Brendan McCurdy: Is now right to 'buy-write'?

Additional income through call-option premiums

clock • 2 min read

In his latest 'better business' column, Brendan McCurdy explains the idea of 'buy-write' strategies and why they can be an especially interesting consideration for income-seekers

In today's challenging market environment, US equity large-cap valuations are elevated versus history, European growth is questionable and forward-looking equity return expectations are muted. Such an environment is one where so-called ‘buy-write' strategies could help deliver the yield, returns and volatility benefits many investors are seeking. Buy-write strategies offer exposure to equities but also seek additional income through call-option premiums. In times of flat equity returns, these strategies have often outperformed. As an example - and as the following chart illustrates - ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

March 2024: Month in review with deputy editor Jenna Brown

March 2024: Month in review with deputy editor Jenna Brown

Take a look at some of the news and feature highlights of the last month

Jenna Brown
clock 28 March 2024 • 5 min read
Wren Sterling adds £265m in client assets in latest deal

Wren Sterling adds £265m in client assets in latest deal

First advisory firm purchase of 2024 for national financial planner

Jenna Brown
clock 28 March 2024 • 1 min read
Consumer Duty Alliance looks to attract advice industry talent

Consumer Duty Alliance looks to attract advice industry talent

New Talent Alliance will be chaired by M&G Wealth Advice MD Tom Hegarty

Isabel Baxter
clock 27 March 2024 • 2 min read