In this episode, we explore why the income we earn isn't the same as the return. We show how option income strategies work, what their historical returns have been, what drives the return, and what reasonable return expectations are. We show why option income strategies have a positive expected return while sports betting has a negative expected return. Finally, we look at other areas where we confuse income with the total return. Show Notes Variance Risk Premia by Peter Carr … [Read more...]
360 Plus: October 2021 Investment Conditions and a Correction About Options Delta
In Plus Episode 360, we review investment conditions as of early October 2021. David also corrects a mistake he made in Plus Episode 359 in explaining options delta. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About Membership Options » Plus Episode 360 Audio Download Download the audio file Transcript Download the transcript Welcome to … [Read more...]
359 Plus: Hedging Interest Rate Risk and a Deep In the Money Call Option Strategy
In Plus Episode 359, we calculate how much of the Simplify Interest Rate Hedge ETF (PFIX) to purchase in order to protect against rising interest rates. We also look at how purchasing deep-in-the money call options is a way to get cheap leverage to magnify the returns of a specific index or asset. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About Membership … [Read more...]
