Testimonial on Sectors Options www.cboe.com/SectorsTestimonial

The Options Institute

"Our firm has implemented sector rotation and hedged equity strategies over the past 14 years, and we are very pleased to see Cboe's announced launch of new options on S&P Select Sector indices. By using fundamental analysis with a catalyst, and risk management with index options, clients can gain core exposure to large-cap US equities, and core exposure to their alternative allocation.

We manage a fund that implements sector rotation strategies that rely on sector and industry price dispersion, in addition to valuation with a catalyst.

During 2018 we have seen continued dispersion among sectors, with a difference of dozens of percentage points between the top-performing and bottom-performing sectors. Selling of richly priced sector index options has the potential to add income and lessen volatility for managers of sector rotation strategies.

We also manage a fund that runs a global hedged equity strategy that use options to manage portfolio risk. The launch of options on the S&P Select Sector indices has potential to be a great additional source of liquidity.

Our fund is long the financials sector, and has covered calls against the sector. Further deregulation tailwinds, and the over-capitalized financial sector, with risk managed sale of IXM options, can provide a very good risk/reward investment.

A play on the global growth of Japan, China, Europe, and US, coupled with coordinated supply constraints, is constructive for the energy sector and the IXE Index."

- Mr. Kim Arthur, CEO, Main Management, San Francisco

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.