New Study – Funds That Use Options (Part 2 on Lower Volatility)

A new study — “Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs” — analyzed SEC-regulated investment companies that focus on use of exchange-listed options for portfolio management (options-based funds).

I still speak with novice investors who think that all options strategies are risky, but the study found that the Options-Based Funds overall have had less volatility than some key benchmark indexes over a 15-year time period.

OPTIONS-BASED FUNDS OVER 15 YEARS. The study analyzed the equal-weighted performance of a subset of the options-based funds — those that focus on use of U.S. stock index options and/or equity options, and during the 15-year period from 2000 through 2014, found that these funds had lower volatility and a lower maximum drawdown than the S&P 500 and S&P GSCI indexes.003-StandDevia-OpBFds





CONFERENCE. The study will be included in one of many presentations at the 31st annual CBOE Risk Management Conference (RMC) on March 4 – 6, 2015, at the Park Hyatt Aviara in Carlsbad, CA.

MORE INFORMATION. For more information on the new study, and testimonials and videos by fund managers, please visit