Jun. 4 at 2:05 PM
Samantha LaDuc and Hans Albrecht discuss why the #BXM (CBOE BuyWrite Index), a tool used to gauge S&P
$SPX performance via covered calls, has recently broken down and become less reliable.
They compare it to the
$SVXY, which also failed as a signal after the August 2024
$VIX spike, highlighting how both were once useful indicators until extreme market moves distorted their performance.
Samantha explains that BXM’s underperformance is due to path dependency in covered call strategies—strong market rallies after selloffs cap upside gains, especially when the strategy cannot adapt.
https://youtu.be/yOGso3pSK6M