Mitts!

You can do research, study the market, plan carefully and still lose a fortune. This is a scary fact that many investors face when gambling in the stock market. There is now a financial instrument called “MITTS”, tailored by Merrill Lynch that allows a respectable return with zero chance of loss.

“MITTS” hedges the risk of options based investments with Zero Coupon Bonds to create an investment portfolio that is both secure and potentially highly profitable. An example of a “MITTS” investment would be as follows; 80% of your money could be invested in Zero Coupon Bonds and 20% could be invested in options. Under this type of scenario, an investment can be created that will return the full value of your investment through the Bonds portion of the investment. You can gamble with your options and make a fortune, or at the very least, break even if the options become worthless. The reason why is because the Zero Coupon Bonds are bought at a discount to “Par” value. If they are for sale at a price of $16 today and at some point they will mature and be worth $20, this part of the investment is a guaranteed return. If the options become worthless at the due date, you would still have your investment back.

In conclusion, MITTS trades like an ordinary stock on the NYSE and can be purchased through any broker. This type of investment is an excellent tool that can be used to eliminate the risk of loss while still seeing a nice return on one’s investment.

http://fintrend.com/ftf/Stock_Market/Mitts.asp