Millionaire Traderswhere the fast-and-furious stuff is going to be done and that is
my trading business. Then I have two other accounts that I use,
which sometimes are as frenetic as the trading level. But I would
characterize them more as my investment accounts. In the trading
account, I can have stuff held anywhere from a second to a few
minutes. Sometimes the nature of the option market is such that
you’ll have stuff on for a year or so because you put them on, and
you just can’t get out of them. So that’s why I would say anything
from a few seconds to up to maybe a year maximum. Then, on
my investment accounts, that’s where it’s a more buy and hold.
I wouldn’t call it exactly that because I’m a trader, but it’s more
longer term. I might even have structures that I end up holding
for two or three years.
Q: These structures you’re talking about, are they essentially
complex option and futures strategies that have some sort of either
positional or volatility bias to them?
A: With the structures I’ve found some great securities. Two of
my favorites are betting on the Japanese stock market using the
Nikkei MITTS, the Market Index Tracking Securities. These are
great because they have option-related properties, bond-related
properties, and allow you to take a very long-term, safe bet on the
Japanese stock market.
Q: Structures actually mean unique instruments that you find
across the world, which contain lots of different properties of the
common instruments that we have in the United States?
A: Yes. I’m doing one now that’s more along your line of business,
I’m bullish long term on the Asian currencies. I just think that at
some stage one of the ways that these imbalances are going to get
cured is the Chinese currency and all the tag-a-longs, like Japan,
and Singapore, and Malaysia, are going to get stronger as well.
It’s been hard to pick that thing. The currencies acted really badly
earlier this year, which was surprising to me. So one low-risk way
that I’ve decided to take advantage of that is to buy one of these