Buffer Protection / Enhanced Return Option Strategy
The Cboe S&P 500 2x Up, 1x Down, 10% Buffer Protect Index Series follows a Buffer Protection and Enhanced Return option strategy.
A Buffer Protection Option Strategy is a protection strategy that is generally used in a bear, range-bound or modest bull market environment. It seeks to provide a buffer of protection against downside losses over a set period of time, while still providing the opportunity for growth to a maximum pre-determined level.
An Enhanced Growth Option Strategy is a leveraged strategy that is generally used in a range-bound or modest bull market environment. It seeks to provide two times leveraged upside up to a predetermined cap and one-to-one exposure on the downside.
The strategy seeks to provide similar returns to the S&P 500 Index, with lower volatility and downside risks, in most market environments with the exception of when the stock market is rallying rapidly.