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:
“Do not require a description of the countries towards which you sail. The description does not describe them to you, and to- morrow you arrive there, and know them by inhabiting them.”
—Ralph Waldo Emerson (1803–1882)
“An intentional object is given by a word or a phrase which gives a description under which.”
—Gertrude Elizabeth Margaret Anscombe (b. 1919)
“I was here first introduced to Joe.... He was a good-looking Indian, twenty-four years old, apparently of unmixed blood, short and stout, with a broad face and reddish complexion, and eyes, methinks, narrower and more turned up at the outer corners than ours, answering to the description of his race. Besides his underclothing, he wore a red flannel shirt, woolen pants, and a black Kossuth hat, the ordinary dress of the lumberman, and, to a considerable extent, of the Penobscot Indian.”
—Henry David Thoreau (1817–1862)