Can writing of index options add value to a portfolio?
Five benchmark indexes that write index options all hit their all-time high monthly closing values today —
925.17 BXM – CBOE S&P 500 BuyWrite Index
1203.84 BXY – CBOE S&P 500 2% OTM BuyWrite
182.12 BXR – CBOE Russell 2000 BuyWrite Index
238.71 BXD – CBOE DJIA BuyWrite Index
1228.58 PUT – CBOE S&P 500 PutWrite Index
The year-to-date percentage changes for the five indexes (through the end of the third quarter) are –
7.9% BXM – CBOE S&P 500 BuyWrite Index
13.0% BXY – CBOE S&P 500 2% OTM BuyWrite
13.1% BXR – CBOE Russell 2000 BuyWrite Index
8.1% BXD – CBOE DJIA BuyWrite Index
9.1% PUT – CBOE S&P 500 PutWrite Index
Options writers often aim to have less volatility than holders of long stock positions. Past performance is not a guarantee of future returns for any investment.
For more details on these indexes and related studies, please visit www.cboe.com/benchmarks