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Shocked that companies and mutual funds would invest OPM (Other People's Money) in high-risk investments, the Shocked Investor was originally on a mission to find out if our money ended up in these dubious instruments. This blog now also discusses other financial topics, such as straddles, options, gold, natural gas, agri/food stocks, and the collapse of the US Dollar.
Here are the GLD straddles from September 24. The maximum move required at the time was 4.79%. The actual move was 5.25%. That is a 32% ROI in 21 days (for an equivalent annualized return of about 11,200%.)
Similarly, Yamana's straddles returned +82%. the maximim move required was 11.8%, the actual move was 17% (annualized ROI of 2,600%):
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