Beating the Prime

Discussion in 'Options' started by dis, Dec 17, 2002.

  1. If 5% is enough for you, how about 5% tax free? If diversified properly there is basically no risk.
    Walter
     
    #11     Dec 18, 2002
  2. Yannis

    Yannis

    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.
     
    #12     Dec 18, 2002
  3. 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.
     
    #13     Dec 18, 2002
  4. Used to; my traders don't like it.

    Slow, boring and consistant ...
     
    #14     Dec 18, 2002
  5. nitro

    nitro

    "Beating the prime?"

    Is that like beating the monkey?

    nitro :confused:
     
    #15     Dec 18, 2002
  6. dis

    dis

    Are you referring to the "long stock, long put, short call" collar?
     
    #16     Dec 18, 2002
  7. Yes.
     
    #17     Dec 18, 2002
  8. extra risk, more potential reward, start with a married put and turn it into a conversion.
     
    #18     Dec 19, 2002
  9. 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
     
    #19     Dec 19, 2002
  10. 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.
     
    #20     Dec 19, 2002