Would any of you know of any powerpooint deck anywhere that I can use? I'm hosting a team meetng and I can chose a topic... I was thnking of teaching collars, but I'm not sure if it would help or hurt my coworkers. I can put together a deck, but I figure someone has to have one out there. I would give you or your webpage full credit of course. Thanks.
IMHO The Prudent Man Rule is written to protect fiduciaries, not customers. The rule states that a fiduciary must invest as other prudent investors would invest. Because using options is outside the network or 'universally accepted' investment tools, collars are just not acceptable - by definition. But remember - the definition is established by those who want to protect themselves from lawsuits. You and I know that collars do their job extremely well. But that doesn't not mean tha advisors/planners will ever adopt them. Their motto is: Fees first, second and always. Good results for the customer - that would be nice, but it's not my primary concern. Mark
(full disclosure -- although pretty much avoiding everything else on CNBC-US, I do Tivo OA and watch it over coffee on Saturday morning...not for trading advice but rather as interesting food-for-thought.) That said, in a rare pro-CNBC comment here from me, I will say that thus far, Options Action is a pretty reasonable and generally non-sensational program that indeed accomplishes what it purports to do -- namely, to inform and educate retail investors on the concept of options as part of a responsible investment program. Compared to other CNBC investing shows, Options Action is pretty mature and does not have the annoying booyah-bs (of Insane Money) or Sportscenter-ish bravado (of Warped Money). Yes, the folks on OA tend to focus on collars and spreads as responsible strategies, which is a good thing IMHO to introduce people into using options as a way of protecting their traditional long-only portfolios. I don't think they've ever recommended naked calls or short strangle/straddles, both of which I think would be irresponsible to present on a show gearned to the average retail investor[1] who may be pretty clueless about options trading to begin with and/or not an active trader. They keep it fairly simple, informative, and straightforward given the show's intended audience. Bottom line, I think OA, as a product of CNBC, is a decent program to introduce folks to options and in a generally non-sensational manner, and one where the program's potentially educational content is not overwhelmed by the traditional CNBC hysterics and special effects. [1] Ratio put spreads might be considered irresponsible, but they've only been reco'd once or twice I think. And the guy who reco'd naked put selling on GOOG for their first show never returned, so I guess that was not viewed as a responsible trade strategy.
Right on, and double right on. The prudent man does what all the other prudent men are doing. He does not detour from standard practice, no matter how reasonable the alternatives might be. He has to blend in by doing what everyone else does.
SFO had a good article about this a few months ago. I'm going to see if I can dig it up and figure out how to scan it.