: This is the "sweet spot." It outperformed the S&P 500 in 5 out of 7 periods where the index posted annual returns of 10% or less.
The "buy-write" strategy's success is highly dependent on the market's trajectory: buy write index returns
The strategy typically offers lower volatility and higher income than owning the index outright, but it tends to underperform in strong bull markets due to the "cap" on upside gains. : This is the "sweet spot
: Historically, buy-write indices have exhibited about 30% lower volatility than the S&P 500. Performance in Different Market Conditions buy write index returns