White Paper

Using Options Strategies to Help Achieve More Targeted Portfolio Outcomes

By John Hall, Lorne Johnson & John McClure

Overview

The innovation and proliferation of financial derivatives have made options-based strategies more accessible to asset owners, allowing them to target precisely the risks they want to take in order to better achieve portfolio objectives.

  • Defined Outcome strategies are derivative-based investments that alter a long-only investment payoff, providing fixed-term, guaranteed downside protection with a variable upside cap.
  • Covered call strategies can provide comparable or superior returns to an investment in equities alone, but with less volatility, lower drawdowns, and significant income enhancement.
  • Asymmetric convexity strategies with long horizon call options provide upside equity market participation and downside protection at a range of risk and exposure levels across a variety of equity indices.

Note: Forecasts may not be achieved and are not a guarantee or reliable indicator of future results

References

John Hall

References

Lorne Johnson

References

John McClure

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