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Special Report on

Option Collar as Portfolio Insurance

option collar as portfolio insurance special research report Photo by
The basic idea behind leveraged ETFs seems appealing. These ETFs seek to go up or down double or triple the amount of a given index. Since stocks tend to go up over time, you’d think that doubling or tripling this gain would be a good idea. Unfortunately, volatility punishes leveraged ETFs and some of these ETFs seem to have unexplained leaks. Many investors believe that if an index rises 10% one year, then a double-leveraged ETF will rise 20%, and a triple-leveraged ETF will rise 30%. If you think this is true, you need to slow down and understand where this reasoning goes wrong. As Thicken My Wallet explains , these ...
A home buyer or builder can obtain financing (a loan) either to purchase or secure against the property from a financial institution, such as a bank , either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. In many countries, though not all ( Iran and Bali, Indonesia are two exceptions), it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries ...
The Reverse Dispersion Equity Collar
The reverse dispersion equity collar is a strategy to reduce the cost of portfolio insurance through two main mechanisms: 1) Implementing an equity collar and 2) Putting option pricing theory to work in our favour through reverse dispersion. First, let’s have a backgrounder on the equity collar. If someone wants to protect their portfolio from loss without selling out the portfolio (for example the investor has a large unrealized capital gain and only expects short-term market volatility), they can purchase put options. The put options gain in value if the portfolio falls and the gain on the puts offsets the loss on the ... market research, surveys and trends
How to Make Income on British Petroleum — Even Without a Dividend
PowerOptions offers you the convenience and control required to automatically sort, filter, and analyze all 2,800+ optionable stocks and 180,000+ options online to find investments to meet your profit goals. Due to the oil spill in the Gulf of Mexico, British Petroleum ( BP ) announced it is going to create a $20 bill fund to compensate victims and also cancel shareholder dividends for three quarters. British Petroleum’s current annual %dividend is in the neighborhood of 10%. For those investors invested in BP depending on the dividend, this could be traumatic, especially if they don’t want to sell their BP stock ... market research, surveys and trends


Michael James on Money: Stock Indexes Outpace the Economy
Historical data show that stock market indexes grow faster than the economy as measured by Gross Domestic Product (GDP). On the surface this seems impossible. The stock market is part of the economy, and while it may grow faster than the economy for short periods, it makes no sense that it could outperform GDP over the long term, but this is what seems to happen. According to data from Angus Maddison , from 1926 to 2000, Canadian GDP per person grew by a factor of 5 above inflation. Because the population grew as well, overall GDP rose by a factor of 16 above inflation. The US had a similar experience with per person GDP ... industry trends, business articles and survey research
Stabenow Secures Funding for Green Collar Jobs Initiative in ...
Initiative makes critical investments in alternative energy technologies, creates green-collar jobs WASHINGTON —U.S. Senator Debbie Stabenow (D-MI) today announced that the Senate Finance and Appropriations Committees passed the American Recovery and Reinvestment Act of 2009. As a member of the Senate Finance Committee, Stabenow played a critical role to ensure the package provided tax incentives and spending provisions to help fund her Green Collar Jobs Initiative, which was included in the Senate Budget Resolution last year. ... industry trends, business articles and survey research
Protect your entire portfolio with one trade
MORRISTOWN, NJ (MarketWatch) -- One way to handle uncertainty in the markets is to use broad-based options to protect a portfolio of stocks. Ironically, we produced an extensive white paper on the topic of Modern Portfolio Protection in July 2007, which we tried to market to institutional investors. Our premise was that protection was cheap, and with the market on a very non-volatile four-year run, it was time to take some defensive action for stock portfolios. That was right near the top of the market, and -- surprise -- no one was interested in our thoughts on using options to protect their stock portfolios. Within a month, ... market trends, news research and surveys resources
The Town That Loved Its Bank
Like many working-class towns in the Midwest, the Chicago suburb of Maywood has been on the cusp of better times for decades, Andrew Martin reports in The New York Times. Separated by a river and woods from its wealthier neighbors, Oak Park and River Forest, it shares some of their charms: imposing, century-old homes and stately elms and maples draping the streets. But Maywood is decidedly more blue-collar than its neighbors, and its residents are predominantly African-American. Most of its homes are modest bungalows and frame houses that were built for factory workers whose jobs disappeared long ago. Many storefronts are ... market trends, news research and surveys resources


different types of investment strategies such as portfoho insurance, .... investment policy where a reference portfolio is held, a put option is bought ... PORTFOLIO INSURANCE, TACTICAL ASSET ALLOCATION AND COLLAR STRATEGIES l 1 ... technology research, surveys study and trend statistics
Table of contents for Essentials of investments
Contents data are machine generated based on pre-publication provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding. Contents Part ONE Elements of Investments 00 1 Investments: Background and Issues 00 1.1 Real Assets versus Financial Assets 00 1.2 A Taxonomy of Financial Assets 1.3 Financial Markets and the Economy The Informational Role of Financial Markets 00 Consumption Timing Allocation of Risk Separation of Ownership and Management Corporate Governance and Corporate Ethics 1.4 The Investment Process 1.5 Markets Are Competitive The Risk-Return Trade-Off ... technology research, surveys study and trend statistics
Chapter 20 - Options Markets: Introduction. 20-7 c. The net cost of the collar is zero. The value of the portfolio will be as follows: Stock price ...
What are the advantages of using Futures for hedging over using ...
If you would have hedged with Futures you only loose the brokerage but if you had bought option you loose option premium. Case 2- Movement of asset is in the direction that is beneficial to your portfolio. So your hedging with Futures nullifies the movement completely. In case of option you again end up loosing the option premium but you end up making money from favorable movement of asset. So net affect can be +ve for your portfolio. Case 3- Adverse movement of asset. Futures help you gain what you are loosing from the asset. Options also serve the same purpose but the gain from option is not that much as that by futures. In ...
What does Charles Goldman have to do fidelity investments?
One week after bolting The Charles Schwab Corp., following a reorganization in which he appeared to be sidelined, Charles Goldman has accepted a senior job with broader responsibilities at its major competitor, Fidelity Investments. Mr. Goldman, 47, will join Boston-based Fidelity in January in the newly created position of president of institutional platforms. He will oversee its National Financial Services broker-dealer clearing business, its registered investment adviser unit known as institutional wealth services and its newer efforts to sell clearing and custody services to family wealth management offices and hybrid ...