Good Deals in Broad Market Index Options?
October 11, 2006 - Equity Options
…investors/traders are generally willing to overpay for insurance and leverage via options, but only the market makers can consistently exploit this willingness.
October 11, 2006 - Equity Options
…investors/traders are generally willing to overpay for insurance and leverage via options, but only the market makers can consistently exploit this willingness.
October 10, 2006 - Equity Options, Volatility Effects
…a market inefficiency with respect to volatility expectations for individual stocks may provide a means to beat the market by using options to trade volatility.
October 9, 2006 - Equity Options
…investors/traders write (sell) more options than they purchase and deal much more in calls than in puts. Call writing is mostly hedging, while call purchasing and put writing are mostly speculations on stock prices.
October 6, 2006 - Individual Investing, Investing Expertise
…the persistence of success among some serial entrepreneurs demonstrates that success is not all luck. By similarity, investors/traders who persistently outperform their peers likely have skills in developing superior information about the market.
October 5, 2006 - Mutual/Hedge Funds
…it seems that hedge funds overall are not exhausting the supply of alpha offered by other players in worldwide equity markets.
October 4, 2006 - Fundamental Valuation
…investors may want to examine a range of accounting indicators, not just earnings and earnings growth rate, to identify stocks likely to outperform over the long term.
October 2, 2006 - Equity Premium, Fundamental Valuation
…the author provides a comprehensive overview of equity risk premium concepts and values, stressing the mid-20th century break in key financial relationships.
September 29, 2006 - Equity Options, Value Premium
…value investors are generally risk avoiders, and growth investors are typically risk seekers. Buying risk from one group and selling it to the other may be profitable.
September 28, 2006 - Size Effect
…small-capitalization stock funds from other countries offer optimal diversification benefits for investors holding broad U.S. stock market indexes.
September 25, 2006 - Equity Options, Volatility Effects
…when investors/traders are depressed, as measured by the gap between implied volatility and historical volatility, so are stock prices.