BXMU Index
BXMU Index Dashboard, BXMU Dashboard
Index Dashboard
- BXMU
Cboe S&P 500 BuyWrite 15% WHT
- Overview
- Performance
Cboe S&P 500 BuyWrite 15% WHT (BXMU)
The BXMU Index measures the total rate of return of a hypothetical "covered call" strategy applied to the S&P 500 Index. This strategy consists of a hypothetical portfolio consisting of a "long" position indexed to the S&P 500 Index on which are deemed sold a succession of one-month, at-the-money call options on the S&P 500 Index listed on the Cboe exchange. The BXMU Index is similar in design to the Cboe S&P 500 BuyWrite Index (BXM). However, the difference in methodology is as follows: dividends are only reinvested at 85% for tax withholdings consideration. We refer to this hypothetical portfolio as the "covered S&P 500 Index portfolio."
Resources
- BXMU Index Factsheet
- BXMU Index Methodology
- Constituents
- Click here to see the complete roll data.
Cboe BXMU Index Roll Information - March 21, 2025
| Index | Name | Reference Price | New Option Strike Price | New Option TWAP Price | Underlying Index TWAP |
|---|---|---|---|---|---|
| BXMU | Cboe S&P 500 BuyWrite 15% WHT | 5637.51 | 5640 | 113.95475675000002 | 6068.21625 |
Cboe BXMU Index Roll Information - February 21, 2025
| Index | Name | Reference Price | New Option Strike Price | New Option TWAP Price | Underlying Index TWAP |
|---|---|---|---|---|---|
| BXMU | Cboe S&P 500 BuyWrite 15% WHT | 6081.8 | 6085 | 79.62617968750001 | 6518.5287499999995 |
Cboe BXMU Index Roll Information - January 17, 2025
| Index | Name | Reference Price | New Option Strike Price | New Option TWAP Price | Underlying Index TWAP |
|---|---|---|---|---|---|
| BXMU | Cboe S&P 500 BuyWrite 15% WHT | 6002.99 | 6005 | 102.60375825 | 6453.62125 |
BuyWrite Strategy
Goals
The goals of index buywrite strategies may include: (1) receive upfront premium income in exchange for an upside cap, and (2) reduce risk from related stock indices.
Strategy
To implement an index buy-write strategy: (1) buy a portfolio of stocks or an index ETF, and (2) “write” (or sell) covered calls on a related index option.
Comments
In a comparison of out-of-the-money (OTM) buywrites vs. at-the-money (ATM) buywrites with the same expirations, OTM buywrites often have more potential upside in bull markets, but collect less premium than ATM buywrites, which may have less severe losses in bear market years. Depending on different investment objectives, investors may choose to write calls on all or part of the portfolio, at a constant or dynamic strike, and/or at a dynamic roll schedule. Graphs can vary depending on the strategy used (e.g., an ATM or OTM buywrite strategy).