CBOE Low Volatility Index
Revision as of 10:42, 30 November 2012 by ChristineNielsen (talk | contribs)
The CBOE Low Volatility Index (ticker symbol LOVOL) is a benchmark index that was designed for investors whose preferences shifted from investing in riskier assets to lower-volatility assets. The index aims to provide investors with the ability to replicate an investment strategy that is subject to less downside volatility in a portfolio of S&P 500 stocks, while still preserving the bulk of market gains.[1]
The index tracks the S&P 500, plus the returns of a covered call strategy of selling bullish options, plus buying disaster insurance options on the VIX index.[2]
The Chicago Board Options Exchange began disseminating values for the index on Nov. 30, 2012.
References[edit]
- ↑ CBOE To Introduce CBOE Low Volatility Index. Yahoo! Finance.
- ↑ CBOE, Makers of VIX, To Launch a Fearless Index. Barron's.