Options strategies get benchmark boost

The Chicago Board Options Exchange’s BuyWrite Index may prove valuable to asset managers looking for an options strategy benchmark. Dwight Cass reports

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The ‘cult of benchmarking’ that gripped investors and investment consultants in the 1980s and 1990s, dueto the rise of index-based investment strategies, has been the bane of assetmanagers specialising in options-based strategies. Without a benchmark, theseinvestment strategies have been a hard sell. But that has started to change,thanks partly to the Chicago Board Options
Exchange (CBOE), which launched an options benchmark index in mid-2002.

The CBOE’s BuyWrite Index, or BXM, has gained enough

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