Strategy Note /
Global

Option Based Strategies: Opt In or Opt Out?

    Nicolas Rabener
    Nicolas Rabener

    Managing Director

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    FactorResearch
    14 May 2021
    Published byFactorResearch
    1. Option-based strategies generated better risk-adjusted returns than the S&P 500 over the last 30 years
    2. Investors should be wary of buying options and focus on harvesting the volatility risk premium by writing options
    3. Option-based strategies are an interesting alternative to long-short equity hedge funds for reducing risk