Sentences with phrase «ladder your options maturities»

Not exact matches

Much the same way you'd create a bond ladder with various maturities, when writing a portfolio of covered calls you may want to stagger your expiration dates across a few months, with a possible bias towards the near term (since time decay is better for the option writer on the shorter duration options).

Probably the best option for the bond portion of the portfolio is laddering the bond maturities and also considering investing in Real Return Bonds.

A similar option involves laddering exchange - traded bond funds that have defined maturity dates.