Snapshots of Long-Term Benefits of Call Overwriting

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that with normally distributed returns and exponential utility, investors are indifferent to fairly priced call overwriting; in a more realistic scenario with higher downside volatility, investors demand a minimum premium that current S&P 500 levels may not justify.