if you won the lottery

chevyjaxon · #1 02-07-2009, 12:42 PM

we should start a lottery pool

Lydia · #2 02-09-2009, 03:39 AM

I buy tickets, but not too often. And they can go months without me checking them. About 6 years ago, the couple in the house TWO DOORS DOWN from me, same style of house even, won $3.75 million. What are the odds that I'll ever win? LOL

They moved, of course

But they are good people - everyone was really happy for them

Cameron · #3 02-09-2009, 03:42 AM

Invest all of it, in what I'm already invested in....with a nice 20% yeild at the moment. Live off the div's.

michika · #4 02-09-2009, 01:36 PM

One of my tickets was a winner, winner of a free ticket that is!

Delphinus · #5 02-09-2009, 05:08 PM

20% yield, wouldn't that be nice.

Beats the -25% that seems to be more standard these days!!! I'll settle for a 2% yield nowadays! Heck, 0% would be better!! For crying out loud.

Murminator · #6 02-10-2009, 03:08 AM

Keep workin at my same lame A$$ job.....

....Yeah right

Cameron · #7 02-10-2009, 01:55 PM

Quote:

Originally Posted by Delphinus

20% yield, wouldn't that be nice.

Beats the -25% that seems to be more standard these days!!! I'll settle for a 2% yield nowadays! Heck, 0% would be better!! For crying out loud.

Here's an example:

Say you bought 100 shares of company ABC for $14. You could then write a covered call option, a month out, with a strike price of $15, and receive a premium of .70 per share.

A few things can happen.
At strike date:

You get assigned on or before, and make $1 per share, plus the .70/share option premium, 1.70, on $14, in a month. Annualized return: 145%

You don't get assigned, meaning you keep the premium and still own the shares. $.70 per share on $14 and still own the shares. Annualized return: 60%

Share price goes down to $12, you can buy back the option you wrote for $.10/share, you still own the stock, and have made $.60/share. Annualized return: 51%.

If it is a company you like then it should go up eventually.

Disclaimer: Options are not for the weak at heart. This is not a recommendation, just an example of what could happen.

Delphinus · #8 02-10-2009, 05:04 PM

Yeah, that "could" happen. But my point was that you can't just go out and get a 20% yield. Luck is a big factor.

You could win a lottery for example, pay off some debt, maybe buy a car because your current one is a clunker, and use the excess to say catch up on some badly behind RRSP's and invest the rest in some investment scheme of your favour ... and then watch as it disappears at 20% to 25% just like everyone else's savings are disappearing.

Just sayin' ... Your mileage may vary, but I'm just sayin' ... that's all.