Cboe, CBSX, & CFE Press Releases


CBOE BuyWrite Monthly Index (BXM) is Licensed to Rampart Investment Management

CHICAGO- March 27, 2003 - The Chicago Board Options Exchange, Incorporated (CBOE) today announced it has entered into a license agreement giving Boston-based Rampart Investment Management, Inc. the right to use the CBOE BuyWrite Monthly Index (BXM) as the strategic basis for a new options investment vehicle.

Introduced by CBOE in April 2002, the BXM is a benchmark index that measures the performance of a theoretical portfolio of long Standard & Poor's 500 Index stocks, and short S&P 500 Index call options (SPX) against the portfolio. Dividends received are included in the performance.

Rampart's implementation of the BXM Index, the Rampart BXM Strategy, is designed to replicate or closely approximate the CBOE BXM. It enables institutional investors to allocate assets to a buy-write strategy with a licensed investment manager.

A "buy-write," also referred to as a covered call, generally is considered to be an investment strategy in which an investor buys a stock or a basket of stocks, and also sells call options that correspond to the stock or basket of stocks. This strategy can be used to enhance portfolio returns and reduce volatility.

  • In 2002, the BXM return was 14.45 percentage points higher than the return of the S&P 500 Index.

  • For the five-year period ended December 31, 2002, the annualized return for the BXM was 5.5 percentage points higher than that of the S&P 500.

  • From its June 1988 inception through December 2002, the annualized return of the BXM Index was almost one percentage point higher than that of the S&P 500 Index (BXM return of 12.0% vs. S&P 500 return of 11.1%).

Also of note, the volatility of the BXM Index was significantly less than the volatility of the S&P 500 Index: BXM had about two-thirds of the volatility of the S&P 500 Index during the June 1988 to December 2002 period.

CBOE calculates and disseminates BXM at the end of each trading day. Historical values for the BXM are available dating back to June 1988, when Standard and Poor's first started publicly disseminating dividend information. For more information about BXM and its use as a portfolio management tool, please visit http://www.cboe.com/bxm.

CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the SEC. For additional information about the CBOE and its products, access the CBOE site at www.cboe.com.

CBOE® and Chicago Board Options Exchange® are registered trademarks of Chicago Board Options Exchange, Incorporated. SPXSM, CBOE BuyWrite Monthly IndexSM and BXMSM are service marks of

CBOE. The methodology of the CBOE BuyWrite Monthly Index is owned by CBOE and may be covered by one or more patents or pending patent applications. The CBOE BuyWrite Monthly IndexSM is licensed for use by Rampart Investment Management Company, Inc. Neither CBOE nor S&P in any way sponsors, endorses, or is otherwise involved in the Rampart BXM Strategy. CBOE and S&P disclaim any liability to any party for any inaccuracy in the data in which BXM Index is based, for any mistakes, errors, or omissions in the calculation and/or dissemination of the BXM Index, or for the manner in which the BXM Index is applied in connection with the Rampart BXM Strategy.

Standard & Poor's®, S&P® and S&P 500® are registered trademarks of the McGraw-Hill Companies, Inc. and are licensed for use by Chicago Board Options Exchange, Incorporated. CBOE, not S&P, calculates and disseminates the BXM Index.

Rampart® is a registered trademark of Rampart Investment Management Company, Incorporated.

Supporting documentation for claims, comparisons, recommendations, statistics or other technical data is available by calling 1-888-OPTIONS, sending an e-mail to help@cboe.com, or by visiting http://www.cboe.com/bxm.


Special Offers
*Third Party Advertisements

Advertisement Advertisement