Objective research to aid investing decisions

Value Investing Strategy (Read Overview)

Allocations for January 2020 (Final)
Cash TLT LQD SPY

Momentum Investing Strategy (Read Overview)

Allocations for January 2020 (Final)
1st ETF 2nd ETF 3rd ETF

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.

Can Individual Investors Enhance Returns with Options?

In the January 2006 revision of their paper entitled “Is There Money to be Made Investing in Options? A Historical Perspective”, James Doran and Andy Fodor examine the return and risk of a variety of option strategies for a typical investor. Specifically, they assess whether any of 12 S&P 500 index options trading strategies as marginal investments within a larger index portfolio would have enhanced buy-and-hold returns over long periods. They chose the 12 strategies in accordance with the basic strategies outlined by the Chicago Board of Options Exchange. Where historical options price data is unavailable, they estimate plausible reconstructions and transaction costs. Using two long periods (1970-2004 and 1995-2004) and focusing on overall portfolio returns, they find that: Keep Reading

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