PUT Index Hits All-time Daily Closing High, with Less Volatility Than “Traditional” Indexes

On Thursday, May 14, the CBOE S&P 500 PutWrite Index (PUTSM) closed at 1503.46, its highest all-time daily close.  PUT is an award-winning benchmark index that measures the performance of a hypothetical portfolio that sells S&P 500® Index (SPX) put options against collateralized cash reserves held in a money market account. mm1 - PUT line graph May 14

The daily historical data for the PUT Index extends back to June 30, 1986. Since mid-1986 the PUT Index has had higher returns and lower volatility than the S&P 500 Index, the 30-Year Treasury Bond Index (Citi), and the S&P GSCI Index (that measures commodity performance). mm2 - Ret and Stand Dev


For the many investors today who are concerned about low interest rates for fixed income instruments, and high p/e ratios for stock indexes, it could make sense to explore the pros and cons of the PUT Index and the cash-secured put writing strategy. Later this year there may be a launch of an ETF that is designed to track the PUT Index. To learn more about the PUT Index, please visit www.cboe.com/PUT.