This Week in CBOE Strategy Indexes – 9/12/2014

One of the benefits of using covered calls or cash secured put positions in lieu of purely owning an underlying market or stock can be lower volatility. BXM, BXY, and PUT displayed that this week with the S&P 500 dropping over 1% and each of the strategy oriented indexes moving lower, but not to the extent of the drop in the overall stock market.

Strat Charts

For the year, PUT overtook the total return for the S&P 500 last week. PUT was down 0.05% while the S&P 500 total return index was down 1.05%.  Both BXM and BXY gained ground on the S&P 500 as well.   This coming week is expiration week for standard option contracts.  That means those of you tracking these three strategy indexes would roll your positions mid-morning on Friday to October SPX calls and puts.

Strat Table