As serious and sophisticated investors know, options are a viable and increasingly popular way to enhance their portfolios. Yet even the most savvy investors need instruction.Now in its third edition, The Options Workbook has been updated and reformatted in a larger, more convenient, and user-friendly design. Three all-new chapters explain key trading concepts-volatility, the collar, and the covered call-and show how these can be applied to mitigate risk and increase profits. What’s more, this fresh edition incorporates additional interactive content-exercises, hands-on tools, and lessons that complement the in-depth curriculum on ITI’s Web site, www.itichicago.com.

From the Publisher

“ITI is the reason for our success. We would never let anybody trade for us without the ITI education.” —Patrick Enblad Executive Director, Head of Trading Hagstromer & Gviberg Fondkommission AB Stockhold, Sweden As serious and savvy investors know, o (more…)

 

GENESIS OF NSEIt all began 16 years back, in November 1992, when the NSE was integrated as a tax-paying company. In April 1993, NSE was given the status of a stock exchange under the Securities Contract (Regulations) Act of 1956. A year later, in June 1994, NSE began operations in the Wholesale Debt Market (WDM), and in November that year, the Capital Market (Equities) Segment of the NSE began operations. Two years hence, in 1996, NSE became the first exchange in India to trade derivatives specifically on an equity index. In the new millennium, NSE began Indian Internet Online trading system. Today the NSE deals in online examinations and award certification. Comprising branches all over India, NSE introduced India’s first clearing corporation (National Securities Clearing Corporation Ltd.) and India’s first depository (National Securities Depository Ltd.). NSE is India’s earliest national, anonymous, electronic limit order book (LOB) exchange that deals with securities.

MARKET INDICESNSE established an index services firm called IISL – India Index Services and products Ltd. – and opened numerous stock indices, including:

 

The other NSE Indices are:

 

MARKET CAPITALISATIONCurrently, NSE has four important capital market segments:

 

MAJOR COMPANIES OF NSEThe major companies listed with the NSE are:

 

The top investors of NSE are:

 

LOCATION OF NSENational Stock Exchange of India Ltd.Exchange PlazaPlot No. C/1, G BlockBandra-Kurla ComplexBandra (E)Mumbai 400051

BOMBAY STOCK EXCHANGE (BSE)

Having its headquarters in Mumbai, the BSE SENSEX is the stock index or SENSitive indEX of the BSE. The oldest stock exchange of Asia, the BSE SENSEX, also known as BSE 30, is the focal stock index of India. There are 4800 companies listed with the BSE. As of July 2007, the total equity market capitalization of the Bombay Stock Exchange was US$ 1.005 trillion. The Singapore Exchange has become an alliance of BSE by acquiring a strategic investment in the BSE.

GENESIS OF BSE

Way back in 1986, the BSE introduced the stock index that eventually became the most important stock index of the country. The SENSEX was based on market-capitalisation-weighted method and included stocks of some of the top financial houses. Noted financial analyst and columnist, Mr. Deepak Mohoni in the year 1990, introduced the term “BSE SENSEX” which is an acronym for Bombay Stock Exchange SENSitive indEX. Since September 2003, the SENSEX is measured on the method of free-float capitalisation.

MARKET INDICES

Apart from maintaining the BSE SENSEX, the Bombay Stock Exchange also maintains stock indices like:

 

The BSE gives information on the price, charting, announcements, company contact, shareholding pattern and results of the companies that are enlisted in the exchange. The Board of Directors, encompassing eminent financial professionals, Managing Director of the exchange, and the representatives of the Trading Members, maintain the overall functionality of the exchange.

BSE also gives the Beta value of the SENSEX Scrips, Beta being calculated by the formula: Beta = Co-Variance (SENSEX, Stock)/Variance (SENSEX).

While listing securities that may be from public limited companies, central government, state governments or other financial institutions, there are certain objectives followed by the BSE:

 

BSE SENSEX OVERVIEW

The BSE SENSEX comprises thirty stocks and is a value-weighted index. The stocks listed here are the most active stocks on the BSE. The BSE SENSEX has a base value of 100. The relevant authorities update BSE SENSEX and in the process inspect and change the SENSEX, the underlying idea being that the SENSEX represents the prevailing market condition.

BSE PERFORMANCE

Since June 1990, the BSE Index has been increasing ten-fold. As per the data available, since April 1979, the long run rate of return on the BSE SENSEX has been at almost 0.52% every week, with the rate of standard deviation being almost 3.67%. The returns thus have been 27% per year. However after inflation, the figure has come down to 18% per year.

BSE COMPANIES

Given below is a catalogue of stocks listed in the BSE:

 

GENESIS OF NSEIt all began 16 years back, in November 1992, when the NSE was integrated as a tax-paying company. In April 1993, NSE was given the status of a stock exchange under the Securities Contract (Regulations) Act of 1956. A year later, in June 1994, NSE began operations in the Wholesale Debt Market (WDM), and in November that year, the Capital Market (Equities) Segment of the NSE began operations. Two years hence, in 1996, NSE became the first exchange in India to trade derivatives specifically on an equity index. In the new millennium, NSE began Indian Internet Online trading system. Today the NSE deals in online examinations and award certification. Comprising branches all over India, NSE introduced India’s first clearing corporation (National Securities Clearing Corporation Ltd.) and India’s first depository (National Securities Depository Ltd.). NSE is India’s earliest national, anonymous, electronic limit order book (LOB) exchange that deals with securities.

MARKET INDICESNSE established an index services firm called IISL – India Index Services and products Ltd. – and opened numerous stock indices, including:

 

The other NSE Indices are:

 

MARKET CAPITALISATIONCurrently, NSE has four important capital market segments:

 

MAJOR COMPANIES OF NSEThe major companies listed with the NSE are:

 

The top investors of NSE are:

 

LOCATION OF NSENational Stock Exchange of India Ltd.Exchange PlazaPlot No. C/1, G BlockBandra-Kurla ComplexBandra (E)Mumbai 400051

BOMBAY STOCK EXCHANGE (BSE)

Having its headquarters in Mumbai, the BSE SENSEX is the stock index or SENSitive indEX of the BSE. The oldest stock exchange of Asia, the BSE SENSEX, also known as BSE 30, is the focal stock index of India. There are 4800 companies listed with the BSE. As of July 2007, the total equity market capitalization of the Bombay Stock Exchange was US$ 1.005 trillion. The Singapore Exchange has become an alliance of BSE by acquiring a strategic investment in the BSE.

GENESIS OF BSE

Way back in 1986, the BSE introduced the stock index that eventually became the most important stock index of the country. The SENSEX was based on market-capitalisation-weighted method and included stocks of some of the top financial houses. Noted financial analyst and columnist, Mr. Deepak Mohoni in the year 1990, introduced the term “BSE SENSEX” which is an acronym for Bombay Stock Exchange SENSitive indEX. Since September 2003, the SENSEX is measured on the method of free-float capitalisation.

MARKET INDICES

Apart from maintaining the BSE SENSEX, the Bombay Stock Exchange also maintains stock indices like:

 

The BSE gives information on the price, charting, announcements, company contact, shareholding pattern and results of the companies that are enlisted in the exchange. The Board of Directors, encompassing eminent financial professionals, Managing Director of the exchange, and the representatives of the Trading Members, maintain the overall functionality of the exchange.

BSE also gives the Beta value of the SENSEX Scrips, Beta being calculated by the formula: Beta = Co-Variance (SENSEX, Stock)/Variance (SENSEX).

While listing securities that may be from public limited companies, central government, state governments or other financial institutions, there are certain objectives followed by the BSE:

 

BSE SENSEX OVERVIEW

The BSE SENSEX comprises thirty stocks and is a value-weighted index. The stocks listed here are the most active stocks on the BSE. The BSE SENSEX has a base value of 100. The relevant authorities update BSE SENSEX and in the process inspect and change the SENSEX, the underlying idea being that the SENSEX represents the prevailing market condition.

BSE PERFORMANCE

Since June 1990, the BSE Index has been increasing ten-fold. As per the data available, since April 1979, the long run rate of return on the BSE SENSEX has been at almost 0.52% every week, with the rate of standard deviation being almost 3.67%. The returns thus have been 27% per year. However after inflation, the figure has come down to 18% per year.

BSE COMPANIES

Given below is a catalogue of stocks listed in the BSE:

Apart from maximizing profits, an exit strategy can also help a real estate investor in Maryland cut losses if anything falls out of place. An investor can make an exit strategy for all contingencies like slump in the real estate market of Maryland, not finding the right buyer or tenant.

Various factors can affect the selection of the right exit strategy. The first thing that an investor needs to select the right exit strategy for his real estate investment in Maryland is clarity of goal. The investor must decide the nature of income he wants from his property and the time when he wants to cash his real estate investment in Maryland. External factors that affect the selection of an exit strategy include local infrastructural development, market behavior, nature of investment etc. Depending on these factors the investor can consider all options available to exit a real estate investment in Maryland. Some of the exit strategy options could be tax deferred exchanges, creating trusts, joint ownerships, installment sales etc. Let us see using an example how an investor can choose from these options.

Consider an investor who had invested in real estate in Maryland and has sold a property now. The sale has given him huge profits, but after making some calculations he realizes that he might lose a huge chink of this profit in tax. In this case the investor can opt for internal revenue code (IRC) section 1031. This exchange can be used for “property help for productive use in business”. Under this exchange the investor has the advantage of tax deferral on capital gains earned from the sale if he exchanges the property for a “like kind” property. This way the investor is not liable for paying the tax on his profit and can use his money to invest in other properties.

The investor can even plan for his heirs to inherit the property. He can gift it to them in portions don’t exceed the limit of annual gift tax exclusion, i.e. $12000 or even set up a Family Limited Partnership (FLP) and gift limited partnership interests to his heirs.

Let’s study a case where the investor is not looking for immediate liquidation of his real estate investment in Maryland. The investor has the option of opting for ‘tenancy in common’. Usually, investors opt for tenancy in common when they want to own a portion in a fast-developing high-end commercial property. It could be a multiplex, mall or even an office building. This way they also get rid of the liability to maintain the property and are free to sell it whenever they want.

An investor looking to create a regular stream of income from his property in Maryland can opt for installment sale options. This way he also ensures that the tax due on his sale is not payable at once and is divided on a yearly basis.

Another way of avoiding lump sum payment of tax is creation of trusts such as Annuity Trust (PAT) or Charitable Remainder Trust (CRT). These options also ensure a regular stream of income and the investor can also earn interest of the tax deferred over a span of time.

These are just a few examples. A real estate investor in Maryland can opt for various other exit strategies, alone or in combination. But he must take financial advice from an attorney and a tax advisor while selecting a strategy.

Two primary realestate investment options exist. The first involves purchasing properties outright, while the second involves purchasing shares of real estate investment trusts (REIT). This article focuses on buying real estate outright and summarizes the various types of properties and how to earn profits from each.

With the exception of REIT shares, all realestate falls into the category of either residential or commercial properties. Residential realty includes single family dwellings, individual condo units, mobile and manufactured houses.

Commercial properties include apartments and condominium buildings, retail outlets, shopping malls, restaurants, and office complexes. Vacant land can fall into either category based on local zoning laws for use of the land.

Vacant land can be an exceptionally lucrative realestate investment. Raw land can be used for erecting commercial office buildings, shopping malls, or developing residential communities, as well as ranching and farming purposes. Vacant land located in rapid-growth areas can quickly increase in value.

Residential realestate is the most popular type of investment property. The majority of real estate investors begin by purchasing a single dwelling home to be used as rental property or for house flipping.

Rental realestate can offer a decent return on investment, but it can take ten years or longer to turn a profit. In the interim, investors are stuck with the headaches of being a landlord or the expense of hiring a property management group to oversee the property.

One option to overcoming these duties or expenses is to offer the realestate under a lease-to-own contract. Buyers provide a down payment and reside in the home as a tenant. A percentage of the rental income is contributed toward the purchase of the home. Lease-to-own contracts typically last two or three years; allowing the buyer time to develop sufficient credit to obtain a conventional home mortgage loan.

Lease-to-own contracts can allow investors to quickly generate profit from their realestate investment. Legal contracts should be drafted by a real estate attorney. Investors must submit specific documents to the IRS when engaging in rent-to-own properties.

Another well-liked realestate investment is flipping houses. House flipping requires the ability to spot a good investment property and purchase it below market value. Most realestate purchased for flipping require repairs and renovations. Investors should have access to a team of qualified experts who can make repairs quickly and efficiently. After repairs are made, investors must be able to sell the property quickly in order to turn fast profits.

The goal of rehabbing distressed properties is to buy, fix and sell within 60 to 90 days. This can be a lofty goal for unseasoned realestate investors.

Rental properties and flipping houses are just a few investment opportunities. Commercial investments are typically more profitable than residential realestate, but carry considerably higher risks.

Taking time to understand the pros and cons, legal liabilities, and property types can help investors develop solid strategies that generate steady cash flow. Going in blind can cost investors time and money and place them at risk for lawsuits or bankruptcy.

Our fund is unlike all others that exist today by offering investments that are focused on both strategic and tactical investment opportunities into Highly Advanced Income Generating Project(s) producing vital, very high demand product(s) that are being sold directly into the largest “Major” Universal Demand Markets in the world.  These investments allow risk adverse accredited investors the ability to participate in the revenues generated from these projects which allows for and achieves capital growth while providing the investor a low risk opportunity with the benefit of dependable and sustainable alpha generation and the long term growth from these projects.  These fully integrated projects have been designed to last 40 to 50 years or longer for their life cycles regardless of the global financial and credit markets.

Our fund is well positioned to effectively tap into these markets to the benefits of our investors.  The growth dynamics of the United States and Western Europe is based upon local, regional and domestic consumption of all the products these projects produce.  This fund is targeting routine and consistent annual double digit returns (15 – 21%) to investors un-correlated to all securities, commodities, currencies and the credit markets themselves since there will not be any exposure to these markets.  All project investments within this special investment vehicle have been specifically developed and designed to perform across various business cycles regardless of global economic conditions.

The current global credit crisis, current stock market contractions and wild swings in the commodities markets does not and will not impact our ability to produce consistent annual double digit returns now or in the future for our investors since we will never have, need or rely on the credit markets to establish margin accounts or leveraged positions which most all hedge fund type investment vehicles require to operate.  We do not require nor will we ever utilize prime services which the large investment banks provide (Bear Stearns, Lehman Brothers, Merrill Lynch, etc.). We do not rely on the stock, commodity or currency exchanges to generate income since we can not control any of the events occurring in those exchanges for our investors, thus we are totally un-correlated to all securities, commodities, currencies and credit markets. 

In the case of Deflationary and or Inflationary Markets, they will have no real effect on these projects and the products they produce.  Coincidentally inflation will only increase the value of the products coming out of the projects, and deflationary markets will have very minimal impact as well since the products produced will always be in very high demand through out the world. 

Risk issues are always addressed through risk management and the review procedures for each and every investment made.  Unlike most projects which have been developed, planned and master planned, every assumption for each project has been tested, validated, verified and proven or it’s not incorporated into these project(s).  Each and every project is also backed up by a detailed Input / Output Financial Cash Model which is a detailed Program / Project Financial Blueprint that shows the quarterly inter-relationships of investments, operational production revenues, operational expenses at all levels, taxes, imposts and fees, special circumstances events, and financial obligations during the life of the Program / Project.

Since energy production and consumption is the key element to any industrialized country, and with energy consumption increasing globally at an annual rate of 5 – 6 %, energy is and always will be vital to both the U.S. and Western European Economies. Allocating to Energy and Bio-Fuels production are two major key areas of involvement and investments within our seven pronged program investment strategies approach, which consists of the following options available to us:  Energy:  Oil & Gas (Example Project to follow), Bio Fuels:  Algae Based Bio-Diesel and Jatropha Curcas {plant} direct fuel source.  Algae Based Bio-Diesel is a direct fuel source currently available and ready for full scale production and delivery {This is not a blend for gasoline!} Algae Based Bio-Diesel Fuel production utilizes proprietary photo enhanced, micro nutrient enhanced, continuous flow, automated, sensor quality controlled, bio-chemical industrial processes and then are pressed, centrifuged, oils separated from water, water treated, cooked, cracked and treated all within a 12 hour cycle (Start to Finish) to complete one batch made ready for use in any diesel engine.  Initially 270 Million Gallons per quarter to several Billion Gallons of bio-diesel per quarter will be produced depending upon the initial size of a project program.  This Algae Based Bio-Diesel Fuel source has a Cetane Rating of 105 -117 compared to 80 – 85 Cetane Rating for #1 diesel fuel currently produced by all the major oil companies, which provides more power, better millage and performance while emitting 60 – 70% less emissions across the board vs. normal standard crude oil based diesel fuels. Algae Based Bio-Diesel emits no sulfur and or nitrogen into the atmosphere, Alternative Energy:  Solar / Concentrated Solar Thermal Power Production, Wind and Electric Fuel Cell Systems, Natural Resources:  Gold, Platinum, Other Precious Metals Groups and Diamond Mining: Refining, Assaying, Separation using advanced physical technologies and Bullion production of Gold and Platinum as well as Processing, Cutting, Valuation Appraisals of Diamonds and other Precious Stones, Water:  Proprietary Water Science / Technology to Produce Fresh Drinking Water to meet Agricultural, Industrial and Human Public Health needs in critically water short areas through Water production, bottling facilities and distribution.  This can be accomplished with any available water supply {in ground water tables, above and below ground reservoirs with a high saline content normally not recommended for human consumption}, Sea Waters & Brackish Waters anywhere Globally, Hydroponics:  Food Production: Fish Shrimp, Prawns, Fruits Vegetables utilizing USDA inspectors to garner Grade A Choice Status to include direct marketing into Major U.S.A. and International Consumer Demand Markets, and Special Opportunities: Aviation Fuels: JP-1 to JP-12 for Commercial and Military Applications from Algae Based Direct Fuel Sources as well as Advanced Hyper-Speed Information Technologies and other Advanced High Income Generation Project Opportunities as they become available.

It should be noted that traditional large project investments consist normally of only one income generation production element and typically requires three years at the earliest before the investors see any type of modest return on their investment.  Our projects produce immediate results in the first year.  These Exclusive World Class Projects which are available to us for investments have no less than 2, but normally include 5 or more Major Integrated Income Production Elements within each project.  It should also be noted that each income producing element within these projects are so strong that they could stand on their own and support the entire project, which is why many of these elements are developed together to form an Advanced Integrated Income Generation Project depending upon the requirements and location of the program.

All of the projects that this special opportunity fund invests in involve Proprietary Advanced Technologies and Advanced Physical Science / Processes (not known to the great majority of Asset Manager Companies Staffs).   Other types of investment pool managers, hedge funds, etc. do not know or even have access to these world class development engineering people and the technologies assets and projects that they develop, implement and manage.  Currently we have in excess of $10 Billion Dollars worth of Advanced High Income Generation Projects available to us for investments.

Another Special Note of consideration is that each investment will bring with it potential tax advantages not typically found in other types of investments.  Depending on where the project(s) are located and how the project are legally structured and set up (Development Corporations, Development Authority, etc.) could result in tremendous tax advantages, which each investors tax advisor will need to qualify and determine the best approach for each investors own tax liabilities depending upon their current tax status, situation and strategies.

These projects are conducted by Highly Reliable, Senior Internationally Experienced Technical Managers, Senior Science Managers and Senior Logistics / Project Security Management Staffs, which have planned, developed, evaluated and trouble-shot economic development projects and strong income generation projects in over 65 countries during the past 40 years.

There are in excess of 300 Top Level Executive Technical Managers with over 30 years of Experience in each of their perspective Development Sectors available for all projects that our fund invests in.  These projects are designed to insure extreme depth of expertise and experience management which is available to any project at any and every stage of the project program, regardless of location of the project anywhere globally.

** Fully Integrated Oil & Gas / Real Example Project:

This Oil & Gas production program is headed up by a Top Level Senior International Consultant which is an Oil and Gas Industry Executive who has been involved in the Oil & Gas Industry over the past 50 years.  This Oil & Gas Executive is the Systems Developer, Scientist, Equipment Designer and Engineer who is recognized as an expert in his field by the U.S. Department of Energy who also has called him upon him frequently in the past to trouble shoot particular Oil and Gas fields as a technical advisor and as a trouble shooter to rectify any and all problems associated with troubled oil and gas production fields.

This Top Senior International Consultant has a proprietary and proven 12 step methodology for siting, drilling, completing and production techniques for all wells.  He has a historical commercial success rate of 92% for bringing in all of his wells sited, drilled, completed and producing which also has a normal life span of 15 to 20 plus year’s worth of production.

This Advanced High Income Generation Oil and Gas project is comprised of the following: 

A Top Down Electric Air Hammer System which is highly sensorized with Professional Engineers and Scientists managing all operational positions.  These auto sensor rigs provide detailed information by satellite to a centralized operations and training center where all decisions are made by people with 45 – 50 years of successful completion and production experience.

Each oil and gas well completed will be drilled in both soft and hard rock beds and will vary in depths from 3,000 feet to over 13,000 feet.  All wells in this program will be completed initially in the state of Texas, in the United States of America.

Typical production wells will produce 60 barrels of oil per day to 500 – 600 barrels of oil per day and the gas wells will produce in a typical range of 2 million cubic feet of natural gas per day to in excess of 20 million cubic feet of natural gas per day. The total net operating investment will be returned within 4 months of production for each well.

Multiple producing formations will be completed and isolated with proprietary tools and instruments which will be operated simultaneously through out the life of the wells.  The typical life of these well are 15 – 20 years because of the 12 different proprietary methods used for siting, drilling, completion and production techniques, tools, proprietary materials and instruments used on each and every well which prevents formation damage and increases the life cycle of each well to maximize the highest production obtainable.

This program consists of hundreds of oil and gas wells sited, drilled, completed and in production within a 1 – 2 year period.  These wells will be sited, drilled and completed in historically very well known and documented oil and gas producing formations within the state of Texas, in the United States of America.

Investors will receive an estimated 15 – 21% annual return per year on their investment, with payments coming at the end of each year from this program.  The threshold investment will be an aggregate amount of $400 hundred million dollars which is what the minimum program investment calls for.

Estimated program revenues are based on $60 dollars a barrel and $6.5 dollars per thousand cubic foot of natural gas.  Over the last year crude oil (West Texas Intermediate) has sold as low as $50 dollars a barrel up to as much as $147 dollars a barrel.  Over the past year natural gas has sold from $5.5 dollars a thousand cubic foot to $11.3 dollars per thousand cubic foot.

Example Oil & Gas Well Profile:  One well; properly sited, drilled, completed and producing will conservatively produce 100 barrels of oil per day and 4 million cubic foot of natural gas per day.  This provides the overall program (100 barrels x $60 per barrel = $6,000) $6,000 dollars per day of revenue.  Each 4,000 cubic foot of natural gas (4,000 x $6.5 per thousand cubic foot = $26,000) $26,000 dollars per day of revenue.  Total revenue for this example is estimated at $32,000 dollars per day of program revenue for this example. 

** All wells in this program will not produce the same **

Each month this represents a program return of (30 days x $32,000 = $960,000) $960,000 dollars of revenue coming from this one (1) example well.  The investment program we are offering involve several hundreds of program wells being sited, drilled, completed and operating within a 1 to 2 year period.

Remember, this is only two elements of a fully integrated Advanced High Income Generation Project which will involve in most cases several other elements to generate very substantial amounts of revenues over the course of the project life.  With the combination of several other Advanced High Income Generation Elements within one project, this will enhance the financial returns and revenues of the program itself, and thus will also greatly reduce any associated risk due to the diversification of the different Major Income Generation elements within each project.

Once again, the result of this Special Investment Vehicle fund are highly advantageous investment opportunities that by far exceed the majority of investment opportunities from a financial return and an extremely low risk standpoint by investing in Outstanding Advanced High Income Generation Projects.

Headquartered in San Antonio, Texas, Cabal Capital Management, L.L.C. is managed by Kent Sullivan: www.cabalcapitalmanagement.com