Sentences with phrase «giving the strategy upside»

Not exact matches

It is only in a bear market that the value investing discipline becomes especially important because value investing, virtually alone among strategies, gives you exposure to the upside with limited downside risk.

The main drawback of this strategy is that the investor is giving away upside in the stock in exchange for obtaining downside protection.

The lower risk part is not exactly desirable in the case of covered calls because an investor is giving up the upside volatility but at least some studies showed covered call strategies performing as well as passive strategies.

Yes, volatility of a covered call strategy appears to be lower but I wonder if it is just a function of giving up volatility on the upside (which is a nice problem to have).