The strategy typically offers lower volatility and higher income than owning the index outright, but it tends to underperform in strong bull markets due to the "cap" on upside gains.
The is a benchmark designed to track a "buy-write" or covered call strategy, where you hold the S&P 500 index and sell monthly at-the-money (ATM) call options against it. Historical Performance Summary buy write index returns
: For the 12 months ending in April 2026, the index gained approximately 17.84% . The strategy typically offers lower volatility and higher
The "buy-write" strategy's success is highly dependent on the market's trajectory: The "buy-write" strategy's success is highly dependent on
: As of late 2025/early 2026, the BXM's 10-year annualized return was approximately 6.2% to 7.2% .
: Provides a "buffer" because the premium received from selling the call option offsets some of the losses. For example, it significantly outperformed in 2000.
: Historically, buy-write indices have exhibited about 30% lower volatility than the S&P 500. Performance in Different Market Conditions