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Muhr: now harvesting options
volatility on CSFB's farm
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Karlheinz Muhr is full of colourful ways to describe his
business. He is chairman and founding partner of Volaris Advisors,
which dubs itself an equity-options strategy firm. Essentially what
it offers is the ability, as Muhr puts it, "to harvest the
volatility of stocks which you already own".
His firm is at the forefront of putting volatility on the map as
an asset class. "If you ask people whether volatility is good or
bad, a liability or an asset, chances are that 90% of them will
tell you it's a liability and it's bad," he says. "But it can be
treated as an asset if you own the stock."
So this isn't about short selling, nor is it about playing the
market. It's about getting some extra return, or a "synthetic
dividend", as Muhr puts it, from something that you already
own.
