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

Posted on by Milan Somborac

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.

Which Index Options Should You Sell?

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

We have designed the Monday Morning Millionaire Program to offer abstracted investment education. The program does not provide any investment advice or endorsements.

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