In recent years risk management has been growing in importance due to higher volatilities on financial markets and is becoming more integrated in the investors' overall decision-making. Primary financial tools for hedging against risks are financial derivatives. One of the most successful and widespread option strategy is the Covered Call or so called Buy-Write strategy. Investors following the Covered Call strategy are selling a call option and buying the underlying at the same time. Thus investors are able to protect themselves from a total loss and profit simultaneously from sideways market movements. 

Deutsche Börse is reproducing this well known and very successful investment strategy by means of the DAXplus® Covered Call index. The rolling index is based on the DAX® portfolio and a call option on DAX which is traded on the Eurex forward market.

Factsheet DAXplus® Covered Call