You may have heard about “Share Renting” or “Renting Shares” recently, and wondered what it actually is.
You’ve heard of buying houses and renting them out?
Share Renting is a similar concept, coined by Jamie McIntyre and is another name for Call Options – which is a trade on the options market familiar to those in the know. Jamie McIntyre uses the term “Renting Shares” to simplify the learning process for the average person by using terms easily understood to propel them investing in the stock market.
Most people have the understanding that high profits also come part and parcel with high risk, although using share renting as a strategy this is not necessarily the case. Essentially, you buy shares (Jamie recommends or bases his theory on at least 1000 shares of a good blue chip company) when they are trading at a low price, and then sell the right to buy the shares (if they increase in value to a pre-determined amount, by a pre-determined date) to a third party. You are paid an upfront figure for each share, which you get to keep. Example being that if you wanted to rent out your 1000 shares at the current call option of 40 cents each then you will be paid $400 up front by the company “renting” your shares. This $400.00 is yours to keep the only catch is they can be sold by the renter if the shares go up to the agreed price then they have the right to buy out your shares. So within a period of a month you have received the $400.00 up front plus your capital gain on those shares, if they went up $1.00 then you have made yourself $1400.00 in that one month. If they don’t reach the pre-determined amount, you keep the shares and can rent them out again.
The other option is you sign a contract with a company saying you will buy 1000 shares if they fall to $10.00. The company pays you upfront for each share you agree to buy based on the put option chart which lets say is 50 cents per share, then if the shares do drop to $10.00 you are obliged to buy them. So you have now been paid $500.00 you buy the shares and now rent them out and basing ourselves on the above mentioned figures you have made $900.00 and only just bought these shares….Not bad! In saying that if the shares never drop to $10.00 in that month then you have been paid $500.00 for something you will never buy.
This is the wealth creation strategy that Jamie has been teaching for the past 10 years, suffice to say using these strategies he became a self-made millionaire within the first 5 years of implementation, but with his teachings, guidance and resources people now have the potential to halve this timeframe. Jamie will theorize that education standards are outdated and need to be brought into the 21st century. We’re all taught that we need to get a job and work hard – all of our lives. But Jamie teaches that it’s not working harder that makes the difference between the rich and the poor but working smarter creating wealth.
