I want maximum downside protection with some upside is collar the way to go?

FreakofNature · Jul 4, 2016

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.

ironchef · Jul 4, 2016

drcha said:
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.
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And lengthen your time horizon, your best downside protection is time.

newwurldmn · Jul 4, 2016

Tomaz26 said:
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
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Institutional investors pay 2 and 20 to seasoned, informed hedgefunds to *try* to get that kind of performance.

fordewind · Jul 4, 2016

Lots of guys can do that for you.You need to do research.Some of them can do 5-10%(half risk) per annum with the low 5-7% monthly DD,fully atomated.

NoBias · Jul 5, 2016

100K euro doubled in 10 years and you consider this sufficient to retire?

I am not sure which part is more implausible.

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I want maximum downside protection with some upside is collar the way to go?

FreakofNature

ironchef

newwurldmn

fordewind

NoBias