Financial & investment strategies to captivate S&P 500 volatility premium

• Main Authors: Alexandros Garefalakis, George Alexopoulos, Michael Tsatsaronis, Christos Lemonakis
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2017-10-01
• Series: Investment Management & Financial Innovations
• Subjects: accounting and financial measures; capital flows; investment strategies; volatility risk premium
• Online Access: https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9213/imfi_2017_03_Garefalakis.pdf

So as to enhance the risk of balanced execution of their portfolios, speculators look to broaden by including new resources, new sorts of monetary instruments or even new resource classes. Like wares, volatility rose as an unmistakable resource class and included the speculation portfolios particularly by multifaceted investments. This paper examines the volatility premium of S&P 500 record choices and contrasts with different venture methodologies in view of offering alternative structures, for example, straddles and strangles utilizing diverse measures or risk and return. The outcomes demonstrate that the speculation procedures used to catch the instability premium through offering choices structures give higher exhibitions contrasted with the S&P 500 benchmark index.