EFTA Document EFTA01365333

3 December 2013 US Derivatives Spotlight The basics of long-dated calls Better risk-adjusted returns at an attractive price Buying long-dated call options offers benefits to investors seeking equity exposure. They allow for continued upside participation and at the same time provide a floor should the broad market decline rapidly. In this note, we show that longer-dated SPX call strategies have historically provided better risk- adjusted returns compared with buying and holding the broad