I thought for halloween to teach kids about options and investing that instead of giving out candies I would hand out Candy LEAP call options instead. (Physical certificate)
(naked short snickers call options)
They will be Jan,15 2011 Options with a strike price of DOW 11000
If the dow reaches 11,000 its ATM and they get 1 small snickers bar
But the deeper in the money they get more snickers.
Dow 15K means I would give them 5 full size snickers bars since it has intrinsic value.
I could imagine a secondary market might form and the kids would trade them amongst each other for some cash value.
That way if the economy sucks, I end up winning since I do not have to spend money on candies. Although I end up with unlimited risk if there is a big rally and I end up having to buy a shit load of snickers to cover my obligation to the kids holding these long snickers call options.
(naked short snickers call options)
They will be Jan,15 2011 Options with a strike price of DOW 11000
If the dow reaches 11,000 its ATM and they get 1 small snickers bar
But the deeper in the money they get more snickers.
Dow 15K means I would give them 5 full size snickers bars since it has intrinsic value.
I could imagine a secondary market might form and the kids would trade them amongst each other for some cash value.
That way if the economy sucks, I end up winning since I do not have to spend money on candies. Although I end up with unlimited risk if there is a big rally and I end up having to buy a shit load of snickers to cover my obligation to the kids holding these long snickers call options.
