If you were wondering what stock I was referring to in the message to my facebook group, it was COP. I have owned this company's stock for almost a year, when just recently I heard some promising "Rumors" about a large increase in the stock price coming in the near future. Now, I am the biggest proponent of doing my own research (I did do plenty of my own before i purchased the shares) because following the lead of others is not something that typically turns out rewarding. But several of my mentors have encouraged "Piggybacking" of other professionals - so I took a shot.
I have been keeping a close eye on the company for the last few months after discovering some potentially impactfull debt coming due in the near future, so I was starting to weigh my options about what I may do with my position (hold or sell). After I read of an article that detailed the purchase of a substantial amount of options contracts by one billionaire, I calculated the potential returns from my current position and theirs in the coming months. With the potential of a large price movement at hand, I decided to simply turn in my shares for options, leaving me with the same dollar amount invested in COP. I purchased Jan $50 Call options for $1.46 a share (it really sounds more complicated than it is - see my section on options).
I have seen this position grow over a short period of time, and have realized over 200% return on my investment - if you had invested $1,000, you would have a total of$3,000 when you cashed out!!!
I have created a comments section where I would like to start communicating these types of finds with all of you, and as well as hear your ideas when you find them. This is the time to take educated risks and make some money - I would like to hear what ideas you may have as I share mine.
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