Options for Enhanced Yield and Risk-adjusted Returns in Times of Low Interest Rates

Apr. 16, 2014 By Matt Moran , VP, CBOE 312 786-7249 Prepared for CFA Nashville

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Seven Perceived Challenges for Investors

1. High Volatility 2. Tail Risk 3. Lower Returns for Equities 4. Higher Correlations 5. Lower Yields 6. Future Higher Risk for Fixed Income 7. Less Liquidity in Times of Stress How severe are these challenges?

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1. Historic Volatility “Historic Volatility” is a measure of actual price changes during a specific time period in the past. Mathematically, historic volatility is the annualized standard deviation of daily returns during a specific past period. While some news media may give the impression that recent stock markets always are volatile, the average 30-day historic volatility for the S&P 500 Index was a relatively low 11.2 in the period from Jan. 2013 through Jan. 2014.

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1. Historic Volatility

Historic Volatilities for Indexes - Maximum, Minimum and Average For the end-of-week 30-day historic volatilities for the time period from Jan. 7, 2000, through Jan. 31, 2014

SPX - S&P 500

MSCI United States

MSCI Germany

MSCI China

30-yr US Treasury

Bond (Citi)S&P GSCI

(commodity)Gold (spot)

Crude Oil

(spot)

VIX - CBOE

Volatility Index

Maximum 80.9 80.6 75.3 110.2 32.1 64.7 55.5 126.1 245.0Minimum 6.0 5.8 6.3 10.6 5.9 7.2 6.1 12.6 34.4Average 18.2 17.9 22.0 27.0 13.6 23.0 17.5 36.4 96.6Median 15.2 15.0 18.9 22.8 12.1 21.8 15.9 33.8 90.4

The MSCI country stock indexes are in local currency

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# 2 & 3 Tail Risk and Drawdowns Two periods during which many stock and commodity indexes experience sharp drawdowns --

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# 2 & 3 Tail Risk Perceptions

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16 Challenging Months Little diversification as stock and commodity indexes fell by more than 50%

-44%

-51%

-52%

-53%

-54%0.2

0.40.6

0.81.0

1.21.4

1.6

Oct-07

Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Feb-09

(Oct. 31, 2007 - Feb. 28, 2009) Sources: CBOE and Bloomberg Total return indexes are used for

stocks and commodities

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Phoenix Homes(SPCS) S&P 500

Russell 2000

SP GSCI(commodity)MSCI World IndexNet US$

Harry Markowitz and Modern Portfolio Theory (MPT) --

“[in 2008] the S&P 500 fell approximately 38.5%; the higher-beta emerging-markets asset class fell much farther. Corporate bonds fell in value, but much less than equities, and government bonds went up. … Generally, asset classes moved roughly in proportion to their historical betas. … MPT never promised high return with low risk. … [u]nless our portfolios are comprised entirely of short-term government bonds, we’ll be dealing with a level of risk for which MPT prescribes following an old and true adage: ‘Don’t put all your eggs in one basket.’” The Investment Professional magazine (Spring 2009)

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#3 Correlations Since 1971

Correlations among many “traditional” assets rose through 2008, making diversification more challenging

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#5 Lower Yields The average yields in chart below were 6.57% for 10-Year US Treasury bonds, and 3.04% dividend yield for the S&P 500.

#6 Risky Outlook for U.S. Bonds and Funds? Wall Street Journal March 22, 2012 What Does the Prudent Investor Do Now? In The Wall Street Journal, Princeton University economist Burton Malkiel writes that at a yield of 2.25%, the 10-year U.S. Treasury is a sure loser and stocks are a safer choice. By Burton G. Malkiel … Bonds are the worst asset class for investors. Usually thought of as the safest of investments, they are anything but safe today. At a yield of 2.25%, the 10-year U.S. Treasury note is a sure loser. Even if the overall inflation rate is only 2.25% over the next decade, an investor who holds a 10-year Treasury until maturity will realize a zero real (after-inflation) return. If the investor sells prior to maturity, it will likely be for less than the face value of the note if the inflation rate rises. Even if the inflation rate remains moderate, interest rates are likely to rise to more normal levels as the economy continues to recover. Investors with long memories should recall that over the entire period from the 1940s until 1980, bonds were a horrible place to be. Given the likely trends, U.S. Treasurys and high quality bonds are likely to be extremely poor investments and are very risky. …

Annual Total Returns in Five Years

Long-term Corporate

Bonds

Long-term Government

Bonds Inflation1977 1.71% -0.69% 6.8%1978 -0.07% -1.18% 9.0%1979 -4.18% -1.23% 13.3%1980 -2.76% -3.95% 12.4%1981 -1.24% 1.86% 8.9%

Source: Ibbotson Assoc. SBBI Yearbook

Equity Mutual Funds - Net New Cash Flow

-$28

$152 $178$136 $160

$96

-$238

-$11 -$24

-$128

-$300

-$200

-$100

$0

$100

$200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Sources: SIFMA, ICI

(in $

bill

ions

)

Bond Mutual Funds - Net New Cash Flow

$140

$31

-$11

$31$61

$109

$33

$375

$245

$119

-$100

$0

$100

$200

$300

$400

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Sources: SIFMA, ICI

(in $

bill

ions

)

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#7 Less Liquidity During Stressful Market Periods

A U.S. GAO Report on the 2008-2009 financial crisis noted that -- “… Some plan representatives described significant difficulties in hedge fund and private equity investing related to limited liquidity and transparency, and the negative impact of the actions of other investors in the fund—sometimes referred to as co-investors. For example, representatives from one plan reported they were unable to cash out of their hedge fund investments due to discretionary withdrawal restrictions imposed by the fund manager, requiring them to sell some of their stock holdings at a severe loss in order to pay plan benefits.”

From: Highlights of GAO-12-324 “Recent Developments Highlight Challenges of Hedge Fund and Private Equity Investing.” (February 2012) (available at http://www.gao.gov/assets/590/588624.pdf).

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Coping with Investment Challenges

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16 Challenging Months Can volatility diversify and lessen portfolio volatility?

194%

150%

83%

25%

-51%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Oct-07

Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Feb-09

(Oct. 31, 2007 - Feb. 28, 2009) Sources: CBOE and Bloomberg

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VIX Short-TermFutures Idx S&P

VIX - Spot Volatility

OVX - CBOE CrudeOil Volatility Idx

Citigroup 30-yrTreasury

S&P 500

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Can Options Strategies Provide Aid in Dealing with Investment Challenges?

Add a small allocation to long stock index puts or long volatility instruments to help manage tail risk and lessen portfolio volatility (but be careful about costs and contango) Sell index options to gain gross premium income with a goal of boosting risk-adjusted returns for the portfolio (not as effective in managing tail risk).

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Simple Options Profit-and-Loss Diagrams

* The colored line reflects a position with both options and stock at expiration, while the straight grey line reflects a long stock position.

Long call gives the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.

Protective put investor purchases a put (right to sell) while holding underlying security.

Buy-write investor buys a security and writes (sells) a covered call for income.

A collar investor owns securities, buys protective put(s), and writes covered call(s) for income.

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Trends in Volume and Open Interest at CBOE

17

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CBOE Volatility Index® (VIX ®) (spot index is not investable)

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Volatility Indexes www.cboe.com/volatility

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Big Weekly Moves for S&P 500 Index

Weeks in Which the S&P 500 Rose or Fell by 8% or More (from Jan. 28, 2000 through Jan. 31, 2014) with a comparison to other indexes

Week ending S&P 500

Russell 2000 (small-

cap)MSCI

TaiwanS&P GSCI

(commodities)

30-yr U.S. Treasury

BondVIX

(spot)

S&P 500 VIX Short-term Futures Idx

S&P 500 VIX Mid-term

Futures Idx10-Oct-2008 -18.1% -15.6% -10.8% -14.7% -0.3% 55.0% 37.8% 9.4%21-Sep-2001 -11.6% -14.0% -6.1% -9.8% -3.2% 34.0%14-Apr-2000 -10.5% -16.4% -6.5% 0.1% -0.9% 37.3%3-Oct-2008 -9.3% -12.1% -4.4% -11.2% 4.1% 29.9% 22.1% 9.1%

21-Nov-2008 -8.3% -10.9% -6.9% -9.1% 9.7% 9.6% 17.5% 13.5%19-Jul-2002 -8.0% -6.5% -5.7% 1.4% -0.1% 15.9%31-Oct-2008 10.5% 14.2% 6.8% 5.0% -4.4% -24.3% -0.7% -1.5%13-Mar-2009 10.8% 12.1% 4.4% 0.6% -2.9% -14.1% -6.9% -6.0%28-Nov-2008 12.1% 16.4% 7.5% 6.0% 3.2% -23.9% -14.4% -9.7%

Sources: Bloomberg and CBOE. Caution: Past performance is not predictive of future returns. Most of the indexes above (except VIX spot) are total return indexes with dividends reinvested.

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VIX Spot and Futures (Feb. 2011 – mid-June 2011)

Past performance does not guarantee future results. For financial professional use only. Not for public distribution.

VIX Futures - Daily Volume

-

50,000

100,000

150,000

1-Feb-2011 1-Mar-2011 1-Apr-2011 1-May-2011 1-Jun-2011

(Feb. 1, 2011 - June 20, 2011) Source: CBOE www.cboe.com/VIX

VIX Spot, VIX Sept. '11 Futures, and VIX Near-term Futures

10

15

20

25

30

1-Feb-2011 1-Mar-2011 1-Apr-2011 1-May-2011 1-Jun-2011

(Feb. 1, 2011 - June 15, 2011) Source: CBOE www.cboe.com/VIX

End-

of-d

ay p

rice

U (Sep 11)

M (Jun 11)

K (May 11)

J (Apr 11)

H (Mar 11)

G (Feb 11)

VIX Spot

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UMass Study on Diversification with VIX Futures & Options

Portfolio with 10% allocation to VIX futures (in black) ended at $94.37.

Portfolio with no allocation to VIX futures ended at $85.18 (with 54% higher standard deviation).

From: “VIX Futures and Options - A Case Study of Portfolio Diversification During the 2008 Financial Crisis” (published in The Journal of Alternative Investments in 2009) by Edward Szado, CFA, Research Analyst at the Center for International Securities and Derivatives Markets (CISDM), University of Massachusetts, Amherst available at www.cboe.com/VIX

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Benchmark Indexes That Use VIX Futures or Options

CBOE Low Volatility Index (LOVOL). The index is a 40% / 60% blend of the CBOE S&P 500 BuyWrite Index (BXM) and CBOE VIX Tail Hedge Index (VXTH). The resulting portfolio overlays long VIX calls and short S&P 500 calls over an investment in S&P 500 stocks. S&P 500 VIX Mid-term Futures Index (SPVIXMTR). The index offers exposure to a daily rolling long position in the fourth, fifth, sixth and seventh month VIX futures contracts, and reflects the implied volatility of the S&P 500 at various points along the volatility forward curve. S&P 500 Dynamic VIX Futures Index (SPDVIXT). The index is designed to dynamically allocate between the S&P 500 VIX Short-Term Futures Index Excess Return and the S&P 500 VIX Mid-Term Futures Index Excess Return by monitoring the steepness of the implied volatility curve. The Index seeks to react positively to overall increases in market volatility and aims to lower the roll cost of investments linked to future implied volatility. S&P 500 Dynamic VEQTOR Index (SPVQDTR). The index is designed to provide broad equity market exposure with an implied volatility hedge by dynamically allocating between equity, volatility and cash. The index allows investors to receive exposure to the equity and volatility of the S&P 500 Index in a dynamic framework.

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CBOE Performance Benchmark Indexes

Index Ticker Introduced Data beginning Website

CBOE S&P 500 BuyWrite BXMSM 2002

June 30, 1986

www.cboe.com/BXM

CBOE S&P 500 2%OTM BuyWrite

BXYSM 2006 June 1, 1988

www.cboe.com/BXY

CBOE Russell 2000 BuyWrite

BXRSM 2006 Dec. 29, 2000

www.cboe.com/BXR

CBOE DJIA BuyWrite BXDSM 2005

Oct. 16, 1997

www.cboe.com/BXD

CBOE NASDAQ-100

BuyWrite

BXNSM 2005 Dec. 30, 1994

www.cboe.com/BXN

CBOE S&P 500 95-110 Collar CLLSM 2008 June 30, 1986 www.cboe.com/CLL

CBOE S&P 500 PutWrite PUTSM 2007 June 30, 1986 www.cboe.com/PUT

Bloomberg provides historical data for all seven indexes.

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CBOE S&P 500 BuyWrite Index (BXM)

Benchmark for strategy -- buy portfolio of S&P 500 stocks write (sell) cash-settled S&P 500 call options every 3rd Friday for income

Announced in 2002 – study by Duke U. Data history back to June 30, 1986 “Innovative Index of the Year” in 2004 More than $25 billion in buywrite funds www.cboe.com/BXM

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Studies on Options-based Benchmark Indexes

Asset Consulting Group. Key Tools for Hedging and Tail Risk Management (February 2012) Asset Consulting Group. An Analysis of Index Option Writing for Liquid Enhanced Risk-Adjusted Returns (January 2012) Hewitt EnnisKnupp. The CBOE S&P 500 BuyWrite Index (BXM) - A Review of Performance (2012) Cambridge Associates, LLC. Highlights from the Benefits of Selling Volatility (2011) Russell Investments. Capturing the Volatility Premium through Call Overwriting. (December 2010) Ennis Knupp & Associates. Evaluating the Performance Characteristics of the CBOE S&P 500 PutWrite Index (Dec. 2008) Fund Evaluation Group. Study of BXD and VXD Indexes (2007)

• Callan Associates. An Historical Evaluation of the CBOE S&P 500 BuyWrite Index (BXM). (Oct. 2006).

• Goldman Sachs. "Finding Alpha via Covered Index Writing," Financial Analysts Journal. (September/October 2006).

• Ibbotson Associates. Feldman, Barry, and Dhruv Roy, "Passive Options-Based Investment Strategies: The Case of the CBOE S&P 500 BuyWrite Index." The Journal of Investing. (Summer 2005).

• Duke University. Whaley, Robert. "Risk and Return of the CBOE BuyWrite Monthly Index" The Journal of Derivatives (Winter 2002).

www.cboe.com/benchmarks

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Indexes Since Mid-1988

(June 30, 1988 – Feb. 28, 2014) Sources: Bloomberg and CBOE. www.cboe.com/benchmarks Total return indexes reflect reinvested dividends, but indexes may not reflect all transaction costs and are not investable. Past performance is not predictive of future results. Please read closely the last slide for important disclosures.

27

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Returns and Volatility Over 25 Years

28

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Returns and Volatility

PUT CBOE S&P 500 PutWrite Index BXM CBOE S&P 500 BuyWrite Index® BXY CBOE S&P 500 2% OTM BuyWrite Index CLL CBOE S&P 500 95-110 Collar Index Please read closely the last slide for important disclosures. Past performance is not a guarantee of future results.

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From: "Finding Alpha via Covered Index Writing," Financial Analysts Journal (Sept./Oct. 2006)

From: 2006 paper that compares trade-offs for ATM (at-the-money) and OTM (out-of-the-money) options selling strategies

2013 CBOE chart (triangles denote options benchmarks)

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Excerpt from Jan. 2012 paper by Asset Consulting Group –

An Analysis of Index Option Writing for Liquid Enhanced Risk-Adjusted Returns

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Richly Priced Index Options

Exhibit 12 of a 2012 paper by Hewitt EnnisKnupp – “The CBOE S&P 500 BuyWrite Index (BXM) - A Review of Performance”

Wall Street Journal December 10, 2011 Options for Nervous Investors By Jack Hough “ … Research suggests investors who use covered calls can turn the risk-reward trade-off in their favor by using a strategy based on stock indexes rather than individual stocks. … One type of option might offer more opportunity than others, however. Some researchers say a quirk related to index options, like those written against the Standard & Poor's 500-stock index, offers investors a way to reduce risk without giving up much in return. At least nine research papers since 1990, from academia and Wall Street, have shown that index options are often overpriced—an opportunity for those who sell them. … There is a good reason. Institutional investors have ravenous demand for index puts, since they offer cheap protection against a market crash, Mr. Parker says. All that buying pushes index put prices higher—and call prices, too, because the two move in tandem. That suggests an investor who writes index options is getting a better price than one who buys, on average. In 2001, Vanderbilt's Mr. Whaley developed an index to exploit the high price of index options. It is called the CBOE S&P 500 BuyWrite Index, or BXM, and it simulates owning the S&P 500 and writing covered calls each month. . ..“ 31

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2004 – 43-page Paper by Professors Bollen and Whaley For S&P 500 options category 1 – difference of 9.58 percentage points

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Monthly Gross Premium Income

Rolling 12-month data is shown in Exhibit 13 of a 2012 paper by Hewitt EnnisKnupp – “The CBOE S&P 500 BuyWrite Index (BXM) - A Review of Performance”

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Different Strikes and Tenors From: Jan. 2012 Paper by Russell Investments -- Capturing the Volatility Premium Through Call Overwriting

Caution: Past performance is not a guarantee of future results

Cambridge Associates and the Short Strangle Strategy

“Over the past 20 years, a strategy of systematically selling out of the money puts and calls on the S&P 500 Index (a short strangle portfolio) would not only have soundly beaten equity returns with lower volatility, but also offered similar returns to the median hedge fund manager tracked by Cambridge Associates, albeit with slightly higher volatility (see chart …). Such a strategy would also have offered significantly better transparency and liquidity than most hedge funds.” From: Cambridge Associates. “Highlights from the Benefits of Selling Volatility” (2011) available at www.cboe.com/bencharks

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Pension Funds and BXM Index – Excerpts from a magazine article http://bit.ly/PensionsBXM-Trdrs-2011Dec –

Pensions Eye Buy-Writes Traders Magazine, December 2011 With crisis comes opportunity. That seems to be the message for the options industry as a group of public pension plans moves closer to incorporating options into their portfolios, most for the first time, in an attempt to squeeze out some of the volatility in their stock portfolios. The Santa Barbara County Employees Retirement System, the Hawaii Employees Retirement System, the Los Angeles Department of Water and Power Employees Retirement Plan, the Seattle City Employee Retirement System and the Alaska Retirement Management Board are all in various stages of adopting buy-write strategies benchmarked against the Chicago Board Options Exchange's BXM index. The total to be hedged by all five plans could reach more than $1 billion. … Benchmarking against the CBOE's BXM index is considered a relatively simple and transparent form of covered call writing as it involves selling a listed SPX option against a portfolio of S&P 500 stocks. In the past, the CBOE has funded studies that claim investors using a BXM strategy can come close to matching the performance of the S&P 500 over the long haul with only two-thirds of the volatility. …Clifton is one of a handful of money managers that specializes in overlays. Others are Rampart Investment Management in Boston, which is managing a program for Santa Barbara County; Gateway Investment Advisers, which won the Hawaii Employees mandate; market makers Gargoyle Group; and Capstone Asset Management. The big passive fund managers, Russell and State Street, have also recently entered the space. http://www.sourcemedia.com/ http://bit.ly/PensionsBXM-Trdrs-2011Dec

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Returns and Volatility Over Time Periods

37

Indexes, for Time Periods Ending Feb. 28, 2014ATM BuyWrite US Stocks ATM PutWrite OTM BuyWrite T Bonds Commodities

BXM - CBOE S&P 500

BuyWrite Index

SPTR - S&P 500 Total Return

PUT - CBOE S&P 500

PutWrite Index

BXY - CBOE S&P 500 2%

OTM BuyWrite

Citigroup 30-yr Treasury

S&P GSCI TR MSCI EAFE (US$ Net TR)

MSCI Emerging Markets Index (NetTR

US$)

BXM S&P 500 PUT BXY30-Yr Trsry S&P GSCI

MSCI EAFE

MSCI Emerg Mkt

One-Year Annualized Return 12.8% 25.4% 11.7% 17.2% -6.2% 1.8% 19.3% -6.0%

Three-Year Annualized Return 8.0% 14.4% 8.8% 11.8% 8.8% -2.1% 6.6% -2.0%

Five-Year Annualized Return 13.8% 23.0% 15.2% 19.2% 3.9% 7.8% 17.6% 16.9%

Ten-Year Annualized Return 5.1% 7.2% 7.1% 7.2% 5.9% 0.2% 6.7% 9.9%

Twenty-Year Annualized Return 8.0% 9.2% 9.4% 9.7% 6.6% 4.1% 5.3%

25-Year Annualized Return 9.4% 10.1% 10.7% 10.6% 7.7% 5.1% 4.9%

Annualized Return Since 30-Jun-86 9.2% 10.0% 10.4% 6.9% 6.9%

One-Year Standard Deviation 6.6% 10.1% 6.0% 8.7% 12.5% 10.5% 13.3% 14.2%

Three-Year Standard Deviation 9.7% 12.5% 9.3% 11.5% 15.5% 16.9% 16.9% 19.8%

Five-Year Standard Deviation 10.6% 14.3% 11.0% 12.3% 14.9% 19.0% 18.6% 22.4%

Ten-Year Standard Deviation 11.2% 14.7% 11.2% 12.8% 14.9% 24.0% 18.3% 24.0%

Twenty-Year Standard Deviation 11.1% 15.2% 10.8% 12.9% 13.0% 21.8% 16.7%

25-Year Standard Deviation 10.5% 14.8% 10.0% 12.3% 12.3% 21.0% 17.6%

Standard Deviation Since 30-Jun-86 11.1% 15.5% 10.3% 12.3% 20.3% 20.3%

Past performance is not a guarantee of future results. Please read important disclosures at last slide.

Sources: Bloomberg and CBOE www.cboe.com/benchmarks

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Important Disclosures

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (the “ODD”). The ODD and supporting documentation for any claims, comparisons, recommendations, statistics or other technical data in these materials are available by calling 1-888-OPTIONS, or contacting CBOE at www.cboe.com/Contact. The information in these materials is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in these materials. No statement within this material should be construed as a recommendation to buy or sell a security or to provide investment advice. The CBOE S&P 500 BuyWrite Index (BXMSM), CBOE S&P 500 2% OTM BuyWrite Index (BXYSM), CBOE DJIA BuyWrite Index (BXDSM), CBOE Russell 2000 BuyWrite Index (BXRSM) and CBOE NASDAQ-100 BuyWrite Index (BXNSM) (the “Indexes”) are designed to represent proposed hypothetical buy-write strategies. Like many passive benchmarks, the Indexes do not take into account significant factors such as transaction costs and taxes. Transaction costs and taxes for a buy-write strategy could be significantly higher than transaction costs for a passive strategy of buying-and-holding stocks. Investors attempting to replicate the Indexes should discuss with their brokers possible timing and liquidity issues. Past performance does not guarantee future results. These materials contain comparisons, assertions, and conclusions regarding the performance of indexes based on backtesting, i.e., calculations of how the indexes might have performed in the past if they had existed. Backtested performance information is purely hypothetical and is provided in this document solely for informational purposes. The methodology of the Indexes is owned by Chicago Board Options Exchange, Incorporated (CBOE) may be covered by one or more patents or pending patent applications. Standard & Poor's®, S&P®, and S&P 500® are registered trademarks of The McGraw-Hill Companies, Inc. and are licensed for use by CBOE. "Dow Jones", "The Dow", "DJIA" and “Dow Jones Industrial Average” are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by CBOE. CBOE's options based on Dow Jones indexes and financial products based on the CBOE DJIA BuyWrite Index are not sponsored, endorsed, marketed or promoted by Dow Jones and Dow Jones makes no representations regarding the advisability of investing in such products. Nasdaq®, Nasdaq-100®, and Nasdaq-100 Index®, are trademarks of The Nasdaq Stock Market, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by CBOE. The CBOE NASDAQ-100 BuyWrite Index (the "BXN Index") is not derived, maintained, published, calculated or disseminated by the Corporations. CBOE Volatility Index®, VIX®, CBOE® and Chicago Board Options Exchange® are registered trademarks and BXM, BXD, BXN and BXY are servicemarks of CBOE. Copyright © 2014 Chicago Board Options Exchange, Incorporated. All Rights Reserved.