13 Minute Read

Environmental Hedging: System Implication

February 7, 2018

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Kia Ora Cuz!

 

First and foremost, go Eagles!!! I just finished watching the game here in New Zealand with a larger than anticipated crowd. As in the states, people get down on the Super Bowl here. I was shocked to see how crowded the pubs were before noon on a Monday. Evidently people take work off even. Good on them! Beside that my stay here in New Zealand has continued to be epic. This last couple weeks has been spent careering around in my camper van “Miss Jelly Bean” and have been mostly rocking about in the Hawke’s Bay / Wanganui regions in country. I got to visit one of my good friends Jargo and I got to play the infamous Cape Kidnappers Golf Club (a Doak design) and later terrorized a small music fest featuring Fat Freddy’s Drop with my mate Steph, a.k.a. “Pit Stop Savage”. To say the least I have been having an absolute blast and everything bliss.

 

 

Tomorrow I take the ferry from the North Island to the South Island, thus starting a new chapter in my NZ saga. The South Island is completely different than the North and it is the iconic Lord of the Rings landscape. Even the people there have a different roll than that of the North. However, there are good friends to be had everywhere and I will be swooping up my good mate Dan, otherwise known as CatManDanMan. He is a former New Zealand army solider and was a candidate for their S.A.S.. Unfortunately, he broke his back in a parachuting accident and was scrubbed from their prestigious Special Forces unit. We will be loading up in Miss Jelly Bean and going for a 10 day look around the South. I will also be meeting up with one of Tackle Trading’s students Owen and look forward to talking trading and many more things.

 

 

As far as trading goes all was well until Monday the 6th when the Dow took a massive hit, wiping clean all of 2018’s gains. Although it was a bit of a surprise I had very few positions open in my speculation account at the time and only one of my positions went into the money… I have it strangled for now but anticipate a bounce in the market in the upcoming weeks. Indeed my Covered Call account took a hit but I was primarily in commodities and commodity E.T.F.(s)—thus I may not have faired as bad as others might have. Currently I am covered in some positions, but mostly uncovered for the rest of my account. What we saw on Monday is very reminiscent of what happened on August 27th, 2015 when news came out of China over the weekend that their economy was slowing down and the markets opened 8% lower that Monday. Now, if the drop continues and you have some bullish positions open, i.e. Naked Puts, maybe use a strangle to hedge the price drop. At this point it’s a bit of a waiting game and I suspect cash will pour in and correct the dip.

 

 

As mentioned last blog I was going to go into the Covered Call and the Naked Put as well as detailing system implication. And further mentioned Step 1 of the system is the Naked Put on the Robin Hood list (see prior blogs) wherein we take profit and compound those gains in Step 2 of the system. Step 2 is the buying of shares from the Targeted List (see prior blogs) wherein Step 3 we perform Covered Calls. With the profits from Covered Calls we initiate Step 4 and either compound in shares or preferably Clean-Tech products like solar panels, electric cars, personal gardens and basically anything which sparks you imagination and that is environmentally sound and reduces monthly expenses. And if there are left overs, (larger accounts sizes very well may have residual gains on a monthly basis), we donate those left over profits to charitable organizations like Off-Grid Relief and etc… We repeat this process indefinitely. See below videos on Naked Puts and Covered Calls:

 

Here is a video on the Naked Put:

 

 

Here is a video on the Covered Call:

 

 

Environmental Hedging Week 25System Implication

 

Every trading system is primarily designed to create capital at the end of the day. Where this system is different is that it is a profit system which attempt three primary things: 1). to take funding and capital away from the net-negative corporations of the world. 2) redistribute that capital to net-positive corporations. And, 3). turn the second round of profiting into actual physical goods or compounded ownership of Clean-Tech companies. Now, anytime you can take a paper asset and turn it into a physical asset you’re on to something. In our case we are trying to use the stock and options markets to create a healthier, more inexpensive, and ultimately sustainable lifestyle for ourselves. And Ill keep saying this: “nobody will argue with free food and free energy at the end of the day”.

 

But what is important is that the steps are adhered to. It is important because if the steps are not followed rigorously, then you will be negating any effort you make to environmentally hedge your portfolio and individual lifestyle. For example, lets say you do Step One on Clean-Tech companies instead of the large carbon contributors… Well, you would be taking funding away from the wrong people in that example. Or lets say you perform Step One correctly but do not compound the profits. Well, in that case you’re not actually reducing your carbon footprint or reducing expenses. Remember, we are translating a paper asset into a physical asset.

 

Indeed this is a system which strives to enact incremental change as well as hedge one’s own carbon footprint. But does it eliminate this, though? Well, it could if serious lifestyle changes are made, but overall, no… It merely “hedges” an aspect of your personal carbon contributions—which, at minimum, is a step in the right direction. However, if enough people do this, absolutely measurable changes can be seen. But lets also consider the distribution of wealth here. Well, in the global society that we live in I do not see much in terms of wealth distribution. On the contrary I see self-interest and wealth concentration winning out. In that case the system gives the individual a means of leveling that playing field and doing so in a fascinating way. But once again only if the steps are followed. And if they are, something amazing is achieved.

 

You see, the great philosopher / armchair economist Martin Heidegger once pointed out the only thing that actually matters for humanity at the end of the day is energy… All else, including politics follows from that base principle. For example, much of our problems in Western Society are predicated on this relationship. But as long as we continue to consume the forms of energy which plague our geo-political and social institutions we will continue to experience these problems. Well, this systems aims to change that and change that in spite of government or corporate nudging. You can be that change just by consuming differently. And if price is a problem (which it often is for many) then you now have a means to curb that price difference, and, in all reality, acquire Clean-Tech products for free. And at the end of the day, such investments will reduce living expenses over the long term and will help minimize your exposure to inflation and the various metrics that keep you shopping at Walmart and McDonalds. Just follow the steps and give it a go. It’s a win-win system, folks.

 

Cheers,

 

Bob Shannon.

One Reply to “Environmental Hedging: System Implication”

  1. Avatar DATNGUYEN says:

    Great Read! Thank you.

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