This is probably because the study does not include the horribly bearish 2008-09 stock market period. I'm not surprised that selling puts is the most profitable options strategy, but I'm a bit surprised that selling in-the-money puts is the best strategy. Below is an excerpted reproduction of the study's table 2 for options that have fixed three-month expirations during both 10-year and 22-year holding periods:Īnnualized Return: 10-Year Holding PeriodĪnnualized Return: 22-Year Holding Period NASD Regulation recently concluded a review of NASD member firms internal use only communications about variable annuities. York County Sheriffs Office sends best wishes to Deputy Sheriff James Ring. This study supports my strategy of selling puts with 2- to 5-month expirations and buying LEAP call options with one year or longer expirations. During these calls, scammers attempt to collect a fine in lieu of arrest for. Published Tue, Sep 26 20178:55 AM EDT Updated Tue, Sep 26 20179:34 AM EDT. At fixed 12-month or longer expirations, buying call options is the most profitable, which makes sense since long-term call options benefit from unlimited upside and slow time decay. Buyer beware The top 10 investment scams.

Table 2 on page 27 of the 2006 study ranks option strategies in descending order of return and selling puts with fixed three-month or six-month expirations is the most profitable strategy. James H Barton Jr, Creditor One Financial Place Property, LLC, Creditor Noble Americas Corp., Creditor Yield Curve Trading LLC and Yield Curve Velocity. When three-month options are used, written put portfolios for all moneyness levels (OTM, ATM, ITM) generate high returns and exhibit positive abnormal performance.

However, some option portfolios exhibit risk-adjusted performance which exceeds that of the benchmark stock-only portfolio. In agreement with previously presented results and prior literature, many option portfolios have risk-adjusted performance worse than the benchmark portfolio. The 2006 study states on pages 17 and 22-23 (emphasis added): Two academic studies - one from 2006 and a more recent one from 2012- ack up my opinion regarding the superiority of the put-selling option strategy, concluding that while many option strategies lose money, put selling is one of the few option strategies that outperforms a buy-and-hold stock portfolio. Furthermore, limiting the margin requirement by selling put spreads instead of naked puts substantially increases the trade's rate of return. The win rate is very high, because we can make money even if the stock remains stagnant or even falls a modest amount. This study supports my strategy of selling puts with 2-to-5 month expirations and buying LEAP call options with one year or longer expirations.As many of my readers know, my favorite option strategy is to sell out-of-the-money put credit spreads. At fixed 12-month or longer expirations, buying call options is the most profitable, which makes sense since long-term call options benefit from unlimited upside and slow time decay. Table 2 on page 27 of the 2006 study ranks option strategies in descending order of return and selling puts with fixed three-month or six-month expirations is the most profitable strategy. Breaking news, analysis and commentary on investment banking, fund management, hedge funds, pensions, private equity, fintech, financial regulation and.

Jim fink options scam