My Retirement Plan At 35

[camelking]

IMO, it is nothing wrong with the ELN. It become dangerous only if it fall into wrong hand.

It provides similar service as insurance, transfer risk with a premium. If the insurance risks and premiums are well taken care of, then it is just another useful service, both to ELN issuers and ELN holders

Just to share :

I have been doing quite a few ELNs over the past 1 year. First thing first, know that it is a speculative position. I classify it in the same bucket as trading in penny stocks and stocks that i am willing to trade on 1-2 mth technicals.

Second, why i decided to switch out of penny stock and day trading to do ELN is that they offer as good yield but with less monitoring and risk. I only do ELN on blue chips like RIO, AMZN, FCX, AAPL, JPM, sometimes C etc. Has to be volatile.

Yield is >20% as a rule and i usually do 93% and lower strike. I also dictate the spot price to ensure i get in cheap at least for the day. My objective? To get an annualized >12% yield that can beat my old numbers trading high risk penny stocks. So far about 10+% gain based on 10 months (did abouit 20 ELNs and 1 converted), if i include the current mark to market loss on the 1 that got converted. So seems to work.

And if they get converted, i move them into my blue chip portfolio with a long term view. And acutally due to volatility , if i sold that one stock, probably would have gotten away with zero losses but I decided to hold since my rule is that i would not mind owning the stock long term.

Key thing is to know the short term chart and technicals for these volatile blue chips and to go in only when yield is attractive enough.

My 2 cents

Single stock or multi stock?
How long is your duration?
Don't think you can get more than 20% if it is based on single stock.
Unless my company has been "conned" by the bankers ...