Options Quiz

Discussion in 'Options' started by RetiredInvestor, Dec 1, 2005.

  1. Well put (excuse the pun). The strategy is risky relative to a riskless one (buy a Treasury) because in one outcome (QQQ goes up) you earn a lower rate of return, while in the other you earn more (QQQ goes down). The alternative is not "put your money under a mattress" (which is possibly the colloquial use of "no risk"). This thread is well on its way to developing the theory of risk neutral pricing; Stockholm beckons . BTW, is this the sort of strategy I'd get in one of those $3,999-type seminars that promise excess returns at "no risk"? :eek:
     
    #31     Dec 3, 2005