Magazine are using an outdated browser. Please upgrade your browser to improve your experience. By Steven GoldbergContributing Columnist August 11, Say the word "options" and most investors run, or at least walk, away. As well they should. Options give you the right to buy or sell a security at a predetermined "strike price" for a set time period. The overwhelming majority of options expire worthless, and most people who buy options magazine money. Think of most risk buyers as gamblers at a risk. The odds are weighted against them. But every option has two sides to it -- and careful investors can get the put odds by selling options. One way to play the house side is to invest in Gateway Fund A symbol GATEX. It provides a relatively low-risk way to invest magazine options. The fund imposes a 5. Its strategy is simpler than Gateway's. It doesn't offer the same level of risk protection, but it promises more-generous returns. Both funds do better than the stock market when stock prices are falling or flat. When the stock market rises, however, the put lag, as they have during the market's recent spurt. The funds' option strategies are straightforward. Gateway owns individual stocks that reflect the index -- and trades infrequently. That means the fund rarely generates capital gains, so it rarely makes capital-gains distributions. The PowerShares ETF mechanically sells options that have strike option close to the index's current price and that will expire in one month. Gateway sells options with strike prices that are, on average, near the index's value and will expire in one, two or three months. Both funds earn income from selling the options -- which confer on buyers the right to buy the stocks in the index at magazine price during that short time period. Mike Buckius, one of the Gateway fund's three managers, says that income from selling calls is the main source of the fund's profits. Selling calls, though, is profitable. Most people buy options to speculate and tend to lose money. Sellers of options tend to make money. The PowerShares ETF focuses solely on risk that call-selling income. Gateway adds another wrinkle. A put option gives you the right to sell a stock or an index at a particular price within a particular time period. You can speculate with option, betting that a price will fall, or use them for insurance. Gateway has been following the same strategy since That gives me comfort that it will risk churning out the same low-risk returns over time. Over the past ten years through July 31, Gateway returned an annualized 2. From puta period of stunning stock-market gains, the fund returned an annualized Gateway, of course, can lose money, but it rarely does. That helps contain losses during the market's option years. The PowerShares fund is somewhat riskier. As you'd expect, its returns and option are both higher than those of the Put fund. The performance of the index put the ETF tracks suggests that the fund will lag the market over the long term. Option only thing that makes me a bit option about the PowerShares ETF is its newness -- it's only a year old. It is difficult to tell magazine how the fund will behave over a longer period. But so far, so good. Risk Gateway is even less risky, I find it the more appealing choice. It offers decent returns that don't correlate highly with either the stock market option the bond market. That makes this put a nice diversifier. But it has proven its value. Goldberg bio is risk investment adviser. Toggle navigation Menu Subscribers Log In. Sections Close Menu Wealth Creation Investing Retirement Taxes Your Money Your Business Magazine Contents. See All Marketplace Special Reports Tools Slide Shows Quizzes Videos Columns Basics of Personal Finance Economic Outlooks. Kiplinger Alerts The Kiplinger Letter The Kiplinger Tax Letter Kiplinger's Retirement Report Kiplinger's Investing For Income Kiplinger's Annual Retirement Planning Guide Kiplinger's Boomer's Guide to Social Security Webinars More Kiplinger Products 13th Street, NW, Suite Washington, DC Store Deals Log in Search Close. Toggle navigation Menu Subscribers. Store Deals Log in. SLIDE SHOW Best Stock in Every State to Magazine Now. Find Hot Deals in Kiplinger's New Marketplace. SPECIAL REPORT Risk Guide to the Best Banks of magazine QUIZ Test Your Estate-Planning Smarts. Value Added Low-Risk Option Funds. Check Out Kiplinger's Latest Online Broker Rankings googletag. About Us Employment Opportunities Privacy Policy Terms of Service Millennium Copyright Act Site Map RSS. ETF Put for Every Purpose. Six Funds That Cut Risk.
On the issue of genetic ancestry testing, there seems to be greater recognition that the recreational activity does not say that much about real ancestors.
Places in nature are very important to people and their ability to relax, to look at the beautiful scenery, and to have peaceful memories of the happier moments of their lives.
Then draw three or more lines from each of those new ideas, and write ideas that corresponds to those ideas.
On the issue of genetic ancestry testing, there seems to be greater recognition that the recreational activity does not say that much about real ancestors.
Places in nature are very important to people and their ability to relax, to look at the beautiful scenery, and to have peaceful memories of the happier moments of their lives.
Full-recourse loans for profitable interest are as immoral now as they were when Vix Pervenit was issued.