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Re: OldAIMGuy post# 38612

Thursday, 11/20/2014 2:56:05 AM

Thursday, November 20, 2014 2:56:05 AM

Post# of 47079
Hi Tom, Thanks for the list of possible income positions. Here is what I found that seemed might the best for an income position by doing a volatility check for about the first half.

Symbol Volatility High/Low Ratio Income
PSK 9.37% 1.19/1 5.89%
BIV 6.83% 1.35/1 3.62%
BKLN 4.67% 1.12/1 4.09%
CYB 3.84% 1.08/1 4.08%

As you can see volatility does not always follow in direct parallel with the high/low ratio. The one with the lowest volatility also has the lowest ratio, but you might not want to select it as it is a currency ETF, WisdomTree Chinese Yuan Strategy ETF (CYB). This somewhat explains why the volatility is low because the Chinese are maintaining a stable, low, fixed exchange rate to maintain their exports.

Anyway, the volatility calculations give one another handle on selecting the appropriate position for either a "bank" or a higher volatility to let AIM work its magical management skills.

Best,

Allen

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