Posted by: Tom McKeon on August 20, 2016
The methodical, rules-based capture of option premium is what drove our structurALPHA Large Cap Buy-Write strategy.
For the second quarter in a row, the Clothier Springs structurALPHA U.S. Large Cap Buy-Write earned a spot on the PSN Top Guns ranking of investment strategies, within the Managed ETF category.
Our structurALPHA U.S. Large Cap Buy-Write is a rules-based strategy that hedges a long exposure in the S&P 500 with a short, near-month, at-the-money call option. The hedge is rolled each month at expiration to the next month’s expiration. It is modeled on the CBOE S&P 500 Buy-Write (BXM).
The methodical capture of option premium from the monthly sale of the option hedge is a new source of portfolio total return, and also reduces overall portfolio risk. Capturing this additional source of return is what helped our strategy perform so well in a flat equity market environment. Our strategy ranked third for the one-year period ending 6-30-2016.
See the press release: Clothier Springs Makes Top Guns
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