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Secured Options Update

May 02, 2022

Glenmede Secured Options Strategy Bullish Heading Into May

The Glenmede Secured Options Strategy returned 1.27% (net of fees) for the April expiration cycle in a down market, outperforming the S&P 500 by 2.8%. The focus is now on earnings season, with market volatility still elevated. But it is more about the uncertainty around market multiples in a rising interest rate environment than actual earnings numbers, which helps create a more attractive compensation-for-risk profile. Against this backdrop, we continue to be bullish heading into May with what we believe is a potential 70 bps advantage in an up market and only a potential 57 bps disadvantage in a down market.