The Chicago Board Options Exchange says that the CBOE S&P 500 BuyWrite Index, BXM, reached an all-time high closing price of 800.43. This was the first time ever that the Index closed above 800.
The CBOE BXM Index is up 13.4 percent year-to-date through 14 December, and the Index has risen more than 700 percent since the 1 June, 1988 start date for its price history.
A buy-write strategy is one in which an investor buys stocks and writes, or sells, related call options for income. For example, the CBOE S&P 500 BuyWrite Index (BXM) is a broad-based benchmark index that measures the performance of a hypothetical portfolio that sells S&P 500 Index (SPX) call options, generally on the third Friday of each month, against a long portfolio of stocks in the S&P 500 Index.
CBOE also calculates and publishes the CBOE DJIA BuyWrite Index (BXD), based on Options on the Dow (DJX) versus a portfolio of the stocks included in the Dow Jones Industrial Average, CBOE Nasdaq-100 BuyWrite Index (BXN), CBOE Russell 2000 BuyWrite Index (BXR) and the CBOE S&P 500 2 percent Out-of-The-Money BuyWrite Index (BXY).