April 17, 2024 – People sometimes ask me for a good and safe place to “park” their money for a short period. CDs, high-yield savings, and money market accounts would be the obvious answers. When looking for safe, short-term investments, options are probably the last thing on your mind. Options have the aura of complicated and highly speculative investments. However, sophisticated investors can structure options trades to make them (almost) as safe as CDs but with more flexibility and higher after-tax income, thanks to a Box Spread trade.
You can implement this trade by hand, and I will go through the mechanics. You can also buy an ETF, though with some small drawbacks. Let’s take a look…
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