Assume that you perfectly know what is the AVERAGE real return of a stock, say 1% monthly. But you don' t know what will be the distibution of the future outcomes (you assume they are lognormal). Is it possible to capitalize this knowledge with options trading? For example: manager A don't know anything about the average future outcome, so he simply buy and hold. He gets in the long term 1% montly on average. manager B knows this and want to beat manager A in terms of risk/reward, how can he do this? For example he can sell every months a 1% OTM, but he needs an option pricing model where he can put the 1% drift to compare prices with the options market. First, do you think that manager B has any edge on manager A? Second, if manager B has a real edge, how can he take advantage of it? Thanks for any suggest, P.