 So in this video, I'm going to share with you a very powerful option strategy called Kuli Kaishi Strategy and how you can actually use that to turn your $5,000 capital to more than $2 million in about 10 years time. So if having an exponential return in a very safe manner is what you are looking for, then keep on watching. This is Chloe and welcome back to my channel, the all-in-one place to learn about options, stocks, SLS investing. Before I begin, let me explain to you what is called options, which is the key option strategy that I will be using behind this powerful Kuli Kaishi Strategy. Many times when people decide to buy stocks, it's because they believe that long-term the stock price is going to go up. So right now, if they buy the stock at the cheaper price right now, eventually when the stock price goes up, that's how they are going to make money. But one limitation about stocks is if you want to buy 100 shares of stock, then your original capital outlay will be quite huge. However, with the power of call options and you being the buyer of call options, all you need to do is to fork out a little bit of money upfront in order to lock in the stock price at a lower price. And eventually, when the stock price goes up, you can choose to sell away your call option and still make the amount of profits that you will be making as if you are controlling 100 shares. In other words, call options are financial contracts that give the option buyer the right to buy a stock at a specific price within a specific time frame. I personally came up with this investment strategy called Kuli Kaishi because I was inspired by my mentor Sean when he talked about his strategy called Paracoupa. And using Paracoupa and S&P 500, literally you can actually have a 40% year on year return in a very, very safe manner. In fact, when we share about this strategy to Mary Buffett, who was a former daughter-in-law of Warren Buffett, she was completely wowed by this, and so are so many of our students. So if you want to learn the foundation strategy to my Kuli Kaishi strategy, do check out Sean's video right there. For those who already know what is S&P 500 and what is Paracoupa strategy, do continue to stay right here because right now I'm going to explain to you how can you increase your return even further and in a very safe manner. Now, let me ask you this question and do leave it in the comment below. Which sector do you think out of so many other sectors will continue to grow in a very, very fast fit? And in my opinion, that is none other than technology. We basically need to live and breathe technology every single day. And in the next 10 years time, our technology will definitely continue to advance. And so will all these companies. So instead of investing in S&P 500 via options, you can choose to invest in QQQ instead, which is a technology focused ETF that is able to give you much more return. What I like most about QQQ is if you see the portfolio construction, over 50% of them are in very, very great tech companies, including your Apple, your Tesla, Facebook, Microsoft, and so many more. And on top of that, this is not a pure tech ETF. It's also tracking other sectors, such as your healthcare, consumer cyclicals. So in a way, it's still balanced and you can still grow your portfolio in a diversified manner. If you look at QQQ stock price, just by buying and holding on to the stock alone, in the past 10 years, your portfolio will have grown more than 500% over. For those who want to learn how to invest in ETF in a very safe manner and generate about 10 to 20% return every single year, then do check out my free e-cost where you will be able to find it in my YouTube banner over there. So right now, you may be thinking that, well, Chloe, if I invest in QQQ as an ETF, then my return will have been just 500% for the past 10 years. And how can I turn my $5,000 into a $2 million portfolio in about 10 years time? And that is why my Kuli-Kaeshi strategy comes into play. Right now, I'm going to do a share screen and demonstrate to you step by step. How can you use Kuli-Kaeshi strategy to your advantage to exponentially increase your return? I know this video is a little bit long, but do watch till the very end because I promise you that you'll be rewarded tremendously once you really implement and execute this strategy on your own portfolio. Now, let me log into my think-or-swing platform, which is the trading platform that I personally use for my all my trades as well. And right now, if we actually back test the day all the way to 2011 May 31, which is about 10 years ago, this is where what's going to happen right now. I want to show you the process of how I do back testing and so that you can also see it in front of your eyes how this strategy is so amazing to increase your wealth. Right now, if you look at QQQ back then about 2011, that was about $58 per stock price. If I just shift this to let's say one year down the road, let me just shift to like 2012 and let me show you like the first of May 2012, then QQQ stock price increased to $62. So all I need to do is I actually input all the numbers for you so that you can see how QQQ stock price has actually increased over the past 10 to 11 years time. Now let's go to the Excel sheet right now and you can actually see that I already inputted all the numbers over here and you can see that 2011 that was 58 that you just saw and it's 2012 that's 62 and along the years over the time okay you can see that every single year right on the first of May the stock price of QQQ is shown actually here right. So this year 2021 QQQ stock price was 32. So in this case if I initially started with $5,000 capital and I just buy the stocks alright just don't don't do option just I simply buy and hold on to the stocks my $5,000 I could have buy like 85 units okay because 5,000 divided by 58 you will get above 85.68 so in this case I buy 85 units of stocks and in this case I will have like I will have used up about $4,960 and I still have about $39 left so what's going to happen to this $4,960 alright 11 years later from 2011 all the way to 2021 May this year so your portfolio if you just buy and hold the stocks it will have grown alright from originally $858 to this year May you have grown one share to $332 so right now your stock okay times your stock amount which is 85 units times $332 it would be about $28,000 so in that case your original $4,000 which is about $5,000 will have grown to $28,000 and that is more than 464% return alright in about 11 years time in fact if you look at the today's date right now QQQ stock price has actually increased and have become more than $332 so you just buy and hold down to it your return would be about 500% alright but the thing is how can we use Kulikaishi strategy which is a very very powerful technique okay all the way from this long-term thinking from the Japanese culture right because I actually spent a lot of time in Japan studying and working as well and I really feel that there's a lot of wisdom behind how Japanese people do things and that is why uh rinse and repeat okay Kulikaishi actually means rinse and repeat and how do we actually Kulikaishi this strategy rinse and repeat it to increase our wealth exponentially via options now let's go to the right-hand side alright this is where I actually start to buy QQQ call option remember why do we want to buy call option it's because right now we just pay a little bit of money to lock in at the original low price and even though eventually when stock price continue to increase we can still buy the stock 100 shares at the lower price right so this is what is about call options okay so you can see that if I go back to them think or swim how much was it if I decided to initiate my first option contract back in 2011 May now let's go back to think or swim and I want to show you the difference between options and buying stocks as well so you will also be able to see the power if you decide to start investing in options so now let me go to May go back to May 2011 and I go back to 31st of May and you can see that okay back then $58 was a share price but if you go down to below this is where you get to see all the different kind of dates and this is definitely this is about options because options it's always about an agreement within a specific time frame so you can choose different time frame so in our Kulikaishi strategy we always buy the longest all right longest call option inside okay because we do want to have more time on our side and we want time to decay to be as slow as possible so in options there are actually two types of options you can do one is the call option and one is the put option and of course in Kulikaishi strategy we are talking about we buying call options and that's why we look at calls and on top of that we are looking at minus one strike so what does minus one strike actually mean it actually means that you can see that current stock price is 58.36 we want to buy it slightly okay minus one below 58.36 and that is why you have 58 all right so you go to buy call option at $58 and you mouse over there are actually two kind of price that you will need to figure out what is it so what does that mean is you know meet because option is a contract there's always buyer and seller and that is what in this case we want to buy and that's why you mouse over to the ask column which is a buyer site and you want to click it and you can see that actually right here there is there's a price of $6 and 0.75 okay what does that mean is you are actually investing in order to buy this call option you spend about $607.50 in order to buy call option on QQQ for the next 598 days at the strike price of 58 and that is why you if you remember this number let's go back to our calculator and you will see that exact same number actually key in inside the spreadsheet which is 6.075 now let's go back to the spreadsheet and you can see that okay I have already key in 6.075 over here so if with $5,000 capital how much unit of $6.00 and 0.75 and in this case because one option is always hundred shares so in this case you do need to spend about $608 alright so if I round it up your $5,000 you can buy how many contracts you can buy eight contracts okay so in the end you invested about $4,860 and one year later that is magic you want to see what is going to happen to our call option one year down the road so remember originally you spend about $4,860 to buy eight option contracts and right now one year later let's check out QQQ stock price remember it has actually increased by a few dollars right so right now let's check out one year down the road what is going to happen to the option price so let's go back to think of swing so right now it's 31st of May 2021 so let's check out one year down the road alright what will happen and let's go back to 2012 May 31st okay so if you go back to May 31st you can see that alright your originally your expiration date it's a January 2000 or January 2013 and if I go back to the same call option contract which is January 2013 now it's only left with 232 days because one year has passed right so that is why 232 days what you need to do is if I decide to sell away my call option that I bought it one year ago where can I sell it can you see that we actually lock in the price at $58 so I find back the same contract at $58 and right now I go back to my call option again and if I click the sell button alright can you see that when I decide to sell this exact contract away one year down the road I will have collected back $703 alright I invested $600 to buy one option right now when I sell it away I will have actually made back $700 so in this case you are in profit alright so remember $7.03 now let's go back to our excel spreadsheet and let me show you I also came the same number inside here you can you can see it's $703 right so because you bought eight option contracts so in this case your total profit alright after selling off all your 800 all your eight contracts you will make $764 alright which is not a lot of money but remember this is a 10-year game plan this is about rinsing and repeating the same strategy again and again and that's why when we close off this option contract our capital will have drawn to $5,764 alright and right now we use the exact amount that we have which is $5,764 we repeat this process and we buy another QQQ call option at the current strike price minus one okay remember the same process and let's see right now how much do we need to spend so I already gave you calculated it's actually one contract it's $10.55 but let's go back to my think or swim and see where do I actually get this $10.55 alright now if you go back to the trading platform and one year down the road because we have already closed off this contract that means now we are starting anew and remember when we are starting anew we want to reinitiate another call contract which is Kulikaishi strategy and you want to open the longest one so that's why you choose $932 which is available over here and right now the stock price is $62.06 and I want to do strike minus one and that's why it's $60 and all I need to do is to buy this and can you see $10.55 which is the exact number that you saw in my spreadsheet just now so with the amount of money which is $5,000 over dollars you can actually buy about five contracts so buy five contracts again and one year later close off this five contract so what's going to happen one year down the road let's check out 2013 May 31st okay what's happening right so now it's one year down the road your original 900 over days of options now left with 567 days so all you need to do is to close off all right close off these options again sell it back to the market and remember our original buy price which is a strike price is $60 so if I go back to the $60 contract right now when I sell it back to the market I am selling one contract at 1474 all right remember I buy one contract with $1,055 right now I sell back it's $1,474 all right so if I go back to my spreadsheet I want to show you this is the magic where it starts to happen it's really about compounding effect so remember I buy five option contract I invested about $5,275 and right now one year later one option become $1,474 and my 500 when I sell it off I will have gotten back $7,370 and my net profit is $2,000 in two years time still not a lot yet but guys this is about reins and repeat so that's why you use whatever profits that you have with your original capital $5,000 just continue to invest now let me show you the magic of it right if you continue to invest all right right now with $7,800 and the third year when you continue to do that you will have able to gotten one contract at 638 and within this time frame all right in one year's time $7,859 is the amount that you you choose to buy 12 contracts all right 12 contracts of call option all right using Kulikai Shichai G on QQQ and one year down the road all right your profit grow to $14,000 previously was only $2,000 right now it's $14,000 and your portfolio will have grown from $5,000 in three years time turn to $22,000 guys all right and you once again rinse and repeat this strategy next year your profit is $37,000 and your portfolio grow to $60,000 but I know some of you may be thinking that Chloe but the stock price can't be moving out all the time what happened when the stock price actually plummet actually during the fifth year time the stock price didn't move up it actually actually start to go down and that is why for the first time you saw losses in your account okay instead of making $37,000 again you actually lost about $26,000 that year but guys remember you need to trust this process and just rinse and repeat because when you do that okay firstly you think that because even though you lost $26,000 that year you will have already made so much capital all right your capital will have grown to $60,000 in four years time so even despite losing $26,000 your capital will still be $33,000 which is way more than your original $5,000 remember we started with 5k and now five year down the road it grow to $33,000 you are already in a very handsome profit all right and all you need to do is trust the process rinse and repeat it use your balance amount which is $33,000 to continue to re-initiate another position in QQQ strategy using Kuli Kaishi and next year your profit guys I want you to see this all right next year your profit will have grown to $66,000 this is net net profit your capital will have grown to more than 100 close to $100,000 and you repeat this process again next year your profit is $149,000 and your capital is close to a $250,000 mark with a 5k portfolio without topping out any single set and this is only in one two three four five six seven seven years time all right so then some years you will lose money but again if you just rinse and repeat this process eventually guys this year in 2021 all right in 2021 this year your profit guys I want to show you this in 2021 this year your profit if you just continue to rinse and repeat this strategy your capital will have grown to more than $2 million all right and that is the power of using options to really supercharge your return and when you are doing on the right stock on the right QQQ ETF in this case then you are really giving yourself a high margin of safety so here's the summary of the five steps that you need to do step one make sure you have enough money to initiate your first contract step two buy the longest expiration date so that to avoid time decay step three buy at the strike price minus one set four close your buy call option contract one year later regardless of profit or loss step five repeat from step number one all you need to do is to rinse and repeat this and you will be rewarded financially just trust the process I've back tested for more than 11 years and I'm very very sure that technology will continue to improve over time if you are wondering can this strategy be executed on to individual companies such as Facebook your Microsoft your Tesla I do personally believe that this strategy is very powerful and should only be executed on the good companies but you do need to understand way more about the businesses because right now you are investing in individual businesses rather than an ETF as a portfolio if you want to find out more investing insights actually share them very very frequently in my telegram channel so do join my channel if you want to stay up to date last but not least if you find this video helpful do remember to give it a thumbs up as well as to subscribe to my channel so that you will be immediately notified when I release a new options video before you go I also want to let you know that this is not an investment advice make sure you do your due diligence to really understand what exactly is options so that you can really execute your strategies in a very very safe manner so I personally have been doing options for a couple of years and I really see my portfolio growing tremendously and that is why I want to share with you this very very safe and proven strategy that you can do it on your own portfolio as well so that we can all grow wealthier together so with that I wish you have a great weekend ahead a great day and happy investing I will see you in the next video bye