The Motley Fool Discussion Boards	Previous Page
Stocks B / Berkshire Hathaway
URL: https://boards.fool.com/out-of-the-money-putcall-band-above-and-below-33144498.aspx
Subject: Re: Iron Condor (revisited)	Date: 8/9/2018 5:51 AM
Author: mungofitch	Number: 238066 of 259453
out-of-the-money put/call band above and below the S&P Futures index, by both buying and selling puts and calls (2 calls, 2 puts) both above and below the asset to create income around the asset. ... an opportunity that actually doesn't have much risk, that could earn roughly 6% on top of the return I already expect for Berkshire. I certainly have my doubts that there exists any strategy that will take a given portfolio and add a meaningful additional long run average yield to it without a downside. And I'm closer to a believer than most, having done over a hundred thousand options contracts. It seems you're suggesting you'd expect "same returns plus another 6%", and that doesn't pass the smell test at first blush. Can you say more about your goals? Which of these, and with which priorities? * To create a bit of current yield from a portfolio which does not pay dividends? * To smooth returns...make bad and so-so times better while turning occasional great times into merely very good time? * To increase the long run average return on your portfolio? * Improve a tax situation / avoid hurting a tax situation? I can think of things a person can do that have substantial chance of managing one or two of those with an increase in risk which is almost certainly acceptable. Jim
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us