CBOE S&P 500 PutWrite Index (PUT)

The CBOE S&P 500 PutWrite Index (ticker symbol PUT) is a benchmark index that measures the performance of a hypothetical portfolio that sells S&P 500 Index (SPX) put options against collateralized cash reserves held in a money market account.

Description

The PUT strategy is designed to sell a sequence of one-month, at-the-money, S&P 500 Index puts and invest cash at one- and three-month Treasury Bill rates. The number of puts sold varies from month to month, but is limited so that the amount held in Treasury Bills can finance the maximum possible loss from final settlement of the SPX puts. The PUT Index was [http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=cboe_20070620.doc introduced in 2007] by the Chicago Board Options Exchange (CBOE) The Index is [http://www.cboe.com/micro/put/ calculated and disseminated daily] by the CBOE and the daily price history of the PUT Index [http://www.cboe.com/micro/put/ dates back to June 1, 1988] .

Award for Innovation

The CBOE S&P 500 PutWrite Index (PUT) won the [http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=cboe_20071204.doc annual award for the Most Innovative Benchmark Index] at the Twelfth Annual Super Bowl of Indexing Conference in Scottsdale, Arizona on December 3, 2007. The 2007 award for the PUT Index was one of only three product awards granted as part of the [https://indexbusinessassociation.org/resources_and_research/industry_awards.htm William F. Sharpe Indexing Achievement Awards] .

References and links

* [http://www.cboe.com/micro/put/ CBOE S&P 500 PutWrite Index Website]
* [http://www.thestreet.com/video/10378177/is-writing-put-options-right-for-you.html#10378177 Video from "The Street.com" Steve Smith talks with Jason Ungar about the PUT Index (September 6, 2007)]
* [http://www.smartmoney.com/contrarian/index.cfm?story=20070703 CBOE Rolls Out Index for Fans of Put Options. "SmartMoney" (July 3, 2007)]
* [http://indexuniverse.com/index.php?option=com_content&view=article&id=2892&Itemid=284 PutWrite Profits. "IndexUniverse.com" (June 26, 2007)]
* [http://www.thestreet.com/p/_rms/rmoney/stevensmithblog/10368575.html PutWrite Put to the Test. "RealMoney.com" (July 18, 2007)]