Dong Qiangqiang's Story of Leaving Germany

Chapter 182 182. Knowledge is money
Burger King in the city center is very close to the "Shoemaker Driving School" where Dong Qiangqiang learned to drive. When Dong Qiangqiang walked into the fast food restaurant, he saw Duanmu Xinghao sitting in the corner waving at him.

Walking up to Duanmu, Dong Qiangqiang put the bag on the dining chair, seeing that the dining table was empty, he couldn't help asking: "Have you ordered yet?"

"Let's talk first," Duanmu supported the mirror frame, "There is still time to eat." As long as there is no third person present, Duanmu doesn't seem to stutter.

"Talk while eating," Dong Qiangqiang said generously, pointing to the menu on the wall, "You order, I'll treat you today."

"You please?" Duanmu was taken aback, "Why?"

"Thank you for recommending Volkswagen stock to me last time." Dong Qiangqiang said quickly, "What do you want to eat?"

"Since you say that, then I'm not polite." Seeing that Dong Qiangqiang didn't seem to be joking with him, Duanmu looked at the menu and said, "Then I'll order a big hamburger set meal."

The price of the big hamburger set was high, but Dong Qiangqiang ordered two without hesitation, and ordered an extra large French fries for Duanmu.

Seeing a plate full of delicacies being put on the table, Duanmu picked up the burger with a smile on his face, unwrapped the wrapping paper twice, and took a big bite, the tomato juice splashed on the table immediately, he closed his eyes and let out a long sigh: "Oh! I just like their burgers. Yes!"

"Thank you for reminding me that day." Dong Qiangqiang put the extra large French fries on Duanmu's tray, "I don't usually have the habit of looking at stocks. If you tell me, I will forget."

"Hey, how much did you earn last time?" Duanmu smiled gossipingly, and a white light reflected on the mirror.

"Me?" Dong Qiangqiang also took a big bite of the hamburger, "I didn't earn a penny."

"Not earning? Can't you? Why? Did you not sell or did you not buy at all?"

"I bought it, two shares." Dong Qiangqiang said with a smile.

"That's a pity." Duanmu licked the ketchup on his fingers, "But it doesn't matter, there are many opportunities in the German stock market. Since the bubble of American Internet technology companies burst, global stock markets have adjusted in a downward channel. But I I feel that Germany is different here, they are an industrial country, there are no Internet companies in the DAX index stocks, and the international top [-] are all giants.”

"You said on the phone just now that you have some news about stocks," Dong Qiangqiang asked curiously, "What is it about?"

"Actually, it's not just stock information, there are other things." Duanmu wiped his mouth with a tissue in a mysterious manner, and at the same time turned his head to look around warily, although there was no one listening to them.

"Specifically?" Dong Qiangqiang has never liked this kind of hesitant way of speaking, but he couldn't say anything because of his feelings.

Duanmu was not satisfied with Dong Qiangqiang's indifference, he laughed, shook his head and said: "My news is worth a lot, and it's not enough for you to treat me to a hamburger."

"Then what do you want to eat?" Dong Qiangqiang deliberately teased him, "Chinese food or Western food? Roast duck or steak?"

"At least eat a Chinese restaurant. Western food, I haven't thought about what to eat yet." Duanmu killed a fist-sized hamburger in three mouthfuls, Dong Qiangqiang couldn't help clicking his tongue when he saw his appetite.

"Hey, why is the news so expensive?" Dong Qiangqiang couldn't help being curious, "Don't be fooled by me, right?"

"Look, look at what you said, I, am I that kind of person?" Duanmu was anxious and stammered again.

"Two meals are nothing." Dong Qiangqiang patted the table, "Deal. Let's talk."

"The first one is about stocks. I found that a stock has changed, and it might jump in the second half of the year."

"Which one? DAX or TecDAX (German technology stock index)?"

"Hey, you know, the masses."

Dong Qiangqiang almost sprayed Coke on Duanmu's face. He wiped his mouth and said angrily, "Are you planning so much for just one meal?"

Duanmu smiled slyly: "I saw an investment report today, which said that the Volkswagen Group should first increase further investment in the Asian market, especially the domestic market; Leading position. The report also said an unconfirmed news: Many investment analysts on Wall Street believe that Volkswagen’s financial report in the first half of the year will be much better than the same period last year.”

Seeing that Duanmu didn't mean to talk nonsense, Dong Qiangqiang stopped teasing: "You mean that American and German investment institutions are optimistic about it?"

"Several large orders that Volkswagen has won in the Far East have been disclosed by the newspapers. The last time we talked about Russia's plan to increase the purchase of Volkswagen in the second half of this year is just one of them."

"A wave?" Dong Qiangqiang asked in surprise, "Then you plan to buy its shares back?"

"What are you going to do? I bought it after reading the news. It's 62 marks a share. Hey, I'm angry when I say it. If I read this report earlier, I won't sell it."

"Then you haven't looked at technical analysis again?"

"Except for one technical indicator which is a bit high, the other indicators are at a medium level and can go up or down, but the direction is hard to say."

"You're not going to buy another fifty shares, are you?"

"Well, I didn't buy so many this time." Duanmu ate up a large portion of French fries in the blink of an eye.

"Aren't you optimistic about it?" Dong Qiangqiang wondered.

"If VW is going up all the way as I think, it's not my best choice to buy its stock."

"The best choice?" Dong Qiangqiang knew that this word was an economic term, but he didn't understand what other choices Duanmu could have.

"Let me ask you, if you have 4 marks, what investment would you make to maximize your potential return?" Duanmu blinked.

"Only 4 marks? Then you can only buy a lottery ticket." Dong Qiangqiang said angrily, "The prize pool of the German lottery ticket seems to be 1 million marks now."

"But buying a lottery ticket may be a waste of money, and the return cannot be guaranteed." Duanmu corrected, "The lottery ticket is not an investment."

"Then there is none." Dong Qiangqiang shrugged, "Even if German stocks can be bought by one share, then 4 marks can't buy one share, right? If you encounter a stock like Volkswagen, even a fraction is not enough."

"The best way to make potential high-return investments with limited money is to buy stock options." Duanmu's eyes shone with wisdom.

"Stock options? What's that?"

"Simply put, it is like a mini version of a stock, but it is much cheaper than stocks. For example, Volkswagen is now at 62 marks per share. But its call option is now only 6 marks per share, and its put option is even cheaper. Cheap, only 2 marks per share."

"So cheap?" Dong Qiangqiang couldn't believe it, "Could it be true?"

"Because these options are all financial derivatives, they all use a certain multiple of financial leverage." Duanmu explained, "and the real-time price of these options is related to the exercise time of the option (author's note: the exercise time is the time of freely tradable options) Time) and exercise conditions are related, some options are only valid for 6 months, while some options are valid for a year or even longer.”

"Leverage? Exercise time? Exercise conditions? Validity period? What are you talking about?" Dong Qiangqiang felt dizzy when he heard a bunch of nouns.

Seeing that Dong Qiangqiang's interest was aroused, Duanmu suddenly had a laugh, shut up and drank his drink leisurely.

Dong Qiangqiang vaguely remembered that the newspapers he had read seemed to have introduced these contents, but he just swallowed the jujube at that time, and did not think carefully about the meaning behind the words.Thinking about it now, those missed knowledge are real money.

(End of this chapter)