Non-directional strategies for 11-12% yearly return

[stevegee58]

Quote from IVtrader:

respectfully you must not have researched the capital markets very much. there are dividend paying stocks paying 11-12% and they could have easily be found with 10 minutes using google

for example, NRGY, selling at a discount, current will get you around 11%, paid quarterly

Oh, and he also doesn't want his equity value to go down either.

 

[total_keops]

Quote from short&naked:

What would be the best option selling approach to obtain this target return. Is it realistic? I was looking for something similar to the following:

http://www.ljmpartners.com/english/history.php (bottom chart)

Why not investing in the said fund?

 

[nitro]

Quote from IVtrader:

for example, NRGY,...

http://www.elitetrader.com/vb/showthread.php?s=&postid=3383970#post3383970

 

[Daal]

Check out Madoff Securities. I'm not sure they are still accepting new client money though

 

[Daal]

Quote from TheGoonior:

Atticus had some good comments in the thread "generating $1000/month on $150k" (I think he started 10 or so pages in to the thread). If I recall, his basic approach was a buy/write strategy on a diversified basket of low-volatility stocks while maintaining an insurance policy against market meltdown by purchasing OTM VIX spreads.
Might be worth a look...

Without knowing specific details it seem that this strategy would depend on one's ability to pick the correct stocks

 

[trading spaces]

Read this book, http://www.amazon.com/Complete-Opti...JXIQ/ref=sr_1_3?ie=UTF8&qid=1323471755&sr=8-3

It makes the case for selling options on commodities instead of stock indexes as there is less crash risk.

 

[deltahedge]

Quote from Daal:

Without knowing specific details it seem that this strategy would depend on one's ability to pick the correct stocks

I will link you the study in the next day or two, but new research is actually finding that low beta stocks, over the long run, are actually providing superior returns as opposed to their higher beta counterparts. Granted, it does not invalidate your point, it does give people some pause to think about chasing after "boring" mega caps which are offering consistent returns.

 

[steven149]

I agree that low beta stocks have the potential. There is another book on LEAP strategy that essentially says the same thing. However, I tested the strategy but, again, it needs particular stock picking skills and timing. So there is no much difference comparing go directly into stock instead of options (except leverage).

 

[spindr0]

Quote from TheGoonior:

Atticus had some good comments in the thread "generating $1000/month on $150k" (I think he started 10 or so pages in to the thread). If I recall, his basic approach was a buy/write strategy on a diversified basket of low-volatility stocks while maintaining an insurance policy against market meltdown by purchasing OTM VIX spreads. Might be worth a look...

Hey! Any idea what the title of that thread is? Thx

 

[IVtrader]

Quote from short&naked:

11-12% assumes non-equity like risk. The was of course implied.
Also, what does 11% do of me if the stock gets halved in price or worse? Please check your facts and do your own research before giving faulty advice and accusing others of not doing the same.

either investigating "managed" accounts is new to you or you understand less about the product in question than you really do.
the managed accounts you are considering will not have a fixed value their "NAV" W-I-L-L fluctuate. so in practice they posed similar risk to owning a stock realizing that some stocks pose more risks than other just as some managed accounts do. I DID check my facts BEFORE posting and providing what you call "faulty" advice.