Equity Options
Can investors/speculators use equity options to boost return through buying and selling leverage (calls), and/or buying and selling insurance (puts)? If so, which strategies work best? These blog entries relate to trading equity options.
Measuring Investor/Trader Risk Aversion September 25, 2006
…when investors/traders are depressed, as measured by the gap between implied volatility and historical volatility, so are stock prices.
Can Individual Investors Enhance Returns with Options? January 9, 2006
…investing in options as a marginal enhancement to a buy-and-hold approach can improve returns and Sharpe ratios, but only if the options positions are small compared to overall portfolio size.
