Use of options by funds has grown tremendously since the 2002 introduction of the first major benchmark for options-based performance – the CBOE S&P 500 BuyWrite Index (BXM).
Below are some recent developments and updates re fund use of options that will be covered at the First Annual CBOE Risk Management Asia Conference, which launches on Nov. 30 in Hong Kong.
1. BARRON’S. On page M9 of the Nov. 30 issue of Barron’s, Amey Stone devotes the entire column to a review of covered call funds, and she quotes a rep of Gates Capital, who noted “They are excellent vehicles for this type of market.”
The article is available to subscribers here – A Good Option: Covered Call Funds
2. AUGSBURG. In 2015 Markus Natter and other researchers from the University of Augsburg published a paper on the web on The Benefits of Use of Options that showed higher risk-adjusted returns and lower volatility for funds that used options (compared with non-user funds.
3. GOLDMAN. In 2012 and 2014 John Marshall of Goldman Sachs published a paper on Mutual Fund Use of Options.
4. BLACK and SZADO. In 2015 Keith Black and Ed Szado published a paper on use of options by mutual funds, CEFs and ETFs; the paper showed that the number of such funds rose from 10 in 2000 to 119 funds in 2014.
For fund manager testimonials and analyses of performance of options-based funds, please visit www.cboe.com/funds.