This Week in CBOE Strategy Indexes – 5/16/2014

The S&P 500 was basically unchanged for the second week in a row. The result was a slight mix in the relative performance for BXM, BXY, and PUT. BXM gained over 0.5% on the week as May expiration came and went while PUT was up slightly for the week and BXY was down slightly for the week.

Strat Charts

All three of the strategy indexes in this blog continue to benefit from choppy performance in the S&P 500 in 2014. Premium selling strategies like BXM, BXY, and PUT tend to perform well in flat markets. It is also worth noting that this decent performance for all three strategy indexes is occurring in a pretty low implied volatility environment which means the premiums received when selling options are historically low, however relative to the performance of the S&P 500 the premiums are resulting on outperformance for far in 2014.

Strat Table