Managed Options And Futures By Schwab Capital Advisors

December 10, 2007

If you have read this blog for a while, you know we put a strong focus on Forex and especially Managed Forex Accounts. That is because gives some of the best options for good aggressive investing with extremely fast liquidity.

Managed futures trader
Picture by killthebird

Well, the good news is there are more options to invest your money for high returns. Futures and Options trading can bring great returns (and great losses of course) with reasonable risk. How reasonable exacty is questionable, but I would say it’s more reasonable than in Forex. Enough poetry, see what I have found for you.

Schwab Capital Advisors offer managed account Schwab Market Neutral–Option Writing Strategy called with a minimum investment of just $10,000. I am saying “just $10,000” because most managed futures and options account start from $50,000, $100,000 or even $500,000.

The target performance of this investment vehicle is 24% – 48% per annum. So far they have only 4 months of trading history averaging 7.5% per month. This is damn good result, but of course the history is too short to make forecasts. However this is definitely a hot opportunity to keep an eye on.

I am not an active investor in Schwab (yet), but of course I did some research. To save you some hassle, keep in mind that Charles Schwab who is reported for fraud all over the net probably have nothing to do with Schwab Capital Advisors.

If you decide to try this investment or already have experience with it, please do let me know your review.

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Jose L. Aguilar- SharkInvestor.com Author

Being able to Invest & Trade on your own is the most amazing road to financial independence & optional retirement. I was very fortunate to have amazing mentors and read many amazing authors, I hope you enjoy my articles & books suggestions which are made with the intent to share my experiences as simple as possible.

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By Jose L. Aguilar

Being able to Invest & Trade on your own is the most amazing road to financial independence & optional retirement. I was very fortunate to have amazing mentors and read many amazing authors, I hope you enjoy my articles & books suggestions which are made with the intent to share my experiences as simple as possible.

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3 Comments

  1. sha

    I am not holding my breath. I have invested in managed options accounts long before I started forex investments. The problem with all these Options writing program is this: under normal market conditions, you get nice monthly income like clockwork. The track record looks GREAT for a while, UNTIL the market makes a bigger than usual move, then bam! you lost 50% of your account in a single month! Been there, done that. Got back $25K in a $50K account after such an event earlier this year. I still have another more diversified options writing account $50K, down over 10% when the oil price spiked. Still have an overall loss after most of 2007. They ALL look great in the first few months of track record, UNTIL you have money live! Well, $10K is not that much to risk for many, but still use caution. Options Writing is NOT the best investments since sliced bread.

    Reply
  2. admin

    Thanks for the valuable input, Sha, it’s very welcome. I personally don’t have much experience with options, but am definitely interested in diversifying in other than forex. I’ll keep researching for alternatives.

    Reply
  3. makila

    Thanks for your input sha.

    Yes, a lot of people offer you the most lucrative deals. But they all want your money and whether you win or loose is not their biggest concern. Did you ever invested with very conservative traders? If they gathered 30-40% yearly they did an insane good job already. When I see this new opportunity perform 30% in just 4 months , people do not realise this also means a much higher risk.

    Their returns are high, their leverage is most likely high as well, they could collapse any time. I dont say they will, its possible to trade for +10 years with high risk and get away with it. But the risk for a huge collapse remains.

    Reply

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