You are so risk averse you better off with CDs or Bonds LOL. To obtain what you wish, you need a fantastic edge, if you had it, I seriously doubt you would be asking these questions.
And lengthen your time horizon, your best downside protection is time.You don't know what's behind us, or ahead of us. No one does. You will significantly cut off your upside with these collars. A balanced Vanguard fund, as suggested above, may be a better option.
Hello.
I am very risk averse and I need to protect my capital, but on the other hand I need to double it in next 10 years so I can retire at 45. This means I need about 7 % return a year but somewhere along 5 % would also be fine. I was reading a paper about collaring QQQ and EEM and it worked great. Some upside with 2 % OTM options and no negative year. Or with 5 % OTM options even more upside potential, but less downside protection. So my question, would this be ok strategy as a long term investment for my need? Or are there better strategies, like just buying longer term call (LEAPS), bull spread, put buying (expensive..),..
thanks for help guys
Tomaz