no lose stock trading--- here is the real holy grail.

Discussion in 'Trading' started by marketsurfer, Dec 20, 2005.

  1. marketsurfer

    marketsurfer Vendor

    does anyone here have experience trading "index linked notes" with a guaranteed value?

    if so, kindly touch on the basics.


    thanks!

    surfer
     
  2. bighog

    bighog Guest

    The only way there is ever a "Guaranteed" return in any bond, note, etc is to hold until maturity. Then if the company, gov etc goes bankrupt, all bets are off.....:D

    Index linked thingaminjiggies are basically just corp bonds.

    but to answer your question, the answer is no...i have not traded those. Happy Holidays
     
  3. i have used them in the past when they go under the 10 strike. the most common ones are called mitts. they are a merrill lynch product. they dont move much and do not move 1 to 1 with the market.
    they buy a long bond and marry it with an index option.

    here is one.
    http://www.amex.com/?href=/strProd/prodInf/SpPiProdDesc.jsp?Product_Symbol=RRM
     
  4. marketsurfer

    marketsurfer Vendor


    thanks, vhehn.

    surfer
     
  5. woodfish

    woodfish

    Sight for sore eyes , I was serching for you on the net last night ,just to see what you were up to.
    I found you at Trading Markets , read your stuff.
    Hope this finds you well , would love to touch base and just say hello.
    Woodfish
     
  6. Hah... I have personally designed / engineered guaranteed equity index linked notes, in my quant days. :) At the time (late 1990s -- early 2000s), similar products were getting increasingly popular in Europe and Japan, but not in the US. Don't know about now.

    The Handbook of Equity Derivatives has a good treatment.
     
  7. Now your a "Holy Grail" peddler? What is this world coming to?