Reborn as a female internet celebrity in a county town

Chapter 309 Is Tianjin Capital your father or your mother?

After talking with Wang Shengnan, Lin Lang went to the company.

Because he wanted to do something.

He had always wanted to do this, but felt the risks were too great; that was options.

For him, the only certainty was the drop in Apple's stock price that day. He could have actually placed an order for options that day, but he already had a billion dollars in his account, leveraged it three times, and his capital was already considerable.

In addition, he wasn't there at the time, and he was worried that Yan Li might not be able to control the pace and something might go wrong.

As for what comes next? Short-term fluctuations are too small, and even though options are essentially leveraged, the profits are not significant. It's better to make more money with an overall investment strategy.

Every financial transaction is backed by a contract, and options are no exception.

With some people bullish and others bearish, options trading was born.

Many companies use options for hedging.

For example, if Tianjin Capital has a large position in a certain stock but does not want to bear the risk of its stock price falling, it can buy a put option on that stock. If the stock price falls, the option can generate a profit, which can be used to hedge against the risk of losses in its own stock holdings.

For example, many companies operate in this way.

Upon seeing that the stocks he held did not open higher immediately after the market opened, Lin Lang freed up more than 20 million US dollars and began to buy call options related to several stocks.

When buying options, they only need to pay a certain premium.

For short-term options, the premium is pitifully low, less than 1% of the option's agreed value, which is equivalent to a leverage of 100 times.

Long-term options have slightly higher premiums. For example, for a one-year option, if a stock is worth $100 and an option is for 100 shares, the premium would often be over $800.

Based on $800, this is equivalent to a leverage ratio of twelve.

When trading Apple stock, if we had used options, there would have been two problems: firstly, there might not have been that many available on the market, and secondly, the volume would have been too large, making it difficult to close out positions quickly without having to lower the price.

Every slight reduction weakens the leverage effect.

Overall, it would be more straightforward to simply short the market at three times the leverage.

This time is different. The volume is not large, and according to his understanding, the intraday fluctuations will be relatively large. Moreover, there is relatively ample time, making the overall cost-effectiveness extremely high.

Unlike last time, which only lasted a day.

……

Yan Li was about to go to sleep, but when she heard from the company that Lin Lang had gone to the trading room, she decided not to rest and drove there as well.

After all, Lin Lang was already very busy during the day, and he hadn't come over last night. His sudden appearance this time must mean there were some changes, otherwise he wouldn't have been keeping such a close watch.

When Yan Li arrived at the trading room, she saw Lin Lang's actions.

They bought a large number of call options here.

Tianjin Global Selection already holds stocks, which is already considered bullish, and Lin Lang has now bought a large number of bullish contracts.

Normally, options are bought to hedge risks, but Lin Lang is doing it differently, using options to amplify risks.

About ten minutes passed before Lin Lang finally turned his attention to Yan Li and asked, "Why did you come over in the middle of the night, President Yan?"

"I was worried you were staying up too late, so I thought I'd come and see if there was anything I could help you with."

That was indeed what she was thinking. After all, Lin Lang was very busy during the day, and if she could help in any way, she could let him rest a little longer, even if it was just by sleeping in the break room in her office.

"It's alright, it's alright, I'm almost done with the work."

Should we buy call options?

"Okay, let's go out first, everything's fine here now."

"okay."

Yan Li followed Lin Lang out of the trading room. Once they were alone, she spoke again, "Aren't you in a bit of a hurry?"

"What's wrong? You know I've been tired these past few days, so you came here specifically to treat me?"

"If you're in a bad mood, just tell me."

Although Lin Lang's words were a bit irreverent, Yan Li still replied seriously.

"No, that's not true. I was just planning to come and make some arrangements before going back to sleep. It won't take up much time."

As they spoke, the two had already arrived at the office.

The office computer is always on. After Lin Lang sat down, he pulled up the relevant stock holdings information of Tianjin Global Selection, while Yan Li massaged his shoulders next to him.

Lin Lang said, "Tianjin Global Selection's funds have become quite large. It was fine when it was only a few billion US dollars, but now it's over two billion US dollars. The original holdings can no longer accommodate so much money. We are in the US stock market to make money, not to become major players. So I plan to add some options positions next."

"Are they all options?"

"Options offer high leverage, and since we don't have a lot of capital allocated, options are the most suitable option strategy."

It's just that Bitcoin hasn't introduced options yet, otherwise Lin Lang would have already jumped in.

He recently checked the price of Bitcoin, which was still around four thousand dollars.

Lin Lang remembered that the lowest price this year was around 3,500, which means that it has not yet hit the bottom.

Starting in 2019, it rose from $3,700 to over $4,200.

In the past few days, Lin Lang has been preparing to sell his long contracts and go short for a while.

After all, being able to capture a larger share of profits, coupled with the expected fourfold increase, means that an extra 20% could translate to an overall profit of 80%.
Yan Li didn't continue, because he knew the risks of options trading.

Options have time limits; once the contract expires, it becomes invalid. If there is no opportunity to make money during the term, all the premiums paid will be lost.

Unlike stocks, which you can buy and hold indefinitely while waiting for a rebound.

Now, she has completely let go of all her preconceived notions and treats herself like a kindergarten child, doing whatever the teacher says.

Lin Lang was that teacher.

Just then, she watched helplessly as the stocks held by Tianjin Global Selection began to rise...

It's been less than an hour since the market opened.

Yan Li's attention was completely drawn to the rising curve on the screen, and she even stopped moving her hand that was on Lin Lang's shoulder.

One of the stocks surged 18 points in three minutes, then began to trade sideways...

In the US stock market, although it is nominally T+0, it is actually very difficult to make intraday conversions.

Because many stocks that rise generally open higher and then trade sideways, or they open higher and then slowly decline.

The logic remains the same as that of A-shares, but the capital operation is very different.

Or it will be like now, with a huge bullish candlestick pulling it up, leaving no chance for others to participate.

Currently, the innovative drug stocks held by Tianjin Global Selection are showing very similar trends, with some rising by more than ten points and others only by a few points.

The one that saw the largest increase was the one with the heaviest position.

Yan Li remembers all the data very clearly.

If this data can be maintained until the market closes, then Tianjin Global Selection's net asset value today could very well reach 12% or even 13%.

This was the original plan. But Lin Lang bought a large number of call options.

As stock prices rise, options gain exercise value, and thus acquire higher value.

Although some additional costs will be incurred during the exercise of the option, the loss of the premium must also be deducted.

If we assume an average increase of 12 points, then a call option bought today, with a 1% premium, would yield nearly twelve times the return.

Exercising an option means demanding to buy the stock at the price specified in the option contract.

For example, if the stock price of the option contract was originally $12, and now it has risen to $14, then the option can be exercised, requiring the seller to sell them the stock at a price of $12 per share.

And they can then sell it for fourteen dollars.

Of course, once the option has exercise value, there are plenty of people in the market willing to pay a premium to buy it, and it can be resold and cashed out without the hassle of exercising the option.

Before the market opened, Tianjin Global Selection had a total size of US$2.7 billion. With stocks expected to generate an average net asset value increase of 12%, plus the US$240 million earned from options, the net asset value should reach +21% today.
It rose 21 points overnight.

With Lin Lang's bullish outlook doubling, he made over $500 million overnight.

Yan Li was glad she came tonight; if she hadn't, it would have been hard to understand that feeling.

Lin Lang's judgment was that accurate.

I don't understand why he suddenly decided to buy a large number of call options, but so far he hasn't made a mistake.

She considered herself a student, but...

How do I learn this?

The analyst team at Tianjin Capital was terrible and couldn't offer Lin Lang any help. Lin Lang suddenly decided to buy call options, and shortly after he bought them, the related stocks skyrocketed.

Yan Li had no doubt that he knew information about the future.

Lin Lang breathed a sigh of relief when he saw the stock price rise.

He only knew that the relevant stocks would rise this month, but after adjusting back and forth in the first half of the month, they only rose by 20 or 30 points in total. So theoretically, these stocks should rise sharply in the last ten trading days of this month.

For him, betting over ten trading days is definitely better than betting over twenty trading days.

In other words, the leverage in options trading is too high, and there aren't many related call options he can buy within a day. There are only about 600,000 of them in the market for a few related stocks. He can't possibly put all his funds into it.

In general, Tianjin Global Selection is receiving more and more funds, which means it has more and more options for the future.

Unlike before, there are no more or less things to consider.

For example, convenience and overall integration.

"That's a wrap. I'm going home to sleep. Are you coming home too?"

Lin Lang stood up and said something.

"It's so late, I'm too lazy to go home, it's a bit far. How about I hitch a ride at Mr. Lin's hotel?"

"Oh? Then I'll reluctantly take you in, Mr. Yan."

"what……"

……

A dozen minutes later, the two arrived at the hotel.

After entering, Yan Li said, "I'll give it to you..."

She originally wanted to suggest finding Lin Lang a house and arranging a driver and nanny to take care of his life, but before she could finish speaking, Lin Lang closed the door and pulled her into his arms.

Yan Li raised her head slightly and looked into Lin Lang's eyes.

Without a doubt, eye contact at this moment is the most captivating; the myriad emotions conveyed in the eyes during eye contact are one of the actions that most effectively evoke one's inner instincts.

The slender waist held in her arms seemed to be deliberately designed to complement the curve of her arms.

"Just so you know, I took a shower this morning, and also... I didn't sweat today..."

As soon as Lin Lang finished speaking, Yan Li tiptoed closer.

First, a light kiss, then he began to make his own demands.

Unbeknownst to her, Yan Li's hands were already on Lin Lang's shoulders.

Yan Li's lips were so soft and tender that Lin Lang sometimes wished he could swallow them whole.

That delicate touch quickly spread throughout my body.

Lin Lang felt that being with Yan Li never required any fancy moves; he could simply enjoy the process.

Every part of Yan Li was impeccably exquisite; she would always reveal her most affectionate side at these moments.

Whether it's true or false, treat the false one as true anyway; there's no need to make things difficult for yourself.

……

Luo Ze was woken up early in the morning by the alarm clock he had set.

He hadn't slept much, and last night Guan Sheng insisted on talking to him for over four hours, which exhausted him.

He felt that Guan Sheng was out of his mind. Damn it, he actually told him to go find a pension fund and borrow another 20 billion yuan for him.

Yes, there is indeed money in the pension fund, but on what basis?
Is this something that will benefit me?

I helped make the connection a few days ago, and we successfully got the pension fund to take out 6 billion yuan. Is Guan Sheng, that bastard, still not satisfied?
He just asks for 20 billion. Does he think this money comes from a flood?
Every single penny has a source, and every single penny carries responsibility and obligation.

Of course, there will definitely be a certain amount of risk involved, and pension funds will also participate in stock trading themselves.

However, the proportion they accounted for was extremely low, and the stocks they bought were all high-dividend stocks.

For example, bank stocks, and some state-owned enterprises with high dividends and strong earnings certainty, etc...

"Ugh, this is so annoying!"

Luo Ze was woken up by the alarm clock to check the net asset value of Tianjin Global Selection, since that thing is related to too many funds.

He has to check it first thing every day, otherwise he can't sleep soundly.

During this period, his sleep quality was extremely poor, and he could only sleep intermittently each day.

He usually goes to bed at 11 p.m., is woken up by his alarm clock at 5 a.m., checks his net worth, and then goes back to sleep for an hour, which is barely enough for him.

As a result, last night, that bastard Guan Sheng kept him talking until 1 a.m., and so far he has only slept for four hours.

Four hours is way too long!

The thought that Guan Sheng wanted 20 billion to give to Tianjin Capital made him want to curse.

"Is Tianjin Capital your father or your mother? Does it need your support like this? Damn it!"

I moved the mouse, and the computer started up from the screen-off state.

He had prepared the page in advance and clicked refresh.

+ 21.88 %
Holy crap! Holy crap!

How much money do they make in one night?
(End of this chapter)