tag:blogger.com,1999:blog-2335748440449035592.post2582152164911304761..comments2008-08-20T15:39:48.770-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2335748440449035592.post-90398710292150305522008-08-20T15:39:00.000-04:002008-08-20T15:39:00.000-04:00Basically I'm going to be running this with as many bells and whistles that the SEC allows. The main difference between this and a hedge fund is the inability to use leverage and the much heavier regulation and restrictions. Also of course you cannot buy things like distressed debt in a mutual fund (not that I have any profiency in that) And another difference is whom can invest in mutual funds versus hedge funds.<BR/><BR/>But I plan to run very differently than the crowd. If it provides success or not we'll have to check back in 5-10 years.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-56960637443282589332008-08-20T15:36:00.000-04:002008-08-20T15:36:00.000-04:00I can do anything that does not create leverage<BR/><BR/>meaning I cannot sell calls or puts but I can cover common long with puts or buy naked calls or puts<BR/><BR/>Which I plan to do.<BR/>I big win like ANR from 40 to 90 in 60 days with a 1% exposure in the fund would make about 1 year worth of return for most funds ;)<BR/><BR/>I'll just do it for 5-7 names and limit exposure and use long dated calls (LEAPs if available) but if you hit just a few a year you can add a nice 3-5% to annual return.<BR/><BR/>I look forward to doing that since I feel like I have 1 arm tied behind my back in this current system.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-71094913507274432082008-08-20T15:27:00.000-04:002008-08-20T15:27:00.000-04:00Can a mutual fund play with options? Shorting calls (naked) and buying puts with the cash from the short-calls have the same effect as shorting directly. I can do this in my self-directed IRA, no issues.<BR/><BR/>You can buy also puts directly without shorting the calls but you risk time premium and some stocks have high I-V making this an expensive gamble.Lawrence Chiuhttp://www.blogger.com/profile/05412184365085411757noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-62821477257611220832008-08-20T13:19:00.000-04:002008-08-20T13:19:00.000-04:00PUTS.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-43540195800710634772008-08-20T13:16:00.000-04:002008-08-20T13:16:00.000-04:00In case it makes you feel any better, theres no borrow on FRE and hasn't been for some time. So even those of us who CAN short haven't been able to profit from its decline unfortunately.sdk_IVhttp://www.blogger.com/profile/06357215762477665878noreply@blogger.com