Index Roll

Filed Under » , ,
Dictionary Says

Definition of 'Index Roll'

A passive index investing strategy that is established by using a combination of index funds and long-term equity anticipation securities (LEAPS). The investor must roll over a series of LEAP options in an attempt to gain exposure to a long-term move in an index. The leverage from the options allows the investor to magnify gains and can result in outperforming an index over the long run.
Investopedia Says

Investopedia explains 'Index Roll'

This type of investing strategy allows an investor to have the same exposure to a standard benchmark, but often with less capital because of the exposure from the LEAP option. Over time, the position will have similar payoff characteristics to a regular indexing strategy, but returns tend to be slightly magnified because of the exposure from the option in the early stages of the setup.
Search results for

'Index Roll'

  • Creating Highly Effective Hedges With Index LEAPS

    http://www.investopedia.com/articles/optioninvestor/11/creating-highly-effective-hedges-with-index-leaps.asp
    ... In these cases, it may make sense to exit the hedge, sell the fund, roll
    up the LEAPS index puts, or do some combination of these. ...

  • ETFs Provide Easy Access To Energy Commodities

    http://www.investopedia.com/articles/optioninvestor/07/energy-ETF.asp
    ... The ETF seeks to track an index that optimizes roll yield by selecting futures
    contracts according to a proprietary formula. Bearish ...

  • ETFs Provide Easy Access To Energy Commodities

    http://www.investopedia.com/articles/optioninvestor/07/energy-etf.asp
    ... The ETF seeks to track an index that optimizes roll yield by selecting futures
    contracts according to a proprietary formula. Bearish ...

  • Rolling LEAP Options

    http://www.investopedia.com/articles/optioninvestor/07/rolling_leaps.asp
    ... security to continue to compound as the investor pays the roll forward costs ... investors
    the ability to construct long-term portfolios of stocks or index ETFs and ...

  • 3 Steps to Hedging with LEAPS Options

    http://stocks.investopedia.com/stock-analysis/moneyshow/3StepstoHedgingwithLEAPSOptions.aspx
    ... In these cases, it may make sense to exit the hedge, sell the fund, roll
    up the LEAPS index puts, or do some combination of these. ...

  • Roll With Your Spinoff

    http://stocks.investopedia.com/stock-analysis/2010/Roll-With-Your-Spinoff-PEPYUMMCDCMGBMYMJN0817.aspx
    ... Roll With Your Spinoff. ... given time that it's led to the creation of the
    Claymore/Beacon Spin-Off ETF, a basket of 40 stocks tracking the Beacon Spin-Off ...

  • 4 Ways To Trade The VIX

    http://stocks.investopedia.com/stock-analysis/2011/4-Ways-To-Trade-The-VIX-VXX-VXZ-TVIX-XXV-XIV1118.aspx
    ... duration of around five months and that same negative roll yield applies here -
    if the market is stable and volatility is low, the futures index will lose money ...

  • 4 Ways To Trade The VIX

    http://stocks.investopedia.com/stock-analysis/2011/4-Ways-To-Trade-The-VIX-VXX-VXZ-TVIX-XXV-XIV0809.aspx
    ... duration of around five months and that same negative roll yield applies here -
    if the market is stable and volatility is low, the futures index will lose money ...

  • Transport Stocks Ready To Roll

    http://stocks.investopedia.com/stock-analysis/2011/Transport-Stocks-Ready-To-Roll-IYT-JBHT-SEA-CSX0421.aspx
    ... Transport Stocks Ready To Roll. ... Despite the fact that the Dow Jones Transportation
    Index is trading at an estimated 19 times forward earnings, versus the Dow ...

  • 4 Ways To Trade The VIX

    http://stocks.investopedia.com/stock-analysis/2012/4-Ways-To-Trade-The-VIX-VXX-VXZ-TVIX-XXV-XIV0216.aspx
    ... duration of around five months and that same negative roll yield applies here -
    if the market is stable and volatility is low, the futures index will lose money ...

Related Articles

Partner Links