300% risk free annual return with options Message Board

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Strategies & Market Trends : 300% risk free annual return with options

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To: Alastair McIntosh who wrote (1)	8/18/1999 4:00:00 PM
From: P.T.Burnem	of 10

for a 47% return. Allow 2% for commissions 45% return in four months is 300% annualized. If the (volatile) stock price remains unchanged between now and the December expiry. Of course, if the stock were to double, you'd lose ~($25-$4 1/4 - $3 3/4) = $16/share - more then the $12.5/share that you would have shelled out for the stock on margin. The strategy in question requires access to sophisticated tools and risk management techniques that are beyond the reach of the average investor, and even then there is no guarantee of success (much less 300% per annum:) PTB

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