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WarGamer

(13,213 posts)
Sun Jun 13, 2021, 11:31 PM Jun 2021

Some might not understand HOW the Billionaires got RICHER during COVID-19. Come on in.

This is really simple.

It's the stock market.

I'm an amateur dabbler but keep a close eye on the markets.

In March of 2020 the bottom dropped out of everything.

SPY is a tradable fund of S&P 500 companies. It's a commonly invested-in vehicle.

On 3/20/20, SPY hit a low of $228 a share. Today it's $425.

But that's JUST a ~100% profit. There's a way the Billionaires multiplied that.

Through options trading, you could buy contracts controlling 100 shares per option contract betting for a higher stock price in the future.

For example, cost to buy 1000 shares of SPY on 3/20/20 = $244,000

But on 3/20/20 you could buy 100 options contracts for SPY for maybe... $100,000 which gave you control over 10,000 shares of SPY for 6 months without actually owning them. For every dollar past the "strike price" SPY went, you pocketed $100 per contract.

Let's say in March 2020, you bought 100 options of SPY for 6 months, with a strike price of $250.

On 9/20/20, SPY was selling for $330 a share. That's $80 per share profit, or 80 x 10,000 = $800,000, a $700k profit after the premium.

This is just ONE example.

Anyone who put money in the market in March or April of 2020 made a fortune. Nearly EVERY stock doubled or even tripled from 3/20 to today.

Examples:

TSLA $85 on 3/20... $610 today

JP Morgan Chase $83 on 3/20... $160 today

AMC (movie theater) $3 on 3/20... $50 today

People made more money in a year than most people make in a lifetime... during a global pandemic that killed MILLIONS.

And for those who say "Didn't they lose money in the crash?"

Yes they did. Temporarily. But the rich have the cash to dump back in while the market was down.

Go look at your local Rolls Royce Dealer, Porsche, Lamborghini, Ferrari and Bentley...

They're OUT OF CARS, I shit you not.

The largest RR dealers in the country have less than 10 cars in stock. Their $400k SUV has been out of stock nationally for months with a 2 year waiting list.

The RICH are swimming in money right now.

I have NO COMPASSION for those on the Left OR Right who coddle Billionaires. I don't care which side of the fence the Billionaire straddles, no mercy. Musk, Bezos, Zuckerberg, Cuban, Gates... all get positive press 24/7 because they're perceived as friends of the progressives...

They're playing all of us.

8 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Some might not understand HOW the Billionaires got RICHER during COVID-19. Come on in. (Original Post) WarGamer Jun 2021 OP
I heard that bezos effectively paid no federal income tax in 2020 Calculating Jun 2021 #1
10 cars sounds like a massive inventory for a rolls Royce dealer! unblock Jun 2021 #2
I was talking about Beverly Hills RR, (Ogara RR) WarGamer Jun 2021 #5
Damn 30 that's just nutz. But I guess in Beverly Hills it might make sense... unblock Jun 2021 #7
there's SOOOOO much money out there, it's ridiculous. WarGamer Jun 2021 #8
There's plenty of money to be made when times are hard by the insiders Raine Jun 2021 #3
Big Pharma is a winner too. Edim Jun 2021 #4
Good point WarGamer Jun 2021 #6

Calculating

(2,979 posts)
1. I heard that bezos effectively paid no federal income tax in 2020
Mon Jun 14, 2021, 12:29 AM
Jun 2021

In fact he was paid a credit for having kids. Our system is fundamentally broken, the rich are playing by a different set of rules than the rest of us.

unblock

(53,106 posts)
2. 10 cars sounds like a massive inventory for a rolls Royce dealer!
Mon Jun 14, 2021, 03:11 AM
Jun 2021

My next door neighbor growing up owned a series of car dealerships, one of which was a rolls Royce dealership. He never had more than 2 cars at a time. I've been in a few others since just for kicks, never seen more than 2.

There's just no need for more, they don't turn inventory over anything near as quickly as normal car dealerships.


That said, I agree with your point. The rich are fine and made a ton during the crisis and recovery.


One addition, though: many are able to renegotiate deals at the bottom, to their advantage. So they lose a ton on the way down, but they negotiate more shares/options/bonus/whatever so that if they get the company back to where it was, they end up much better off than before.

Say a ceo has 20% of a company than loses 2/3rds of its stock price. The ceo says hey, give me options for another 20% and I'll get it back. The board agrees because they're scared the company will go bankrupt if the ceo quits, and then everything comes back but the ceo go the down side on 20% but the upside on 40%. Very lucrative.



And of course, many company's recover had very little to do with ceo performance. As you noted, the whole market recovered. It was all mainly due to covid and the government response and the vaccines. But the ceos all profited immensely from the turn of events.

WarGamer

(13,213 posts)
5. I was talking about Beverly Hills RR, (Ogara RR)
Mon Jun 14, 2021, 05:31 PM
Jun 2021

They usually have 30-ish

Today they have 5.

And I think 3 of them are the new Ghost. One Wraith and a Dawn...

No Phantoms or Cullinans.

WarGamer

(13,213 posts)
8. there's SOOOOO much money out there, it's ridiculous.
Mon Jun 14, 2021, 06:03 PM
Jun 2021

I mean, I make a great income, 100k+ for more than 20 straight years...

But I'll never buy a Lambo or a mansion... my name is on the patent applications and in the Efficacy Reports but I'm not the one who bought the yacht...

Raine

(30,565 posts)
3. There's plenty of money to be made when times are hard by the insiders
Mon Jun 14, 2021, 03:22 AM
Jun 2021

while the rest of the people suffer and are losing their small businesses.

Edim

(305 posts)
4. Big Pharma is a winner too.
Mon Jun 14, 2021, 03:26 AM
Jun 2021

COVID vaccines create 9 new billionaires with combined wealth greater than cost of vaccinating world's poorest countries
Published: 20th May 2021

At least nine people have become new billionaires since the beginning of the COVID pandemic, thanks to the excessive profits pharmaceutical corporations with monopolies on COVID vaccines are making, The People’s Vaccine Alliance revealed today ahead of a G20 leaders Global Health Summit.

https://www.oxfam.org/en/press-releases/covid-vaccines-create-9-new-billionaires-combined-wealth-greater-cost-vaccinating

WarGamer

(13,213 posts)
6. Good point
Mon Jun 14, 2021, 05:33 PM
Jun 2021

MRNA (Moderna) 3/20 $28/share... today $208/share

PFE (Pfizer) 3/20 $27/share... today $40

Moderna returned 800%!!!!!!

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