Keeping it Simple with Simplify Asset Management cover image

Keeping it Simple | Ep. 21: Do I Feel Lucky?

Keeping it Simple with Simplify Asset Management

00:00

The Hidden Cost in Costless Put Spread Collars

The chart shows the compound excess returns for three different rebalance schedule implementations of a self-financing, i.e. zero cost put spread collars strategy. If you just happen to implement one of these, your performance could be wildly different than the rest. The amount of terminal wealth that you can end up with, depending on whether the strategy, the timing you chose, got lucky or unlucky, can lead to tens to hundreds of percentage points difference Depending on how long you let the strategies run.

Play episode from 17:09
Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app