In the Example given a SHORT Investment at 1.00 has Dropped to 0.60 Gaining a PROFIT of 0.40. The 0.40 PROFIT is IDLE in the Net Worth & is not Gaining any PROFIT, not even Interest Income. Only the 0.60 is Gaining a PROFIT. Similarly, 0.40 of the Original 1.00 Investment is also IDLE in the Net Worth & is no longer Gaining a PROFIT. Only the 0.60 is Gaining a PROFIT.
A COVER & RE=SHORT Recovers the 0.40 PROFIT into CASH & also Recovers 0.40 of the Original Invesment into CASH. The 0.60 is still Gaining a PROFIT while the CASH has been Boosted by 0.80 (0.40 + 0.40 = 0.80).
With the Recovery of 0.80 from an Original Invesment of 1.00, that means that just 0.20 of the Original Investment is being used to Gain PROFITS at the 0.60 level. Such is the Powerful Impact of the ROTO COVER & RE-SHORT Strategy.
Every single Day on HSX there are numerous Double-Digit Invesment Opportunities (Greater than 10% GAIN). Every Day.
To be Effective the 0.80 now in CASH merely has to find an Investment Opportunity Greater than Double the Commission on the COVER & RE-SHORT at 0.60. That's why this ROTO COVER & RE-SHORT Strategy is UNBELIEVABLY POWERFUL especially for the Smallest Ports (which the ROTO Port used to be in 2014). Along with the ROTO SHORT Strategy, the ROTO COVER & RE-SHORT Strategy enabled the ROTO Port to Set a 1-Year Record (2 MILL to 1.922 BILLION in 365 Days).
Since January 01, 2014 the ROTO Port has probably made well in excess of 1,000 (ONE THOUSAND) COVER & RE-SHORT Transactions. Once the ROTO CASH Level hit 500+ MILLION with the Maximum HSX Investments being made, there was no longer a need to continue this Strategy.
TRY IT - YOU'LL LIKE IT. Look at your Portfolio. The NET GAIN / LOSS Column shows you what kind of GAIN you have on the SHORT Securities. Look at the (%) to the Very Right. Any (%) Greater than 50% indicates that you would Recover your Entire Original Investment on that SHORT Security & still be SHORT on that Security using COVER & RE-SHORT. Any (%) Greater than 70% indicates that the Port has substantial Investment & PROFITS that are not doing anything Productive / PROFITABLE.
It's called 'STEPPING ON THE INDY 500 GAS'.