joel filipe unsplash banner

Dynamic Put Selling

Parametric’s Dynamic Put Selling program aims to capture the volatility risk premium (VRP) by selling fully collateralized put options on the S&P 500® Index.

Dynamic Put Selling Intro IconDynamic Put Selling Intro Icon


Dynamic Put Selling may make sense for investors who seek to increase returns on underlying fixed income portfolios or cash. The strategy seeks to earn the VRP by selling put options on the S&P 500® Index. 


Investing in an options strategy involves risk. All investments are subject to loss. Learn more.

The effectiveness of the option strategy depends on a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect. A decision as to whether, when, and how to use options involves the exercise of skill and judgment, and even a well-conceived and -executed options programs may be adversely affected by market behavior or unexpected events. Successful options strategies may require the anticipation of future movements in securities prices, interest rates, and other economic factors. No assurances can be given that the judgment of Parametric in this respect will be correct. 

Options are not suitable for all investors and carry additional risks. Investors must ensure that they have read and understood the current options risk disclosure document before entering into any options transactions. In addition, investors should consult with a tax, legal, or financial advisor prior to contemplating any derivative transactions. The options risk disclosure document can be accessed here: http://www.optionsclearing.com/about/publications/character-risks.jsp.

 

Explore more VRP solutions

Intended benefits of Dynamic Put Selling

diversification icon

Enhanced return

Learn more >>

The strategy seeks to generate consistent positive returns by selling fully collateralized equity index put options against underlying collateral.

Diversifying Risk Premium icon

Diversifying risk premium

Learn more >>

The strategy seeks to enhance returns of the underlying bond portfolio or cash without taking additional duration or credit risk.

Diversified Exposures icon

Diversified exposures

Learn more >>

The strategy executes multiple tranches with short expiration dates, improving diversification  and reducing path dependency.

There is no guarantee that the strategy will be successful. Investing in an options strategy involves risk. All investments are subject to loss.

Why choose Parametric?

total firm AUM icon



$366B

Total firm
AUM



VRP Solutions AUM icon


$15B

VRP solutions
AUM



Firm Experience icon


30+

Years of
firm experience



As of 9/30/2022

More Ways to Invest texture banner

MORE WAYS TO INVEST

Volatility Risk Premium

Parametric's volatility risk premium (VRP) solutions are strategies that seek to benefit from the VRP, a distinct and diversifying risk premium that options buyers pay to options sellers. We’ve historically observed that this premium can be a persistent source of return, better positioning your clients’ portfolios to weather market volatility over a full market cycle and improve overall performance.

Get in touch

Want to know more about our Dynamic Put Selling solutions? Complete our contact form, and a representative will respond shortly.

More to explore