Capital protected ETF

Why would you call it a ponzi, the structure is clearly mentioned , using Flex options they do 3 legged spread combo ... Long DEEEEP in the money Call + Downside protected by a bought PUT + Soled CAP option ... the question I am posing simply is can it be done using Exchange traded options at retail level
 
traderjo said:
Why would you call it a ponzi, the structure is clearly mentioned , using Flex options they do 3 legged spread combo ... Long DEEEEP in the money Call + Downside protected by a bought PUT + Soled CAP option ... the question I am posing simply is can it be done using Exchange traded options at retail level
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other than exercise option is not european style and lot size is 100 shares, yes, one can duplicate the trades with listed standanized options.

if you have lot of money, major brokers will likely to provide the access the flex option chain, which mm would reply to rfq slowly.
 
major brokers will likely to provide the access the flex option chain, which mm would reply to rfq slowly.

so not possible at Real retail then... yes true SPY options are American style but can one use SPX option ,, however how to get Zero cost
 
traderjo said:
major brokers will likely to provide the access the flex option chain, which mm would reply to rfq slowly.

so not possible at Real retail then... yes true SPY options are American style but can one use SPX option ,, however how to get Zero cost
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if you are a “big” retail customer, call the broker and find out, silexx platform has flex. no one says is zero cost, that’s just not possible, everyone needs to make money.
 
no one says is zero cost,? Calmos listed at 25$ with approx 9% cap at expiry in 365 days and 100% downside , so that is what they mean by zero cost collar ! the max risk is the 0.69% management fee
 
These products have gotten some attention in the media lately.

Kiplinger Personal Finance just published a fairly neutral overview here:

https://www.kiplinger.com/investing/should-you-be-investing-in-buffered-etfs

And Matt Levine at Bloomberg has some interesting thoughts:

https://tinyurl.com/240624BBLevine

In this column, Levine links to an earlier piece that he wrote last year, which is also worth a look:

https://tinyurl.com/230719BBLevine

If you really want to understand his point in the earlier column, read footnote #4, where he writes that "If you are a sophisticated investor you can quibble with it..."

These are gift links from Bloomberg. A subscription is not required. The links expire in seven days.
 
BMK said:
These products have gotten some attention in the media lately.

Kiplinger Personal Finance just published a fairly neutral overview here:

https://www.kiplinger.com/investing/should-you-be-investing-in-buffered-etfs

And Matt Levine at Bloomberg has some interesting thoughts:

https://tinyurl.com/240624BBLevine

In this column, Levine links to an earlier piece that he wrote last year, which is also worth a look:

https://tinyurl.com/230719BBLevine

If you really want to understand his point in the earlier column, read footnote #4, where he writes that "If you are a sophisticated investor you can quibble with it..."

These are gift links from Bloomberg. A subscription is not required. The links expire in seven days.
More...

i had done these structures before the gfc, for a large retail bank with structure desk in london, index-linked notes, it was called.
 
mervyn said:
i had done these structures before the gfc, for a large retail bank with structure desk in london, index-linked notes, it was called.
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Yeah, they were sometimes called structured notes. But that stuff was OTC, right? And only for institutional accounts or accredited investors?

What's new is the ETF products and CEF-like products that trade live and are available to retail investors.
 
US regulators won’t allow US retail customers to access structured derivative products. Overseas you can sell to the retail customers as “deposits”, with a counterparty risk because mainly it is executed via cfd trades.
 
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