What is an AEX covered call index?

The AEX Covered Call Index is a strategic index that combines a long position in the AEX index with the sale of a 1-month, 5% out-of-the-money call option on the AEX index. This strategy, also known as a "covered call", offers investors the opportunity to generate extra income through the premium of the sold call options, while simultaneously benefiting from price increases of the underlying AEX index up to the option's exercise price level.

See also:

Covered Call Index: A broader term for indices that apply the same strategy, but possibly to other underlying assets.

Protective Put Index: An index that combines a long position in the underlying asset with the purchase of put options as protection against price falls.

AEX Protective Put Index: Specific to the AEX index, where a long position is combined with the purchase of put options for protection.

This strategy is popular with investors who are looking for a balance between profiting from rising markets and generating extra income, while simultaneously offering some protection against falls.