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Re: Asher78 post# 122058

Thursday, 06/19/2014 11:39:18 AM

Thursday, June 19, 2014 11:39:18 AM

Post# of 385387
Morningstar shows the fees about 1%. Since it is 3x the index, that is a negative lending rate of .33%

I am sure you might find something better?

I am no expert, for sure.

Lets take the SPY Sept 14 186 put, asking 1.97 ......

So you are paying about 81 cents on $186 for two months or roughly 3.1% (annualized)

I am simply lending the money I have to buy swaps. Put buyers are borrowing money at higher than market rates.

I am also short bonds. I don't think they pay enough to risk my money.

Maybe you can explain it better?



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