Indexing Covered Calls: A New Tool for Income Seekers
What are the potential benefits of a passive approach to covered calls? S&P DJI’s Phil Brzenk and ProShares’ Simeon Hyman take a closer look at the S&P 500 Daily Covered Call Index, its performance, and why the index uses a daily approach vs. a more standard weekly or monthly approach.
Using the News to Select a More Stable Path to the S&P 500
Meet the S&P 500 RavenPack AI Index, a multi-asset index that applies a news analytics algorithm powered by RavenPack to select S&P 500 sectors with the strongest news sentiment for use in its sector rotation process. The index combines U.S. equities and fixed income, complemented by a daily risk control mechanism that seeks to maintain…
- Categories Multi-Asset
- Tags AI, daily risk control, Equity, FIAs, fixed income, Fixed Indexed Annuities, GICS sectors, machine learning, multi-asset, news sentiment, RavenPack, risk control, S&P 500 RavenPack AI Index, S&P 500 RavenPack AI Sentiment Index, S&P 500 Sectors, sector rotation, target volatility
- Categories
- Multi-Asset
Meet the S&P 500 Dynamic Intraday TCA Index
Combining a trend-following mechanism with the ability to rebalance up to 13 times during the trading day, this innovative multi-asset index seeks to provide a more stable volatility experience by leveraging the next generation of risk control technology.
The Gold Standard of Indices Meet’s Today’s Technology
Meet the S&P 500 FC Index, an innovative index designed to adjust allocations based on intraday volatility signals as it seeks to increase stability, limit exposure to drawdowns, while optimizing exposure to the S&P 500 via BofA’s Fast Convergence technology.
Innovating for Insurance: Charting a “Smarter” Path to the S&P 500
How can an index adjust to prevailing market conditions by design? Meet the S&P 500 IQ Index, a dynamic risk control index that uses intraday technology to rapidly respond to changing markets, increasing S&P 500 exposure when markets are stable and leaning into cash during times of volatility.
Innovating for Insurance: S&P 500 Duo Swift Index
How is intraday volatility rebalancing helping new multi-asset indices rapidly respond to changing markets? Look inside the S&P 500 Duo Swift Index, a diverse, multi-asset, risk-controlled index that is dynamic by design.
Dividends and Option Premiums: A Dual Income Story
Income generation may be sought out by a variety of market participants, including those nearing retirement and those seeking a source of passive income. An income-focused strategy requires a different approach to those focused on generating growth. Traditional sources of income include dividend-paying stocks and coupon-paying bonds. The economic landscape of the past 18 months…
- Categories Multi-Asset
- Tags 2023, call options, covered call, diversification, dividend coverage ratio, dividend yield, dividends, Dow Jones U.S. Dividend 100 3% Premium Covered Call Index, Dow Jones U.S. Dividend 100 7% Premium Covered Call Index, Dow Jones U.S. Dividend 100 Index, institutional investor, multi-asset, S&P 500 Dividend Aristocrats, volatility
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- Multi-Asset
- Tags
- 2023, call options, covered call, diversification, dividend coverage ratio, dividend yield, dividends, Dow Jones U.S. Dividend 100 3% Premium Covered Call Index, Dow Jones U.S. Dividend 100 7% Premium Covered Call Index, Dow Jones U.S. Dividend 100 Index, institutional investor, multi-asset, S&P 500 Dividend Aristocrats, volatility
A Dynamic Approach to Volatility Management
How can indices seek to maintain a pre-defined level of implied volatility? Look inside the S&P 500 Futures Defined Volatility Indices, a dynamic, rules-based approach to volatility management helping market participants align investments with risk appetites systematically.
- Categories Multi-Asset
- Tags defined volatility, implied volatility, index futures, index options, indexing, insurance, leverage, market timing, multi-asset indices, Realized volatility, risk management, S&P 500 Futures Defined Volatility Indices, stable risk, Structured Products, Volatility Management
- Categories
- Multi-Asset
Income Generation and the S&P/ASX BuyWrite Index
In my last blog, we discussed the performance characteristics of the S&P/ASX BuyWrite Index. We will now focus on the income-generating feature of this index. As a reminder, a covered call strategy involves selling a call option against an asset that is already owned by the option writer. A systematic long-term covered call strategy generates…
18-Year Performance of the S&P/ASX BuyWrite Index
The volatile and unpredictable nature of the stock market is characterized by periods of ups and downs. Covered call option writing is a strategy aimed at generating income and mitigating loss, particularly in bear market environments. A covered call (or “buy-write”) strategy involves selling a call option against an asset that is already owned by…
