BXY Index Rose 72% Over the Past 13 Years (as SPX Again Approaches Its All-Time High)

Prior to this week, the all-time daily closing high value for the S&P 500 Index (SPX) was 1565.15 on October 9, 2007, and several recent news items have noted the fact that the SPX Index recently has been very close to its all-time high.

The SPX first topped the 1500 level on March 22, 2000, and most of the analysis below covers the past 13 years.

TABLE WITH PRICE CHANGES OVER 13 YEARS

Below is a table with the % price changes for one commodity and four indexes over the period March 24, 2000 through March 22, 2013 —

  • 464.4% Gold Spot $/oz
  • 72.4% BXY – CBOE S&P 500 2% OTM BuyWrite Index
  • 30.4% SPTR – S&P 500 Total Return
  • 1.9% SPX – S&P 500
  • -41.8% VIX – CBOE Volatility Index

13-YEAR CHARTS

Below are 3 charts covering the same period from March 24, 2000 through March 22, 2013.

Using the data from the first chart below, the ratio of the Gold spot price over the SPX Index has ranged from a low of 0.18 on September 1, 2000, to a high of 1.65 on August 19, 2011. This past Friday the ratio was 1.03. If you have a view as to how the ratio of Gold spot price over the SPX Index might change in the future, you could explore trading the SPX – S&P 500 and GLD ETF options; please see below for more info on volatility indexes and strategies.

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While there might be much press coverage of the recent bull market and record levels for some stock indexes, it is worth noting that over the past 13 years the BXY – CBOE S&P 500 2% OTM BuyWrite Index has risen about 72% and the SPTR Index rose about 30%. Writing index options can add valuable income and help lessen portfolio volatility. Past results are not a guarantee of future returns.

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Options investors who are using the SPX – S&P 500 and GLD ETF options could find that the VIX – CBOE Volatility Index and the GVZ – CBOE Gold ETF Volatility Index are useful tools to help gauge implied volatility.

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MORE INFORMATION – STRATEGIES

Here are links to more information on strategies —