Real Return Bond Dynamic Exposure Strategy (RRB)
13 August 2025
Artificially Intelligent Markets
14 August 2025Summary
The Cboe Validus S&P 500 Dynamic PutWrite Index offers a more flexible way to stay exposed to U.S. equities while aiming to reduce downside risk. Instead of using a fixed rule to sell put options like traditional strategies, this index adjusts its positioning based on real-time market conditions, specifically, changes in volatility.
Key Insights
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Adjusts put strike levels based on current market volatility, not a one-size-fits-all approach
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Historically delivered lower volatility and smaller losses than the S&P 500
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Holds U.S. Treasuries alongside the strategy, helping cushion risk
- Aims to outperform in down or sideways markets by reducing large equity drawdowns