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 next Augustan age will dawn on the other side of the Atlantic. There will, perhaps, be a Thucydides at Boston, a Xenophon at New York, and, in time, a Virgil at Mexico, and a Newton at Peru. At last, some curious traveller from Lima will visit England and give a description of the ruins of St Paul’s, like the editions of Balbec and Palmyra.”
—Horace Walpole (1717–1797)
“The next Augustan age will dawn on the other side of the Atlantic. There will, perhaps, be a Thucydides at Boston, a Xenophon at New York, and, in time, a Virgil at Mexico, and a Newton at Peru. At last, some curious traveller from Lima will visit England and give a description of the ruins of St. Paul’s, like the editions of Balbec and Palmyra.”
—Horace Walpole (1717–1797)
“God damnit, why must all those journalists be such sticklers for detail? Why, they’d hold you to an accurate description of the first time you ever made love, expecting you to remember the color of the room and the shape of the windows.”
—Lyndon Baines Johnson (1908–1973)