Increasing diversification

Comparison of Tenors in Option-Writing Strategies

September 30, 2021
During the past decade, option-selling strategies have garnered significant interest from investors, driven by a combination of heightened sensitivity to equity risk, the search for increased yield amidst near-zero interest rates, and dissatisfaction with hedge funds’ high fees and low realized alpha. At the same time, ease of implementation in option-linked strategies increased as option volumes soared, trading costs declined, and the range of available exchange-traded instruments expanded.

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Alex Zweber, CFA, CAIA

Managing Director, Investment Strategy

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Michael Zaslavsky, CFA, CAIA

Senior Investment Strategist

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