Cherreads

Chapter 57 - Warehouse and Put Options

The next morning I was up early and ready to get that warehouse built.

I had plans to put the solar panels on after the warehouse was built so I grabbed a ladder and strapped it to the roof of my car, grabbed a few tubes of clear caulk, and a caulk gun.

I met the guys there at 9:00 and they got right to work.

As the foundation was made to their own specifications the building went up in only 4 hours.

Once they were done I had the solar panels delivered.

The warehouse had a southern orientation, which for me means that the sun shines on both sides of the roof.

That means I have to install the solar panels on both sides. Well I don't have to, but that's what I'm going to do.

So I unpackage the solar panels and get the panel mounts out. The mounts are there to hold the panels and securely hold them on the roof.

I pulled the ladder off of the top of my car and hopped onto the roof of the warehouse. I dragged the mounting bar up with me.

Once I was ready to install the bar I realized that I had forgotten the electric screwdriver. Luckily the solar panels came with a super cheap one. Because who knows what would have happened if I had to go back just to get one thing.

So, instead I am just going to have to suffer by using the manual screwdriver.

That was how I spent my day.

Climbing onto the roof, climbing off of the roof.

Slowly twisting the screws in.

Caulking them in, so it doesn't leak.

Lifting the solar panels and installing them into the mounting braces.

Running the wiring in and bringing them all together at the junction box.

Properly installing the junction box and battery combo.

By the time I was finished it was already dark outside, and had been for quite some time.

I hadn't eaten in a long time and didn't have that much water. Only what came out of the spigot that was connected to the city infrastructure. Which I'm sure has all kinds of contaminates and metal leaching into the water.

But, I guess a few sips never hurt anyone, right?

Anyway it was time to clean up and get ready to leave.

The dumpsters would get dropped off later this week so I dragged the boxes into the warehouse for the time being.

WIth everything "cleaned" up I got into the car and drove home.

Once I was home I made some chicken and rice to eat.

Then I got ready for bed, shower, brushing teeth, the usual.

The next day came especially early. I woke up at 6:00.

I decided that I was going to make the 123 accounts for the other stocks. I came to the conclusion that if I want to be as hidden as possible then today I should slowly buy stocks in the other volatile stocks.

That way when tomorrow comes I will already have the necessary stocks purchased at the lowest price.

Today was bound to be an uneventful day.

I spent the whole time watching the stocks, listening to music, and thinking.

The amount of money I set aside for the usual stocks was the same as last week.

A start of $1,900,000 which ended up as $2,921,999.07.

I didn't even double the starting value. But I still made money, a lot of it. It just isn't anywhere close to what I am used to making.

That brings the grand total to $31,557,881.51.

However, throughout today I dropped a large chunk of that into the other stocks. I had been looking into put options to try and make more, however, No matter how I looked into it no one could give me a simple answer on how much I had to spend or how much I could make.

I looked into multiple online calculators however they kept asking for an intrinsic value and a volatility percentage.

The volatility is high but an intrinsic value? Who decides what the actual value is? And how would I find out?

Plus I know that I will receive a premium for buying the put option but how much would I get? The answer was always "I don't know? It depends?" How unhelpful can you get?

Give me a clear answer. I need to know, in simple terms, what it costs for what.

I know the basic idea of it being a safety net, but beyond the basic calculation. I am lost.

I know that if the stock costs 100, I strike it at 90, it drops to 60. I then get to sell it at 90 making 30. But how much did I have to pay for the put option to begin with? I know I get a premium from the stock holder. 

But, where does the magic money come from?

If I get the 30 that was made from selling the stock at the higher price, what benefit does the stock holder have? Or are you just putting put options on your own stocks? If that is the case then do you pay yourself the premium?

I just don't get where the money comes from or to whose benefit. Because the loss is the same if the put option person gets the money saved from the option.

I just can't find out what the point is. What does it cost? Who really benefits?

I guess I am just an uneducated guy who now trusts financial institutions even less.

I will just put my money where I can understand where it goes.

Since I know how plain stocks work I will stick to what I know. I know the stock will rise, just not how much. So, I set aside $1,000,000 just in case I lose everything I can start over.

$30,557,881.51 that is the amount I put into the 123 volatile stocks. Meaning that each stock has $248,438.06.

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