Unfair Advantage percent of the money I’ve spent on the option. To me, the context is not much different than the money I spend on insuring my rental property. The income from the rental property pays for the insurance, just as the income from a paper asset will pay for the option that protects it.
Printing Money with Paper Assets FAQ Can you print your own money with paper assets? Can I achieve an infinite return on my investment? Short Answer Yes. Explanation I will let Andy explain, since this is his area of expertise.
Andy Tanner explains: We know that it is impossible for a stock to actually reach the theoretical number of infinity. However, in the stock market, we can place transactions that can put us at risk for an infinite loss. One example of that is shorting a stock. When we short a stock, we lose money as the stock price goes up. Since there’s no limit to how high a stock price can go, shorting a stock is considered to be a transaction that carries infinite risk. So while the stock price will never actually reach infinity, infinity is a concept we must understand for both gain and loss. Another way to look at infinity is this: As the amount of our own money that we place in an investment approaches zero, the return we receive on that investment approaches infinity. So if we can find a real estate investment that doesn’t require any of our own money, we are applying the concept of infinite return. That’s one of the reasons why debt, in the real estate world, can make you rich.
by Rich Dad, Robert Kiyosaki