The intent of the No Lose Stocks (NLS) and Long Shot Options (LSO) strategies is to:
1) Protect my core capital, and yet
2) Still expose me to unlimited upside gains
Over the past few years we have experienced a large drop in overall market value and then a subsequent large gain in market value.
In October of 2007, the Dow Jones Industrial Average (DJIA) hit a high of about 14,000.
Roughly 17 months later, in March of 2009, the DJIA hit a low of about 6,600, a drop in value of roughly 53%.
Then roughly 13 months later, in April of 2010, the DJIA hit a high of about 11,200, a rise in value of roughly 69%.
These large moves are the kind of thing that these strategies were designed to capture, so I did some analyzing of the historical data to see whether or not the strategies actually did what they were intended to do.
Was core capital protected?
Happily, the answer to this is yes.
Continue reading “Do the No Lose Stocks and Long Shot Options investing strategies work?”