- BOX News
The Options Industry Council Announces New Buy-Write Strategy Study and Web Site for Institutional Investors
Chicago—January 29, 2007
The Options Industry Council has initiated its educational efforts designed for institutional investors by providing support for a study of the performance of a buy-write strategy on the Russell 2000 Index (RUT). The results show that returns on the strategy can outperform the index. The study is available to all investors at the new www.OICoptions.com site.
The study was conducted by the Isenberg School of Management's Center for International Securities and Derivatives Markets (CISDM) at the University of Massachusetts. "Risk and Return Characteristics of the Buy-Write Strategy on the Russell 2000 Index," by Nikunj Kapadia and Edward Szado, looked at data from January 18, 1996 to November 16, 2006 which demonstrated that a passive buy-write strategy of one month to expiration calls on the RUT consistently outperformed the index on a risk adjusted basis.
The release of the study coincides with the launch of www.OICoptions.com, the new home for options information and education geared to institutional investors. The new site has been structured to give these investors comprehensive options information in various forms including: daily and weekly options news articles from Barron's "The Striking Price"; research articles and white papers such as the CISDM study, as well as on topics like "Collar Trade," and "Mutual Funds & Listed Options: Portfolio Management Strategies" ; interactive tools such as the Position Simulator which allows investors to explore positions using real market conditions; online classes for all levels; and real-time CBOE VIX Index, ISE Sentiment Index, and other market information provided by www.IVolatility.com.
"While OIC's web site www.888options.com has long been a destination for retail investors, we are pleased to introduce www.OICoptions.com with material assembled specifically to meet the needs of institutional investors," said Susan Milligan, Executive Director of OIC. "Our goal is to serve this important audience with educational tools and relevant market information."
OIC is a non-profit association funded by the American Stock Exchange, Boston Options Exchange, Chicago Board Options Exchange, International Securities Exchange, NYSE Arca, Philadelphia Stock Exchange and The Options Clearing Corporation. OIC's resources include: The Options Industry Services Help Desk at 1-888-OPTIONS, educational Web sites at www.888options.com and www.OICoptions.com, live seminars throughout the continental United States and Canada , and educational literature and software.
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