A.I.M. Users Bulletin Board

[ls7550]

Hi Toofuzzy

Sell a call at a price you would sell.

Sell a put at a price you would buy.

With the time-value of money so low I would have thought that in a low interest rate world that was hardly worth it nowadays. Better when time-value (interest rates) is 4% or higher.

Instead I use 2x stock, half weighted, half in 'bonds' i.e. what price/cost the 2x fund pays to scale up to twice the amount of stock exposure is offset by the bonds. Beat bonds and you add alpha/benefit and when debt costs are so very low it doesn't take much to do that.

A 'bond' of a third each stock/cash/gold for instance

Clive