Beating the Prime

Walther · Dec 18, 2002

If 5% is enough for you, how about 5% tax free? If diversified properly there is basically no risk.
Walter

Yannis · Dec 18, 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

dis,

George Fontanils of Optionetics has been teaching some excellent option strategies that make money regardless of the direction of the market. You can adjust the level of the risk you want to take. I think his approach fits your requirements. If you are interested in learning more about my experience here, etc., send me a pm.

AAAintheBeltway · Dec 18, 2002

metoxx,

Is that one of the strategies your group runs? I would think in this market, with so many people having been burned, that there would be significant demand for a hedge fund product offering mid-to high single digit returns with very low risk.

metooxx · Dec 18, 2002

Quote from AAAintheBeltway:

metoxx,

Is that one of the strategies your group runs? I would think in this market, with so many people having been burned, that there would be significant demand for a hedge fund product offering mid-to high single digit returns with very low risk.

Used to; my traders don't like it.

Slow, boring and consistant ...

nitro · Dec 18, 2002

"Beating the prime?"

Is that like beating the monkey?

nitro

dis · Dec 18, 2002

Quote from metooxx:

Covered calls and puts with a collar ...

Are you referring to the "long stock, long put, short call" collar?

metooxx · Dec 18, 2002

Quote from dis:

Are you referring to the "long stock, long put, short call" collar?

Yes.

patefern · Dec 19, 2002

extra risk, more potential reward, start with a married put and turn it into a conversion.

Walther · Dec 19, 2002

Quote from dis:

Are you referring to the "long stock, long put, short call" collar?

What would be ( if someone would trade it correctly ) risk and reward for this kind of trade ? What is a profit on amount involved for this kind of trade ? If I sell Bond call or put, my safety feature is to go for no more then 10% (per trade) of a full margin required for futures contract. Do you use any criteria like that ?
Thanks,
Walter

EliteThink · Dec 19, 2002

This would have to be a play off of option pricing as there theoretically is no risk and no profit in being long the underlying and short a synthetic at break even on the same issue with strikes at the place of underlying entry.