The Beano Family -
Well gang, it is time to take a look at the Beano brothers and see how they have fared after taking over the management of their investments. As you might remember, Bobo purchased 1500 shares of QCOM and decided to let it ride. Bebo on the other hand, after purchasing the same amount of shares, decided to write a call and cover the entire amount. With the above information in mind and knowing that the original purchase for both brothers was at a price of $134, we find that the stock as of the close today is trading at $136 1/8 and therefore Bobo is showing a gain of $3,187.50. Bebo on the other hand because he has decided to hell with playing the Casino and as a result covered his shares with a call, is showing a gain in his stock of $3,187.50 but his calls are entered as a debit and because the calls he sold are now selling for $15 3/8, the call debit is now $23,062.50. So Bebo shows a net gain in his account of $1,125.00, however, one must remember Bebo still has the $21,000 he got in call premium. You can see that even though Bebo was fully covered his account still grew outside of his premium by $1,125.00.
After checking their accounts both Bebo and Bobo were pleased but Bebo was still far from satisfied in his effort to improve the quality of life for he and his family. Another statement by that guy Voltaire kept stinging his brain, " the average individual has no conception of how much so little will buy on a monthly basis " , and with that thought in mind he headed home to tell his wife Betty of his plan. Right after dinner, with the kids, son Bando and daughter Bambi doing their studies, Bebo asked Betty to accompany him to the study. Sweetheart, Bebo began, if money was no object and you could have anything you desired, what would it be, oh Bebo, what is this , some kind of a game, said Betty? No said Bebo said rather sternly, I am very serious. Well, I guess it would be that home we saw in the Street of Dreams Home Festival she said. You mean the one that cost about $300,000, yes said Betty, great said Bebo, and you know I have always wanted a car like that big BMW we test drove last year, right? Betty nodded her head as if to just placate her little husband. Bebo sensed her unrealistic response and urged her to listen. Now let me ask you another question, of the $21,000 I made in premium for the month of April, how much of that $21,000 do you think it would take to pay for the two things we have only been able to fantasize about? Well I don't know retorted Betty, you won't believe it sweetheart, after putting down the equity in this home and financing your dream home for about $250,000 and buying my car on time, it would only take about $3,500 out of the $21,000 I picked up in premium. But sweetheart said Betty, what if you can't make that much every month? Ok, Bebo responded, no problem, let's say I only do half that, we would still have about $7,000 left. Is this not unreal, wow said Bebo as he walked out clapping his hands and leaving Betty to wonder if he has lost his senses and then just as sudden as he had left he was back in the study telling his one and only love that just as that Voltaire guy had said, " sweetheart this is going to change our lives "!
Voltaire |
