Economics Project Abstract

DEVELOPMENTAL STRATEGIES IN COMMODITY OPTIONS A.K.A. HOW TO GET RICH!

Presenters:

Raymond Colletti, Illinois Mathematics and Science Academy, 1500 West Sullivan Road, Aurora, IL, 60506; scrabble@imsa.edu

Robert Main, Illinois Mathematics and Science Academy, 1500 West Sullivan Road, Aurora, IL, 60506; golfn05@imsa.edu

Advisor:

Mr. Michael DeHaven, Illinois Mathematics and Science Academy, 1500 West Sullivan Road, History/ Social Science, Aurora, IL, 60506; 630-907-5889/5960; dehaven@imsa.edu

Abstract:

A wise man once said, “You will never get rich working for your money; the only way to get rich is making your money work for you.” Therefore, we asked ourselves: Is it possible to develop an investing strategy that outperforms all traditional investing methods? After looking at the stock market, mutual funds, and commodities, we decided it would be wisest to invest in the futures sector of the commodities market. We decided that options, a derivative of the commodity futures market, was the best way to invest our money because the market is flexible enough to give us the freedom of being creative in evolving our strategy. We set out to create a strategy that yields an exceptional return no matter where the market goes. Our strategy has evolved into us being the insurance agents for the rest of the investors in the market. Since then , we have written specific rules based on our commodity market exchanges. To date, we have yielded an annual return of 82%. This is 50% better than the best investors in the world, namely Warren Buffet or George Soros.