About BXY TRAKRS Futures

BXY^SM TRAKRS^SM are designed to offer customers access to the performance of a hypothetical 2% covered call, or “buy-write,” strategy on the S&P 500® Index using a single transaction.

How It Works

BXY TRAKRS track the performance of the BXY TRAKRS Index, which in turn tracks the CBOE S&P 500 2% OTM BuyWrite IndexSM Index (BXY Index), a total return index that is designed to simulate a buy-write strategy on the S&P 500 Index.

The Index accomplishes this through (1) a purchase of portfolio of stocks comprising the S&P 500 Stock Index, and (2) the sale of a succession of one-month, 2% out-of-the-money covered call options on that portfolio, generally on the third Friday of each month. Ordinary cash dividends paid on the stocks underlying the S&P 500 Index. as well as the option premiums received from writing the 2% covered call options on the S&P 500 Index, are effectively reinvested into the BXY Index and then subject to the price movements of the S&P 500 Index and the call options on the S&P 500 Index.

For additional details on the Index methodology, download the BXY TRAKRS Special Executive Report or visit www.trakrs.com.