I am aware that it is no easy task to multiply the money one hundred times, but I am eager to try.

As anyone can guess, the only possible strategy to convert yens into dollars is a seeding system: Reinvesting the benefits from a series of successful operations. And this is precisely what I am going to attempt, and everyone is invited to follow the whole process through this blog.

This challenge will comply with the following rules:

Today I will recommend an operation that involves a maximum risk of 100.000 Yens. From now on and starting with the initial investment of 100.000 Yens, plus the possible benefits, I will describe the series of steps necessary until our final objective is achieved.

I will keep a record of results obtained and will publish and update the respective notes and current balance of each operation in each post of this series.

I believe a period of three years is adequate and necessary to reach this goal, because taking longer would be less of a challenge, and planning to do it in less time might not be feasible.

I will allow myself five attempts. By this I mean that, in case of a big loss, I will try again with another 100.000 Yens, with a maximum of five strikes during the three year period.

I will place a tag ¨to convert yens into dollars¨ to be able to follow all the operations that will be part of the challenge.

FIRST OPERATION

Buy a Calendar Spread of Citigroup:

Buy a 5$ Put of December 2009

Sell a 5$ Put of August 2009

In the past few days I have been buying it between 0.07 and 0.08$. This is the maximum investment and total risk (between 7$ and 8$ for each Spread contract of 100 shares of Citigroup). If anyone wishes to replicate the conversion strategy from Yens into Dollars, my advise is not to pay more.

To invest 100.000 Yens (around 950$ right now), we can take a round figure of 100 December contracts bought and 100 August contracts sold.

When any further action is required I will be publishing it here.