Description
The term buy-write is used because the investor buys stocks and writes call options against the stock position. The writing of the call option provides extra income for an investor who is willing to forego some upside potential.
The BXM Index is designed to show the hypothetical performance of a strategy in which an investor buys a portfolio of the S&P 500 stocks, and also sells (or writes) covered call options on the S&P 500 Index.
Read more about this topic: CBOE S&P 500 Buy Write Index
Famous quotes containing the word description:
“The type of fig leaf which each culture employs to cover its social taboos offers a twofold description of its morality. It reveals that certain unacknowledged behavior exists and it suggests the form that such behavior takes.”
—Freda Adler (b. 1934)
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—Guy Debord (b. 1931)
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—Horace Walpole (1717–1797)