Comments on: How many asset classes?

By: Checklist for your investment strategy | MoneySense

Checklist for your investment strategy | MoneySense — Mon, 17 Jan 2011 15:27:16 +0000

[...] How many asset classes? [...]

By: optionsforstocks

optionsforstocks — Mon, 29 Sep 2008 19:22:05 +0000

Here is the link:

http://corporate.morningstar.com/ib/documents/MethodologyDocuments/IBBAssociates/CBOE_SPBuyWrite.pdf

It was published in prestigious “The Journal of Investing” (Summer 2005)

By: Canadian Capitalist

Canadian Capitalist — Tue, 23 Sep 2008 20:33:34 +0000

Optionsforstocks: Is the study available online? Are returns calculated by accounting for expenses? What about taxes? Also, does the study cover one single period or multiple periods?

By: Friday LinkStuff

Friday LinkStuff — Fri, 19 Sep 2008 08:59:33 +0000

[...] Capitalist wrote about investment asset classes – is there such thing as too much of a good [...]

By: Optionsforstocks

Optionsforstocks — Mon, 15 Sep 2008 03:05:59 +0000

A study Barry Feldman and Dhruv Roy, cleraly shows the BXM Index (CBOE S&P 500 BuyWrite Index), a benchmark for an S&P 500-based covered call strategy, had slightly higher returns and significantly less volatility than the S&P 500 over a time period of almost 16 years, despite the fact that covered calls have a truncated upside in the short term.

By: Optionsforstocks

Optionsforstocks — Wed, 10 Sep 2008 20:24:59 +0000

Thanks CC:

I will continue to post healthy comments.

By: Canadian Capitalist

Canadian Capitalist — Tue, 09 Sep 2008 14:24:14 +0000

optionsforstocks: We *never* moderate dissenting opinions and welcome open and informed debate on every post on this blog. But occasionally, comments do get caught in the automatic spam filter (just to illustrate, the volume of spam compared to genuine comments is 30x). Thanks for letting me know that your comments were. I’ve recovered your comments and I want to assure you that there is no malicious intent.

By: Optionforstock

Optionforstock — Tue, 09 Sep 2008 13:39:47 +0000

Hi Canadian Capitalist:

I cannot continue to this thread because you have put my name in spam filter.

This is very unfortunate that rather than carrying on healthy discussion on the covered call strategy, you choose to shut it down. I thought Web blogs are open forums meant to have meaningful and healthy discussion for general community. It appears that it is meant for praising for only. Very good CC… very good article CC, etc.

I do not want to hurt your feeling but everyone is not expert in everything.

By: optionsforstocks

optionsforstocks — Tue, 09 Sep 2008 12:55:49 +0000

I will continue to explore pro and cons of covered call strategy at my weblog:

There is an interesting article on BEP fund by “Thestreet.com that is self explanatory and addresses your questions.
http://us.rd.yahoo.com/finance/external/tsmfe/SIG=129m0j199/*http://www.thestreet.com/_yahoo/funds/mutualfundinvesting/10413136.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

By: Canadian Capitalist

Canadian Capitalist — Tue, 09 Sep 2008 03:44:43 +0000

Optionsforstocks: There is a reason that “buy-and-hold” is a gold standard. A know-nothing investor can easily replicate the strategy for less than 10 basis points. When you claim there is a better strategy that provides better risk-adjusted returns, you should back it up with data — the longer, the better and account for all expenses and look at different time periods. Also, the history of “strategies” that worked in the past but don’t anymore is long. Which means that you should also explain why you think covered-call writing would continue to provide better risk-adjusted returns than buy-and-hold.