I have a 3 year account expiring that was locked in the S&P 500. The deal was a cap on profits at 30% for 3 years but absolutely no risk to principle. Now they soured the deal a bit and lowered the cap to 25% for 3 years max but also added the Nasdaq as an option. Knowing that the markets have gone up so much and they lowered the profit cap to 25% and interest rates have gone up. Do you think this is worth letting it ride another 3 years or just find another investment. I just want to get a perspective of what people expect in 3 years. I'm leaning towards finding another solid investment for this amount.
Although I am bullish short term, I am somewhat bearish for the next few years. Inverted/Flat yield curve is almost always bad sign. BTW, you do realize that you can structure that kind of deal yourself? Just combine call options + zero coupon bonds. It may save you some cent on their fees.
I realize I can come up with something that gives 100% security combining the correct proportion of stocks and bonds or long term CD. I never gave much thought to options though. I've never had any luck in options so I never explored them fully. Can you give me an example?
Actually, I wrote an example several days ago.: http://www.elitetrader.com/vb/showthread.php?s=&postid=910567#post910567
That's a great example. Basically risk free fearless trading knowing you can't lose. Although for myself I still would use stocks. The depreciation always seems to kill me in options, even when I'm 100% correct.