The strategy typically offers lower volatility and higher income than owning the index outright, but it tends to underperform in strong bull markets due to the "cap" on upside gains.
: Historically, buy-write indices have exhibited about 30% lower volatility than the S&P 500. Performance in Different Market Conditions buy write index returns
: Typically underperforms. The BXM underperformed the S&P 500 in every single year (13 out of 13) where the market rose by more than 10%. Key Benchmark Comparisons BXY Index Dashboard - Cboe Global Indices The strategy typically offers lower volatility and higher
The "buy-write" strategy's success is highly dependent on the market's trajectory: buy write index returns