Half full: Elements of a covered-call option writing approach
August 28, 2024
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3 min
Gateway Market Perspective highlights:
- Comparing the covered call writing approaches of Cboe® S&P 500® BuyWriteSM Index versus its lesser known relative Cboe® S&P 500 Half BuyWriteSM Index shows varying equity market exposure and risk profiles.
- How 50% notional coverage versus full coverage changes the investment strategy and equity market exposure – which has led to improved total return and upside capture, but with increased risk, is illustrated.
- Gateway’s focus on the quality factor, which has historically been strong relative to other factors such as value, growth, minimum volatility, or high dividend is also explored.
