Strategy Note /

Option Based Strategies: Opt In or Opt Out?

    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