Deutsche Börse Launches Strategy Index: DAXplus Covered Call - New Strategy Index For Covered Call Options Strategy - Index Launch On 23 January

On 23 January, Deutsche Börse will launch a further strategy index, DAXplus® Covered Call. The index tracks the 'covered call' or 'buy-write' options strategy. This strategy combines a passive index investment with a passively managed options portfolio. It involves writing a call option while simultaneously purchasing the option's underlying. The premium for the sale of the option hedges the risk. The index is composed of the DAX equity index and a call option on the DAX, which is traded on Eurex. DAXplus Covered Call is the fourth index in Deutsche Börse's strategy index family, following DivDAX®, DAXplus® Seasonal Strategy and DAXplus® Export Strategy.

With DAXplus Covered Call, for the first time, Deutsche Börse is offering investors an index-based options strategy that can be traded in real time. The high liquidity of the DAX options traded on Eurex makes the index an attractive underlying for structured products, such as certificates and warrants, passive investment funds and index funds. Nomura, a leading Japanese investment bank, will soon be offering a certificate on the index.
The index also serves as a benchmark for active portfolio managers.

The DAXplus Covered Call index is rebalanced monthly. A call option to be used for index calculation in the following month is determined on the third Friday of every month. The selected option remains in the index until 1pm on its last trading day.

Deutsche Börse's Market Data & Analytics calculates the new index on the basis of Xetra and Eurex prices. DAXplus Covered Call is re-calculated every minute from 9am to 5.45pm on trading days, and until 1pm on the option's rolling days. The index will have a history dating back to January 1992.

Market Data & Analytics calculates and publishes more than 1,700 indices in total, making Deutsche Börse one of the world's most significant index providers. Market Data & Analytics also compiles, distributes, and markets independent capital market information, such as price data, trading statistics, and back office information for banks and financial institutions.