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- Embed this notice@PraxisOfEvil It's half serious and half shitpost. Arbitrage is using money in one area for a better deal than another area. Example: You want to buy a motorcycle. You have $10k saved up and go to buy it with cash. They offer you 0% for 36 months, so you get a CD at the bank for 36 months paying 4%. You're getting 4%, maybe 3% after tax.
Call-write strategies buy an investment inside of the investment (yo dog, I heard you like references to 20 year old TV shows so we put one inside of this post and there's a PS5 in the trunk) that sells a covered call (coupon with an expiration date for a right to buy 100 shares of a stonk at a set price) and they pay the money they receive for selling the ’call’ at the market price to the shareholder (you or whomever owns a share). XYLD or RYLD are both examples of this that regularly yield over 10%.