Buying Options 
and Treasury Bills 
Numerous strategies have been described, ranging from the simple to the complex. 
Each one has advantages, but there are disadvantages as well. In fact, some of them 
may be too complex for the average investor to seriously consider implementing. The 
reader may feel that there should be an easier answer. Isn't there a strategy that 
might not require such a large investment or so much time spent in monitoring the 
position, but would still have a chance of returning a reasonable profit? In fact, there 
is a strategy that has not yet been described, a strategy considered by some experts 
in the field of mathematical analysis to be the best of them all. Simply stated, the 
strategy consists of putting 90% of one's money in risk-free investments (such as 
short-term Treasury bills) and buying options with the remaining 10% of one's funds. 
It has previously been pointed out that some of the more attractive strategies 
are those that involve small levels of risk with the potential for large profits. Usually, 
these types of strategies inherently have a rather large frequency of small losses, and 
a small probability of realizing large gains. Their advantage lies in the fact that one or 
two large profits can conceivably more than make up for numerous small losses. This 
Treasury bill/option strategy is another strategy of this type. 
HOW THE TREASURY BILL/OPTION STRATEGY OPERATES 
Although there are certain details involved in operating this strategy, it is basically a 
simple one to approach. First, the most that one can lose is 10%, less the interest 
earned on the fixed-income portion of his portfolio (the remaining 90% of his assets), 
during the life of the purchased options. It is a simple matter to space out one's com-
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