The equity market is the most reliable source of long-term real returns
Because the long-term is a series of short terms, equities do not become less risky over the long-term
Broad equity market exposure plus the volatility premium associated with index options can reduce downside risk while improving risk-adjusted returns from equity exposure
Because each market environment presents a unique combination of opportunities and risks, decision making based on vigilant application of judgment and experience is more reliable than quantitative triggers or rigid rules-based approaches
Why Index Options?
Equity risk premium exposure - a reliable source of long-term real returns
Volatility risk premium exposure - a reliable source of potential alpha
European-style expiration - maintains control of options portfolio
Cash-settled - maintains control of underlying equity portfolio
