Share renting...worthwhile ?

jackzoe

Anyone know anything about share renting....its where you buy a block of shares and rent them out to a big company or individual and they pay you a guaranteed rent for them and they take the profits if the shares go up in value, you can also insure your shares to be more safe....any more information would be appreciated:)

portomar

jackzoe wrote: »

Anyone know anything about share renting....its where you buy a block of shares and rent them out to a big company or individual and they pay you a guaranteed rent for them and they take the profits if the shares go up in value, you can also insure your shares to be more safe....any more information would be appreciated:)

NOT.A.CLUE.

Sounds bogey though, any chance of a link??

ChartTrader

I assume the OP is referring to covered call investing (options strategy).

http://en.wikipedia.org/wiki/Covered_call
http://www.investopedia.com/articles/optioninvestor/08/covered-call.asp

TICN and other promoters use this renting analogy although it's not appropriate, simply a marketing line to reel in people.

Covered call investing has its uses but it's no Holy Grail and anyone interested should read up on its merits/demerits, when to use it, etc.

jackzoe

Thanks for the replies....yes i think we are talking about "covered calls"
Go to www.sharetradingforcashflow.com

I got the Dvd and its not worth it...this Australian guy only tells you in it to do one of his courses in an exotic place...hence spending loads of money. Dont know maybe they are good courses, he claims that share renting is a technique that few know about and can be described as covered calls in turbo charge making loads of money ??

portomar

jackzoe wrote: »

Thanks for the replies....yes i think we are talking about "covered calls"
Go to www.sharetradingforcashflow.com

I got the Dvd and its not worth it...this Australian guy only tells you in it to do one of his courses in an exotic place...hence spending loads of money. Dont know maybe they are good courses, he claims that share renting is a technique that few know about and can be described as covered calls in turbo charge making loads of money ??

ok well firstly, dont go near this ozzie selling holy grail", secondly options are the most complex form of trying to make money in stocks, may i suggest looking into spread betting as a place to start if you're looking at making money trading. if you just want to own shares that you hope will rise in value, look for value investing info, and never go for a managed fund (see "saver policy" thread on here for why i think this) if funds ae your game, look at etfs, quinn sell them. basically, theres a number of ways to make and lose massive amounts in the markets, options are by far the most complex. there is no holy grail here, and shares are not rented. this is a method of leverage, and unless this guy can see the future, you, with a fair bit of education and study admitedly, have as good a chance as him of calling the right trade in the market. the method you use is less important, and depends more on your initial cash and risk profile.

jackzoe

Thanks for the advice Portomar, will study my options, I did a course with Invest like the best....their theory was basically to stay clear of Irish shares and invest in English and US shares based on PE ratios and other factors and sell them every year if they do not meet the criteria and buy new ones, you are basically banking on holding them 7-10 yr period.