Derivatives note, July 11, 2022. Safest, evidence-based, effective approach

We should only sell (only sell and never buy) derivatives (puts and calls) in our “fun” portfolio. Doing so invites a level of risk inappropriate for our core portfolio.

Social Sciences Research Network (SSRN)  is an outstanding source of academic, evidence-based information. The SSRN economic papers are difficult for the layperson to understand, but the abstracts are manageable.

Some examples follow.

Covered Calls Uncovered

Covered Call Strategies: One Fact and Eight Myths

We present greatly simplified ideas used by us at Monday Morning Millionaire.
Today’s post discusses the safest, evidence-based, practical approach to option writing (selling).
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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me