Advisor’s Option: Listeners Take Over

Listener Mail: It’s all mail, all episode long.

Question from Jackson_CFA: What do the hosts think of annuities as a tool for diversification and income generation for risk-averse clients?

Question from Alexander Sarsgard, Portland, OR: Just adding puts to your client's portfolios is expensive. What is your favorite methodology for reducing the cost of protection when structuring client portfolios?

Question from Tim Dinahar, Houston, TX: Do I really need to understand the greeks when writing/buying options for my clients? Or is everything I really need to know encapsulated in the option's price? Thank you very much for this insightful program. I don't think anyone else has tackled the advisor space like this.

Question from Anthony Deshanti, Stracuse, NY: How can I approach the topic of options with my clients when mainstream outlets like New York Times are slamming options as risky and dangerous - http://www.nytimes.com/2013/05/25/business/growth-in-options-trading-helps-brokers-but-not-small-investors.html?ref=nathanielpopper

Question from JBerg: What time frame do you use when constructing collars/risk overlays? Six months is my preferred time frame to buy put/sell call.

Question from Alejandro Vega, San Antonio, TX: I don't use options in my client accounts. If I want leveraged exposure to underlyings I simply turn to leveraged ETFs. What do you think of using these instruments in lieu of options in client portfolios? Am I missing something by not using options?

Question from Mr_Nick: Can I as an individual investor buy into Randy's fund? What is the ticker?

Question from Jim Schulman, Mobile, AL: Adding options to client accounts would generate significant fees to accommodate opening and closing the positions, rolling to new strikes, etc. Do you find your clients are receptive to these instruments even with the added costs?