If it’s Broke, Fix it: Rethinking the Classic 60/40 Allocation Strategy by Using Volatility as an Asset Class
IBKR Podcasts
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How Does Selling Puts Create Synthetic Yield?
Selling a call option is the right to buy the stock at a certain price. But selling a put, if you selling the put, you would end up buying that stock at acertain price. So how does selling puts create this type of synthetic yield and what can you really do? Todd: The probabilities of achieving that yield are much, much higher than achieving a positive return just by buying that stock itself.
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