Insights | January 07, 2019

Put Selling for Institutions

Executive Summary

  • Put writing strategies can deliver equity-like returns over the long term with less sensitivity to market valuations.
  • Put writing returns are generally characterized by lower volatility and shallower drawdowns than long-only equities. This allows for a less volatile profile of distributions.
  • Distributions from put selling have done no worse than long-only equities and in some cases have performed materially better.

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Disclaimer: The views expressed are the views of Van Trieu Le and Michelle Morphew through the period ending January 2019, and are subject to change at any time based on market and other conditions. This is not an offer or solicitation for the purchase or sale of any security and should not be construed as such. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.
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