Chapter 3
Chapter 3
A game to bond with friends using coins.
It was called jjaljjal-i.
The most common version was guessing whether the number of coins in the other person’s hand was odd or even.
The reason I suddenly bring up jjaljjal-i is because it was my nickname back in elementary school.
The God of Jjaljjal-i.
I didn’t win every single game, but in the end, I was always the one who earned the most money.
It was all thanks to my special ability.
Whenever I made a choice, a faint, pleasant scent would brush past my nose.
Strangely, whenever I smelled that scent, I always won. After experiencing this a few times, I became certain.
If I smelled a good scent, I would definitely win.
Being able to know the outcome before revealing the cards was ridiculously unfair.
I had no idea why this ability had suddenly appeared, or how it was even possible.
As a child, the only thing that mattered to me was that I could win money. Nothing else mattered.
When I smelled the scent, I bet boldly without hesitation, and that’s how I became the “God of Jjaljjal-i.”
Some people envied my success.
A few of the kids who lost reported me to the teacher, and eventually my parents had to come to school.
My parents apologized to the teacher, saying they had failed in raising me properly.
Seeing that, I thought in my childish mind that I had done something terrible.
I vowed not to use my scent-detecting ability anymore.
I realized later just how foolish that decision was when I was in elementary school.
Anyway, I didn’t use the ability after that day.
Even if I smelled it, I ignored it.
Perhaps because of that, the number of times I could smell it gradually decreased, and eventually, it disappeared.
And today, I smelled that scent again.
A faint, pleasant fragrance had returned.
I looked around, wondering if I was mistaking it for some other smell nearby.
The team leader, no, the squad leader, sitting idly in front of the monitor, wasn’t the type to wear perfume, though maybe alcohol might have been detectable.
I closed my eyes, took a deep breath, and calmed my pounding heart.
I opened my eyes and checked the monitor.
The screen was full of ELW items.
ELWs are stock warrant securities, financial instruments based on individual stocks or stock indices.
They grant the right to buy or sell at a predetermined price on the expiration date, making them almost identical to options.
Just a moment ago, I smelled the scent when I was about to buy [Yushin C382 SCP Put].
Yushin meant it was issued by Yushin Securities, SCP was the underlying asset, and Put indicated that it could be exercised if the price fell below the strike price.
“Should I buy this?”
At that moment.
“What are you doing?”
“Ah! You scared me!”
I jumped as if I had been caught doing something naughty while hiding.
The squad leader had silently approached beside me and asked, looking at the monitor.
“Are you trying to trade derivatives? You shouldn’t go in there carelessly.”
Her voice sounded worried.
“I’m just looking. I know it’s risky.”
“Oh, not bad.”
What?
This is basic knowledge, isn’t it??
After the announcement of the accepted candidates, I had studied the basics of finance and knew that derivatives like futures and options were risky.
Derivatives have no price limits.
A stock worth 100 won could skyrocket a hundred times to 10,000 won, or a stock worth 100 or 1,000 could crash to zero.
It was an area a novice investor should never touch.
“Hah! I feel like you’re underestimating me too much.”
“Not too much, but yes, I am underestimating you.”
“Excuse me?”
“Because Kim Deok-su is a stock novice.”
I couldn’t argue; it wasn’t wrong.
I vowed revenge.
“Want to give it a try?”
“What? But you said it’s risky.”
“You’re going to do it anyway… scared?”
The team leader provoked me, and I didn’t back down.
“Scared? No, I’ll try it.”
And since I was going to do it anyway, it was good to gain some experience first.
“Don’t use the demo account. Use your real account. The demo account is for later.”
“Why?”
“Because your returns and trading history will be considered during hiring. You don’t want to lose money with this account.”
“Oh…”
I realized the team leader was more thoughtful than I had expected.
“You created your account, right?”
“Yes. And I completed all the courses you recommended last time.”
I had completed the ELW investor education and several other courses.
“Good. Wait a moment.”
The team leader made a phone call somewhere.
After a short call, she said to me,
“My account can now trade ELWs. I deposited ten million won as margin.”
“What? Ten million won?”
“It’s not free. I’m lending it. Pay me back with interest.”
The team leader’s sly smile suggested she had some ulterior motive…
“…Okay.”
“Invest with that money. Derivatives are more about psychology, so practical experience is most important.”
“…Thank you.”
I bowed toward the team leader.
“Don’t mention it. Just helping a comrade. Heh.”
She winked at me while saying “heh.”
A strangely cute gesture from someone who didn’t usually act cute.
“Did I push him too hard?”
Kim Yuri, team leader of Asset Management Team 9, felt uneasy even though she had recommended it.
ELWs were too risky for a stock novice.
Sure, high risk could lead to high reward.
But that only applied to experienced traders. For Deok-su, it was just a high-risk product.
Derivatives were originally meant for hedging losses, but their high volatility turned them into investment products themselves.
In Korea, ELWs were practically gambling.
Tenfold or hundredfold profits happened often enough that everyone rushed in.
Kim Yuri worried about pushing Deok-su into such chaos.
Yet she encouraged it to gift him failure.
A novice investor who earns profit from the start tends to underestimate the market.
They think they are skilled and invest recklessly.
Nine times out of ten, they end up ruined.
So experiencing failure first was better.
Failure teaches humility, which changes how one approaches the market.
Kim Yuri wanted to gift Deok-su that humility.
“But what kind of investor is Deok-su?”
Usually cautious, he might invest conservatively.
“But at critical moments, he’s aggressive.”
Considering that, he might make bold trades.
This opportunity could help him discover his investment style.
A clear understanding of one’s tendencies is a fundamental trait for any investor.
“Maybe he might even earn profit…”
Kim Yuri chuckled.
The chance was extremely low.
The derivatives market was dominated by massive forces like foreigners and institutions, who swept away individual investors.
It would be hard for novice Kim Deok-su to survive.
She only hoped he wouldn’t deplete the margin completely.
I logged out of the demo account and entered my real account.
The account had only ten thousand won, but now it had ten million won.
Lending money is not easy, even among close friends.
Yet the team leader lent me ten million won immediately.
I felt once again how grateful and fortunate I was to have such a connection in my life.
I didn’t want to disappoint her.
I clicked into the ELW trading menu.
Hundreds of ELW items spread out before my eyes.
I found the item I had smelled the scent with and clicked it again.
Yushin C382 SCP Put
Price: 100 won]
Strike Price: 99,000
Current Price: 102,000
Conversion Ratio: 1
If the SCP stock fell below 98,000 won, I would earn a profit, but above that, the contract would become worthless.
It was worthless at the moment.
Hence, the price was 100 won.
But if I bought at 100 won and the closing price at expiration was 98,000, there would be a 1,000-won difference per contract.
The conversion ratio was important.
This item had a conversion ratio of 1, meaning 1 ELW could buy 1 underlying asset.
Simply put, the profit was exactly the difference between the strike price and the current price.
For index ELWs like KOSPI 200, the conversion ratio was 100.
Multiply the index difference by 100.
This ELW had a conversion ratio of 1, so if a 1,000-won difference occurred, subtracting the 100-won investment, the net profit would be 900 won.
The return rate was a staggering 900 percent.
Deciding to buy, I smelled that pleasant scent again.
As I moved the mouse closer to the Buy button, the scent intensified.
I entered the number of ELWs to purchase and clicked Buy.
[Buy order executed.]
The pleasant scent disappeared immediately after the order was executed.
The quantity wasn’t large, so it executed instantly.
The amount was 100,000 won.
It felt insufficient.
Back in elementary school, when that scent brushed past my nose, I never hesitated.
I went all in, without looking back.
Such decisive gambles had made me the God of Jjaljjal-i.
I wanted to do the same now.
I wanted to risk all ten million won, but I couldn’t.
I couldn’t be sure if this scent was the same as back then, or just my imagination. First, I had to confirm it.
I looked at the monitor.
On one side, I displayed the SCP stock price graph.
The price rose from 102,000 to 103,000.
The 100-won ELW price dropped by 5 won instantly.
A 5 percent loss.
The underlying SCP stock moved slightly, but the derivative magnified it several times.
The terrifying power of derivatives became clear.
It should fall…
But unexpectedly, it kept rising.
“Damn…”
It passed 105,000 won.
The ELW dropped from 95 to 75 won.
A 25 percent loss already.
Anxiety surged.
Had I misperceived the scent?
Should I sell now?
No.
Once a choice was made, I had to trust and wait.
Then, the SCP stock halted its rise and quickly began to drop, giving back the gains.
Minutes later, breaking news flashed.
SCP under investigation for systematic unfair labor practices.
The stock returned all its gains and turned bearish.
Soon, it fell below 100,000 won.
Now.
SCP Current Price: 98,800
The ELW price: 300 won.
Selling now would net 200 won profit per unit.
A 200 percent return.
The 100,000 won I invested was displayed as 300,000 won on the screen.
My heart raced violently.
If I were at home, I would have leapt up, shouted, and ran around the room like crazy, but here, in the office, I restrained myself.
The crucial part was from now on.
I had to focus entirely on the timing of selling.
There’s a saying in stocks: buying is a skill, selling is an art.
Selling is harder because it involves emotion and timing.
“When should I sell?”
They say buy on the knee, sell on the shoulder, but I didn’t know when.
Inside me, the desire to secure 200 percent profit conflicted with greed for more.
If only I could know the right selling time… was that greed?
I decided to try.
I moved the mouse over the Sell button.
Nothing happened.
Would it not tell me when to sell?
Or was it simply not time yet?
Meanwhile, the stock reduced its losses, then fell again, swaying unpredictably.
SCP Current Price: 98,900
ELW price: 200 won.
If I had sold earlier, I’d have 200 won profit, now only 100 won.
Half the profit gone.
I watched quietly.
Confirming my ability was more important than making money.
SCP stock, hovering at 98,900, suddenly plummeted.
Minutes later, another news flash came.
SCP Chairman arrested for unfair labor practices and evidence destruction!
The ELW price shot up to 600 won instantly.
Yushin C382 SCP Put
Price: 600 won
Strike: 99,000]
Current: 98,500
Conversion Ratio: 1
Should I sell now?
The moment I thought that, I smelled the sweet scent.
“Now!”
I clicked Sell.
[Sell order executed.]
Checking the account, the balance had risen from ten million to 10,500,000 won.
Investing 100,000 won, I earned 500,000 won.
A 500 percent return on a single trade.
A thrilling sensation coursed through me.
Yes!
I was certain now that smelling the scent meant victory.
The team leader approached and asked,
“How was it? Worth it?”
“Yes, it’s fun.”
“Fun? Hah.”
She sounded like she was smirking.
“Oh, Deok-su, today is Triple Witching Day, so volatility will be insane. Be careful.”
“??”
I couldn’t remember immediately.
I recalled.
“You don’t know what Triple Witching Day means?”
“Ah, the three witches’ day… ah! The day with high volatility, right?”
“Right. Today is when futures, stock index options, and individual stock options all expire at once. Happens once a quarter. So be careful until the market closes. Anything can happen. Don’t overdo it today.”
“Yes.”
I said that, but my true thoughts weren’t aligned.
On a highly volatile day like this, one could easily lose a lot.
“But now that I’ve smelled the scent again… this might actually be an opportunity!”
I reviewed ELW items again.
But I couldn’t smell the scent.
I checked the time.
Twenty minutes left until the market closed.
Is this it for today?
A 50 percent profit on 100,000 won was amazing, but I was still hungry.
Before it ended, I decided to review a few more items.
No reaction.
Finally, I clicked on KOSPI 200 ELW instead of an individual stock.
Korea KZ89 KOSPI 200 Put
Price: 50 won
Strike: 296.50
Current: 297.18
Conversion Ratio: 100.0000
“What about this?”
I hesitated for a moment, whether to buy it or not.
“This!!”
Luckily, I could smell the pleasant scent again.
Seventeen minutes left until market close.
No need to hesitate.
I placed the buy order immediately.
Buy order executed.
Quantity executed: 210,000
All in.