In the ever-evolving landscape of the financial markets, The Norstar Group has carved out a unique niche for itself, specializing in options trading within the US equities market. With a long-term investment focus on the junior mining space and key blockchain/crypto startups, Norstar combines the best of both worlds to achieve consistent growth and generous returns. In this blog post, we will delve into the world of options trading and explore why it plays a pivotal role in Norstar’s strategy.
The Foundation of Our Strategy
At Norstar, our investment philosophy is built upon two fundamental pillars: unprecedented currency debasement and transformative blockchain technology. Let’s briefly examine how these factors underpin our confidence in our long-term investments.
Currency Debasement:
In recent years, we have witnessed an unprecedented level of currency debasement, commonly referred to as “money printing.” Governments worldwide have resorted to quantitative easing and stimulus measures to combat economic crises, resulting in a devaluation of fiat currencies. This devaluation erodes the purchasing power of money and diminishes the returns on traditional investments like bonds and savings accounts.
As a result, investors are seeking alternative assets to protect their wealth and generate substantial returns. Norstar recognizes that junior mining companies, with their potential to unearth valuable resources, and blockchain/crypto startups, revolutionizing the financial sector, are well-positioned to thrive in this environment.
Blockchain and Cryptocurrencies:
Blockchain technology has emerged as a revolutionary force, capable of disrupting industries across the board. Its distributed ledger system offers transparency, security, and decentralization, challenging the traditional power structures and making room for individuals from all walks of life to participate in the global economy.
Norstar’s commitment to blockchain and crypto startups reflects our belief in the transformative potential of these technologies. We see them as the future of finance, and we aim to invest in projects that are at the forefront of this digital revolution.
The Role of Options Trading
Options trading is the cornerstone of Norstar’s overall financial strategy. As Warren Buffet uses his insurance companies’ float, we at Norstar use our trading account to fund our longer term projects. Why do we place such a strong emphasis on this idea?
Leverage:
Options trading allows investors to control a large amount of underlying assets with a relatively small upfront investment. This leverage can amplify returns when the market moves in the desired direction. It’s a powerful tool that aligns with Norstar’s goal of achieving generous returns.
Income Generation:
Norstar uses options to generate income and thereby increasing our liquidity and available resources to fund longer term projects. By selling covered calls on stocks we already own we’re able to capture upside on a stock, even if price action isn’t moving up. This strategy provides an additional source of revenue, enhancing our overall portfolio returns. We’re also able to utilize several other income strategies to add to our available capital.
Hedging Against Market Swings:
In a constantly changing market, options can act as a hedge against adverse price movements. This ability to protect our investments is crucial, especially when we are committed to long-term holdings that go through various cycles. If there’s an ETF available in the sector we have long exposure to, we’re able to create our own self-insurance product so-to-speak through the use of options.
Exciting Possibilities with The Norstar Group
At The Norstar Group, our investment strategy combines the dynamism of options trading with the promise of long-term growth in the junior mining space and blockchain/crypto startups. We believe that our focus on these areas is well-grounded in the context of unprecedented currency debasement and the transformative potential of blockchain technology.
Options trading is not only a crucial component of our strategy but also a powerful tool for investors seeking to manage risk, leverage their positions, generate income, and hedge against market fluctuations. It complements our broader investment philosophy and helps us achieve our goal of consistent growth and generous returns.
As we navigate the ever-changing financial landscape, we remain committed to our mission of empowering everyday individuals and challenging the status quo. In the world of finance, options trading is a key enabler of this vision, allowing us to level the playing field and unlock opportunities for all.
Intrigued by our approach? Stay tuned for more insights and updates from The Norstar Group as we continue to explore the exciting possibilities within the world of finance and technology.
