Risk averse investing

 https://cdn.cboe.com/resources/indices/documents/pap-assetconsultinggroup-cboe-feb2012.pdf

Used perplexity to summarize the report 

Based on the information provided in the document, I would recommend considering options-based investment strategies, particularly the PUT (CBOE S&P 500 PutWrite) Index, for investors looking to enhance risk-adjusted returns. Here are some key reasons:

## Performance

The PUT Index demonstrated the highest total growth over the 23.5-year period analyzed, with a cumulative return of 1153% (10.4% annualized) compared to 807% (9.0% annualized) for the S&P 500 Index[1]. This outperformance was achieved while also exhibiting lower volatility.

## Risk Reduction

The options-based strategies, including PUT, BXM (BuyWrite), and CLL (Collar), all showed about 30% lower volatility compared to the S&P 500 Index[1]. This reduced volatility can be particularly appealing for risk-averse investors.

## Downside Protection

The options-based strategies provided better downside protection during market declines. For example, the CLL Index had a maximum monthly loss of -8.0% compared to -16.8% for the S&P 500 Index over the analyzed period[1].

## Risk-Adjusted Returns

The PUT Index demonstrated the highest Sortino Ratio at 0.90, compared to 0.50 for the S&P 500 Index, indicating superior risk-adjusted performance[1].

## Income Generation

These strategies generate regular income through option premiums. For instance, the BXM Index collected an average gross monthly premium of 1.8%[1].

## Considerations

While the options-based strategies offer attractive benefits, investors should be aware that they may limit upside potential in strongly bullish markets. The choice between PUT, BXM, BXY, or CLL strategies would depend on an investor's specific risk tolerance and return objectives.

In conclusion, for investors seeking to enhance risk-adjusted returns, reduce volatility, and potentially outperform the broader market over the long term, the PUT Index strategy appears to be a compelling option based on the historical data presented.

Citations:

[1] https://cdn.cboe.com/resources/indices/documents/pap-assetconsultinggroup-cboe-feb2012.pdf