Market Measures - July 9, 2018 - Puts or Stock?

published 1 week ago by tastytrade, Inc.

If we sell short puts as a substitute for long stock, how much do we have to allocate our portfolio in the long run to end up with the same performance as 100% of long stock? ###Study * SPY, 2005-2017 * Portfolio of $1 million * Allocated 1...

Marty measures moods are stocky ready I'm ready so the boys to study today we decided we'd take a look at it's kind of a a topic that we've looked at in the past but we're gonna give it our own little twist today and it has to do with shorting puts versus buying stock but looking at it from a leverage side because really shows some that's kind of interesting when I show you how damn efficient these markets are with respect to how the pricing goes and how much leverage costs and it's an interesting discussion so last week we conducted a study comparing selling a 50 delta put too long stock and found out over time they perform. 3 they're they're very similar cake now we're going to simulate a portfolio all stock versus some percent allocation of short ...

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