BXVBW Index
BXVBW Index Dashboard, BXVBW Dashboard
Index Dashboard
- BXVBW
Cboe S&P 500 Enhanced 1% OTM BuyWrite Index
- Overview
- Performance
Cboe S&P 500 Enhanced 1% OTM BuyWrite Index
BXVBW is designed to track the performance of a covered call strategy with a long position in the iShares Core S&P 500 ETF (IVV) and a short out-of-the-money S&P 500 (SPX) call option expiring monthly.
Resources
- BXVBW Methodology
- Click here to see the complete roll data.
Cboe BXVBW Index Roll Information - March 19, 2025
| Index | Name | New Option Strike Price |
|---|---|---|
| BXVBW | Cboe S&P 500 Enhanced 1% OTM BuyWrite Index | 5730.0 |
Cboe BXVBW Index Roll Information - February 19, 2025
| Index | Name | New Option Strike Price |
|---|---|---|
| BXVBW | Cboe S&P 500 Enhanced 1% OTM BuyWrite Index | 6205.0 |
Cboe BXVBW Index Roll Information - January 15, 2025
| Index | Name | New Option Strike Price |
|---|---|---|
| BXVBW | Cboe S&P 500 Enhanced 1% OTM BuyWrite Index | 6010.0 |
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).