Portfolio Managers and Options-based Funds www.cboe.com/Funds

Papers on Fund Use of Options and Volatility

Videos - Portfolio Managers Discuss Use of Cboe Options

  • RMC Insights: Joshua Lisser on Tail-Risk Management

    Angie Miles sits down with Josh Lisser, Senior Vice
    President and Head of Index Strategies at
    for an explanation on how tail-risk
    strategies are designed to reduce drawdowns. Things are
    getting a little more risky at the end of this long-running
    bull market, says Josh, and investors are now more
    interested in protecting the wealth they have. (2019).
  • RMC Insights: Jon Havice on the Volatility Positioning
    Jon Havice, President and Chief Investment Officer
    of DGV Solutions,
    gets to the heart of his Cboe RMC
    panel, "The Volatility Positioning Ledger - Blow Ups, Buried
    Bodies and Behavioral Biases" with Angie Miles in a
    discussion about what's been driving the markets in the
    decade after the financial crisis. (2019).
  • RMC Insights: Jack Hansen on Volatility Risk
    Jack Hansen, CFA, Chief Investment Officer at
    discusses VRP 101 with Angie Miles
    at Cboe RMC. Jack talks through implied volatility
    as a return source among other takeaways from his
    panel, "Volatility Risk Premium (VRP) Diversification and Performance Enhancement Opportunities." (2019).

Testimonials on Index Options

"Market experience ranks among our most valuable assets. Since 1983, Rampart has responded to different market scenarios with systematic and disciplined investment solutions, helping clients generate incremental returns, soften downside risk, and dampen volatility. Over a decade ago, Rampart recognized the need for an options benchmark to help investors appreciate the special risk-reducing, return-enhancing characteristics of buying a portfolio of stocks and systematically selling calls on that portfolio. In 2003 Rampart became the first licensee of the Cboe S&P 500 BuyWrite Index (BXM). Other important benchmark indices that sell one-month S&P 500® (SPX) options include the Cboe S&P 500 2% OTM BuyWrite Index (BXY) and the Cboe S&P 500 PutWrite Index (PUT). Over the past 30 years, all of the foregoing Cboe indices have had less volatility than the S&P 500 stock index."

-- Warun Kumar, Chief Investment Officer, Rampart Investment Management Company, Boston, MA

Peter J. Connors

"For over 30 years, Connors has utilized covered call option writing in portfolios to enhance the cash flow and lower the volatility typically associated with equity investing. The returns of the BXM index exemplify the advantages of option writing and provide tangible evidence for investors of the positive risk-adjusted returns that the strategy can generate."

-- Peter J. Connors, President, Connors Investor Services, Inc., Wyomissing, PA

Testimonials appearing on this website reflect individual experiences of those who have used Cboe products and/or services in some way or another. However, they are individual results and results do vary. Cboe does not claim that they are typical results that customers will generally achieve. The testimonials are not necessarily representative of all of those who will use Cboe products and/or services. No compensation was provided for these testimonials.

The BXM, BXD, BXN, BXY, CLL and PUT indices (the "Indexes") are designed to represent proposed hypothetical options strategies. The actual performance of investment vehicles such as mutual funds or managed accounts can have significant differences from the performance of the Indexes. Investors attempting to replicate the Indexes should discuss with their advisors possible timing and liquidity issues. Like many passive benchmarks, the Indexes do not take into account significant factors such as transaction costs and taxes. Transaction costs and taxes for strategies such as the Indexes could be significantly higher than transaction costs for a passive strategy of buying-and-holding stocks. Investors should consult their tax advisor as to how taxes affect the outcome of contemplated options transactions. Past performance does not guarantee future results. This web page contains index performance data based on back-testing, i.e., calculations of how the index might have performed prior to launch. Backtested performance information is purely hypothetical and is provided in this web page solely for informational purposes. Back-tested performance does not represent actual performance and should not be interpreted as an indication of actual performance. It is not possible to invest directly in an index. Cboe calculates and disseminates the Indexes. Supporting documentation for any claims, comparisons, statistics or other technical data is available from Cboe upon request. The methodologies of the Indexes are the property of Cboe Options Exchange (Cboe).