Mercantile Exchange. Among them, there are not too many options with a two-year period. The delivery price set is... "Speaking of this, Andrew couldn't help pausing for a moment, glanced at Zhong Shi, saw that there was no change on Zhong Shi's face, and then continued: "The two-year yen option has soared from 200 in the morning to 100 Eighty, and the option premium has also increased significantly!"

   "Oh, it seems that the RB consortium responded quickly enough. How much value can I buy options with all my current assets?" Zhong Shi touched his smooth chin and asked thoughtfully.

   "Sir, you can only buy options with a total underlying value of 200 million US dollars!"

   Andrew lowered his voice, speaking a little embarrassedly, as if he had done something wrong.

   "Two hundred million dollars... two hundred million..."

  Zhong Shi nodded, and kept tapping the table with his fingers. Following his beating, everyone in the room fell silent, staring at Zhong Shi intently, waiting for his next instruction.

   "Old Liao, how much money can you give now? Also, do you want to take back your five million now, or put it in my combination and continue to make money?"

   After being silent for a long time, Zhong Shi suddenly asked, and the person being questioned was Liao Chengde, the richest person in the venue.

   "Thirty million, let's take out that part of the money first. I'm scared now, and I don't want to put all my wealth on it. Unlike you, I'm already a half-buried person..."

  Liao Chengde was stunned for a while, then said with a wry smile.

   "30 million, another 20 million loan, and 60 million, it's almost the same. By July next year, you will almost have liquid funds in your hand, so that's fine."

  Zhong Shi nodded, and told Andrew: "In this case, let me keep my position. I guess I can make a lot of money in the next two days. Just wait for the RB consortium to enter the market!"

   After finishing speaking, he greeted everyone and left in a hurry.

  Lu Hu naturally followed. Liao Chengde and Zhong Yi glanced at each other, shook their heads with a wry smile, confessed to everyone in the room, and hurriedly caught up with Zhong Shi.

  …

  The next night, Zhong Shi and Liao Chengde came to the trading room on time again. This time Zhong Shi stopped falling asleep and kept staring at the numbers on the screen, calculating silently in his heart.

  After going back yesterday, Zhong Shi didn't say a word, and fell asleep directly on the big bed, which made Liao Chengde and Zhong Yihao wonder for a while, didn't he just wake up in the futures company?

It turned out that Zhong Shi’s actions were definitely not aimless. Early in the morning, Zhong Shi woke up the sleepy Liao Chengde, asked him to polish the stocks in his hands to cash out, and then asked him to go to the HSBC head office for a loan of 20 million. When he was still thinking secretly in his heart, Zhong Shi's words dispelled his thoughts.

   "What is this little money now? I will protect your net worth tens of billions in the future!"

   "Worth tens of billions?!"

  Liao Chengde immediately agreed as soon as his head became hot. If he didn't believe that Zhongshi had such magical power before this weekend, but he saw with his own eyes that Zhongshi turned ten million into forty million in three or four trading days. Eye-opening.

   After collecting 60 million yuan, Zhong Shi came to the futures company full of enthusiasm. This time he really wanted to do a big job.

   "Sir, are you here?"

  With a respectful face, Andrew made an old-fashioned welcome gesture, which made the Zhong brothers and Liao Chengde a little bit amused. This foreigner does as the Romans do, and he learns very quickly.

   "Today, we are throwing out long orders one after another, and at the same time slowly absorbing options, do you understand?"

  Zhong Shi chuckled and said with a playful smile. At this time, he is undoubtedly in a good mood, and he is already thinking about his plan to make money next year.

"Yes, sir!"

  Andrew made a gentlemanly salute, which made the three of them laugh again.

Seeing that he understood, Zhong Shi yawned. Andrew looked carefully, and asked someone to bring a quilt and pillow, and let Zhong Shi rest in the trading room. The reason why Zhong Shi was not sent to the lounge was because of today's transaction. There may be some variables. In case of any emergency, it is best to notify Zhong Shi as soon as possible.

  Things developed surprisingly smoothly. The long and short orders placed by Andrew were submerged in the massive transactions in an instant, like a mud cow entering the sea, and there was no wave at all.

It was two o'clock when we arrived in the United States, and all the long and short yen in Zhongshi's hands were polished. Thanks to the pursuit of funds, the account was still 40 million Hong Kong dollars on the first day, and it rose to 6,000 on this day. More than 5 million, the profit is as high as 550%.

   Just when Andrew emptied all of them, a large amount of funds suddenly appeared on the Chicago Mercantile Exchange. For a while, the short positions of the yen rose sharply, and they came aggressively towards the bulls. All the longs and shorts in the market wanted to kill each other for a while, the trading volume rose rapidly, and the flames of war ignited!

   Zhong Shi, who had already pulled out, was also woken up. He looked at the numbers that were constantly flashing on the screen, patted his chest in fear, and turned around to ask Andrew: "How about the options of the RB consortium now?"

   "Sir, what is the exchange rate for the option issued by the RB consortium now?"

  Zhong Shi narrowed his eyes slightly, revealing an imperceptible light.

   "The current quotation of the RB consortium has already risen, and has crossed the 190 mark, and the option premium has also dropped significantly. It seems that the RB people are really confident in their exchange rate!"

  Andrew opened his mouth to report, and he also understood that the RB consortium must have entered in a large scale, trying to suppress the excessive appreciation of the yen brought about by the news of the day before yesterday.

   "Reckless, buy with all your strength! Establish a position of 500 million US dollars, let them know how powerful the Yankees are!"

  As soon as Zhong Shi got serious, he gave an order.

  His words startled Andrew, and then a surge of pride filled Andrew's chest. Yes, who in this world would dare to compete with the United States, even RB, who is in full swing.

   At the last minute of the market closing, the position Zhong Shi wanted was finally established, which cost him 80 million Hong Kong dollars. Including the money he got from the futures market earlier, Zhong Shi still owes Liao Chengde 20 million Hong Kong dollars.

   "Don't return the 20 million to the bank for the time being, anyway, there are still two years left. Lao Liao, what are your plans?"

  Zhong Shi wiped the sweat from his forehead, and casually asked Liao Chengde.

  (end of this chapter)