 You'll return $5,000 to all the way $1.4 million, right? Tremendous, tremendous, so that it's like 2,028,000% how are I crazy? And welcome back to my channel, the all-in-one place to learn about stocks, options, as well as investing. So in my previous video, I shared about this powerful option strategy called Kulikaishi strategy and so many of you actually gave me comments about whether can we actually optimize this Kulikaishi strategy further. So in this video, I am going to go through one more optimization strategy which I think you can consider to implement onto your current strategy to see whether can it turn out to be even better than that. But before that, if it's the first time that you're coming to my channel, do remember to click the like button and subscribe to this channel so that you will stay up to date. So without further ado, let's go straight into that. So right now, you can see that my calculator I have already filled up all the information for you but I would like to actually go through this whole process together with you so that you can really understand how did I get the number and how you yourself can also do that. So for example, if you'd like to get a copy of this calculator as well, then do just click down the link below this video. There's under the comment section, I do actually give you a way to download this so that you can also do the back test yourself even after you watch this video. So the first thing we want to do is we want to take back all the way to November 2011 and the reason why we want to do that is because when I first time do this Kulikaishi strategy, I also use the same date which is May 2011. I just want to make sure when I'm comparing the impact of time decay, I'm using the same date so that you can see exactly how would the time decay would actually play any part into this option strategy. So the philosophy behind this optimization is to really test out the concept of time decay in option because we all know that options is a contract and it's definitely bounded by time. So we want to see that if we can actually then lengthen the duration of the contract as well as to minimize the impact of time decay, will that be actually increasing our ROI using our Kulikaishi strategy? You'll realize that I have already backdated the date all the way to the 31st of May 2011 and what we need to do in Kulikaishi strategy as to basically buy the longest call all right, pretty similar to the current stock price right now. So the stock price back then was $58.36. I'm just going to initiate a call position at $58 and when I click the buy button, that is the that is the premium that you need to pay which is $6.075 which is I have already also inputted inside the calculator $6.075 you can see here. So if you round it out one option contract is about $608. So with $5,000 capital, you will have already gotten eight contracts and if you still remember the first time when we are doing this strategy, we want to close off our position one year down the road. However, in this strategy right now, the modified version is not just going to be one year. In fact, we want to close it whenever a new option contract, a new option contract actually appears inside our platform. So what does that mean as whenever there's a new contract, we want to close off our old position and re-initiate our longest contract inside the latest contract so that we can always buy the longest duration of option contract and so that I can also minimize the time decay and that is philosophy behind how we do this round of optimization. Instead of closing in May 2012, I actually closed the contract in November 2011 because if you go to the trading platform, that is when all right, the new contract actually appears. All right, so let's check it out. So right now it's May. I'm just going to November and end of November. You can see that originally the latest contract, the longest contract, it's until January 18, 2013. But if you scroll down a little bit, you can see that there's actually a 2014 January contract and that is why we want to close off our original position, which is at $58. We bought it, a strike price at $58. And right now if you sell it back the same contract that you have, you will have made a loss about $50 per contract. And what we need to do next is to re-initiate a longest position, which is right now near to the current strike price, $56. And you will have to invest about $9.05, which is equivalent to $900 in one option contract. So all these numbers, let's check out our calculator. You can see that everything is already inputted in. And when you close off your previous contract, you will have to close it at a slight loss. And that's why when you sell it back, it's $550 per contract. So initially you were losing a money about $465. So your capital would have actually started less as compared to the previous strategy. Because the previous strategy, the first year we already started making money. But in this case, we actually lost some money. But it's okay. It's only half a year. We basically re-initiate another contract, follow through the process, Kulikaishi, Rinsan Repeat. And right now, in the second year when we buy, it's $905 per contract. And we will have been able to gotten five contracts instead. So right now, let's see by January 2012, that was when a new contract is being initiated, which is just in like a short, a few months, okay, three months' time from November to January. So right now let's go to January and check it out. So as you can see, if I go to January 2012, I'm just going to go to the latest date, okay, 31st of January. And you can see that a new contract is being initiated until expiring in 2014, December instead of January. So what we need to do is close off our January contract, which is at $56, I'm going to sell it off, okay? So right now, if you sell off your $56 contract, you will have gotten $9.70 back. So in a way, you make some profit, all right? And with that amount of capital back, you want to remit another position in the longest duration, and you buy at $60 strike price, and that will cost you $9.10. Now, all this number, $9.70, $9.10, it's already inputted inside the calculator. Let's go and check it out, all right? As you can see, if you close our position, you will have gotten back $970, and you will have made some profits, okay? And right now, your capital will begin with $4,800, because the first year you lost more than compared to what you earned previously. So you start with $4,800, and you buy another contract, okay? At $910, and if you can do that, you will have gotten yourself high contract. So all you need to do is to rinse and repeat this strategy whenever a new option contract is being released in the coming month, okay, that you see inside your brokerage account, all you need to do is to close off a contract and then re-initiate the longest position. And you can see that I have already done it all the way until December 2020 for you, all right? So why do I need to do that? As you can see, actually, some of the months, occasionally, there are certain years that have multiple new option contracts within one year, but most of the time, it's still like once a year, right? Can you see that? It's all like November, November, once a year, but then closer to date, sometimes it comes to September, and then in January, a few months, a short few months, a new option contract also gets released. So the whole purpose of this is whenever we see a new release, we just close off the old contract and re-initiate a new one, all right? Just rinse and repeat Kulikaishi and Sosuleba, okay? What I want to do right now, I want to show you the ROI, the difference between if you do this strategy versus the previous one, which is a very passive form of just buying and closing every single one year, you set a specific date to do that, what is the difference? So you can make a guess right now, okay? Without me revealing the answer to you right yet, make a guess which one will give you higher return, okay? One is you are really trying to minimize the time decay by always optimizing, by closing off your original contract and buy another one, which is optimization. The other one is the older version, okay? If you think the newer version will give you higher return type new in the chat, or if you think that it's going to be the older version, which is a more passive way than type O in the chat, okay? Now, with that, I'm going to reveal to you the answer. Now, let me show you the answer, all right? So right now, if you scroll down a little bit below, you can see that your return for using this optimized version of Kulikaishi strategy will have been a whopping 28,000%. So what does that mean as your $5,000 capital initially, 10 years ago, right now, if I close off all the position in May this year, because I'm comparing the same date as I repeated the previous strategy, all right? Which is I close off my position 31st of May this year, your return $5,000 to all the way $1.4 million, all right? Tremendous, tremendous, all right? It's like 2,028,000% our eye crazy. However, if you look at the previous version, which is what we did just buy and close one year later, very passive form, your return will happen. Look at this guys, it's 38,000%. So what does that mean as by doing less, you still make more money, all right? And if you follow the previous strategy, 10 years down the road, your return will have been close to $2 million versus the optimized version, which is $1.4 million, which is also very good, right? But it's like a $500,000 worth of difference, all right? So once again, when it comes to investing, it really doesn't have to be very complicated, all right? And of course, as much as we try to optimize our ROI, but sometimes the less that you do, the more that you earn as well. So let me know which strategy do you actually prefer, all right? Do you prefer the older version or do you prefer the newer version? And I think nevertheless, regardless which approach that you choose to adopt, both will have made you tremendous return to from $5,000 all the way to more than a million dollar in about only 10 years time, all right? So that is the power of investing. And I really wish that you guys can take away this message and really start investing. For those who are very new to options and you just want to make sure you know how to do it step by step, then do join me in my upcoming free training. I'm going to share with you how can you use three powerful option strategy and profit from the market in all directions. While waiting for my options foundation class to happen, do join me in my Telegram channel as well because I will constantly share about my latest investment insights. If you find this video helpful, remember to give it a thumbs up and share out to your friends so that more people can learn how to tap into the power of options to accelerate their return. With that, happy investing. I wish you have a great day and I will see you next time.