The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

OIC Promotes Options To Managers

The Options Industry Council has stepped up its promotion of options trading to asset managers on the heels of sponsoring a study that proved that collaring PowerShares QQQ exchange-traded fund strategies with options optimized returns.

 The study, which was sponsored by the OIC and conducted by the University of Massachusetts, showed that in the last nine years, using a protective collar strategy of a six-month put purchase and consecutive one-month call writes cut volatility to one-third of the Nasdaq-100 Index’s volatility. Moreover, the strategy returned more than 150% cumulatively, compared to 12% losses holding an ETF on the index would have incurred.

"We are trying to convince pension managers and other buyside institutions that with returns like these, it’s their obligation to consider options as an investment," said Phil Gocke, managing director of OIC’s institutional division. Though institutional volume makes up about 60% of overall options order flow and has been growing, new entrants primarily include hedge funds, not traditional asset managers. The aversion to the options market crash in the late ‘80s resulted in the majority of large pensions prohibiting asset managers from investing in options, though the charters have been lifted in many places recently, Gocke said. OIC is planning to meet with managers to educate them about options over the next few months.

More stories from Wall street letter

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree