Remember me

Register  |   Lost password?


 

Finance Clippings Logo


Pension Funds using options.

Thu, 25 Aug 2016 09:42:14 GMT

Two states, Hawaii and South Carolina are using Cash Secured Puts to boost the yield of their pension funds. http://www.wsj.com/articles/pensions-play-with-puts-for-protection-1471777202 So what exactly is a cash secured put?   A put is a bet that the underlying stock will fall in price. Buying a put results in a payoff when the stock price falls below the strike.    Conversely, selling a put results in a loss when the stock price is below the strike.    The...