Traders Score With Buy-Write Options Strategy Tuned to U.S. Calm
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The torpor in U.S. equities is proving a bonanza for traders employing an options tactic designed to capitalize on dead markets.
For the first time since 2011, speculators using the buy-write strategy -- selling bullish options while holding the underlying stock to amplify gains -- are beating the Standard & Poor’s 500 Index. The Chicago Board Options Exchange S&P 500 BuyWrite Monthly Index has risen 6 percent this year, beating the 1.7 percent gain in the broad-market gauge.