Beating the Prime

dis · Dec 17, 2002

Hello,

Can someone recommend an options strategy netting ~5% per annum with minimum amount of risk? What do you think of selling near-term, out-of-the-money straddles on broad-based indices such as OEX?

Thanks,
dis

metooxx · Dec 17, 2002

Quote from dis:

Hello,

Can someone recommend an options strategy netting ~5% per annum with minimum amount of risk? What do you think of selling near-term, out-of-the-money straddles on broad-based indices such as OEX?

Thanks,
dis

Covered calls and puts with a collar ...

just21 · Dec 17, 2002

deep in the money covered calls and puts, credit spreads

metooxx · Dec 17, 2002

Quote from just21:

deep in the money covered calls and puts, credit spreads

That has more risk than he seems willing to assume ...

Madison · Dec 17, 2002

Quote from dis:

Can someone recommend an options strategy netting ~5% per annum with minimum amount of risk?

why not just go with Treasuries? little less, but zero risk

metooxx · Dec 17, 2002

Quote from Madison:

why not just go with Treasuries? little less, but zero risk

That has less risk than what he wants ...

hardrock375 · Dec 17, 2002

Quote from dis:

Hello,

Can someone recommend an options strategy netting ~5% per annum with minimum amount of risk? What do you think of selling near-term, out-of-the-money straddles on broad-based indices such as OEX?
Thanks,
dis

Well the first thing you might want to do is define an OTM Straddle. That should keep you busy for awhile. You sure you want to be writing options? Now OTM Strangles, now that might be something...

AAAintheBeltway · Dec 18, 2002

Why go through all that work for 5% return? Selling strangles is not my idea of low risk either, although you can do it for a long time without a big hit if you're lucky.

Anyone know what the numbers for metoxx's buy+collar strategy would look like? Could you really do 5 % with it?

metooxx · Dec 18, 2002

Quote from AAAintheBeltway:

Why go through all that work for 5% return? Selling strangles is not my idea of low risk either, although you can do it for a long time without a big hit if you're lucky.

Anyone know what the numbers for metoxx's buy+collar strategy would look like? Could you really do 5 % with it?

Better ...

dis · Dec 18, 2002

Quote from hardrock375:

Well the first thing you might want to do is define an OTM Straddle. That should keep you busy for awhile. You sure you want to be writing options? Now OTM Strangles, now that might be something...

You are right. The correct term here is "strangle" not "straddle".