Preface

Profiting with Synthetic Annuities is about the use of options in investing and portfolio management. This book is written for experienced investors who are considering option strategies, for experienced option traders, and for institutional investors interested in alternative strategies.

Synthetic annuities are structured securities that use options and management rules to customize the risk/return profile of investments. Options are used to create a synthetic risk-smoothing mechanism and annuity-like cash flows. The management rules are designed to mitigate risk and maximize income over the long term. Together, the options structure and management rules address several emerging issues in investment management:

• The explicit use of ...

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