Enhanced Indexing Strategies: Utilizing Futures and Options to Achieve Higher Performance - Hardcover

Yates, Tristan

Hardcover

ISBN 10: 0470259256 ISBN 13: 9780470259252

Publisher: Wiley, 2008

Synopsis

Leveraged index investments, including index futures, options, and ETFs, are one of the fastest growing products in finance, as both retail and institutional investors are attracted to their long-term returns and capital efficiency. With Enhanced Indexing Strategies, author Tristan Yates reveals how you can create and build high-performance indexing strategies using derivatives that can potentially generate much higher returns than conventional index investing. In addition, Enhanced Indexing Strategies introduces six innovative long-term indexing strategies using futures and options, each with its own advantages and applications.

About this title

From the Inside Flap

Index funds are among the highest performing and most reliable investments available in the marketplace. Over the past several years, literally hundreds of index-related products have been introduced to the marketplace, most designed to provide investors with the capability to mix and match different funds in order to build custom portfolios. At the same time, leveraged investment products for the retail investor--which use borrowed capital to increase the returns within the structure of a passive investment strategy--are also one of the fastest growing products in the financial world. In Enhanced Indexing Strategies, Tristan Yates shows how to successfully combine these products using leveraged indexing to deliver better risk-adjusted returns than conventional approaches.

The idea behind leveraged investing is simple: if long-term investment returns are predictable, then even higher returns can be generated by borrowing and investing the capital over the long term in an index. Using derivatives such as futures and options, Yates reveals it is possible to not only borrow money to invest at a low rate, but also to implement hedging strategies that help reduce the risk of catastrophic losses.

Unlike other books on options trading that tell how to profit from short-term market movements, Enhanced Indexing Strategies uses options positions to capture long-term pricing trends. Using long calls and call spreads, hedging strategies, and LEAP call options--which have been hailed as an industry innovation due to their ability to maintain leverage while managing risk--Yates shows how to implement specific long-term strategies that can capture appreciation in volatile conditions across many years.

In addition to providing six different innovative long-term indexing strategies using futures and options, Yates also offers important advice on managing a leveraged investing portfolio. He covers each critical aspect of portfolio management: selecting indexes and strategies and determining the level of exposure, calculating the expected returns and the possible range of returns, and monitoring the portfolio to ensure that it is performing in accordance to projections. Yates's final piece of advice to investors is simple: get started. Every day you're not invested in an index is a missed opportunity for profits.

From the Back Cover

Praise for Enhanced Indexing Strategies

"This is the first book on index strategies that speaks to options positions that take advantage of long-term appreciation in all types of market conditions. Yates knows his stuff and gives advice in an easy-to-understand manner that any investor can understand. This book belongs on your book shelf."
―MARK WHISTLER, Author and Senior Market Strategist for TradingMarkets.com

How to use futures and options on index-linked securities to earn higher portfolio returns

Leveraged index investments, including index futures, options, and ETFs, are one of the fastest growing products in finance, as both retail and institutional investors are attracted to their long-term returns and capital efficiency.

In Enhanced Indexing Strategies, Tristan Yates reveals how you can create and build high-performance indexing strategies using derivatives that can potentially generate much higher returns than conventional index investing. He presents important industry research on indexed investing, leveraged portfolio management, and rapid reinvestment, detailing the rewards and risks of multiple options positions in clear and concise writing that links concept to practice.

Focusing primarily on long calls and call spreads, LEAP options, and hedging strategies, the author introduces six innovative long-term indexing techniques using futures and options, each with its own advantages and applications, that can capture appreciation in volatile conditions across many years. And he includes all-important advice on managing your leveraged investment portfolio: setting objectives, carrying out associated tasks, and measuring results.

Edition details

• Publisher: Wiley
• Publication date: 2008
• ISBN 10: 0470259256
• ISBN 13: 9780470259252
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 304